Questions.
SKYX Platforms. SKYX, the future is here. Advancing, simplifying, while saving time, cost and lives. SKYX's technologies won seven CES awards and has nearly 100 U.S. And global patents and patent applications. Thomas Edison invented the light bulb that for many years was installed by twisting hazardous wires, until inventing the Edison base that became the global standard in every home and building for billions of light bulbs. Billions of fixtures are installed annually while touching hazardous, dangerous wires and risking lives. SKYX has a goal to follow Edison's path to become a U.S. and global standard in homes and buildings for billions of fixtures, including smart home, AI, lighting and fans to become plug and play, advancing their performance, making homes become safer and smart within seconds while saving time, cost and lives.
Our Gen Three Sky All-in-one Smart Home 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 SKYX All-in-one Platform is now fully integrated with an AI ecosystem. The Sky Platform installed 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 Sky Outlet, as approved by the National Electrical Code. SkyP lug 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 CO2 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. SKYX showcases its advanced, safe and fast install lighting technologies in a SpringHill Suites Marriott hotel renovation. First time installation into a standard electrical outlet box takes a minute. In hospitality renovations, every second counts. With SKYX, replacing or installing light fixtures takes just seconds, making it safe, easy and cost efficient. Traditional installation of lighting and exit signs takes a lengthy amount of time. Now, with SKYX's technology, an entire room takes only minutes to install. SKYX's installation system reduces significant time and cost while enhancing the safety of the hotel, its employees and guests.
SKYX delivers fast professional results for hotels and buildings, simplifying renovations, enhancing safety while reducing costs and time. Design meets function. Mirrors with backlighting installed in seconds with SKYX. SkyPlug transforms maintenance. No wires, no delays. Simply plug, click and you're done. SKYX, innovation, speed, safety. The future of hospitality starts here, saving time, cutting costs while maximizing safety and efficiency. SKYX's technology is approved by UL, NFPA, NEC and by ANSI/NEMA. Introducing the Sky Fan & Turbo Heater, a breakthrough in home comfort. Three in one comfort, fan, heater, light. Good for all seasons. A powerful ceramic heater for cozy winters. A high performance fan for cool breezy summers. A soft LED light to set the perfect mood anytime. Installs simply in minutes with the SkyPlug system. No wires, no mess. The Sky heater fandelier, the only ceiling fixture you'll ever need.
Sky Fan & Turbo Heater.
I'll try to briefly give you an overview now. We have just to highlight a few people that are involved with us, besides Rani Kohen, our founder, who's responsible for over 100 patents and patents pending. We have 45 granted. We have Steven Schmidt, our CEO, our president, former CEO of Nielsen and president of Office Depot International. Bob Nardelli, former CEO of Chrysler, GE Power Systems and The Home Depot, who's helped us get into Home Depot. Al Weiss, former president of Disney Worldwide Parks, Hotels, Resorts, Cruise Ships, because he understands how our products can enhance the commercial and the hotel industry as well as cruise ships ultimately.
Again, all of these people have invested with us pre-IPO, post-IPO, et cetera. I've been on the board with Governor Tom Ridge for over 10 years. He's our lead director, first head of Homeland Security, two-time governor of Pennsylvania. Lance Shaner, who owns over 70 hotels, 60 Marriotts. That Marriott was one of his in his portfolio. He's been an investor with us pre-IPO and post-IPO financed us with an equity round, led a round of over $16 million. He understands the value of what we have, especially for the hotel industry. They must renovate every 7 years. Most of the big brands like Marriott, Hilton are constantly have to renovate their portfolio.
All their partners, investors, like, owners of these properties have to do that. We save time and money for them and get the rooms back at inventory. Mark Earley is probably the most important, least-known guy, a former head of the National Electrical Code and chief engineer. After 30 years there, he retired and joined us. He's led our code team, and along with Eric Jacobson, the former CEO of the American Lighting Association, these two guys signed our application for mandatory. We are in the code book. We're already a standard. Our next step is mandatory. I'll explain that. Khadija Mustafa, former head of Microsoft Global AI, she's been on a few of our earnings calls. We had a press release announcing a partnership with NVIDIA, their Connect program.
She believes that our location or Generation three for AI, data aggregation, chip performance is a solution that better than what you have in homes, which include Alexa, Ring, doorbell, Nest. Doorbells like Ring and Nest, and smart TVs, et cetera. The patterns we discussed, the TAM is over $500 billion in the U.S. just in homes alone. When you start counting how many installations there are in an average home, we have over 400 million homes in the U.S. It's over 30 installations. We think there's about 400 million annually that people are either renovating, installing, building, et cetera, for the installations for fixtures, fans, smart devices, that the market will develop.
