10-K: SKYX Platforms 2025: Smart Tech Growth Amid Losses

SKYX Platforms Corp.'s 2025 annual report details revenue growth driven by smart products and e-commerce, alongside continued operating losses and significant capital needs.

Summary

• SKYX Platforms Corp. (SKYX) filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
• The company focuses on advanced-safe-smart platform technologies for homes and buildings, including plug-and-play installation for light fixtures and ceiling fans.
• Newer products include universal plug and play adapter kits, smart light fixtures, smart ceiling fans, and the 'Smart Sky Platform' (Gen-3) which integrates various smart and safety features.
• The Smart Sky Platform is expected to be commercially available within the next few months.
• Revenue for 2025 increased by 6.6% to $92,009,949 from $86,276,876 in 2024, primarily due to increased sales of lighting and heating products.
• The company reported a net loss of $33,415,604 in 2025, an improvement from $35,768,144 in 2024.
• Operating loss improved to $(29,112,390) in 2025 from $(32,112,239) in 2024.
• As of December 31, 2025, cash and cash equivalents were $10.1 million, including restricted cash.
• The company raised $5.6 million through its ATM program, $29.3 million from common stock issuance (January 2026), $5.4 million from preferred stock issuance, and $5.3 million from convertible notes during 2025 and January 2026.
• The company has over 100 U.S. and global patents and patent applications.
• The Sky Plug & Receptacle technology has been voted into the National Electrical Code (NEC) and received standardization approval from ANSI and NEMA.
• The company acquired Belami, an online retailer specializing in home lighting and furnishings, in April 2023, which now serves as a primary revenue source.
• As of December 31, 2025, the company had 73 employees, including 71 full-time.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a challenging outlook. While revenue growth and product innovation are positive, persistent operating losses, negative cash flow from operations, and the explicit need for further capital raise indicate significant financial headwinds and execution risks.

Positives

• Revenue increased by 6.6% to $92.0 million in 2025, driven by increased unit sales of lighting and heating products.
• Net loss improved to $33.4 million in 2025 from $35.8 million in 2024.
• Operating loss improved by 9.3% to $(29.1) million in 2025.
• Successful capital raises in 2025 and January 2026, including $29.3 million from common stock issuance in January 2026, alleviate substantial doubt about going concern.
• Extensive intellectual property portfolio with over 100 U.S. and global patents and patent applications.
• Sky Plug & Receptacle technology included in the NEC Code Book and received standardization approval from ANSI and NEMA, enhancing credibility and potential for widespread adoption.
• Launch of new universal power plug, SkyHome App, smart universal plug, smart ceiling fans, and lighting fixtures in 2023.
• Expected launch of the all-in-one Smart Sky Platform within the next few months.
• Acquisition of Belami, an e-commerce platform, provides established distribution channels and marketing platforms.
• The Smart Sky Platform is designed as an open system, integrating with existing and new smart home features and devices.
• The Smart Sky Platform includes advanced safety features like smart smoke and carbon monoxide detectors with battery backup, and lifestyle features like WIFI extender, temperature/humidity sensors, and high-quality speakers.

Negatives

• Continued history of operating losses, with a net loss of $33.4 million in 2025 and an accumulated deficit of $216.2 million as of December 31, 2025.
• Requires additional financing in the near-term to support operations and strategic initiatives.
• Reliance on a limited number of third-party manufacturers and suppliers, primarily located in China, exposing the company to geopolitical and supply chain risks.
• Limited product distribution experience for Sky Technologies products, relying heavily on third parties.
• Increased costs associated with operating as a public company and compliance initiatives.
• Dependence on third-party platforms (Apple App Store, Google Play) for mobile application distribution, which could be withdrawn or changed.
• Risk of defects in mobile application and underlying technology.
• Potential adverse impact from monetary and trade policies, including tariffs and interest rates, on operating results and costs.
• Unstable market and economic conditions, including inflation, recession fears, and geopolitical conflicts, could negatively affect business and stock price.
• Risk of cybersecurity breaches or failures in IT systems, including those of third-party vendors.
• Incorporation of artificial intelligence capabilities presents new operational and reputational risks, and an evolving regulatory landscape.
• Significant influence over the company by executive officers, directors, principal stockholders, and their affiliates (23.6% of common stock voting power as of March 18, 2026).
• Preferred stock has preferential rights over common stock, potentially limiting additional financing and creating divergent interests.
• The company has negative working capital ($8.4 million deficit as of December 31, 2025).

