Welcome back. We have an update from Sky Harbour Group Corporation that trades on New York Stock Exchange American under the symbol SKYH. It's an aviation infrastructure company developing the first nationwide network of home-basing campuses for business aircraft. Please welcome Founder and CEO Tal Keinan. Welcome, Tal.
Thank you very much. So I'll give you guys a quick update from the last time we spoke. Just confirming you can hear me, the screen went blank here.
We can hear you and see you.
Okay, fantastic. So a lot's gone on. We're talking about as of end of the third quarter. So, you know, we like to think of ourselves in terms of four buckets: site acquisition, development, revenue, and operations. On the site acquisition side, as people may have followed, we've been really kind of exceeding our estimates on new airfield wins. Most recently, we announced a new lease at Trenton, New Jersey, a strategic field that the New York market is quite key to us, and our first brownfield acquisition in Camarillo, California, and just ask people to stay tuned for more in the coming months. On the development side, we're about to complete construction at three new campuses in Denver, Phoenix, and Dallas. So we'll be starting operations at all three of those this quarter. A lot more in the pipeline, but we'll go through all of that right now.
Revenue, you can kind of look at revenue growth as sort of a step function as we open new campuses. So, you know, it always looks quite steep. It is steep. But as of, I mean, take it back to September of 2024, because we are talking about the third quarter, we're at a little bit about 110% year-on-year rise in revenues from about $6 million to about $12.5 million. And again, as you watch new campuses open and come online and start cash flowing, that revenue behaves as a step function. And hopefully, as we open more of these, right, we're now at five campuses. At the end of this quarter, we'll be at eight campuses. There'll be hopefully higher visibility, predictability as to what those step functions look like even before they actually happen.
On the operations side, we've got those three new campuses, campus six, seven, and eight, staffed and equipped. We're ready to go. Our service model, I think that some of your viewers follow quite closely, continues to develop. We're adding new features to it all the time. If we have time at the end, we're happy to talk about our new security features, which have been quite important to a lot of the Sky Harbour residents, and we've had a leadership change. We brought in Marty Kretchman as our Senior VP of Airports, who's really responsible for everything that goes on Sky Harbour Fields. You know, Marty's a 20-year veteran of the FBO space, exactly the person for the role, and then lastly, just higher level on the finance side, we completed a PIPE last year. As we know, we try to be very judicious about our capital formation strategy.
Raise what you need a little bit before you need it. And that's kind of our point of view. Never want to be doing this under the gun. We targeted a $75 million PIPE. We came in a little bit above that, but pretty close. But more importantly, we're able to really add to our roster of strategic investors. And people are really pulling for Sky Harbour in all sorts of ways on the airports with our residents. That was very gratifying. We're very happy with that close. And then lastly, also on the finance side, people may have noted we recently uplisted to the New York Stock Exchange. And we'll, I think, announce that with a little bit of fanfare and a bell ringing at the end of this month. I think that's the 28th of January. That's, in a nutshell, the Q3 update for Sky Harbour.
Fantastic, and talk a little bit about how the Camarillo purchase fits into Sky Harbour's site acquisition framework, please.
Yeah, so the Los Angeles basin is definitely a tier one market for Sky Harbour. And even within Los Angeles, you know, we have kind of two themes that we're tracking. One is the concentric circles of occupancy. If you take Van Nuys, as sort of the epicenter of Los Angeles business aviation, you know, that airport's been tapped out for a long time in terms of capacity. It's landlocked. There's real constraints to growth. And we're seeing a lot of spillover into surrounding airports. So you're seeing kind of the concentric circles around Van Nuys become more populated. As Santa Monica is set to close, to shut down at some point soon, we're going to see a lot of migration of aircraft. And Santa Monica is primarily light jets and turboprops and pistons, but that's hangar capacity, right? And so that will get eaten up.
