Good afternoon and welcome to the Noble Capital Markets Virtual Equity Conference. I am Joe Gomes, Managing Director and Senior Analyst at Noble Capital. Today, I have the pleasure of introducing SKYX Platforms. Following the presentation, we will have some time for Q&A. With us today from the company is Lenny Sokolow, Chief Executive Officer. With that, I am going to turn it over to the company. The floor is yours, Lenny.
All right. Thank you very much. Thank you, Joe. Appreciate the opportunity. I am going to start with a quick four and a half minute video, make sure everyone understands our product line. Then I will get into a little bit about us, and also our recently announced merger. Let me start now.
[Presentation]
Okay. Then maybe I'll take a little time and go through our deck a little and give you an overview, and update you a little bit on the announced merger we announced just several weeks ago and expect to close very soon, with respect to Deako. Just to give you a flavor, briefly, we have our inventor and founder, Rani Kohen. Steve Schmidt, former CEO of Nielsen and President of Office Depot is our President. A very active advisor, Bob Nardelli, former CEO of Home Depot, Chrysler, and GE Power Systems. He helped get us into Home Depot. The current CEO of Home Depot is someone he hired. Al Weiss, former President of Disney Worldwide Parks, Hotels, Resorts, and Cruise Ships. He has been an active investor with us, strategic, and understands what our products can do for the commercial side.
Governor Tom Ridge is our Lead Director and of course, former head of Homeland Security and a two-time Governor of Pennsylvania. Lance Shaner owns 80 hotels globally, 60 of which are Marriott, and that demo you saw was his Marriott in State College, Pennsylvania. We recently announced the Marriott we're doing renovation for now in Durham, North Carolina. Mark Earley, probably most important, least known guy, headed the National Electrical Code and Chief Engineer of the NFPA, which is the National Fire Protection Association, which was the umbrella organization for the code. When he retired, he joined us. He assigned our application for mandatory. We are already a standard in the National Electrical Code. We are already a defined receptacle along with the wall outlet. We are now the first time they've changed the receptacle to add us in 120 years.
Our next step is mandatory, just like the ground fault circuit interrupter that is in your bathroom or kitchen. He is, along with Eric Jacobson, former CEO of the American Lighting Association, signed our application. Also Khadija Mustafa, former Microsoft Global AI and Business Leader. She believes that our Generation 3 platform, which you saw, there is nothing else in the market that is a hub for a home to aggregate data and performance of AI and chip performance. We have announced the Deako merger, and both companies have focused on the fact that why are 100% of the cars smart, meaning data is getting shared somewhere, doing something for your car, and 90% or more of the homes are not. The main barrier really has been that it is time-consuming and the costly wiring of smart home systems. Both SKYX and Deako end the hazardous wiring problem.
Our solution to having all-in-one, you saw in Generation 3, within minutes, you could have a smart home, smart room with our app, speaker, smoke, CO detector, 5G. It works with Alexa, Amazon, and Google. This could take days to install in the old-fashioned way with wired, and we solved that problem. Again, we took the idea of an iPhone with all these features all in one device, and it can be anything that is invented sometime in the future. Again, to Khadija Mustafa's point, this location in the center of a room, with respect to any signal, Wi-Fi or Bluetooth, gives you 2x to 3 x the range and the speed. Everyone has got their Wi-Fi extenders in the wall because that is where the electrical outlet is, and by the time it gets to the other part of the room, there is degradation.
When it is up here in the top of the room in the ceiling, you get really unlimited range for a home or room without interruption. With Deako, the two companies, we will be able to address all of the outlets and the junction boxes in the home between the ceiling, sconces, indoor, outdoor, and wall switches and outlets. There is about 90 average, and with that is a platform that both companies have. The Deako merger announcement had a quote from Paul Jacobs, former CEO of Qualcomm, who is a big investor in Deako, along with Marwan Fawaz, also on the board of Deako and a big investor who was a former CEO of Nest. They both invested because Deako, one, is an open platform, and Qualcomm had the similar approach for its chip with respect to mobile devices and phones, believing that they serve as a platform for many technologies.
