Q2 2025 SKYX Platforms Corp Earnings Call
Speaker #2: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad.
Speaker #2: To withdraw your question, please press star, then two. Please be advised that this conference call will contain statements that are forward-looking and subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated.
Speaker #2: Please note, this event is being recorded. I would now like to turn the conference over to Ran Kohen, Founder and Executive Chairman. Please go ahead.
Speaker #3: Good afternoon, everyone. We're happy to have you all here. In our Q2 earnings call, 2025, we will start with our president, Steve Schmidt, with a general overview about some highlights of this quarter.
Ronnie Cohen: Good afternoon, everyone. We're happy to have you all here in our Q2 earnings call 2025. We will start with our president, Steve Schmidt, with a general overview about some highlights of this quarter. Thank you, Steve.
Speaker #3: Thank you, Steve. and good afternoon, everyone, on the call, and it's my pleasure to be with you here this afternoon. What I'm going to do is kind of cover just briefly in a very high-level some very good results from a quarter standpoint on the financial side, and then talk to you about some key updates relative to the business and progress we've been making.
Steve Schmidt: Ronnie, thank you and good afternoon, everyone, on the call. And it's my pleasure to be with you here this afternoon. What I'm going to do is kind of cover just briefly at a very high level some very good results from a quarter standpoint on the financial side, and then talk to you about some key updates relative to the business and progress we've been making. And you know, as an overview on kind of the key financials, you know, for the quarter, our revenue was up 15% versus Q1. Good growth. Our cash position was up 3.4 million, growing significantly versus prior quarter. And our gross profit was up 23%, which shows significant progress on that side of the financial ledger. And our net cash used was down significantly, down 54%, primarily due to some favorability in payables and the improvement in gross profit.
Speaker #3: You know, as an overview on kind of the key Rani, thank you, financials, you know, for the quarter, our revenue was up 15% versus Q1.
Speaker #3: Good growth. Our cash position was up 3.4 million. Growing significantly versus prior quarter. And our gross profit was up 23%, which shows significant progress on that side of the financial ledger.
Speaker #3: And our net cash used was down significantly, down 54%, primarily due to some favorability in payables and the improvement in gross profit. Lens Sokolow, our chief executive officer, will be going into more detail on the financials here in just a little bit.
Steve Schmidt: Lynn Sokolow, our chief executive officer, will be going into more detail on the financials here in just a little bit. So let's talk now about kind of the business perspective and kind of the key progress we've made. During the quarter, and it's important to talk about our patents, and significant progress was made. And we are granted eight newly issued US and global patents, and we now have over 100 patents and pending applications with 45 issued patents, which is absolutely critical to maintaining the momentum of our business. It's very important that I mention to everyone and note that each of our 100 patents and pending applications is based on three major factors: safety, massive addressable market, the TAM, and global applications, all of which will drive future growth for this company.
Speaker #3: So let's talk now about kind of the business perspective and kind of the key progress we've made. During the quarter, and it's important to talk about our patents and significant progress was made.
Speaker #3: And we are granted eight newly issued US and global patents, and we now have over 100 patents and pending applications with 45 issued patents, which is absolutely critical to maintaining the momentum of our business.
Speaker #3: It's very important that I mention to everyone and note that each of our 100 patents and pending applications is based on three major factors.
Speaker #3: Safety, massive addressable market, the TAM, and global applications. All of which will drive future growth for this company. We also continue our collaboration with Home Depot, which I've spoken about in our past updates.
Steve Schmidt: We also continue our collaboration with Home Depot, which I've spoken about in our past updates with our advanced and smart plug-and-play products. And we're in the process of growing our product assortment in Home Depot to offer a variety of our advanced plug-and-play smart products, including the ceiling fans, heating fans, light fixtures, exit signs, emergency lights, ceiling outlets, recessed lights, downlights, indoor, outdoor, you name it, we got it. And we're very pleased that this growth continues as we expand our retail presence. We expect our products to be in over 40,000 unit/homes by the end of Q3 of 2023 in the US and Canada through retail and pro segments. As I mentioned, we raised, and we talked this last quarter, the $15 million led by the Shaner Group, owner and developer of more than 70 hotels, including 60 Marriotts.