We'll see, I think, a lot more pressure on these outlying airports. The second is a westward migration from Los Angeles. This is all obviously pre-fires. You're seeing a lot of aircraft ownership migrate out to the corridor that, say, in the east would be Calabasas, and the west would be Montecito. Camarillo is really the best airport for serving that particular segment of the population. Really great target airport for us. We ended up, we're opportunistic about this. This is our first brownfield acquisition, but we're able to acquire it at below what it would have cost to develop it. That was a win for us. Of course, it cash flows immediately, rather than taking two years to develop. Lastly, I'd say it's just a great asset, great team. If you get a chance to visit it, it's beautiful.
It is absolutely a Sky Harbour property. And it's run like that. So the stars align for us there.
A viewer wants to congratulate you on the New York Stock Exchange listing and asks, Is the symbol going to remain the same?
Yes, symbol will remain the same. Thank you for the congratulations.
Do you see additional acquisitions, like you mentioned, in the near future?
Opportunistically, yeah. I mean, we're strategic about the greenfield stuff. That is our vanilla day-to-day business is acquire raw land. But we're absolutely geared up and capitalized to be opportunistic, and if the stars align like they did in Camarillo, absolutely.
As you begin to scale your operational footprint with Denver, Phoenix, and Dallas coming soon, will the company experience any network benefits from these new locations?
Yeah, over time, we can see that. And we definitely have residents who are sitting in multiple locations and want to treat more than one city as a home base. And that's been great for us. You know, when we talk about, for example, having that, for people who need it, that security service, which is going to be tough to get in any other format, right? It's really a home-based type service. Absolutely. The answer is yes. And when we had three campuses in operation, it was difficult to see that. As we get to eight now, we're absolutely seeing it.
Do you have any capital raises in the near term?
Yeah, like I said, I think we look at capital formation as on an as-needed basis. Don't dilute when you don't need to dilute, but before needed, right? We try never to navigate ourselves into a corner where we absolutely need financing. It's always a little bit before. That's a balance that we're always going to be trying to strike.
Will 2025 see some major changes or additions to Sky Harbour's service model?
The answer is yes. You know, I hope 2025 really becomes the year where we're able to establish home basing as a recognized notion in business aviation, right? When you say fixed base operator, people in business aviation know what that means. We're hoping to establish home basing as that as well. And that has everything to do with the service model. You know, we were a little bit dogmatic about being a real estate company in the early years. And it took a couple of maybe hard-learned lessons to understand, no, we are absolutely a service company. And we're able to provide, through a fusion of that physical asset and the service offering, a combined offering that nobody else can really provide in aviation. And we get really good input from our current residents. We encourage that. That's fantastic. And that's really what helped us to hone that offering.
So, you know, the example that I gave earlier is perhaps prominent among those is a security offering that I don't think anybody else can match in business aviation.
Last question, is it possible to have 50 locations in three to five years?
It's absolutely possible, and, you know, I hope I'm not spoiling anything. I think it might be possible to exceed that as well.
Wonderful. Well, great update. Thank you so much for your time, and we look forward to seeing you again real soon.
Really appreciate it. Thanks.
All right, everyone. We'll be right back.
CYIOS Corporation. The ticker is CYIO. It's a rapidly growing and dynamic company focused on innovative health and wellness solutions. And the company recently completed the acquisition of Noir Medical Supplies, a strategic move that enhances its capabilities in delivering high-quality medical and PPE products to meet growing demand while driving revenue expansion. Presenting today with our update is John O'Shea, Chairman of CYIOS, and Ralph Amato, CEO of Noir Medical Supplies. Welcome back, gentlemen.
Thank you. Thanks for having us again.
Thank you.
Everyone, thanks for joining us. I'm actually down in Australia at the moment, and Ralph's in Miami, but he is wearing an Australian golf shirt there.
I'm wearing my shirt on today.
Yeah, I appreciate that. I appreciate it. So we're Thursday morning here, Wednesday afternoon in the U.S. Look, we're really excited about giving you the updates on our milestones. We did the acquisition in August, 10th of August, with Noir. We predicted to do revenues of between $7 and $9 million finishing off 2024. Ralph's hit it right out of the park. He's had revenues.
Team effort.