Both companies approached it this way. We have all our line of products, fans and lights in our all-in-one platform, and they have all their wall switches, doorbells, locks, automated, all synchronized with their app. Our two apps will be combined. We both approach the market as a razor and blade model. Ours is plug-and-play. Again, our patents cover the receptacle and the plug itself, and this is what is a standard now in the code book. They have the receptacle, and they have all the products that plug into it, and I will show you how theirs works. The Deako addresses are ready. They sell to about 50 builders, including D.R. Horton and Toll Brothers.
What is important to understand is that for every dollar they sell into that channel, they could probably sell fivefold more adding our products to the channel, primarily because one, we address more outlets in the home, and two is that our average sales price or our products and margins are longer and bigger than theirs. There is a lot of leverage in this transaction for us. Again, 90 junction boxes we address, and both companies have focused on recurring revenues, post-product sales Data, AI, subscriptions, monitoring. Once you are in the home and you are providing data or services like 911, smoke, fire department, police department, you have a revenue opportunity, let alone the data that you are collecting. You are able to install and make a one-bedroom smart within minutes, a large home within hours, and a building or a hotel within days smart. Both companies are ready work.
We collaborate, again, open platform, Google, Alarm.com, Siri, Control4, SmartThings, Alexa, and we are both focused on utilizing the Matter chip, which is a chip that enables a lot of the smart product companies to talk to each other. This is the footprint of the builders, and SKYX has already announced the smart city in Miami. It is a $4 billion project just north of Wynwood, 63 acres. The two big billionaire investors are also investors in SKYX. They understand what we do, and our component is what is making it smart, including the train station. We know that we could sell all of Deako's products into this project as well. So there is a cross-selling channel opportunity between the two companies. We just announced yesterday two towers in Hyderabad, India. Two Trump Towers, 65 stories, 2.2 million square feet.
We expect to deploy tens of thousands of units, and it is a huge opportunity, and there are also an indication that our partners could help make this a standard in other projects in India. We have two announced multifamily projects in Texas, one in North Carolina, smart home community, Pittsford, New York, a collaboration with a group in Saudi Arabia and Egypt for potential projects. A European group, Group OTT, we already have two renovations in France for a hotel and in Prague in the Czech Republic for a hotel for renovation. Of course, I mentioned the Durham hotel, the Marriott for Lance Shaner's hotel. So this is a picture of the second one here of the Trump Towers in Hyderabad, and of course, the European projects. The $92 million we exited 2025. We have had 10 consecutive quarters of year-over-year growth, and quarter-over-quarter comparable growth, 10 consecutive quarters.
We have, we believe, sufficient cash and runway with the merger for growth and for a rationalization of the merger and growing our sales and margins. Deako is already in 350,000 homes. They have sold 32 million products. Their customer satisfaction rate is very high, and their product returns are extremely low. They manufacture in four countries, similar footprint of ours for SKYX, and they have 17 issued patents. So combined, we have about 120 patents and patents pending. The same customer base targeted. Now a larger variety of products and the combined orders with stronger buying power. We will immediately after closing, and actually we are working on it now for planning for mutual technology and R&D team to rationalize that as well as accounting and administration. So, this is how Deako works. You have seen our plug and play. This is a junction box standard.
Their receptacle, it gets wired once, two screws screwed into the junction box. That is it. No one is ever touching wires again. Their switch, this is just a standard Deako rocker switch that just clicks in, and then the cover plate. Any of these products, they click in. For example, when they sell to Toll Brothers, Toll Brothers may put two of the smart switches for Deako in there and say, "Oh, we are selling you a smart home." Deako has been very good at upselling post-closing, going to the new homeowners and saying, "Would you like to make all of your home smart? Buy a pack of 10, 20, 30, and you can make all your switches smart." They could do it themselves, click in and click out. They could do the same thing for us since we have an ability for upgrades and residual sales and aftermarket sales.
