Good day, and welcome to the SKYX Platforms Corporation Third Quarter 2023 Investor Update Call. Today's webinar is being recorded. Before we begin the formal presentation, I would like to remind everyone that statements made on the call and webcast, including those regarding future financial results and industry prospects, are forward-looking and may be subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the call. Please refer to the company's SEC filings for a list of associated risks, and we would also refer you to the company's website for more supporting industry information. At this time, I would like to turn the webinar over to Rani Kohen, Founder and Executive Chairman of SKYX Platforms Corp. Sir, please go ahead.
Thank you, everyone, for joining us, for our third quarter call. Today, we will go over, highlights of Q3 business development and financial. We will start today, with our President, Steve Schmidt. Steve Schmidt is the former president of Office Depot International and former CEO of ACNielsen Corporation, that joined us, several years ago, invested with us, and is serving as our president. So with that being said, we will start with Steve, please.
So Rani, thank you very much. You know, as Rani said, I invested and I joined this company over four years ago, after a 40-year corporate career, and just over a year ago, agreed to take on the role as president. And as I've said in the past, you know, there were really six or seven key reasons that I became really excited about SKYX, and it started with Rani, for both his strategic vision, his leadership, and the way that he understands how to run a company. Second, the management team. Third, the board. Fourth, when you look at the number of patents and proprietary products that we have, both from a technology and service perspective, one gets excited.
The global opportunity that exists for this company, as well as the fact that we have filed for mandatory within the code with the National Electrical Code. And when you combine those things, they were the reasons that I just decided to join as president of the company. So with that, let me jump into the Q3 2023 results. First of all, we generated a record $21.6 million in revenue in the third quarter of 2023, including sales of our advanced and smart plug-and-play products. Cash, cash equivalents, restricted cash, available cash, and investments available for sale totaled $24.4 million as of September 30th, 2023, as compared to $16.8 million as of December 31st, 2022.
We continue to enhance our market penetration of our advanced and smart platform technology products to both retail and commercial segments through our e-commerce platform of over 60 websites for lighting and home decor. We have filed for a mandatory safety standardization with the National Electrical Code for its ceiling outlet receptacle for ceilings in homes and buildings with SKYX Code Team, which is led by Mark Earley, the former head of the National Electrical Code, and Eric Jacobson, former President and CEO of the American Lighting Association. Mr. Earley and Mr. Jacobson were instrumental in numerous code and safety changes in both the electrical and lighting industries.
Eight additional patents have now been issued, resulting in us now having 77 pending and issued patents in the U.S. and globally, including the issuance of five new utility patents in the U.S. and international markets, including Canada, Mexico, and Hong Kong, for its related smart plug-and-play platform technology products. We announced a collaboration with Quoizel, a U.S. leading lighting manufacturer for nearly 100 years, which will include SKYX's advanced smart and standard products for online, retail, and professional channels. We have entered into an agreement with a real estate developer to supply approximately 1,000 homes with our advanced smart home platform technologies, and this is expected to deliver approximately 30,000 units, representing a variety of our advanced and smart platform technology products to the developer's upcoming projects.
We signed an agreement with a world-leading product material and sample supply company to architects, builders, and designers, Material Bank, with over 100,000 customers. We've signed an agreement to include a variety of our advanced and smart home technologies in all homes of the future exhibits at the upcoming International Builders' Show in Las Vegas, Nevada, from February 27th through the 29th. SKYX will be a main event in this conference. The third quarter of 2023 was highlighted by our first significant full quarter of revenue that included sales and rollout of our advanced ceiling, smart, and standard plug-and-play platform products that are now on many leading U.S. and Canadian websites. We believe we have accelerated our cadence of sales with a robust gross margin profile, notable managing the cash burn of SKYX on a sequential basis.