Team effort. You know, we've finished the quarter with in excess of just over $5 million for the quarter. Ralph's finished up the year with over $14 million for the year. Exceptional results, really. Of what we know for 2023 was around about $4.5 million in revenue. So fantastic results. But one of the things I do want to get out onto the table, you know, they say, you know, the elephant in the room. We are probably one of the most undervalued stocks in OTC markets. And I'm going to put that right out there. We've got 280 million plus shares issued and outstanding. We've got a market cap of $3 million. And yet we did revenues in the last quarter of $5 million. So when they get posted, this is going to be one of the greatest stock purchase opportunities, I believe, in OTC markets.
We've got a lot more coming. There's a lot coming down the pipe. We're working on a lot, a lot of stuff. One of the things that's really important and the reason we've got Ralph sitting in his warehouse, this is a real business. You know, I'm not sure, Ralph, if you can move the camera around a little bit and give us a bit of a view of what we're in at the moment. We have a massive warehouse. I say Florida, but where's the actual location?
Boca Raton, Florida.
Okay, Boca Raton, Florida. And how long have you been in this warehouse? Because I know that you've expanded from previous warehouses.
This warehouse, we're in the same building complex for a number of years. We came back to this part because we needed to go into bigger spaces. It worked out that the landlord is a friend of ours. He had a place for us. He accepted us with open arms.
Yeah.
So it worked out.
And so let's give everyone a bit of a feeling. We're going to talk about the numbers, you know, when we finish up, what we're expecting in 2025. We're going to talk about, you know, uplisting, audits, all that boring stuff. But let's get into what you do in a day-to-day business. Because I've been there in the factory and I've seen it. You know, tell us, you know, when you look to do an order, how that works, the shipping, the trucks coming in, the unloading, the repacking. Give us a little bit of a feel of just, you know, a day in the life of Ralph and how crazy it really is. Because I've been with you and it is. The phone's going, trucks are arriving. Tell us what it's really like on a day-to-day of Ralph.
Well, listen. Without warehouse staff, without Ernie, without John, Adam, Danny, nothing happens. The guys, inventory comes in. We get a purchase order. We win a bid. Or we find out there's product available. We take that. We then generate from the PO our outbound orders, which are coming in from our general suppliers. They're shipping the product. It all arrives here. It has to go through the ISO process, which means if it's not been photographed in the past, it has to be photographed. Without Ernie, Ernie sorts it, gets it all in the right places where it belongs. And then it gets loaded. And a pallet ends up like these. It gets sorted into smaller shipments. And then they go out to whoever's been on that particular customer's order. On the inventory you see in the background, that inventory is stock that comes in, generally from China.
It is then parceled out as it's purchased. Fortunately, almost everything in this building is sold. We charge a little storage. We charge a delivery, and it gets delivered to the end buyers on a regular basis.
How often does this get turned over? Like, tell us what that turnover rate looks like?
We need to generate a lot of revenue because we want to have a successful stock price. Because the more access we have, the more we can turn over. In general, inventories don't sit very long. I would say the worst-case scenario is 10 days if we spot buy something where we know, for instance, a nitrile glove. I don't mind holding that because I know it's going to sell. And right now, with the tariff that just President Biden had put in, we know the price has gone up. So it's paid to hold it. But we try to keep in this building somewhere between $6,000 and $800,000 worth of inventory. It fluctuates. Some weeks it may drop down to $100,000. And then the next week it'll go right back up.
It all depends on the opportunity buys we get and the consistent orders we win on bids from our current customers.
How long have you been doing this, Ralph, so that you've got these relationships in place that, you know, this is not just an overnight success? As much as CYIOS is running off your coattails and saying, look, you know, this is amazing stuff, you know, how long have you been doing this? What are these relationships like? How difficult is it for other people to get into this space, which makes us a unique opportunity, what we've got?
The key is I know I appear to be in my 30s, but I am 60. Just recently turned that on December. I started in this field when I was 18 years old. I've been in it a long time.
Yeah, right.
And yes, I always make the joke that my phone is the real value of the business because of all the phone numbers that are in there. But the idea has been some of these relationships go back 35 years. And they're friends of mine or family friends. We vacation together occasionally. So the environment is changing. A lot of the old guys are retiring. Their sons are taking over or their companies are being sold to others. And we continue to work together, establishing new relationships constantly. At some point, I want to retire. I don't know when that's going to happen.