That is just really important to know that once you have that receptacle, anything that plugs into it is something we will have licensed or we will have sold. It will be our product. Part of what we have done has been very focused on plug and play and penetration and mutual penetration, and we have discussed the standards and the segments we are in, the National Electrical Code. We have gotten a generic name already. We have changed the definition. This has been all quite historical and little, I think the Street does not really understand it. The builders have done this because it saves them 90% of the time and 90% of the money to install the fixtures and fans, et cetera. That is happening now as we speak. The regulators have supported us, and we are now hopefully on the road to mandatory. We do not think it is a question of if.
The question of when is the question. It is because they know almost 500 civilian deaths a year from people in the U.S., from people not wiring light fixtures in correctly, and 500,000 ladder falls and thousands of deaths, very serious, plus electric shock. Of course, the injuries are just terrible, catastrophic. Our product works 110, 220, so that is why we are able to be in Europe, and the European electrical shocks and electrocutions are even more hazardous. That is the heart. The TAM is huge. We are looking at over 400 million U.S. fixture installations a year in the U.S. alone, and that just includes residential, and not commercial and hotels, et cetera. We think Q4, our products with the turbo heater and fan, which you saw, we think that is going to be a factor for going into Q4 and into Q1 for top line growth and also margin expansion.
We have gotten good feedback on it throughout the year, even though it is not winter, and good trends. There has been even feedback and desire and demand, and we have this in production as well, of larger fans with a turbo heater under it, 42 in, 52 in, and 60 in. This is happening, so we think we are encouraged by this, and we will hopefully see more penetration in sales for deliveries in the projects that we have announced, which is about, SKYX alone has about 1 million units in the pipeline, which we expect to deliver on the projects that have been disclosed.
We have already had our first licensing agreement with Eurofase, which I think has also been a little misunderstood in that the appreciation for it is not there because it is the first company that, we are not mandatory yet, but they have elected to license our technology, our plug-and-play, the standard, because they know they are seeing our penetration with the builders and developers, and they see the ease of installation. So they have signed a five-year licensing agreement of non-exclusive for a fair royalty, and we just think that is the beginning. This is happening without it becoming mandatory. When it is mandatory, we will have to license our basic plug-and-play on a non-discriminatory basis for a fair royalty, which could be 4% or 5%. The licensing is starting even without the mandatory. The commercial demand and motivation is as strong as the regulatory.
I think that gives you a good overview, and just happy to be open for some questions if there is any. Joe?
Thanks, Lenny. Very insightful presentation. Let us turn to some questions. Let us stick with the Deako merger for a second. I think you guys have mentioned that the company generated about $26 million in revenues for 2025. I do not know how much you can disclose as to how they are doing in 2026 and what kind of margins they are generating compared to the margins at SKYX and what kind of, you touched on some synergies. What is the kind of expected run rate for synergies with the merger?
That is a good question, but we have not disclosed detail. We expect to be able to put in their quarter to date numbers probably through Q3 when we file around November, the financials, that may be part of an 8-K. That will provide some insight, historical insight. Despite our growth in the lighting and home decor area, we faced headwinds for the last three years in lighting and home decor as an industry. It has been soft, if not down, and we have managed to grow a nice cadence. I think when you look at the interest rate market and the home market, we may have headwinds. We are not worried about that at all. We just think that as time goes on, we are going to be able to rationalize larger margins and strong sales.
It is really hard to say, because once they are able to, through their channel, add our products, even if, let's say a Toll Brothers buys three fans from us, that is a big number. More than what they sell, from a top-line basis to that, let's say, to that one builder. So it will be interesting. I think you have to stay tuned on that.