Our e-commerce platform, with over 60 websites, is expected to provide additional cash flow to the company, which when combined with our existing cash, we anticipate will be sufficient for at least 18 months of operation. We are encouraged with our path to the builder commercial segments that we believe will assist in paving the way for our standardization efforts. Additionally, our e-commerce website platform enhances the acceleration of marketing, distribution channels, collaborations, and sales to both professional and retail segments. Some of our 60 websites that include companies advanced ceiling smart and standard plug-and-play products are onestoplighting.com, lightingdesignexperts.com, canadalightingexperts.com, americanlightingstore.com, homeclick.com, and lunawarehouse.com, among others. The websites include banners, videos, and educational materials regarding the simplicity, cost savings, time savings, and life-saving aspects of the company's patented technologies. With that, it is now my pleasure to introduce Len Sokolow, our co-CEO. Len?
Yep, thank you very much, Steve, and appreciate that. Before I get into an overview of our financial results, I'd like to pass it over to Rani to do a three-minute video. So, if we could go ahead and do that, it's only three minutes. Thank you.
Saving time, saving cost, saving lives. The future is here. First, introducing the problem today. The problem today with installing a new light fixture. This dangerous process could take 30-60 minutes while standing on a ladder, touching hazardous wires and risking lives. SkyPlug's technology takes only 3 seconds to install a new light fixture, making it safe, easy, and convenient for the user. First time installation takes 2-3 minutes to install, and it is safe to touch, and can be used for light fixtures, chandeliers, ceiling fans, and other technologies. SkyPlug is recognized as part of the NEC, the National Electrical Code, determining electrical safety protocols and code nationally. Since 2017, SkyPlug's technology has been listed multiple times in the NEC code books.
SkyPlug's technology is also endorsed by the IAEI, the International Association of Electrical Inspectors, and mentioned in multiple publications, acknowledging the safety and usability that its technology brings to the electrical profession. Integrated with the newest technologies and platforms, SkyPlug Smart is the new plug-and-play standard for smart and safe lighting connectivity. SkyPlug's technology takes only seconds to install. The SkyPlug Smart is integrated with all the smart features, including phone control, scheduling, dimming, voice control, working with Siri, Alexa, Google, Cortana, and SmartThings, eco mode, emergency light, night light, color changing light. SKYX Platforms is introducing the Sky Platform. The Sky Platform enhances your all around lifestyle, making your home become smart and safe instantly. It includes the most advanced, smart, and safe features that are necessary for every home.
The top center of the ceiling is the best location in the room to maximize performance of many technologies, significantly enhancing the Wi-Fi, Bluetooth, sound signal, and distance. The Sky Platform installs safely and simply within minutes to the top center of your ceiling, blending inconspicuously with your decor. The Sky Platform is integrated with a backup power failure LED light. In the center of the Sky Platform is embedded the SkyOutlet, as approved by the National Electrical Code. SkyPlug lighting, fans, and accessories can connect with the click of a button to the Sky Platform. A series of Sky Platforms installed in a home could repeat Wi-Fi signal and play the same music throughout the house. In the event of a fire, the integrated smoke and CO sensor would make an alarming sound.
The SkyHome App can easily control light intensity, motion detector, light color control, temperature and humidity monitoring, room-to-room intercom, control volume and music in each room. SKYX Platforms.
And now, Lenny Sokolow will elaborate. After Lenny talks in more detail on our recent builder activity with those products you saw, and Lenny Sokolow to some financial updates, please.
Well, thank you again, and thanks for that video. We thought it was important for those new to our company and our story and our movement. I was introduced to SKYX over 12 years ago, and during the last 12 years, I invested in SKYX and joined the board in 2015. I just became co-CEO and joined this fantastic and experienced management team. I agreed to take a substantial portion of my compensation in SKYX equity because I strongly believe SKYX was at a great inflection point, well-positioned to be a U.S. and global leader in smart plug-and-play platform technology products. Furthermore, I strongly believe in the compelling safety aspects of SKYX products. As a former executive and general counsel of Windmere Corporation, which was on the New York Stock Exchange years ago, we manufactured and sold hairdryers and other personal care electrical appliances.
