Q3 2024 SKYX Platforms Corp Earnings Call
Speaker Change: Good day and welcome to the Sky X Platforms Corp. 3rd Quarter 2024 Earnings Call. Today all participants will be in a listen-only mode. Should you need assistance during today's conference, please signal for a conference specialist by pressing the star key followed by zero.
Speaker Change: After today's presentation, there will be an opportunity to ask your questions. To ask a question, you may press star, then 1 on your telephone keypad. If you would like to withdraw your question, please press star, then 2. Please note that today's event is being recorded.
Speaker Change: I would now like to turn the conference over to Rani Kohen, Sky X founder. Please go ahead, sir.
Rani Kohen: Good afternoon. Thank you, everyone, for joining us for the third quarter.
update call
Rani Kohen: and our co-CEO Lenny Sokolow that are going to join on this call. I will start by moving it to Steve Schimdt. I think we have here the cautionary statement first.
after you take a brief look here.
Our president, Steve Schmidt.
We will start with the call.
Speaker Change: Rani, thank you very much. It's great to be with you here this afternoon. So let's get into it. We generated record third quarter revenues of $22.2 million compared to $21.6 million for the third quarter of 2023.
Speaker Change: Next, prior to the completion of the $11 million equity raise in October 2014,
Speaker Change: As of September 30, 2024, we reported $13 million plus in cash, cash equivalents, and restricted cash, as compared to $15.6 million as of June 30, 2024.
Speaker Change: And in October of 24, we secured $11 million equity preferred stock investment representing $2 per share of common stock with no warrants, led by a Global Marriott hotel chain developer and owner of over 70 hotels.
Rani Kohen: plus significant insider investing by myself at $500,000, co-CEO Lenny Sokolow at $250,000, and co-CEO John Campy at $250,000.
Rani Kohen: Let me take a second to give you my perspective in terms of why I remain so excited about the future of Sky Technologies.
Rani Kohen: I invested originally in this company at $12 at the original offering.
Rani Kohen: for Sky. And I remain today, in fact quite frankly, more excited about the future of this company based on everything that we've accomplished and everything we have yet to do that we have in the planning phases.
Rani Kohen: and there were eight or nine reasons that I invested at that time and remain excited today.
Rani Kohen: Rani Kohen, first of all, is a leader, extremely bright, visionary, and inventor of this product. The company team, the management team, and the board, you know, all with tremendous knowledge of this industry.
Rani Kohen: The business strategy, with electricity being a standard in every home and building, our mission was to make every home and building become safe and advanced and smart. Wow. Safety was a key thing.
Rani Kohen: Our products save lives and reduce injuries. Insurance companies, to remind everyone, and media have a fiduciary responsibility to support and report on these cases.
Rani Kohen: Next, proprietary products and services. We now have over 97 global patents and trademarks protecting our products, software, and making competition tougher.
We have a global partnership with GE.
Rani Kohen: Global Company, huge licensing group and they believe in our product and they believe it has a chance to become a US and global standard.
Rani Kohen: The National Electorate Code, where we've talked about in the past the 10 segments already voted into the NEC Codebook and working on mandatory, which we believe would be game changes.
Rani Kohen: ANSI, the American National Standardization Institute, and NEMA, the National Electric Manufacturer Association, have approved our sky ceiling receptacle specifications.
Rani Kohen: and the total available market is over 500 billion dollars in the U.S. alone.
Rani Kohen: and then finally global, with over 30 countries will adopt U.S. electrical standards.
And so those key things.
This is why I really invested then.
Rani Kohen: And it's why I'm investing now, again, is because that belief continues. And these are really the key points and key things that, you know, I thought about as I made my additional investments in the company and I think, you know, holds true for many others who also invested in this latest round.
So I hope you've appreciated that perspective.
Rani Kohen: So, continuing on, net cash used in the operating activities for the third quarter, ending September 30, 2024, decreased sequentially by 39 percent to $2.6 million, compared to $4.2 million in net cash used in the second quarter of 2024.