Risks

• History of operating losses and likely future losses, with no assurance of generating sustainable revenue.
• Inability to successfully launch, develop additional features, or achieve market acceptance of smart products and technologies.
• Failure to successfully manage and grow Belami's e-commerce operations or negative impact from global economic conditions on discretionary consumer spending.
• Inability to expand, operate, and successfully manage operations, including business transformation and integrating new lines of business.
• Need to raise additional financing, with no assurance of availability on favorable terms, potentially leading to asset sales or termination of operations.
• Risks related to current debt financing, including insufficient cash flow for payments or inability to refinance.
• Reliance on a limited number of third-party manufacturers and suppliers, and inability to reduce production costs.
• Potential dependence on a limited number of customers and/or contracts awarded through competitive bidding.
• Downturns in cyclical industries where customers operate.
• Inability to acquire other businesses, license rights, form alliances, or dispose of operations when desired.
• Inability to comply with regulations relating to applicable quality standards.
• Inability to maintain, protect, and enhance intellectual property and retain rights to use third-party intellectual property.
• Potential outcome of legal proceedings.
• Compliance with various tax laws and regulations, including income and sales taxes.
• Inability to successfully sell and distribute products and technologies.
• Inability to attract and retain key executives and qualified personnel.
• Actual operating results differing significantly from management guidance.
• Incurrence of increased costs as a public company and management diversion to compliance initiatives.
• Failure to maintain effective internal control over financial reporting and disclosure controls and procedures.
• Unstable market and economic conditions, including governmental regulations, geopolitical conflicts (Middle East, China), trade barriers, inflation, labor shortages, supply chain constraints, and banking system instability.
• Cybersecurity breaches or disruptions to information systems, including cloud-based infrastructure.
• Operational and reputational risks related to the use of artificial intelligence capabilities in product offerings.
• Potential impact of widespread outages, interruptions, or other failures of operational, communication, and other systems.
• Potential impact of natural disasters and other catastrophic events.
• Risks related to ownership of common stock, including price volatility and dilution.
• Potential impact of anti-takeover and director and officer liability provisions in charter documents and Florida law.
• Inability to maintain Nasdaq listing.
• Sales of a substantial number of common stock shares by stockholders could depress the market price.
• Conversion of outstanding convertible notes or preferred stock could materially dilute stockholders.
• Preferred stock has preferential rights, potentially affecting liquidity and creating divergent interests.
• If securities analysts do not publish research or publish negative evaluations, stock price could decline.
• Being a smaller reporting company may make common stock less attractive to investors.
• Inability to pay cash dividends on common stock in the foreseeable future.
• Conditions in Israel, including conflicts in the Middle East, may adversely affect operations.
• Failure to successfully implement a new enterprise resource planning (ERP) system.

Future Outlook

Management believes revenues will be higher in 2026 than in 2025, primarily from the sale of advanced and smart products. The Smart Sky Platform is expected to be available within the next few months. The company expects to continually expand its collection of third-party products compatible with its plug and play technology and intends to expand sales in Latin America, Europe, and Asia. Subscription and monitoring services are expected to begin in 2026.

Management Comments

• Our mission is to make homes and buildings become safe advanced and smart as the standard.
• We believe that our products are a necessity in every room in both homes and other buildings in the U.S. and globally.
• We believe that due to safety, convenience, cost, and time all hard-wired electrical products, such as light fixtures, ceiling fans and other products, should become plug and play and smart, as the standard.
• We believe that our patented advanced, safe and smart home platform technologies will enhance and promote safety in homes and buildings and make them smart, as a standard, in a fraction of the time and cost, as compared to other market products.
• We believe that our smart home products will enable builders to deliver smart homes as a standard, in the same way they deliver electricity and appliances as a standard.
• We shifted to smart products because we believe that the market has great demand for smart advanced products, and that we will be able to generate significant sales from our new line of advanced and smart products from direct sales as well as from licensing.
• We believe that safety is a necessity and the top priority in all aspects of life.
• We believe that our advanced-safe-smart platform technologies will disrupt and positively influence various industries, both in the U.S. and globally.
• We believe our total addressable market in the United States exceeds $500 billion.
• We believe there are billions of installations of light and other electrical fixtures globally.
• We believe that the macroeconomic conditions in the United States will improve once interest rates are lowered and trade policies are effective and predictable.
• We believe we can obtain more chips and other materials as needed within a reasonable time period and may be able to replace components with assorted products or modify our design if necessary.
• We do not believe that the loss of any of such third-party suppliers would have a near-term critical impact on our operations.
• We believe our technologies are highly disruptive and innovative compared to other market technologies.
• We do not believe that inflation has had a material impact on our financial position or results of operations to date, we may experience some effect in the near future.

Industry Context

StockSavvy.ai notes that SKYX Platforms Corp. is positioning itself within the rapidly expanding smart home and IoT markets, aiming to standardize safety and smart features in electrical installations. The company's emphasis on plug-and-play technology and integration with major AI home assistants (Siri, Alexa, Google Home) aligns with broader industry trends towards user-friendly, interconnected smart devices. The acquisition of an e-commerce platform (Belami) provides a direct-to-consumer channel, a common strategy for tech companies seeking to control their distribution and customer experience. However, the market is highly competitive, with established tech giants like Apple, Google, Amazon, and security firms like ADT already offering comprehensive smart home solutions, alongside numerous lighting and ceiling fan manufacturers. SKYX's challenge lies in differentiating its 'all-in-one' platform and achieving significant market penetration against these well-resourced competitors.