As you can see today, and as I experienced firsthand, the industry implemented the mandatory requirement of adding a GFCI safety plug to the end of the electrical cords of these personal care appliances. This is why I am a strong believer in the SKYX safety and standardization path. With respect to our financials, as mentioned, our revenue in the third quarter of 2023 increased to a record $21.6 million, including e-commerce sales, as well as smart and standard plug-and-play products. Gross profit in the third quarter of 2023 increased to $6.7 million, or 31% of revenue. Gross profit was positively impacted by the gross profit of the acquisition of our e-commerce platform of over 60 websites for lighting and home decor.
Cash, cash equivalents, restricted cash, available cash, and investments available for sale amounted to $24.4 million as of September 30th, 2023, as compared to $16.8 million as of December 31, 2022. The company's current liabilities includes a 2024 non-cash liability of $5.6 million, payable in shares to the Belami shareholders as part of the consideration for the acquisition of our e-commerce platform of over 60 websites for lighting and home decor. Sales and marketing expenses amounted to $5.7 million during the third quarter, compared to $1 million during the prior year's comparable quarter. Net cash loss before interest, taxes, depreciation, and amortization, as adjusted for share-based payments, which is an adjusted EBITDA, a non-GAAP measure, amounted to $2.5 million.
In addition to a non-cash basis loss of $4.7 million, amounted to a net loss of $7.2 million or $0.08 loss per share in the third quarter of 2023, as compared to a net cash loss of $1.9 million, in addition to a non-cash basis loss of $2.8 million, amounted to a net loss of $5.7 million or $0.07 loss per share in the third quarter of 2022. Cash used in operating activities for the three months ended September 30th, 2023, amounted to $3.4 million, as compared to $3.5 million in the comparable period last year. And if I can now, I'd like to turn it over to Marc Boisseau, our Chief Financial Officer, for further information and de-
Ladies and gentlemen, please bear with us. We are experiencing technical issues. Thank you. ... Gentlemen, you are back in.
Okay, so, this is Lenny Sokolow again. I'm sorry, we had an actual disconnection from the internet. I'm not sure where we dropped off, but if I could, again reintroduce Marc Boisseau, our CFO, who could discuss some of the further financial information. Marc, please.
Okay, so for the next few minutes, we'll cover certain elements of the company's financial condition, results of operations for the quarter ending September 30, 2023, compared to Q2 2023. The cash, cash equivalents, restricted cash, and available cash increased by $700,000 from $23.7 million as of June 30th, 2023, to $24.4 million as of September 30th. The working capital increased also by $700,000 from $1.9 million as of June 30th to $2.6 million as of September 30th. The revenues increased from Q2 to Q3 2023, from $15 million to $21.6 million. That's an increase of $6.6 million. The gross profit increased from $4.7 million to $6.7 million.
The net loss declined from $12.3 million in Q2 2023 to $7.2 million in Q3. The loss before interest, tax, depreciation, and amortization, and share-based payment declined from $2.7 million in Q2 2023 to $2.5 million in Q3. Steve?
Okay. Marc, thank you. I believe you can clearly see that we're advancing our builder and commercial strategy. To conclude our formal remarks, let me kick it back to Rani to explain in more detail our continuing market penetration growth. Rani?
Thank you, Steve. As you can see here on the slides, we're blessed to have key members that are joining us as part of our members here that invested in us. So we started with Steve Schmidt, our President and former CEO of Nielsen and Office Depot. We have Bob Nardelli, former CEO of Home Depot, Chrysler, and GE Power Systems. We also have Al Weiss, former President of Disney Worldwide Parks, Hotels, Resorts, Cruise Ships, and Products. Mark Earley, heading our code team, former head of the National Electrical Code. Eric Jacobson, former head of the American Lighting Association, and recently joined us, Khadija Mustafa, former head of AI, Microsoft AI Global, and as well as sales.
To touch about some of our builder activity here, we're sharing with you this slide, and let me see until it comes up. Takes a minute. Here we are. So as you can see here, our ceiling receptacle is on the ceiling. Enlarge a bit so you can see it better. But we have here several packages that can serve builders. As Steve mentioned here, we signed an agreement with a developer to supply approximately 1,000 homes, approximately 30 units per home. We're gonna start supplying the first project for him next year. And the way those projects go is, you have here a package for one bedroom, if you see on the left, two bedrooms, three bedrooms, a home, a large home, apartment building, hotel or commercial.