Speaker #3: With our advanced and smart plug-and-play products, and we are in the process of growing. Our product assortment in Home Depot. To offer a variety of our advanced plug-and-play smart products, including the ceiling fans, heating fans, light fixtures, exit signs, emergency lights, ceiling outlets, recess lights, downlights indoor, outdoor, you name it, we've got it.
Speaker #3: And we're very pleased that this growth continues. As we expand our retail presence. We expect our products to be in over 40,000 unit-sized homes, by the end of Q3 of 2023, in the US and Canada, through retail and pro segments.
Speaker #3: As I mentioned, we raised, and we talked this last quarter, the $15 million led by the Shader Group, owner and developer of more than 70 hotels, including 60 Marriotts, important to add that we're making progress.
Steve Schmidt: Important to add that we're making progress with this segment. And we hope that we can share some progress soon as a major Marriott developer. Our safety code standardization team, a very important area of focus for us, continues to make progress and is receiving significant support from a new prominent leader with its government safety organization process for safety mandatory standardization in homes and buildings of ceiling outlets and the receptacle technology. We also, if you recall last quarter, we announced and said to you that we'd have some major announcements relative to a major collaboration. And we did. So we have announced that major collaboration with a Miami $3 billion mixed-use urban smart home city project, a significant opportunity for the company, and we are working on some additional large projects that we hope to be able to talk to you soon about.
Speaker #3: With this segment. And we hope that we can share some progress soon. Some major Marriott developer. Our safety code, standardization team, a very important area of focus for us, continues to make progress and is receiving significant support from a new, prominent leader with its government safety organization.
Speaker #3: Process for safety mandatory standardization in homes and buildings of ceiling outlets and the receptacle technology. We also If you recall last quarter, we announced and said to you that we'd have some major announcements relative to a major collaboration.
Speaker #3: And we did. So we have announced a major collaboration with the Miami Three Billion Dollar Mixed-Use Urban Smart Home City Project. This is a significant opportunity for the company, and we are working on some additional large projects that we hope to be able to talk to you about soon.
Speaker #3: So a lot of progress being made, and good financial results. So with that, what I'm going to ask Rani to do is come back on and really speak more granular regarding the patents, the code, and the Miami Smart City.
Steve Schmidt: So a lot of progress being made and good financial results. So with that, what I'm going to ask Ronnie to do is come back on and really speak more granular regarding the patents, the code, and the Miami Smart City. So let me turn it back to Ronnie. Ronnie?
Speaker #3: So let me turn it back to Rani. Rani?
Speaker #4: Thank you, Steve. As Steve mentioned, we're happy with the additional patents here, and I think the most important aspect is that everything we invent here at SKYX has to do with safety first, a massive total addressable market, and global application. We are proud to have over 100 patents.
Ronnie Cohen: Thank you, Steve. As Steve mentioned, we're happy with additional patents here. And I think the most important aspect is everything we invent here in SKYX has to do with safety first, a massive TAM, addressable market, and with a global application. And we're proud to have over 100 patents, and that all fit and go through categories that is a contingency for anything we invent here. And that's our core foundation. And this is why I think we got a lot of support from tremendous leaders. Steve is one of them. But as we know, former CEOs of Home Depot and president of Disney World Parks, Hotels, Cruise Ships, and Resorts, and many other key members, including the National Electrical Code Head and the American Lighting Association Head, and all of those good people are joining us here. Additionally, with the code, we are making some progress.
Speaker #4: And that all fit into those two categories; that is a contingency for anything we invent here. And that's our core foundation, and this is why I think we got a lot of support from tremendous leaders.
Speaker #4: Steve is one of them, but as you know, former CEOs of Home Depot and presidents of Disney World parks, hotels, cruise ships, and resorts, along with many other key members, including the head of the National Electrical Code and the head of the American Lighting Association, are joining us here.