We own over 60 websites of lighting e-commerce, which we acquired in 2023 to lead and seed the market. Our strategy is B2B, B2C, that we're doing on the websites. All our websites also support B2B, and we're also announcing not only the builders and developers, but the, you know, Home Depot, Lowe's, Wayfair, Target, Walmart, et cetera, all been announced. Ultimately, we think the insurance companies will support what we do. Like, there's a, there's precedent for them providing discounts, et cetera, for smart solutions for the home and buildings. In 2023, we did $58.8 million in sales, 2024 $86.3 million. Over the last seven quarters through Q3 of 2025, we've had sequential comparable growth.
Our growth has been steady, conservative, and we're just beginning to penetrate with our product and our larger margins. We have announced Home Depot, Wayfair, Chrysler, Quoizel, EGLO. Of course, I mentioned Lowe's, Walmart, and others. In the last year, a smart city that we announced in Miami, a $4 billion project, we are the solution for making it smart. That's been announced at 63 acres just north of Wynwood, where you have Art Basel north of downtown Miami, and it'll include 5,700 units, apartments, a new Tri-Rail station. It'll be mixed-use urban living. It's led by two developers that have been building in Miami for multiple decades.
It's designed by Arquitectonica, the world-renowned starting with their Microsoft building in Paris. Our Smart All-in-one Generation Three device, which will be in production this year, is a solution to making this a smart city, which has precipitated a lot of global interest, needless to say. We've announced 278-unit apartment complex in Austin, Middle East collaboration in Saudi Arabia and Egypt for homes and hotels. A $340 million premium apartment complex in San Antonio, where we expect to deploy over 15,000 units. In North Carolina, near a new Microsoft mega park complex that's being built, over 10,000 units. We just announced, not on the slide, is Pittsburgh, New York development.
Generation one, you see here Generation two in the market, which has been working with our app for over two years, three years now, works with Siri, Amazon, Google, Samsung. This app will also work with our Generation three, which will be in production this year. That's gonna have humidity, home intercom, motion sensors, Alexa, Google, CO2 detector, smoke security, speakers, ambient light, RGB, emergency light, intercom, 911 calling feature for safety, all in one, click it in, and you're ready to go. Works with the app, takes minutes, and then you can still plug a fixture in the middle. This is happening. Regulatorily, what's happened is that, you know, there's precedent for safety.
The builders and developers have adopted this and have announced and are contracting with us because we save them 90% of the time and 90% of the money to install fixtures and fans and ultimately smart devices. Because to put in the receptacles into this junction box by electrician can take an hour. Receptacle take a minute. Once that's installed, no one's touching wires anymore. You could have a maintenance person come around when you're ready to light up a building or make it smart. It's click. That's why we've been adopted by these builders. We saved them 90% of the time, 90% of the money for the fixtures and installations like this. The regulators have done this because it's all about safety. They've supported us.
We have two major constituents here. You had the wall outlet that became a standard because everything was wires. The Edison bulb, as you saw in the video, never became a standard until the base was invented. In the 1980s, you had the GFCI, which most people have in their bathrooms, which was made mandatory in the 1980s because people were dying in the wet areas. In 1991, hairdryers had to add a GFCI plug at the end of the hairdryer cords and curling irons because people were dying in bathrooms, dropping them in bathtubs and sinks, et cetera, and fires and injuries, et cetera. These others, this is why many things become mandatory, because it's all about safety from the regulator's perspective.
We had all these problems, shocks and electrocutions. We developed a solution that also saves time and money. You know, our device, our patents cover the receptacle and the plug, both sides. Unlike these guys that had the patents only on the receptacle, not on what plugged in or the GFCI outlet, not what plugged in. Our patents cover both sides. Anything that's smart that touches either side, that's a sensor, those are our patents also, global. Our device, our product holds 200 pounds, actually twice. There's a double locking mechanism. These junction boxes are coded for 50 pounds, and some may be 70. We're over. If it falls, it's because of the junction box.
That's. We put on our boxes only 50 pounds because that's all we need them to say. But we've tested them for many more than many hundred more than 200. The TAM I discussed and our whole strategy is to open a whole new world on the ceiling, just like when they do the construction and renovations, they put in our receptacle. When we went to the regulators now, we made our case of the equivalency of concepts. What's the difference between these, the old outlets, and our receptacles? What's happened over the last 14 years, and this is like our FDA approval equivalence, that we've gotten like 10 phase III approvals.
This is where there's a little disconnect with Wall Street, is that I think if people understood the NEC and how the code works as much as they do the FDA after we've been through COVID, I think there'd be a better understanding of our value. We're closing that gap, you know, very, you know, day by day. But so our 10 approvals all preceded also a historic approval by ANSI and NEMA. ANSI is the American National Standards Institute, which most people don't know what that is. That's the approvals necessary for commercial buildings and the hotels. We've received that approval. That's historic.