Those packages will include smart light fixtures, regular light fixtures, as well as smart ceiling fans and regular ceiling fans, and it's also gonna include our all-in-one smart platform, that if you have a package like this and you supply 30 outlet ceiling outlet receptacles, the builder installs them as they build a home, and at the same time, they install the wall outlets, receptacles. They will install also our ceiling outlet receptacle, and when the time comes and the building is ready to be delivered to the consumer, our team is gonna come and plug a package that's gonna include those smart and standard light fixtures, smart and standard ceiling fans, as well as our all-in-one smart platforms, and our crew is gonna come to that building and plug each unit in a few minutes.
So really, what we're doing here is, if you would think about it, is kind of the razor and the blade model. We supply our razors, our ceiling receptacle, and then the builder will choose a package. Those packages can vary from $5 to tens of thousands of dollars per package, depends on what size and what size of the unit and what type of fixtures they choose or would like to have.
But this is something that we have really great response as it really takes all the time, cost, simplify the process, as well as life-saving aspects that we add to those units, and we take all the headache out of the builder by only having him install the ceiling outlet receptacle that you can see on the ceiling, while we have a crew that will come to that building and plug in all the fixtures and connect it to the IT system and have everything ready and working in a very simple way. So here you can see. In the next slide, when it comes up, you'll see our all-in-one platform that we have shared in the past, and you will see the type of units.
It can fit homes, as we said, large homes, high-rises, one bedroom, two bedroom, three bedroom, et cetera. And that's quite unique. As we mentioned, to make a home smart today, a one- bedroom will take you a couple of days in the normal world. With our device, it will take you less than a minute. When you see here, a large home in the normal world, today's world will take you weeks. With our device, it will take you an hour. And here, on a high-rise or a 500-bedroom hotel, for example, it can be, you know, a year project with millions of dollars.
We can supply this project, and install those smart home platforms within a day or two, rather than a year, and probably in a fraction of a cost, let's say an iPhone per room, if it's one device, and if it's more, slightly more. Those are... Next slide is gonna show packages. We have most of the product is under production already, and we're selling and enhancing our market penetration, as Steve was mentioning in the opening statements. And everything you see here, besides the all-in-one platform, that we did not start production, we expect to start it very soon, next year, is already in sales, in the market, and we have eight packages of our outlet receptacles and et cetera.
Those are really very important points and segments that we're strongly believe that we can capture a nice percentage of the market with this. With a huge market like this, even a very small percentage of the market can be a quite significant number for us. Here you can see, as we mentioned, and Steve mentioned in the open, we filed for a mandatory safety application in September. What you see on the left is what happens in homes today. Globally, billions of installations, people go on ladders, as you can see here, and touch hazardous wires. Our solution we strongly believe will save many lives in addition to saving time, significant cost, and money, as well as simplifying the entire process.
People go, as we say, on ladders, millions of times a year, or probably billions of times a year, globally, hundreds of millions of times a year here in the U.S. alone, just to install a light fixture and, risking their life doing so. The last time something like this happened in the U.S., in the U.S., in a significant matter for homes, was approximately 40 years ago, when the GFCI that you will see now coming on the slide is what everyone in this call has in his bathroom, and probably in many kitchens as well. As we know, it's in your homes because it's there, mandated for safety reasons.
We followed that path, and we strongly, management and our code team, strongly believe we have the safety necessities to become mandatory. We can't, we can't, you know, say exactly when, but we have filed for the mandatory in September, and, you know, we hope it's gonna be as soon as possible, but it really, it's the sole discretion of the panel voting members on the timetable and the decisions. And this is really similar to a global standard that happened many years ago, as well, probably one of the famous standards that happened also many years ago.