Speaker #4: Additionally, with the code, we are making some progress and we have found out that there's two safety government safety organizations that are really one of them in charge on ladder falls and falls in general and another one in charge of electrical and electronics.
Ronnie Cohen: And we have found out that there's two government safety organizations that are really one of them in charge on ladder falls and falls in general, and another one in charge of electrical and electronics. And according to our code team, their general criteria is to save lives, mitigate injuries, and property damages. And you know we are pursuing those aspects according to the criteria they probably need to find us too. But we're working on this, and we have made some progress behind the scenes that hopefully we will be able to share with you sometimes, hopefully sooner than later. But that's quite significant progress that our code team feels that we are doing behind the scenes with the mandatory application for our ceiling outlet receptacle, all based on safety. And then last but not least here for now is the smart city.
Speaker #4: And according to our code team, their general criteria is to save lives, mitigate injuries, and property damages. And you know, we are pursuing those aspects according to the criteria they probably need to find us too.
Speaker #4: But we're working on this and we have some made some progress behind the scenes that hopefully we will be able to share with you sometimes hopefully sooner than later.
Speaker #4: But that's quite significant progress that we our code team feels that we are doing behind the scenes with the mandatory application for our ceiling outlet receptacle all based on safety.
Speaker #4: And then last but not least here for now is the Smart City. We're very proud to really announce that collaboration. It's a major milestone for us, for the company, and we're just sharing a picture here of this entire footprint in the heart of Miami.
Ronnie Cohen: We're very proud to really announce that collaboration. It's a major milestone for us, for the company. And we're just sharing a picture here of this entire footprint in the heart of Miami. The ones that have it online, they can see downtown, they can see South Beach, and they can see Wynwood. And just next to Wynwood and the Art Basel area, that's where that smart city is located from west of I-95 all the way to US 1. A huge footprint is a 200-year lease from the city of Miami. And if they had to do it the old way to wire the entire community, it would take them probably several years or several, maybe several years more, but much more, several times more than what that will take with our product.
Speaker #4: The ones that have it online, they can see downtown, they can see South Beach, and they can see Windwood and just next to Windwood and the Art Basel area.
Speaker #4: That's where that Smart City is located from west of I-95 all the way to US-1, a huge footprint is 200 year lease from the city of Miami and if they had to do it, the old way, to wire the entire community it would take them probably several years or several maybe several years more, but much more several times more than what that will take with our product and in addition to this, they were also save not only a lot of time here, but I think we can do it in a much more cost efficient way for them.
Ronnie Cohen: And in addition to this, they will also save not only a lot of time here, but I think we can do it in a much more cost-efficient way for them. And I think we're bringing here the future, our all-in-one smart platform. We hope to have it in production in the next coming months. That's going to be a big factor here. As Steve mentioned, we expect to deploy 500,000 units between our smart and advanced products, all plug and play. And that's going to include from smart all-in-one smart home platforms to other smart products and recessed light, exit signs, emergency lights, and all going to be part of that urban city.
Speaker #4: And I think we're bringing here the future are all in one smart platform. We hope to have it in production in the next coming months.
Speaker #4: That's going to be a big factor here, as Steve mentioned. We expect to deploy 500,000 units between our smart and advanced products, all plug-and-play.
Speaker #4: And that's going to include from smart all in one smart home platforms to other smart products and recess light exit signs, emergency lights, and all going to be part of that urban city.
Speaker #4: And this is really a major milestone in the fact that we were able to compete in probably one of the leading cities in America here and land probably one of the largest smart cities in America too.
Ronnie Cohen: And this is really a major milestone in the fact that we were able to compete and, you know, and probably one of the leading cities in America here and land probably one of the largest smart cities in America too, based on our technology, working with those prominent developers that have a background of many huge projects. But this is their probably landmark project for them and for sure for us. And to collaborate with prominent developers, SG Holdings, and all their partnership is really, we're not taking it for granted. And we're here doing together a project that I think is going to be a landmark in Miami. And you know there's a lot of excitement around the city and with the mayors and everyone around that project because this really is going to redefine Miami as a city.