Rani Kohen: Company gross profit for the third quarter ending September 30, 2024 increased sequentially by 4% to $6.8 million compared to the quarter ending June 30, 2024.
Rani Kohen: to enhance its cash position and to lower its cost of capital.
Rani Kohen: We want to emphasize that we have sufficient cash to achieve our goals, including being cash flow positive in 2025.
Rani Kohen: We continue to grow our market penetration of our advanced and smart plug and play products, and we expect our products to be in close to 15,000 U.S. and Canadian homes by the end of 2024.
Rani Kohen: We expect our products to be in tens of thousands of incremental homes in 2025.
Rani Kohen: We strongly believe our products can save many billions of dollars annually to insurance companies by reducing fires, ladder falls, electrocutions, among others.
Rani Kohen: Management expects that once it's completed that the entire range and variation of our safe plug-and-play products
We will start being recommended by insurance companies.
Rani Kohen: Additional products are currently in production and are expected to arrive by the end of 2024. Products will comprise advanced and smart plug-and-play lighting including recessed lights,
Rani Kohen: down lights, exit signs, emergency lights, ceiling fans, chandeliers, pendants, holiday kids themed lights, indoor-outdoor wall lights, among other things.
Rani Kohen: Our total of addressable market, which I just spoke about prior, our TAM in the U.S. alone is 500 billion dollars with over 4.2 billion ceiling applications in the U.S. alone.
Rani Kohen: Expected revenue streams from retail and professional segments include product sales, royalties, licensing, subscriptions, monitoring, and the sale of global country rights.
Rani Kohen: We continue to utilize our e-commerce platform of over 60 websites for lighting and home decor to educate and enhance our market penetration to both retail and professional segments.
Rani Kohen: As we've spoken before with you, but it's always important to remind everyone. We just are very very proud
Rani Kohen: of our board and our management team. We've got world-class experts from world-class industries, proven executives and individuals that understand and have made the lighting industry what it is today. This is really fundamental and I think it's key to any company as we go forward.
Rani Kohen: Our mission, which we've talked about, is to continue to make homes and buildings safe and smart and advance as a new standard.
and importantly in the center box.
Rani Kohen: We do four things. We save lives, we save costs, we save time, and simplicity and advance.
Rani Kohen: And many companies have been so successful just doing one of these, and yet we have all four as part of our products and services that we're offering. And then we've talked about the patents and other parts of our addressable market.
We influence.
Rani Kohen: Many things and many industries and we talk about the electrical and building and safety regulators, the insurance companies, the lighting industry, smart home industry and in almost every one of these cases we significant cost and time savings while enhancing safety and that's really the fundamental theme behind each one of those sectors and why we remain so excited.
Rani Kohen: Financially, as we've talked, our sales continue to grow. You can see from 19 million in Q1 of 24, 21.4 million in Q2 of 24, and then 22.2 million in Q3 of 24.
Rani Kohen: So, prior to that $11 million raise, we reported our cash and so forth, and we anticipate the company will become cash flow positive during 2025.
Rani Kohen: During the past months we've managed to significantly, we've managed to really create some huge collaborations.
with Home Depot, with GE, with Wayfair.
Rani Kohen: And then, in addition to that, we've got key collaborations with Kichler, world-leading lighting company, Gwizel.
Igloo collaborates from a European leading lighting company.
Rani Kohen: And then finally, Rui, which is the biggest lighting manufacturer in the world.
And last but not least...
Rani Kohen: We are working on some significant additional collaborations, which we plan to announce in the coming months.
Rani Kohen: So a lot going on, we're excited, and with that, let me turn the presentation over to Len Sokolow, our co-CEO.
Len Sokolow: Thank you Steve very much and I just wanted to reiterate the level of excitement that we have.
Len Sokolow: and the fact that you know not only do we see the future, we're living the future and we've invested and continue to invest in the company because we believe in it a great deal.
Len Sokolow: So just to go through at a very high level, quickly.