As you can see in the slide coming now, the Edison bulb was installed for years, many, many years, with wires to the ceilings, until the Edison base here, as you can see in the center, was invented, and that became a global standard. We're trying to follow that path, and really, we believe we have the equivalent of concepts here, and we have a good chance, we believe strongly, to make this happen. So, I think at that point, you know, we, as you can see in this slide, we accomplished what we believe and what we were told with to understanding all the safety necessities here.
We accomplished all a significant, additional significant milestones, including the voting of ANSI, American National Standards Institute, that's in charge of construction, reliability, and safety of the products that go into every construction in the U.S., as well as NEMA, the National Electrical Manufacturers Association, as well as we got voted by the American Institute of Architects, as part of the safety and continuing education programs. So if you look at this slide, we really got voted by the building organizations that determine our building codes, and safety aspects are many of them. Our code team, as we mentioned, is led by Mark Earley, former head of National Electrical Code, who was instrumental in major safety codes in the past 33 years, as serving as head of National Electrical Code during those years.
We have Eric Jacobson, that joined us as former president of the American Lighting Association, and during his 30 years in American Lighting Association, was instrumental to major lighting safety code changes. We have this leadership also with Bob Nardelli, that in addition to being CEO of Home Depot and Chrysler, was the former CEO of GE Power Systems, one of the three remaining divisions of GE. Again, here, I'm gonna share with you a slide describing a bit of our online activity here. As you can see in the next coming slides, here we go. You know, we're starting to sell, started last quarter to sell a bit. We enhanced our integration, online integrations of many products into plug-and-play capability and smart plug-and-play capability.
We started, I think, last quarter with having less than 100 or a couple 100 fixtures, and now we have nearly 10,000 fixtures that can eligible or can enable our smart or standard plug. We expect to be in tens of thousands of fixtures that will be eligible or capable to use our products by the end of this year, and we expect to be with hundreds of thousands of fixtures by next year that will be compatible with our products. This is significant because as we're approaching the builder segment, the more variety we have, the more products we're gonna have there, the more capabilities for us to secure builders as well as retail and other commercial segments.
But we see that growing, and as we mentioned, we strongly believe will be tens of thousands of fixtures just in less than 45 days or 45 days or so by the end of this year, and hundreds of thousands of fixtures by next year. And that's a significant growth and we expect this to become a bigger play as we go. As of today, we're selling products online in three ways. And if you go to our sites, you will see that there's three choices to buy products with our device or two with our device. So on the left is the old-fashioned way, the hazardous wires on the left, and the plug-and-play products in the center, and the smart plug-and-play products.
And we're very happy and with our our conversion rates that are improved significantly, significantly improved from first quarter to this quarter, and we expect them to significantly improve as we load more and more fixtures, and our conversion rates are getting better from day to day. So with that being said, we are, you know, excited about our opportunity with builders, and we are... Probably one of our last slides here is really what builders have today with the smart home complexity. As you see on the left here, will take them two days probably to have to make a couple of days to make a smart home happen, even on a one-bedroom, compared to a one minute that will take them with our device.
So saving 99% of times at least, and probably the cost of installation itself, even if our product—even if someone got this product, the smart home products of today for free somehow, as a gift, the installer himself will probably charge him two or three times more than paying for our device installed in the ceiling. So it's not only significant time saving, it's significant cost saving, as well as simplifying and obviously the life-saving aspect that we bring to the table. And as to remind everyone, we have many case uses for this, including hotel rooms, as you would see, cruise ships, elder living, hospital, and hospitals and many other segments, including office and retail. So with that being said, we're opening now to Q&As here. And we'll start the Q&A here.
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Yes, we see here on the list, we have Michael Legg from Benchmark. So-
Yeah.
You can direct those questions to us, please.
Thank you, sir. Ladies and gentlemen, if you'd like to ask a question, please press star one on your telephone keypad, and a confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question comes from the line of Michael Legg with The Benchmark Company. Please proceed.