Speaker #4: Based on our technology, working with those prominent developers who have a background in many huge projects, this is probably their landmark project for them and for sure for us.
Speaker #4: And to collaborate with prominent developers SG Holdings and all their partnerships is really—not taking it for granted. We're here doing together a project that I think is going to be a landmark in Miami, and you know, there's a lot of excitement around the city.
Speaker #4: And with the mayors and everyone around that project because this is really is going to redefine Miami as a city and again, we're very proud to be part of it.
Ronnie Cohen: And again, we're very proud to be part of it. So with that being said, as Steve mentioned, we're progressing with Home Depot, progressing other things. We launched recently a plug-and-play advanced and also smart heater. We announced that we hope to have it very soon in the market here for this coming winter. It's an all-in-one product that provides the air, the cool air for summertime and heat for winter. And we also announced that we had some global collaborations on this. And there's some excitement around this product. And we're happy to say it's in production. And we expect that product to land here soon. So some more slides of the smart city here before we wrap up. There's a train station, as the ones that have a screen can see, parks, restaurants, malls, hotels. We understand they're going to have a Home Depot there and a Publix.
Speaker #4: So with that being said, as Steve mentioned, we're progressing with Home Depot. We're progressing other things. We launched recently a plug-and-play advanced and also smart heater we announced that we hope to have it very soon in the market here for this coming winter.
Speaker #4: It's an all-in-one product that provides the air the cool air for summertime and heat for winter and we also announced that we had some global collaborations on this and there's some excitement around this product and we're happy to say it's in production and we expect that product to land here soon.
Speaker #4: So, more slides of the Smart City here. Before we wrap up, there's a train station. As the ones that have a screen can see parks, restaurants, malls, and hotels, we understand they're going to have a Home Depot there and a Publix. It's really an urban smart city.
Ronnie Cohen: And it's really, it's an urban smart city, huge train station with the Bright Line in Miami. Again, tremendous, really, achievement for the team. And I thank our team here for making that happen. Again, it's based on the Razor and the Blade model that we like to discuss. You have the Razor, what we say, the ceiling receptacles for the ones that can see the slides. And once you have a ceiling receptacle, you can decide what you want to plug in, if it's a smart fixture or a smart platform, ceiling fan and light fixture, or any other type of fixture. And really proud that we're able to deploy and lead that project. So with that being said, I want to pass it to our CEO here, Lenny Sokolow, with some additional financial highlights. Thank you, Lenny.
Speaker #4: Huge train station with the bright line in Miami. Again, tremendous really achievement for the team and I thank our team here for making that happen.
Speaker #4: Again, it's based on the razor and the blade model that we like to discuss. You have the razor, what we say the ceiling receptacles for the ones that can see the slides.
Speaker #4: And once you have a ceiling receptacle, you can decide what you want to plug in. If it's a smart fixture or a smart platform, ceiling fan and light fixture, or any other type of fixture, and really proud that we're able to deploy and lead that project.
Speaker #4: So with that being said, I want to pass it to our CEO here, Lenny Sokolow, with some additional financial highlights. Thank you, Lenny.
Speaker #5: Right, and thank you, Rani. I appreciate that. As Steve mentioned, we reported an increase of 15% with a record second quarter 2025 revenue of $23.1 million.
Lenny Sokolow: Great. And thank you, Ronnie. Appreciate that and that update. We have, as Steve mentioned, we reported an increase of 15% with a record second quarter 2025 revenues of 23.1 million compared to 20.1 million for the first quarter of 2025. And we continue to grow our market penetration in the US and Canadian markets. And further to that, our growth has increased, you know, six comparable quarters from Q1 2024 to the Q2 2025. So that's been really good progress for us. With respect to cash, just to reiterate, you know, as of June 30, the company reported 15.7 million in cash and cash equivalents in restricted cash as compared to 12.3 million as of March 31st, 2025. And as is common with companies such as ours, when sales are converted into cash rapidly, we often refer to that as the Dell working capital model.
