Based on the provided financial report articles, I generated the title for the article: **"SkyX, Inc. (0001598981) - 2024 Annual Report"** Please note that the title may not be exact, as the provided text appears to be a financial report with various sections and data, and the title may not be explicitly stated.
Based on the provided financial report articles, I generated the title for the article: **"SkyX, Inc. (0001598981) - 2024 Annual Report"** Please note that the title may not be exact, as the provided text appears to be a financial report with various sections and data, and the title may not be explicitly stated.
Unfortunately, the provided text does not contain a financial report in a format that can be easily summarized. The text appears to be a collection of financial data and metadata, including dates, account names, and descriptions, but it lacks a clear narrative or summary of the financial report’s key findings and developments.
However, I can try to extract some general information from the text. The report appears to cover a fiscal year (FY) ending on December 31, 2024, and includes data on various financial accounts, such as common stock, preferred stock, retained earnings, and accumulated other comprehensive income. The report also mentions a company called Belami, which is a subsidiary of the company, and references e-commerce technology platforms.
If you could provide more context or clarify what specific information you are looking for, I may be able to help you better.
Overview
We have a series of advanced-safe-smart platform technologies. Our first and second-generation technologies enable light fixtures, ceiling fans and other electrically wired products to be installed safely and quickly without the need to touch hazarddous wires. Our third-generation technology is an all-in-one safe and smart-advanced platform designed to enhance home and building safety and lifestyle.
We believe our total addressable market in the United States exceeds $500 billion, based on our internal calculations. However, our estimates of the addressable market may prove to be incorrect, and the projected demand for our products could differ materially from actual demand.
Inflation, supply chain constraints, and other macroeconomic factors have adversely impacted our operations and may continue to do so in the future. We have also faced challenges related to the conflicts in the Middle East, which could create work interruptions and increased costs.
In April 2023, we completed the acquisition of Belami, a strategic e-commerce lighting and home décor conglomerate. The acquisition is expected to provide several distribution channels for our products and serve as a marketing and growth platform.
Recent Developments
In March 2024, we modified certain obligations related to the Belami acquisition, issuing convertible promissory notes to the sellers. We also extended the deadline and issued a convertible note to GE-TL in April 2024.
During the second quarter of 2023, we began an at-the-market offering program to sell up to $20 million of our common stock. Between October 2024 and March 2025, we also sold an aggregate of 480,000 shares of two series of preferred stock, resulting in total gross proceeds of $12 million.
Results of Operations
Years Ended December 31, 2024 and 2023
| Metric | 2024 ($) | 2023 ($) | Increase/(Decrease) $ | Increase/(Decrease) % |
|---|---|---|---|---|
| Revenue | 86,276,876 | 58,785,762 | 27,491,114 | 47% |
| Cost of revenues | 61,682,934 | 40,749,913 | 20,933,021 | 51% |
| Selling and marketing expenses | 25,353,172 | 18,805,069 | 6,548,103 | 35% |
| General and administrative expenses | 31,353,009 | 37,055,986 | (5,702,978) | -15% |
| Total expenses | 118,389,115 | 96,610,968 | 21,778,147 | 23% |
| Interest expense, net | (4,055,905) | (3,109,307) | 946,598 | 30% |
| Gain on extinguishment of debt | 400,000 | 1,201,857 | (801,857) | -67% |
| Net loss | (35,768,144) | (39,732,656) | (3,964,512) | -10% |
Revenue
The increase in revenues is primarily due to revenues from products marketed by Belami, which was acquired in April 2023. We believe revenues will be higher in 2025 than in 2024, primarily resulting from the sale of our advanced products.
Cost of Revenues
The increase in cost of revenues is primarily due to costs associated with revenues from products marketed by Belami. We believe the cost of revenues will increase in 2025 compared to 2024, in similar proportions to the anticipated increase in revenues.
Selling and Marketing Expenses
The increase in selling and marketing expenses is primarily due to expenses increasing following the acquisition of Belami. We believe our selling and marketing expenses will be higher during 2025 when compared to 2024 as we continue to invest to support our anticipated growth.
General and Administrative Expenses
The decrease in general and administrative expenses during 2024 when compared to 2023 is primarily due to decreased share-based payments and non-recurring expenditures in 2023, partially offset by increased amortization of intangibles and an impairment expense. We believe our operating expenses will be higher during 2025 when compared to 2024 as we continue to invest to support our anticipated growth, including expenses related to Belami’s operations.
Other Income (Expense)
The increase in interest expense resulted primarily from increased interest-bearing weighted average debt. The decrease in gain on extinguishment of debt is due to non-recurring gains in the respective periods.
Liquidity and Capital Resources
As of December 31, 2024, we had $15.5 million in cash and cash equivalents, including restricted cash. We have historically raised funds through the issuance of common stock, convertible securities, and notes payable.
In 2024 and 2025, we raised funds through the sale of common stock, including under our at-the-market offering program, as well as the sale of Series A and Series A-1 preferred stock, generating total gross proceeds of $15.4 million and $12.0 million, respectively.
Our future capital requirements will depend on many factors, including the integration of Belami, our revenue growth, expenditures, and the timing and extent of cash receipts and payments. We may continue to seek additional equity or debt financing to support our operations and growth.
As of December 31, 2024, we had $15.6 million in fixed rate obligations and $1.7 million in other accrued expenses, including minimum royalty payments to GE. We also have a $3.5 million secured revolving line of credit.
Going Concern
The Company’s management cannot ascertain that there is no substantial doubt about the Company’s ability to meet its obligations as they become due within one year after the date the financial statements are issued. Management intends to mitigate this by increasing revenues, margins, and, if necessary, generating cash through financing activities.
Non-GAAP Financial Measures
Management considers EBITDA, as adjusted, an important indicator in evaluating the Company’s business. EBITDA, as adjusted, was $(13,052,099) and $(15,243,640) for the years ended December 31, 2024 and 2023, respectively.
Critical Accounting Policies
The Company’s significant accounting policies involve the use of estimates and judgments, including those related to the valuation of financial instruments, stock-based compensation, and revenue recognition.
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