As a result of these historic changes, this is all codified, is that after 120 years, the code book has now changed the definition of receptacle to include not only this wall outlet from 1904, but our receptacle, the SKYX receptacle. More so, they've given us a generic name, WSCR, Weight-Supporting Ceiling Receptacle. This is in the code book. Done. The reason they did this like they did the GFCI, the Ground Fault Circuit Interrupter, from the 1980s, they didn't want to call it XYZ Corporation. They called it GFCI. They're calling ours the WSCR. By the way, these guys are still collecting a royalty on this from the 1980s. What happens is that once. Now our next step is mandatory. We've checked all the boxes. We applied for mandatory.
Once it's mandatory, and if it gets approved, it's not a question of if on our part, it's a question of when. We're required to license the receptacle and the plug on a non-discriminatory basis for a fair royalty. It could be 4 or 5%. Anything that's smart that touches either side, a sensor that touches either side, those are still our patents. We control that. We have a very unusual situation where you have this. I call this our good Trojan horse. As this gets installed in the U.S. and globally, we know that everything that plugs into it is also either our product or one that we will have licensed. All roads lead to Rome, and this is a very unusual and highly disruptive strategy that we've accomplished.
We have one final step for making this mandatory. Again, the builders aren't waiting because they're saving time and money. The regulators have to make that final decision. We've also determined that there's two other organizations in the U.S. government, the CPSC and the CDC, that covers the injuries, property damage, and ladder falls. Back in the day, this plug of the hairdryer was mandated by the CPSC, not the National Electrical Code. There's precedent for these agencies making these decisions. The reason why the regulators have done this is their own data shows there's over 400 deaths per year from people not putting wires in correctly and dying, getting electric shock, and then falling or whatever it is.
The ladder falls, of course, is even more serious. 1,000 of deaths from people falling off ladders. I didn't even wanna show you these injuries. This is why they've given us these code provisions because of what we do and the lives and the property damages we save. Our whole strategy is razor and blades. We have all these products developed, are coming, landing in production, including the exit signs and emergency lights which are put in, but light fixtures. Now the hotels can click 'em in and click 'em out. They get damaged all the time. This is a massive industry, just the exit signs and emergency lights only. The Smart Home Generation Three we discussed, and basically we took the whole concept of an iPhone.
We're used to have different devices, you know, and they're a camera, a flashlight, and everything's all one device now. We just took the same concept. There are all these items, and it's all on one click and install. This problem of taking one-three days to synchronize a room with all your smart gadgets. You could have ours installed in minutes. You know, it probably less the price of the labor for this. This is a game changer, and it of course works with our app that's been out in the market already for two-three years. It'll be up and running within minutes.
All these features and of course, post product sales, it's monitoring subscriptions, data aggregation, 'cause once you have Wi-Fi and Bluetooth, we can start aggregating, data, and monetizing that, which is a huge opportunity going forward. Khadija Mustafa from Microsoft AI, her point is that this location is the best location for AI and chip performance. You basically double to triple the speed and range of the wireless products. Everyone's got the extenders in the wall here on the side 'cause that's where the power is, but they're pretty much worthless trying to get to the other side of the room 'cause of furniture, et cetera. Here it's a, it's a game changer for, you know, the communication in a home. You can have multiple Generation Threes in each room.
You can name them, and you could have room. Well, of course, from room to room, intercom, et cetera. At post-sales, again, I mentioned data and monitoring, and you know, it's unusual that we could have post product sale revenue. Even when we work with the big developers and builders, this is something that it could be part of the discussion, you know, and how this revenue gets addressed and changed and charged and recognized and shared. To do a one bedroom is minutes, a house a couple hours to make it smart. Of course, a high rise, days, you know, not six months or a year, or a hotel. This is the ease. This is why the hotels and the Marriotts are attracted to the solution.
The other thing is on we think there's a huge opportunity for the prefabricated homes. The market in the U.S. is just getting launched, you know, for prefab. We did a collaboration with one of the big prefab companies, where the International Builders Show showed their top two premium modules with our products installed. If you imagine at the factory, they can install our receptacles, indoor, outdoor, et cetera. They take their prefab homes or modules out to the site, assemble, and when they're ready to light it up, it's click, click. You're saving time, you're saving money, damage, dust, whatever. We've got, you know, we got high hats and again, global patents on all these recessed lights.
You see the opportunity here and how big of a market it is. We have ultimately a fairly small product selection. Of course, we announced the new Sky Fan & Turbo Heater, which we have global patents on. No one else has this. It's not only is it a huge market for fans and the heater, but also there's a huge safety component to it on the consumer side, needless to say, 'cause the box heaters and floor heaters are a big problem for fires and injuries and property damage. This is our strategy has been lead and seed. We've gone to our online sales. Now we're going to big box, and we're really.