Len Sokolow: Just so everyone is very clear on the trend lines here, which we're excited about, is our revenues, again, are up 3% to $22.2 million. Our gross profit is up 4% to $6.8 million.
Our gross margin continues to increase.
increased by 1% to 30.9%.
are Net Cash Use and Operating Activities.
by 3.1 million during the quarter.
Rani Kohen: So with that, I'd like to turn it over to Rani.
Kohen. Thank you.
Thank you Steve, thank you Lenny
Time and most important
will save lives.
Rani Kohen: And therefore, we strongly believe, as you can see in this slide, that once we have the entire assortment of products here with us and available, we will get started being recommended by insurance companies. The product that we're currently bringing in
Rani Kohen: and in production all, if not most, if not all of them already.
Rani Kohen: Already here we will have plug-and-play smart ceiling fans and plug-and-play ceiling fans And we'll have a variety of assortment of wall sconces. Once we have the entire
Speaker Change: Rani Kohen, Khadija Mustafa, Lenny Sokolow, Steve Schimdt, Rani Kohen, Leonard Sokolow,
We strongly believe that we can be recommended
fires.
Speaker Change: Reducing ladder falls, the most significant severe injury in homes and reducing electrocutions and much more to come in the future generations with the smoke detectors, CO detectors.
Speaker Change: Rani Kohen, Khadija Mustafa, Steve Schimdt, Rani Kohen, Leonard Sokolow, Steve Schimdt,
Speaker Change: offers intentionability of products you can interchange according to your needs.
energy-saving or holiday or many other reasons, renovations.
Speaker Change: buildings and hotels. We also predict we will start shipping builders and hotels as the products arrive.
Speaker Change: This is a report that we have compiled over the past several good months, if not more, to install LED fixtures. We can do this without technology within days. So it's not only the life-saving aspects. The time and money and cost saving are quite significant value propositions we bring to
All the products you see here is the plug-and-play.
On the left, standards for the electrical and lighting industry.
to license and this is a-
Speaker Change: A major product that we're waiting and it's going to open a lot of doors for us, because still it's a small product, but still you can spend 20 to 30 minutes on the ladder while installing a fixture or recess light, and therefore, we strongly believe that that has a potential, a global potential of licensing.
We will have the SMART
generation two
Speaker Change: Smart of us for the lighting and electrical industry, we'll have also for the ceiling fan industry the plug-and-play advanced product here and the smart plug-and-play advanced product. Last and not least, we strongly believe that we can license
Speaker Change: are Generation 3 products once we're in the market and even before.
Speaker Change: due to many aspects that delivers tremendous electronic real estate. If you see this slide, we can offer, we enhance performance of all smart home features.
Speaker Change: Maybe an exceptional of a water leak that you probably will prefer to have on the floor and not in the ceiling.
But...
When you talk about Wi-Fi, AI,
Yeah.
chips, AI software, smoke detectors, CO detectors, speakers, microphones.
Speaker Change: Emergency lights, everything we have in our platform and all the smart features will significantly work better. Like you can see here, that's what our product does to Wi-Fi. It almost doubles the speed.
Speaker Change: Rani Kohen, Khadija Mustafa, Steve Schimdt, Rani Kohen, Leonard Sokolow, Steve Schimdt,
Speaker Change: Can utilize our vast patent portfolio to That can enable them to put their software in their hardware in but use utilize our patents and most important all the code approvals that we have and the votes
Speaker Change: by the NEC with the 10 segments, ANSI and NEMA, significant votes. The combination with significant enhancements
Speaker Change: of Performance of Smart Home Features in the Top Center of the Ceiling.
with the vast electronic real estate we have, plus the
Speaker Change: Nancy, Nima and NEC votes and NFPA votes offers a great value proposition and this is part of our partnership with General Electric that also merged.
Speaker Change: on licensing together with Dolby, and that sounds like a strong proposition and many people in the GE believe that this really has a lot of value.
Speaker Change: To remind you, GE created many standards, the most famous standards.
Started with the Edison bulb
But...