Comparison to Industry Standards

• SKYX's plug-and-play technology, included in the NEC Code Book and standardized by ANSI and NEMA, sets a high bar for electrical safety and ease of installation, potentially surpassing traditional wiring methods used by competitors like Casainc, Global Electric, Hunter, and Minka.
• The Smart Sky Platform's integration with AI home assistants (Siri, Alexa, Google Home, Samsung SmartThings) aligns with industry leaders like Apple, Google, and Amazon, offering comparable smart control capabilities.
• The company claims its all-in-one platform offers safety and smart features 'in a fraction of the time and cost, as compared to other market products,' suggesting a competitive advantage over fragmented smart home solutions from companies like Control4, Vivint, and ADT.
• The cumulative dividend rate of 8% (12% if unpaid) on preferred stock is a specific financial term that can be compared to preferred stock offerings from other companies, though direct comparisons are not provided in the filing.

Management Changes

Corporate Governance

Legal Proceedings

• As of the date of this Form 10-K, the company was not a party to any material legal matters or claims.
• The company is subject to potential litigation related to products, intellectual property, and other business operations, which could be time-consuming and costly.

Related Party Transactions

• During 2025, accredited investors, including certain officers and 5% holders, purchased 154,000 shares of Series A-1 Preferred Stock and 60,000 shares of Series A-2 Preferred Stock at $25.00 per share.
• Leonard J. Sokolow (CEO and director) purchased 10,000 shares of Series A-1 Preferred Stock for $250,000.
• John P. Campi (Former Co-CEO) purchased 10,000 shares of Series A-1 Preferred Stock for $250,000.
• Steven M. Schmidt (President) purchased 20,000 shares of Series A-1 Preferred Stock for $500,000.
• The company paid $400,000 in dividends to SKY Opportunity LLC (a greater than 5% stockholder) during 2025.
• Convertible notes due to related parties (a director and officers) totaled $350,000 as of December 31, 2025, with accrued interest of $35,486.
• Interest expense on related party convertible notes was $119,486 in 2025.
• Preferred dividends paid and declared to related parties (a director and officer and two officers) amounted to $80,000 during 2025.
• In December 2025, a convertible promissory note with a principal of $600,000 plus $235,900 accrued interest, payable to Shiff Group Investments Ltd. (controlled by Dov Shiff, a director and >5% holder), was converted into 379,955 shares of common stock.

Stakeholder Impact

• Shareholders: Potential for dilution from future equity financing and conversion of preferred stock/notes. Continued operating losses and negative working capital pose risks to share value. Anti-takeover provisions may limit influence on corporate control.
• Employees: Continued investment in R&D and expansion suggests job growth, but the need to retain key personnel is highlighted as critical for success.
• Customers: Benefits from new smart products, enhanced safety features, and ease of installation. Risks include potential product defects, delays in new product releases, and cybersecurity threats to personal data.
• Suppliers: Reliance on a limited number of third-party manufacturers and suppliers, particularly in China, exposes them to risks from geopolitical conditions, trade policies, and supply chain disruptions.
• Creditors: Debt financing carries risks, including the company's ability to meet principal and interest payments, and the potential for creditors to proceed against collateral if obligations are not met.

Next Steps

• Launch the Smart Sky Platform within the next few months.
• Continually expand the collection of third-party products that can be paired with plug and play technology.
• Expand sales footprint in certain countries in Latin America, Europe, and Asia.
• Begin providing subscription and monitoring services in 2026.
• Continue to invest in research and development efforts to enhance features, functionality, performance, and ease of use of products.
• Develop efficient, cost-efficient manufacturing capability and processes.
• Gain brand awareness and attract customers through a coordinated public relations campaign.
• Enter into additional sales, distribution, and/or licensing agreements.
• Obtain additional certifications for new product configurations.
• Repatriate the manufacturing of certain components and assembly of smart and advanced products to the United States.
• Implement a new enterprise resource planning (ERP) system.
• Hold the 2026 Annual Meeting of Stockholders on July 7, 2026.
• Anticipate moving principal executive offices from Pompano Beach, Florida to Miami, Florida during 2026.

Key Dates

Recommendation

While SKYX Platforms Corp. demonstrates promising innovation in smart home technology and has achieved revenue growth, the persistent operating losses, negative cash flow, and explicit need for additional financing present significant financial risks. The recent capital raises alleviate immediate going concern doubts but highlight ongoing capital intensity. The stock is a 'hold' for investors who believe in the long-term potential of its patented smart home platform and its ability to achieve profitability, but the current financial performance and execution risks warrant caution.

Keywords

SKYX Platforms Corp., SKYX, SEC Filing, 10-K, Annual Report, Smart Home Technology, Plug and Play, Lighting, Ceiling Fans, E-commerce, Financial Performance, Operating Losses, Capital Raise, Intellectual Property, NEC Code, Nasdaq, Corporate Governance, Risk Factors, Cybersecurity, Artificial Intelligence, Preferred Stock, Convertible Notes, Financial Statements