Okay. Let's follow along there. You talked about Deako supplies more than 50 home builders. How many of them have been looking at the SKYX product? Because I agree with you, I think that is a huge 1+1=3 type of opportunity for you or five in this case.
Five, yeah. Right.
How many are kind of looking at the products? When do you think you might be able to start introducing some more of the products into that channel?
Look, they are merging with us. They are become stock shareholders, and we got some serious investors on their end. This is all Silicon Valley, Seattle-based investors that started this company. They are very sharp people, and they really did their homework too before they wanted to agree to become part of the combined company. They tested the waters for lack of a better description. A lot of these big homebuilders we have talked to before, maybe over many years, for many years. We are just we are not in a position, we have so much other channels to develop. We just were not ready, and the supply chain and everything. Now it is a great timing for us. These guys, we started. Our sales have been at the C-level developer, owner down. Once the guy who is spending the money in developing says, "We are going to use SKYX," it happens.
Deako went about it old school, and they went from the bottom up, until they got to the decision maker, the builders, and the builders decided, "Yeah, we want Deako." I give them a lot of credit because that is tough. We took a shortcut by going to the guys that writing checks. I think they have saved us maybe three to four years of penetrating into that channel, and getting their foot in the door and that kind of thing. I think that it is really creative in the business sense. We expect it to be overall. They are going to end up with a little over 15%, of the company, which is all in line with real revenues, et cetera. We are ready, we are working on rationalizing even before closing overheads, et cetera.
We are not letting any time go by without really jumping on this.
Okay. Then, specific to SKYX, you guys have talked about some of these major projects in the past, Miami, Austin, the Middle East, and you are talking about having 100,000 units in the market by year-end. Maybe just give us a quick update on the status of their major products and if you are going to hit that 100,000 goal by the end of the year.
Yeah. We expect to hit 100,000 in homes. The other thing is that, between all those announced projects of maybe, let's say, 1 million units, we hope on some of the projects that we start to deliver our products to them. It's not all in our hands. Sometimes it's up to the builder/developer because they're waiting on permits and timing, et cetera. We hope that it'll begin by the end of this year. Then it's just having enough in the pipeline to have deliveries and closing, selling on these projects. It's a process and a lot of it we don't control because the builders are waiting on their issues, their projects, their timing, their permitting, et cetera.
Right. Okay. Maybe just a little bit on the all-in-one smart platform and the recurring revenue opportunity and what that could mean margin-wise to the company.
Well, the all-in-one, once it's installed, you've got features in there, let's say 911 calling, or a fire or smoke, or you want us to call the police department, you want us to call the fire department. Or there's ability to offer, that's our recurring revenue. Those margins are very high because there's no cost to it. It's almost like licensing. They'll be over 85% margins. So those costs are very high. The margins are very high. You've got the sort of ability to sell subscriptions, could be for music because you got a speaker in there. It could be for Audible books. It could be a lot of things that go up in the space and/or a 5G chip, where it's 5G internet, so you've got the ability to have a revenue stream or fees, which are also a very high margin.
That'll come, and I'm not including yet once you have enough Wi-Fi and Bluetooth, we're aggregating data. So that's extremely valuable and that's something that we can monetize. Our power to penetrate homes is very quick and maybe quicker than even like a Ring or a Nest or Alexa, because everyone's going to need some kind of light fixture or everyone's going to want to have, ultimately, a smart fan. Right now the turbo fan heaters aren't smart per se, or the all-in-one platform, they'll want several in the home. Or the light switches from Deako will have intelligence so we could gather data. All that's very valuable and will be valuable, and the question is how we use it and how we monetize it.
Right. Very exciting opportunity. Lenny, we have come to the end of our allotted time. We covered a lot of ground today and got significant insight into what SKYX does, its markets and opportunities, the Deako merger. We appreciate you taking the time to participate in our conference, and we wish you and the company the best in the future. Lenny, again, thanks for a very, very exciting opportunity.
Yeah. Thank you, Joe. Appreciate it.