They created a global standard once inventing...
Speaker Change: their Edison base that became a global standard and many in GE believe that we are on the right path based on all the NEC votes based on hopefully cooperation with insurance companies.
that we expect to come when the products arrive.
Speaker Change: and many other things that we're doing behind the scenes, including licensing, create.
a U.S. and a global standard.
Speaker Change: like Steve mentioned. On top of all of this, as you recall, our products won seven Consumer Electronic Awards in the past year or two, and really the value proposition on a significant market to save lives.
Speaker Change: really opened the door to 4.2 billion residential applications here in the U.S. alone, and much more when it comes to commercial. This is the number of outlets that are out there in the U.S. market alone.
Speaker Change: Close to a billion applications globally. We believe it's close to 10 billion applications
Speaker Change: And therefore, we strongly believe, with many others, that we have a great...
Speaker Change: expanding our sales today through our 60 websites during the collaborations we announced.
Speaker Change: with Home Depot, with Wayfair, and the world-leading European lighting company, U.S. lighting company, Kichler and Kweizel, and the global...
Largest manufacturer of lighting, Wee.
Speaker Change: We can expand our market penetration, and we hope to be in many more homes next year. With that being said, I think we covered quite a lot of ground here today, and we're opening now to Q&A.
Ask your questions, we're here to answer. Thank you.
Thank you. We will now begin the questions and answers.
Speaker Change: yes we have Almas here I'm going according to the list so Almas is first from Freedom and please Almas you can ask the question we're here for you
Speaker Change: Hi everyone. Thank you for taking my questions and congrats on the quarter. I have a few questions.
Speaker Change: Recently SkyX participated in the Real Deal Miami Real Estate Forum. Could you please provide an update on your collaboration with builders?
Yes.
Speaker Change: Yes, so as we showed previously, and I'll show it again here on the screen, if people still see those screens, we are now in production of all the type of pictures.
Speaker Change: Most, if not all, the type of fixtures that builders use today. We are enhancing our market penetration with our ceiling outlet receptacle.
Speaker Change: And our plan is, once we are ready, we can start delivering products after we supply the sealing receptacles that you can see here. We have a one-pack, a four-pack, an eight-pack.
Speaker Change: And the next coming months is starting, actually, even in this month, we're supplying already every month now. And then once we have the full assortment of buildings, I think you will have several announcements here that will cover our great progress with many builders.
as well as hotel owners.
Speaker Change: So we're very excited that that stage and production has started.
Speaker Change: and we already have chandeliers and pendants here, we have holiday lights.
Speaker Change: Now, and we started actually having walls, integrated plug-and-play wall sconces, indoor, for both indoor and outdoor. And we expect to have the exit lights, emergency lights, flush mounts, and recess lights. It's a multi-billion-unit market, as we mentioned, coming soon, and that we expect.
to deliver in the next coming months to
Many builders.
So hopefully that answers your question.
Speaker Change: And the show was great for us with connections and collaboration. Thank you.
Speaker Change: And I have the second question. Most of your suppliers are based in China. How do you assess the potential increase in import tariffs?
Speaker Change: For instance, considering President Trump's statement proposing a 60% tariff on all Chinese goods, how much might such change affect your gross profit margin?
So,
So first of all, we have factories.
that we're working with today.
Speaker Change: And the manufacturers we're working today have other factories because they're thinking about their backups in case there's issues between US and China in general. So we're working already with companies.
in Taiwan and in the Philippines.
Speaker Change: in Vietnam, in addition to our Chinese manufacturers, and several of them already have.
connections and factories in Vietnam and in Taiwan.
With this, I think we're well protected.
Speaker Change: I don't want to go to politics. You know, there's no president coming here, and many people say he's using it more for threats, but I really, this is, you know, in case he doesn't, we have our backup factories, and that's the most important. And then,
So does that answer both questions?
Speaker Change: Yes. Okay. Thank you. Congrats on the quarter. Thank you. And I think next is Jerry from Ross Capital. Jerry Suimi. Hi, Jerry. Please ask your questions. We're all here to answer. Hey, Rani.