Announce builders, apartment buildings, developing the channel for hotels and then the licensing and subscriptions. Those are the main features. We have a team in Israel outside of Tel Aviv for our technology team. We have a group in China and Taiwan and Atlanta for our logistics and accounting and our innovation centers in South Florida. Those are the highlights. I think we have a little time for some Q&A.
Yes. Thank you so much. We have a few minutes for Q&A, so if anyone in the audience have a question, you can submit it in the Q&A function at the bottom of your screen. Len, I'll just kick it off. You mentioned you're trying to get this sort of becoming the standard. What's the timeframe for that? And once that happens, are existing buildings gonna have to change their recept ors or is it just for new builds?
That's a good question. First of all, it's, you know, we're hoping it's soon in terms of mandatory. There's no timeframe. We think that it's time for them to decide on the NEC. With respect to the other government agencies, we're working very hard to see if we could get that as an alternative paths, you know, to do that. It could be this year. You know, there's no guarantee. It hasn't stopped us. Our business plan isn't dependent on it in terms of, you know, a great growth, you know, with the industry. You know, it'll be once we're mandatory in the U.S., 20-30 other countries pick us up, it becomes kind of a, you know, a stratospheric type growth.
It doesn't prevent us even now from licensing this, not only in the U.S., but internationally. You know. The other thing is once it's made mandatory, it only would apply to new construction or new renovation where you're required to pull a new permit. You don't have to. You know, it's not like when. There's people still have the old outlets in their bathrooms because it was built in 1975, and so they don't have the GFCI. They're not required to replace those, although a lot of places are encouraging it now. It's new construction and new permitting it would apply to.
For existing homes or buildings, do you think there could be a pressure from insurance companies maybe to implement your-
They could. That could be a very good question. There could be incentives for them to install it in the homes, just like there's not only the precedent from like home alarms, but there's some other products that the insurance companies have started to provide discounts and incentives. If they could change them, save money for them, which it will, it's something that they would consider, we believe.
Okay. Thank you. We have a lot of investors on this presentation participating. There's a lot of questions here asking about, I mean, you mentioned your revenue growth, but can you talk about your profitability and your balance sheet and maybe if you need to raise any more capital to bring this to more commercialization?
We just did in January an equity raise at $2,000.50 common, straight common. No warrants of course with a fundamental investor. We think that's of course in our visibility sufficient capital. If we have a major strategic that could add value on the top line and our margin that wants to put in money, it's obviously industry considers that a kind of a good and great catalyst. That's always possible. Right now we think this. It's enough. Our growth will continue, and we are working very hard to continue to expand our margins.
'Cause the more product we've sourced, you know, like for the delivery to the developers and the projects, you know, that we target longer-term margins on those 40%-60%. You know, we think it's gonna help continue to drive our path to cash flow positive.
Okay. Thank you.
Yeah.
I'm just squeezing one last question here. Do you have any warrants outstanding, and can you also talk about insider ownership?
The warrants we do have warrants outstanding. A lot of them, a great amount of them are not in the money. You know, with all that's in our filings, you know, the detail and the. There's not. I wouldn't call it in any way an overhang. The insider ownership we call it, you know, is around 40%. And then we have what we call our very, you know, critical friends and family that are not, you know, technically insiders or reporting people, which could be, we estimate another 35%-40%.
You know, we have a lot of especially a lot of industry believers who've invested pre-IPO, IPO, and continue to help provide strategic capital, continue to invest. You know, 'cause they know what this means for the industry and also globally. You know, there's not a whole lot, you know, in the public float per se. You know, maybe 20-25%.
Okay. This has been very informative. I know you didn't have time to do your one-on-ones this during this conference, so we're gonna do that following the conference. If anyone in audience-
I'm scheduled today. We have
You are scheduled today. Okay. I'm sorry.
Yeah, we're all good.
If anyone would like to learn more about the story, I'm sure Lenny will make himself available if you aren't scheduled.
I would be happy to schedule a one-on-one. Thank you, Anya, for saying that. I am happy to at any time. Just please let me know.
Okay. Thank you. With that.
We think it's a good time. Stock is the war hasn't helped the market. We're not sure why our stock has got depressed like this. The equity investor, the fundamental investor invested at $2.50 per share, straight equity common and they spent a lot of time. It was a reverse inquiry to us and we're pleased that the What is that? It tells you that there's a belief that we've got a lot of value here.
Yeah. It seems like you have some major catalysts coming up as well with.
Yes
Approvals and conference announcements. Thank you so much, Lenny. This has been very good and very exciting story.
Good.
Looking forward.
My pleasure.
to see you again soon. Okay.
All right. Likewise. Take care.
Have a good one, everyone.
All right. Bye.
Bye.