Well, that.
We'll get there.
That's right. And that's part of our five-year plan, you know, to build this up to, you know, hundreds of millions of dollars in value for shareholders. And I think that's probably one of the things that we are doing is adding substantial shareholder value. One of the things that we've been breaking your balls on, I hope that's all right to say in the U.S. market, is the PCAOB audit, which is an absolute mouthful. So I'll just say that again. It's a two-year PCAOB audit, if I've got that right, haven't I?
Yes.
So tell us a little bit about that because I know that's been an absolute, you know, thorn in your side of getting that stuff going.
Our books are always very, very accurate, but unfortunately, when the company took over in August, we had to tidy it up even further and working with the current accountant for Noir, Stuart Rotman and Shane out in Dallas, he's in Texas, I believe, we've cleaned, corrected, made sure everything is perfect preparing for this audit because from my understanding, it's a very detailed audit. They ask a lot of questions. Everything has to match what flows through the bank, which it does now. Everything has to match what came in through inventory. There is some natural shrinkage. Boxes get damaged. Boxes go out of date. They come in out of date. It is what it is.
There's some slippage, isn't it? It's always slippage. Every, you know.
There's a little bit. We try to keep it under one and a half points, closer to one, quite honestly, and damages in shipping, the reason why we have guys as good as Ernie and John is they pack it. They put corners on the cases.
Yeah.
As you can see right there, to keep this slippage from getting any bigger.
Yeah.
The idea is preparing for that audit has taught me a lot. My first foray into a public company. I got a lot of lessons in the details. The budgeting aspect is something that needs to be done because what good is a PCAOB audit? You pass something that's two years ago. That's great. Where are you going tomorrow? It all goes hand in hand as part of the budgeting process and the accounting. The accounting will substantiate what we budget.
Yeah. And talking about that, you know, tomorrow, and it's always difficult, you know, putting, you know, projections on, you know, 2025. But shareholders want to know, are we going to do similar sort of activities that we've done in 2024? Now, 2024 was a pretty eventful, you know, we've gone from a $6 to $9 to $40 million revaluation in regards to the market or revenues. But we'd be pretty confident to say that we're going to be in the $15+ market. Tell us about what you're feeling. You know, is there market pressures because of the government, because Trump's been appointed? Is there market pressures because, you know, CPI's gone crazy? The normal cost of, you know, here in Australia to get a coffee is like $6. Like, you know, when I left, it was $4. Like, where's $2 come from?
But, you know, tell us about what you're seeing in 2025, how that's sort of panning out. I'm not talking about hard numbers, but just an overall feel.
We preordered a bunch of inventory at the end of 2024 because Trump had said he was going to slap the tariff on the disposables, the product from China, up to 60%. Now, I'm not afraid of that because it's applied to everybody. We're all in the same boat. Unfortunately, if the price goes up, it's going up for everybody. It's not just going to affect me. We had a little extra capital available. We ended up bringing in, I don't know, six or eight extra trailers. Now it turns out that hopefully he's going to slow down on his tariffs because there isn't a way of replacing the product currently made in the U.S. with what's coming in from international markets. We're hoping that if the tariff will occur, it'll occur equally, but it'll slow down.
Instead of hitting with 60%, maybe it'll start at 20%.
Yeah.
Now, that makes things and budget, that makes things a little more difficult because as you budget, again, the goal is to build us into a $50 million company over the next couple of years, and if we do the right acquisitions and possible overstock, the growth potential is really great. It makes planning a little difficult. It makes making sure you have enough money for financing a little difficult, but it all gets done. Sometimes you have to slow down. Sometimes you can speed up.
One of the things, one of the highlights.
I believe that's always.
Yeah. So one of the highlights for 2025 is looking at other acquisitions. Now, I don't want to go into too much detail on that. But there are some really exciting acquisitions. There's some companies that you're involved with, have been involved with. We're looking at other vehicles as well. You know, that's going to really, really underpin the business to exceed if we put those businesses together. You know, we would be anticipating in excess of, you know, $20-$25 million combined if those acquisitions go ahead, which we're pretty confident they will. How do you see that melding those two businesses together and what that sort of landscape's going to look like?