Jerry Suimi: Rani, Len, Steve, thanks for taking my call. I had a couple questions, but specifically, you know, Collaborations, Home Depot, Wayfair have
Jerry Suimi: and as well as you know connecting them on to the web. I know there's some products on the web but I think they're going to add more and more products to some others as well. Curious if they've given you any type of schedules to help that it's going to roll out.
in the website, some products, but this is really...
the good news and the bad news. The good news...
Jerry Suimi: We started rolling in, but the bad news is that it's only 3%, but this is really the good news because...
We have started production.
and products are arriving in the country now.
and we expect to start rolling them into...
Jerry Suimi: And after you enter online, you can get more access to stores when it comes to Home Depot and Wayfair.
Jerry Suimi: It's online always. Something else to mention that the numbers show we own also 60 websites.
and e-commerce today is taking over.
More and more business compared to retail.
Jerry Suimi: So it's a growing business and for us to be on both sides of the aisle actually serves us very well.
from that perspective. So we're just in the beginning.
Jerry Suimi: and product is arriving now on a monthly base, we're getting containers and containers.
Jerry Suimi: and we're going to load more and more products into R60 websites, many of them, and expect to also load in more products to both Home Depot, Wayfair, and other collaborations that we're working on.
Speaker Change: Got it. So, just to be clear, as you ramp up production...
into the actual stores as well.
Speaker Change: That's our expectation as we grow online to also grow parallel in stores and that's what you know this is why we have backup from the biggest manufacturers to start rolling up those programs to both online and retail.
as we come with more product.
Speaker Change: Got it. And I call it Gen 3, the platform with the Wi-Fi, lighting, etc. Is that...
Speaker Change: In production, and if not, what's the timeline for that to hit production?
Speaker Change: We're in final stages and just clearing up all the safety aspects between UL and FCC and smoke detector UL and electronics UL and electrical so fine-tuning
Speaker Change: before we go to mass production. We expect mass production to start.
and the next coming months.
Speaker Change: Steve Schimdt, Rani Kohen, Leonard Sokolow, Steve Schimdt, Rani Kohen, Leonard Sokolow,
Speaker Change: the minimum of the minimum, especially that we're launching a new product. So we're in good space and good shape with this, and we expect to start rolling very soon with that product.
Speaker Change: Obviously I mean you touched upon it in some of your remarks about the opportunity with Gen 3 and licensing it for a whole host of opportunities within
the home. At what point...
Speaker Change: Can you start to go down that path, even just discussions with people licensing some of the real estate that you're creating, and would that be you or is that more the GE sort of collaboration?
Speaker Change: That will be more the GE collaboration, that's their expertise. GE created so many standards and so many industries.
Speaker Change: I think we just showed probably the most famous standard they created globally was the Edison base.
Speaker Change: in Aviation and Medical Equipment, many standards, I always like to say there's a standard that
Speaker Change: All of us on this call, and I think every American is using on a daily basis, it's a GE standard that many people do not know they created, but it's called LED Phosphor. Every time you open a computer or a TV or a MacBook or an iPad or any laptop,
Speaker Change: You have on the screen the technology LED Phosphor, and as long as you bought it from one of the 24 largest electronic companies,
including Samsung or Apple or Dell.
Speaker Change: You will, and in the past seven years, you will have the product there. So GE has an expertise to create standards.
and they have a strong belief that...
Speaker Change: that we have a very strong case based on vast electronic real estate on the ceiling that the ceiling enhances performance of every product, not only light fixtures and Wi-Fi, but AI and other smart chips.
Speaker Change: as well as smoke detectors, CO detectors, and the technology we have with the strong patents.
combined with the
Speaker Change: that many of the biggest companies in the world have their own software, have their own hardware.
Speaker Change: But they want to enhance performance and they probably want to enjoy, you know, better performance on their product and our patents give us a lot of strength.