Speaker #5: Compared to 20.1 million for the first quarter of 2025. And we continued to grow our market penetration in the US and Canadian markets. And further to that, our growth has been has increased six comparable quarters from Q1 2024 to the Q2 2025.
Speaker #5: So that's been really good progress for us. With respect to cash, just to reiterate, you know, as of June 30, the company reported $15.7 million in cash and cash equivalents and restricted cash, as compared to $12.3 million.
Speaker #5: As of March 31, 2025. And as a comment with companies such as ours, when sales are converted into cash, rapidly we often refer to that as the Dell working capital model.
Speaker #5: You know, we leverage our trade payable to finance our operations and to enhance our cash position and to lower our cost of capital. We have you know, we basically leveraged our e-commerce platform of our 60 websites among other methods to support this approach as well as support from strategic investors and insiders.
Lenny Sokolow: You know, we leverage our trade payable to finance our operations and to enhance our cash position and to lower our cost of capital. We have, you know, we basically leveraged our e-commerce platform of our 60 websites among other methods to support this approach, as well as support from strategic investors and insiders. We believe, and we've said this before, that we have sufficient cash to achieve our goal of becoming cash flow positive in 2025. And you know, to that end, our net cash used in operating activities for the second quarter ending June 30, 2025, decreased sequentially by 54% to 2 million compared to 4.3 million in the first quarter of 2025. And as contributing to that was that the gross profit for the second quarter ending June 30 increased sequentially by 23% to 7 million compared to the first quarter ending March 31st, 2025.
Speaker #5: We believe and we've said this before that we have sufficient cash to achieve our goal of becoming cash flow positive. And 2025, and you know, to that end, our net cash used and operating activities for the second quarter ending June 30, 2025, decreased sequentially by 54% to 2 million compared to 4.3 million in the first quarter of 2025.
Speaker #5: And as a contributing to that was that the gross profit for the second quarter ending June 30 increased sequentially by 23% to 7 million.
Speaker #5: Compared to the first quarter. Ending March 31, 2025. And as a beginning of we hope positive momentum, the gross margin for the second quarter ending June 30, 2025, increased sequentially by 7% to 30.3% compared to the first quarter ending March 31, 2025.
Lenny Sokolow: And as a beginning of, we hope, positive momentum, the gross margin for the second quarter ending June 30, 2025, increased sequentially by 7% to 30.3% compared to the first quarter ending March 31st, 2025. And finally, the adjusted EBITDA loss for the second quarter, which is a loss before interest, taxes, depreciation, and amortization. And we adjust for share-based payments, which, of course, is a non-GAAP measure, decreased to 2.6 million or 2 cents per share as compared to 3.6 million or 4 cents per share in the first quarter of 2025. So, Ronnie, if I could maybe turn it over to you.
Speaker #5: And finally, the or adjusted EBITDA loss for the second quarter, which is a loss before interest, taxes, depreciation, and amortization and we adjust for share-based payments.
Speaker #5: Which, of course, is a non-GAAP AP measure, decreased to $2.6 million, or two cents per share, as compared to $3.6 million, or four cents per share, in the first quarter of 2025.
Speaker #5: So Rani, if I could maybe turn it over to you.
Speaker #4: Thank you, Lenny. And then we can open it up for Q&A. I think we have Gary Sweeney here from Roth Capital. Gary, you can go ahead; any questions? We're here for you.
Steve Schmidt: Thank you, Lenny. And then we can open it up for Q&A. I think we have Gary Sweeney here from Roth Capital. And then you can go ahead, Gary, and any questions, we're here for you. Gary.
Speaker #4: Gary.
Speaker #2: Gary Sweeney?
Speaker 8: Gary Sweeney?
Speaker #6: Yep. If my line is open now?
Gary Sweeney: Yep. Is my line open now?
Speaker #2: Yes, you may proceed.
Speaker 8: Yes, you may proceed.
Speaker #6: Hey guys. Well, thanks for taking my call, and good afternoon. A couple of questions. I mean, obviously you highlighted being cash flow break-even this year.