Listen, in the United States, people are going to continue to get older. People, some folks are conditioning themselves, and they're losing weight and they're getting better, but a lot of people in the United States, they just live and they get a little overweight. They get sick. Unfortunately, the prognosis is it's going to continue to become worse for this country. Medical supplies are going to be needed. Medical supplies are a constant business. We stay in medical because we know that business. We're constantly learning. The companies I work with are all in the medical field because I don't know anything about computers. I don't know anything about fixing electric cars, but can I certainly find somebody's needs for diabetic or ostomy? Absolutely, so by staying in our wheelhouse, staying on our lane, we are very comfortable knowing that the people we work with are all good.
They're all like-minded in terms of growing businesses, and the idea is to put together entities that will expand but stay in the same lane for right now. The idea is to get to over $25 million a year and merging with one other company, and then focusing our efforts, correcting our financing and enlarging it and growing to $50 million over two years.
Yeah.
Those are all doable, but they have to be done in a manner where we stay PCAOB compliant, which I just all learned about.
Yeah.
Making sure the public accounting is done because people rely on those numbers to be accurate. If they're not accurate, like you said, breaking balls, it's my ass that's in trouble. I don't want to have that happen.
Yeah.
To me, it's more important to stay in my lane, build what we build, and do it with a team effort. And again, with great employees, like I said, Adam, Ernie, John, Danny, whatever.
Yeah. And we're also looking at the IT infrastructure. You know, I've talked a lot about how we can bring in AI and make things streamlined. We're also talking about the online presence, which I think is something which is a whole new unique opportunity for us to be able to get into the retail space. Can you tell us a little bit about that without divulging too much and what that opportunity means?
Danny, because again, I can do emails. I can work a computer. I can do invoices, receive, whatnot. But Danny is taking over our internet business because he knows what he's doing. He's working closely with our developer, Scott. And the goal is to have an internet presence where we're bringing product in. We're pushing product out. We want to dabble a little bit closer to the retail market because the returns are a little bit higher. Also, we want to reach out and touch a brand new set of customers that we don't have any experience with where we can begin to take some of our products and package it properly and give them 10 products. Instead of them going 10 different places, they can come to one spot and buy it all at one time.
Yeah, yeah.
That requires a youthful mind that knows how to work within that e-commerce space. I am not that guy. I've got to just be honest.
No, no. We don't want you to be that guy either. We want you to stay in your lane. Everyone's going to stay in their lane. It's the hardest thing about business, isn't it? Stay in your lane.
Working on that. Right. We were working on that all day today, getting our LinkedIn profiles, our LinkedIn opportunities in place. Danny worked on that for the last three days. He's working with Scott in keeping to refine the website. We have a long way to go, but we have enough people to get it done in a relatively quick time period.
Yeah.
We want to put out a product that I'm proud of. If I'm proud of it, then I want these shareholders to be proud of it.
Yes, and I think that's.
Because they're all going to question me eventually.
Yeah.
Why is this? Why is that? And I have to be able to say, here's the product. If there's a good suggestion, I'm more than willing to listen. We're willing to make changes. And we're willing to grow together. Again, I don't know all the answers, but I'm certainly willing to learn and push it out.
All right, gentlemen.
[audio distortion]
I know you can go on. It's fascinating stuff. And it's all good news. So we appreciate you giving us this thorough update today.
Yeah. Look, thank you so much. And.
Thank you.
Enjoy the ride, shareholders, because it's going to be fantastic for 2025.
Thank you.
Absolutely. We're happy to follow along with your journey, everyone.
Thank you.
All right, John, we'll see you guys again soon.
Okay. Thanks so much. Bye-bye.
All right, everyone. That's a wrap for day one. We'll see you back here tomorrow morning, 9:00 A.M. Eastern, for day two of our Super Virtual Investor Conference. Thanks so much. See you soon.