Speaker Change: in the top center of the ceiling, and with the votes we have with ANSI, NEMA, NEC is a tremendous value proposition according to
Speaker Change: Many, including GE, including Khadija Mustafa, that joined us from Microsoft. That's really the main reason she believes that this is a game-changing product. And Khadija spoke on the last call, the one before, and she'll probably join us on the annual call as well.
Speaker Change: Gotcha, and then just one quick more follow-up question just the NAC mandatory opportunity any updates I know that you know that's a voting process but just curious if there's been any updates or any move forward on that front
Speaker Change: We're still in the process. As we said, it's a very lengthy process. I think that's the good news. The bad news is we're 13 years, but it's also the good news. But we're getting all kinds of additional documentations and all kinds of...
other hurdles that that we need to
Speaker Change: overcome and submitting more stuff and our team is continuing their efforts and
Speaker Change: It's not a fast process, but we're working and we hope to have surprises on timing.
Thank you very much.
I appreciate it. I'll jump back in line. Thank you.
Speaker Change: Okay, next question. We have here Pat McCann, Noble Capital, and then we have Jack
from Maxim Group. So, please...
Patrick
Hey guys, good afternoon. Thanks for taking my questions.
Speaker Change: I just wanted to touch on the insurance recommendation issue. I was wondering if you could expand a little bit on what that would look like from the consumer's point of view. I guess what I initially think of is when you get a home security system like ADT,
Speaker Change: get a discount on your insurance premiums, your home insurance, or something along those lines. Is that sort of what it would look like? Could you just talk a little bit more about what we should envision?
We believe it reduces fires.
Speaker Change: reduces ladder falls, the major significant issue and hazard in homes and significantly reduces electrocution and being electrocuted in the ladder is worse than being electrocuted on floor. So those safety aspects come with Generation One.
and two already has an emergency light.
Speaker Change: and Generation 3 that's not in production yet would have much more so our discussions are...
based on a few phases.
Speaker Change: The good news, they started arriving last month and are arriving this month and the next coming months. Every month, we're going to have more and more products, and we expect to have the entire range within a month or two, and I think that that's going to happen.
Thank you.
Speaker Change: enhance those discussions. They really want to see that we have enough product in enough places.
Speaker Change: And that's as you can see we're working on and once we show this product and there's the accessibility and availability We expect them to start encouraging the use here because there's a tremendous dollar saving for them
Speaker Change: double down on the Home Depot question and just I guess I guess what I'm wondering is in the in the first handful of months here you know you mentioned that you're in a hundred stores now roughly but I think you would also previously mentioned how the Home Depot would sort of look at the
Speaker Change: The popularity or the success of your products on the website
Speaker Change: have been having the most success with Home Depot and what they want to bring into stores in the future. Any granularity there?
Speaker Change: yet in the store so everything you see on this slide that I'm showing again
Speaker Change: Is not in stores yet or maybe 1% of what you see here if at all I think actually most of them not in stores at all yet
Speaker Change: So, as we start getting all those products in stores, there's going to generate...
Speaker Change: program and and there's going to be marketing around it and we're going to have much better understanding on what products and what colors
Speaker Change: Rani Kohen, Khadija Mustafa, Steve Schimdt, Rani Kohen, Leonard Sokolow, Steve Schimdt,
Speaker Change: Here what we call our receptacles, but since there's not you know, the the blades are not arrived yet We don't know which products
and how are they going to perform.
Speaker Change: We have an indication for our website, so we know what to bring and what to show, because that helps us a lot to understand. But specifically now, that's part of our collaboration, landing products.
Speaker Change: that we expect very soon that you can see on our website as well as Home Depot and Wayfair and other websites.
and at that point, very soon, hopefully, we'll start determining
what products have potential to a major expansion.
Okay, I believe Jack
Hey Rani, can you hear me okay?
Yes.
Hi. Okay. Yes, we hear you fine.