Gary Sweeney: Hey, guys. Well, thanks for taking my call and good afternoon. A couple of questions. I mean, obviously, you highlighted being cash, it's a cash flow break even this year. And it looks like you're making some headway there. Can you maybe give us a little bit of a bridge from where we are today to cash flow break even? Is this accelerating sales? I did orders at a little bit of, you know, we also have some G&A was up a little bit in a quarter, but just want to understand how we go get to cash flow break even by the end of the year.
Speaker #6: And it looks like you're making some headway there. Can you maybe give us a little bit of a bridge from where we are today to cash flow break even?
Speaker #6: Is this accelerating sales? I did orders at a little bit of you know, we also had some G&A was up a little bit in a quarter, but just want to understand how we go get to cash flow break even by the end of the year.
Speaker #2: Yeah, we are as you can see, as Lenny mentioned here, we reduced some cash expenses on our end and that by itself is a major step that we want to continue and we believe we will continue in that direction.
Steve Schmidt: Yeah, we are, as you can see, as Lenny mentioned here, we reduced some cash expenses on our end. And that by itself is a major step that we want to continue, and we believe we will continue in that direction. And additionally, we expect to launch a few products very soon. One of them is the all-in-one and advanced and smart heater, plug and play, that, as I mentioned, has a ceiling fan for the summer, but more importantly, has a heater. As we mentioned, related to our patents, we always think about safety. That's a product that really is safe rather than having space heaters on the floor. You can have it in a safe location in the ceiling that warms up the entire room. And there's great demand for that project product from some big box retailers and others.
Speaker #2: And additionally, we expect to launch a few products very soon. One of them is the all-in-one, advanced, and smart heater. Plug-and-play that, as I mentioned, has a ceiling fan for the summer, but more importantly, has a heater.
Speaker #2: As we mentioned related to our patents, we always think about safety. That's a product that really is safe, rather than having space heaters on the floor.
Speaker #2: You can have it in space safe location in the ceiling that warms up the entire room and there's great demand to that project product from some big box retailers and others and we hope to let everyone know once we launched them.
Steve Schmidt: And we hope to let everyone know once we launch them. But based on these things, based on some things we're doing with our e-commerce platform, we feel that this winter can be a significant increase in revenues and in gross margins. And that's what we believe and anticipate to happen in the next coming months.
Speaker #2: But based on these things, based on some things we're doing with our e-commerce platform, we feel that this winter can be a significant increase in revenues and in gross margins and that's that's what we believe and anticipate to happen in the next coming months.
Speaker #6: Got it. And you know, the code standardized code or the mandatory standardization of the code, I mean, that's always been like a huge potential catalyst for you guys.
Gary Sweeney: I got it. And you know the standardized code or the mandatory standardization of the code, I mean, that's always been like a huge potential catalyst for you guys. And I know there's been some movement on this over the last six months in different options. And you did highlight, I think, the two, I think, government agencies where there could be some help in maybe achieving that. Could you give us a little bit more detail, as much as possible, as to what's going on there and maybe the path forward?
Speaker #6: And I know there's been some movement on this over the last six months and different options and you did highlight I think the two I think government agencies where there could be some help in maybe achieving that.
Speaker #6: Could you give us a little bit more detail, as much as possible, as to what's going on there, and maybe the path forward?
Speaker #2: Yes, I'm sharing interesting slide now. The ones that can see the slides, but those are prominent mandatory safety mandatory standardizations that I think almost everyone knows the plug-and-play the plug for the wall, the Edison bulb that was with wires that we mentioned many times became the bulb socket, the GFCI that are in the bathrooms.
Steve Schmidt: Yeah. I'm sharing an interesting slide now, the ones that can see the slides. But those are prominent safety mandatory standardizations that I think almost everyone knows. The plug and play, the plug for the wall, the Edison bulb that was with wires that we mentioned many times became the bulb socket, the GFCI that are in the bathrooms, something we maybe didn't mention before, for example, but every hairdryer in the US over 20 years ago was forced to change the plug that goes to the wall to a block, a plug that the very big plug with the GFCI receptacle on it, and that became mandatory as well. Exit signs in buildings became mandatory. Emergency lights in buildings became mandatory. And airbags and seat belts.