Thanks. Good afternoon, everyone. Why don't I start with a couple of financial questions? We had $21 million in revenue. We bought Belami, they had $88 million of annual revenues. Can you talk a little bit about what's going on with the traditional sales at Belami and, you know, what we're seeing with the economic environment there? And then what part of the sales did we see that was the smart products? If you could just give us a little breakout on that. Thanks.
Sure. So as everyone knows, the home decor is in decline for the past few years. It started when the peak of the home decor, and you can see Wayfair, for example, was in 2020 and 2021, as people were at home and didn't have too many choices to renovate their homes, and a lot of people got the SBA loans and renovated their homes. So the peak was in 2020 and 2021. But as you can see, the numbers of Wayfair and many others in home decor were sliding, and every year going down, in addition to the slowdown in the builders market, that is not helping the high interest and slowdown in new construction. So the home decor market and lighting market in general are in decline.
We are actually very pleased where we are with those numbers, and the number of this quarter proves us that we're on the right path, and the conversion rate towards our products we're selling. I think our goal is to have for now, 2/3 to be the plug-and-play, and 1/3 to be the smart, and I think we're very close to that, to those goals. And again, that's our anticipation towards growing our variety of fixtures. And that's our goal, as more people will learn about our smart features. We have a nice conversion ratio for them now. Percentage is actually look good, and we hope to enhance to get much more smarts, but a lot of people want the standard.
Again, the smart cost a bit more or more than double than the standard, probably triple. So, we're very encouraged with this.
Okay, um-
Any other questions?
Yeah, I have a couple more. Can we talk about the 30,000 units and what that means from a revenue perspective? And then some of the other agreements you have, and to kind of put some numbers on them with, like, Material Bank and some of the other agreements you have and you just announced over the past quarter.
Yes, of course. So again, as our agreement with the developer, South Floridian developer here is for around 1,000 units approximately, we anticipate approximately 30 units per home. As the slide that we have still on is showing, we'll provide approximately, it depends on each size of unit, but let's say 30 receptacles to each unit, and then the builder, plus the homeowner will choose a package. So our packages can vary from probably around $5,000 per package. It will include smart lighting, smart ceiling fans, standard lighting, and standard ceiling fans, as well as all-in-one smart platform that really makes your home become, as you saw in the video and as you saw on the slide, can make your home become smart.
So that can start with a few thousand, like 5,000 and go up to tens of thousands. Really depends on the size of the unit. And again, what we emphasize here, what the builders really like is the simplicity and the all-in-one app for all of those fixtures together. And it's really today to do an. The reason, if you think about this, that builders did not announce we're selling smart homes as standard, because it's the complexity of making it happen between so many different companies and so many different technologies. When here, bringing the all-in-one, that you, as we said, put the receptacle in construction. When you do the wall outlets, you do it the same time, our ceiling receptacle outlets, and once you do this, the builder calls us when he's ready to deliver the building.
We have a team that comes in and a few minutes per unit, everything is installed and ready to go. So that, we're very excited on this, and, this is really before we really went to the market, and we're just starting now with the builder segment, and we have great, feedback already, and we should, we recommend people to stay tuned on this, as we believe we'll have more news on the builder segment as we go forward. The, and the same here with Material Bank or, you know, it's the world's largest, architect sample product, product and sample supplier.
It's a global company, and as we expect to launch the product with them, we signed the agreement, and next year, we expect to launch and to be included in projects they're gonna spec or projects they're gonna recommend a spec to. And we're excited to work with them, and I think it's gonna open much more doors to work with architects and additional builders, and we're going in that direction. We also, as we mentioned, we have our 60 websites or so will all be equipped to work with builders. Builders, they log in, have a pro segment that they can log in and buy wholesale from us, and we're gonna channel a lot of this builder business and architect business directly to our e-commerce, although we're working directly with them, too.
Did you ask about... I think you mentioned the Quoizel deal, did that, that's one-
Yeah, the Quoizel deal also, yep.
So Quoizel is nearly a 100 years company, one of the top U.S. companies supplying to all the major players in the market. We're very happy to have this collaboration with them. That's gonna go also majorly online and in the builder segments, and they bring a lot of additional business to the table, and it's a world-leading company, and we hope you'll hear about additional companies that are collaborating with us down the road.