Speaker Change: Thanks for the update. A lot of my questions were taken, so I do want to touch on the Home Builder channel. You know, you've announced a Florida order to supply over a thousand homes. I'm just wondering if you could provide any update, color on, you know, expectations for this channel. Are you getting more orders inbounds? How do you expect those orders to ramp just in that Home Builder channel? That'd be helpful.
Yes, great question. We met with the builder.
recently, and it looks like we will start supplying
Speaker Change: very early in the year. You know, there are permits and delays and all kinds of fun stuff that builders go through, and that's part of our razor-and-the-blade model. Sometimes we can grow our penetration with what we call
Speaker Change: Rani Kohen, Khadija Mustafa, Steve Schimdt, Rani Kohen, Leonard Sokolow, Steve Schimdt,
to start supplying early next year.
Speaker Change: So that's what the bill already signed, and yes, we are in discussions with several...
major players
Speaker Change: including builders, including hotel owners and it's really waiting on all the products to arrive here.
Speaker Change: But there's a lot of interest here because, again, we said it earlier.
Speaker Change: Well, I said it earlier, you can go to a high-rise today to install a smart home, the light fixtures will take you months, sometimes can take you six months to hear.
Speaker Change: When our products, once you have the receptacles installed, the sealing outlet, it can take days, so there's a significant...
cost-saving on installation, obviously time-saving.
as well as we can supply replacement items.
Speaker Change: that if something happens to a recess light or emergency light, what oftenly happens with builders...
Speaker Change: They don't need to call an electrician. They have their maintenance guy go and plug and play. So there's many advantages and there's significant interest. We're talking about.
Speaker Change: to CEOs of major companies and key people and world-leading companies that we're talking to and we just are focused and to deliver our products here.
Speaker Change: And once we do, I think we will have a lot to say on who and what products we're collaborating on.
Speaker Change: Okay, fantastic. And then just real quick, I just want to touch on, there's some discussion around international manufacturing and sort of tariffs and stuff, but I just want to touch on the relationship you have specifically with RUI. How is that going? Are they actively up and running now? And just how is that relationship panning out? And that's it for me. Thanks.
Speaker Change: Yes, thank you for the question. Yes, we actually is in production now and I believe even starting to ship very very soon. We actually started getting some products here so we are, he's in production and that's expanding.
Speaker Change: expanding every day now and we believe there's going to be much more production coming from their end. So everything is going according to plan and the chart I showed you earlier, a lot of those pictures are going to start landing
Thank you very much.
Jack, does that answer your question or any other question?
Speaker Change: That's it for me. That's it for me. I appreciate it. That answers my questions.
Speaker Change: okay thank you thank you everyone very much appreciate your time here and thank you Steve and thank you Lenny and I see here that let me see
Speaker Change: There is another question here that I can see. It's Paul Cooney from Benchmark. Please, Paul, welcome. You can ask. The microphone is yours.
Paul Cooney: Skyplugs, is most of the production with the smart version or with the plain version? And if it's the plain version, you know, how far off are we from the smart version?
Speaker Change: So we're producing now parallel both, we have inventory and producing both the standard and the smart.
Speaker Change: Obviously, the smart is a much more expensive item, and not every recess light or exit sign would like to have a smart product, so it's on the high-end products such as ceiling fans and chandeliers that we see this interest because the smart can cost more.
Speaker Change: than a product, but what we have, what we expect to have also...
Speaker Change: And it reminds us that once the recess light arrives here, you can group those recess lights and put many of them on one smart board.
So, the smart is growing.
are much higher and expected to be higher, but...
As we sell product, we're putting...
and Deliver Products were putting the razors...
Speaker Change: Steve Schimdt, Rani Kohen, Leonard Sokolow, Steve Schimdt, Rani Kohen, Leonard Sokolow,
is the standard one.
Speaker Change: The advanced standard plug-and-play and probably a third would be a smart down the road But those are rough estimates as we we start production with generation 3 Generation 3 will will fine-tune and understand the numbers better
Okay, we see that there's no more questions.
Speaker Change: The conference is now concluded. Thank you for attending today's presentation and you may now disconnect.