Speaker #2: Something we maybe didn't mention before, for example, is that every hair dryer in the U.S. over 20 years ago was forced to change the plug that goes to the wall to a block with a plug that had a very big plug with the GFCI receptacle on it, and that became mandatory as well.
Speaker #2: Exit signs in buildings became mandatory. Emergency lights in buildings became mandatory, and airbags and seat belts and many others that joined us. All our leadership here, that people know we have top Fortune 100 CEOs and executives here, have invested with us in several rounds and joined us. They all believe that this doesn't matter if it’s not an if, it’s more of a when because we met all the contingencies, including the ANSI NEMA. We also have a generic name: WSCR.
Steve Schmidt: And many that joined us, all our leadership here, that people know we have, you know, top Fortune 100 100 CEOs and executives here that invested with us several rounds and joined us all believe that this is just a matter of time. It's not an if. It's more a when because we met all the contingencies, including the ANSI NEMA, including we got a generic name, WSCR. We got also NFPA, NEC, 10 votes, 10 segments into voted to the National Electrical Code. So we met all the conditions. And now we believe there's some government organizations that can help expedite that process. Many of us believe it's more a when than an if. And this is really the law. They forced every hairdryer to change a plug. And you know they had a plug, okay?
Speaker #2: We got also NFPA, NEC, 10 votes, 10 segments into voted to the National Electrical Code. So we met all the conditions and now we believe there's some government organizations that can help expedite that process.
Speaker #2: Many of us believe it's more a when than an if and this is really the law. They forced every hair dryer to change a plug and you know, they had a plug, okay?
Speaker #2: And the lighting industry and the smart home industry, you don't have even a plug. You go on ladders and you touch hazardous wires. So I think that we're under the radar for a long time, but based on recent progress, we strongly believe that we're getting closer to this and eventually will happen as we said hopefully sooner than later.
Steve Schmidt: And the lighting industry and the smart home industry, you don't have even a plug. You go on ladders and you touch hazardous wires. So I think that we're under the radar for a long time. But based on recent progress, we strongly believe that we're getting closer to this. And eventually, it will happen, as we said, hopefully sooner than later. And we hope to have some news about this, you know, as soon as possible. But again, we need to wait and see.
Speaker #2: And we hope to have some news about this, you know, as soon as possible. But again, we need to wait and see.
Speaker #6: Got it. Just one more maybe question for me. You know, big hire on your e-commerce platform from Amazon. Just any details on maybe some changes that are going there, or tweaking, or the opportunity that they bring to that e-commerce platform?
Gary Sweeney: Got it. And just one more maybe question from me. You know, a big hire on your e-commerce platform from Amazon. Just any details on maybe some changes that are going there or or tweaking or the opportunity that they bring to that to the e-commerce platform? Thanks.
Speaker #6: Thanks.
Speaker #2: Yeah. We have a great e-commerce team, and our executive chairman, Todd Johnson, was wanting to show and now he's focused on major platform changes.
Steve Schmidt: Yeah. We have a great e-commerce team. And we have our executive chairman, Todd Johnson, that was running the show. And now he's focused on major platform changes. And we felt that the e-commerce, we can bring a prominent leader in that industry, Huey Long. And Huey was really started as a buyer in Circuit City, became a business owner and with a sourcing company overseas. And his biggest customer was Amazon, decided to sell it to the CEO of Circuit City, the business, and then announcing it to their biggest customer, Amazon and Bezos, said, "What are you doing? Come join us." And what Huey did for them is really established the first Amazon brand is Basic. Today, Amazon has 50 brands, I think, but the largest one and the most famous one is Amazon Basic. And really, they started their own brand by sourcing around the world.
Speaker #2: And we felt that the e-commerce we can bring a prominent leader in that industry, Huey Long. Huey really started as a buyer, and Circuit City became a business owner with a sourcing company overseas, and his biggest customer was Amazon.