Okay. So the Quoizel, the Material Bank, those are kind of open-ended. When you look at the 1,000 homes, or you mentioned 5,000 minimum per package, that puts a $5 million floor on the, on the possible revenues. Do we have timing on when you expect this to start coming in?
Yeah, we expect to start deliver early next year and either Q1 or Q2 of next year. It depends on when the, you know, the construction level is ready for us.
Okay. Then I'll just ask one more question and get back in the queue. The cash increase, it looks like you used your line of credit for $4 million. Can you just talk about how the cash was increased and where it came from? Thanks.
So I mean, well, I would have to refer you to the statement of cash flows, because there are a lot of line items. Basically, we got some proceeds from a line of credit from a bank that is secured by inventory and accounts receivable. And that was approximately, let's say, $4 million.
Right.
Now, we repaid-
No, so that's, that's the bulk of where the increase came from. That's why I just wanted to confirm that. Is there a reason you used the line of credit instead of using the cash balance?
So we actually decreased the utilization of the line of credit as of September 30th. There's $2.3 million available under those letters of credit as of September 30th.
Okay.
As of June 30th, it was [four].
Okay. Okay, thanks. I'll go back to you. Thank you.
Our next question comes from the line of Leo Carpio with Joseph Gunnar. Please proceed.
Afternoon, gentlemen. I actually got two quick questions. First question is, now that you've got Belami acquired and have a sense of your sales flow, will you be providing any revenue guidance for this year or next year? And then secondly, now that you've got these contractor demand deals in place, how are you gonna be trying to drive more consumer demand and awareness for your products at this stage? Thanks.
Thank you, Leo. We are not providing financial guidance yet. Our goal is to keep on enhancing our market penetration. To remind everyone, the more receptacles we put in the market, the more recurring revenues we will have due to several reasons. But that can open the doors for interchangeable of fixtures and replacements of fixtures for season, holiday, and other reasons, as well as it can open the door for us, the smart products, to monitoring subscription models in the future. So, we are, you know, all focused now on enhancing market penetration, as well as enhancing the availability and variety of products that can use our product.
As I mentioned earlier with Michael's question, is that we started, you know, with hundreds of products. We're already close to 10,000. We expect to be on tens of thousands by the end of this year. So very soon, tens of thousands of products that be compatible with our product, with our products, smart and standard, and hundreds of thousands next year. So we're just, you know, focusing and growing the and enhancing our market penetration, and we're not publishing those markets, those financials expectations yet, as we're in process of growing here.
But we're percentage growing are very significant quarter- to- quarter, but it's again with the more we enhance our products towards compatibility with other products, the more we expect to grow on numbers.
Okay, a quick follow-up question. On the mandate, any sense on the timing of when you may receive an answer?
So we anticipate it to be next year, hopefully earlier than later. But you know, regulators, you know, we know one thing about them, they're not fast. That's the bad news. The good news, we're 12 years in the process already. So some feel, you know, it can be very early, some feel it can be later and, you know, we can't—the ball is not in our court. It's in the sole discretion of the panel members of the NEC.
Okay, thank you.
Any other question, Leo? Maybe I missed one of your questions, or we're good?
There are no further questions at this time.
Okay. So, if that's any other questions? And if not, we thank you very much for being with us. And again, we're very happy, as Steve mentioned, where we are, keep on enhancing market penetration. We strongly all believe that we can revolutionize an industry or more than one industry, even with our disruptive technology here. And our feedbacks from both consumers and builders are really encouraging and we ask everyone to stay tuned and bear with us. We'll have more news. We also announced that we're gonna be a main event in the Builders' IBS Builders' Show in Vegas in February 2024, and we're gonna be also included in the Homes of the Future of that entire show, and that can be quite significant for us.
Thank you again, everyone, and looking forward to talk to you in our next update call. Thank you very much.
This concludes today's conference. You may disconnect your lines at this time, and thank you for your participation.