Speaker #2: Decided to sell it to the CEO of Circuit City, the business, and then announcing it to their biggest customer Amazon and Bezos said, "What are you doing?
Speaker #2: Come join us." And what Huey did for them is really establish the first Amazon brand is basic today. Amazon has 50 brands, I think, but the largest one and the most famous one is Amazon Basic and really they started their own brand by sourcing around the world and from that position, he also was running marketing and e-commerce for Walmart and then recently for Ashley Furniture growing their business to a billion dollars online.
Steve Schmidt: And from that position, he also was running marketing and e-commerce for Walmart. And then recently, for Ashley Furniture, growing their business to a billion dollars online. Ashley Furniture is not only the stores that everyone knows, it's probably the biggest furniture wholesale company in America. They sell to most of the furniture names you know and projects. And they're a multi-billion dollar company. And the e-commerce platform became a billion-dollar business, and Huey led it. So Huey was excited from what we're doing here from the disruptive perspective, game-changing plug and play. And we wanted someone more on the offense to help us here. And we have two great talented people that are running the show. Huey is the CEO, running the offense very strongly, very strong on defense too. And we have Todd, our chairman, Todd Johnson, that's there forever as supporting Huey in everything we're doing.
Speaker #2: Ashley Furniture is not only the stores that everyone knows, it's probably the biggest furniture wholesale company in America. They sell to most of the furniture names you know and projects and they're multi-billion dollar company and the e-commerce platform became a billion dollar business.
Speaker #2: And Huey led it. So Huey was excited from what we're doing here from the disruptive perspective, game changing plug and play. And we wanted someone more on the offense to help us here and we have two great talented people that are running the show.
Speaker #2: Huey is the CEO, running the offense. Very strongly, very strong on defense too. And we have Todd, our chairman, Todd Johnson that's there forever as supporting Huey and everything we're doing.
Speaker #2: So, we really are blessed to have. We also have the founders of Bellamy who are working with us and helping the company. We have a tremendous team there.
Steve Schmidt: So we really are blessed to have. We also have the founders of Bellamy that are working with us and also helping the company. And we have really a tremendous team there. And Huey here is the icing on the cake. And you know, stay tuned with this. Hopefully, we'll have some more announcements when it comes to the e-commerce and some of the things we're doing there.
Speaker #2: And Huey here is the icing on the cake and you know, stay tuned with this hopefully we'll have some more announcements when it comes to the e-commerce and some of the things we're doing there.
Speaker #6: I appreciate it, Rani. Always a pleasure talking to you.
Gary Sweeney: I appreciate it, Ronnie. Always a pleasure talking to you.
Speaker #2: Thank you, Jerry. Thank you. Pleasure talking to you as well.
Steve Schmidt: Thank you, Gary. Thank you. Pleasure talking to you as well.
Speaker #1: Thank you. Ladies and gentlemen, that was Gary Sweeney with Roth Capital. We have our next panel Pat McCain from McCain from Noble.
Speaker 8: Thank you. Ladies and gentlemen, that was Gary Sweeney with Roth Capital. We have our next question.
Steve Schmidt: We have now Pat McCann from Noble.
Speaker #6: Hey, thanks, guys, for taking my questions. You know, first I wanted to just touch on the parent-uncle manufacturing partnership for the ceiling heaters and fans.
Pat McCann: Hey, thanks, guys, for taking my questions. You know, first, I wanted to just touch on the Parrot Uncle manufacturing partnership for the ceiling heaters and fans. And I guess I was wondering if you could talk about to what extent getting that product available, you know, are there any new partnerships as far as with developers? You know, you mentioned that that would be something that the big box retailers would want in their stores and want to be able to start selling once it's available. But I'm also wondering, you know, are there any sort of any partnerships with other developers that might potentially hinge on that product becoming available? What other opportunities might that open up, if any?
Speaker #6: And I guess I was wondering if you could talk about to what extent getting that product available, you know, are there any new partnerships as far as with developer you know, you mentioned that that would be something that the big box retailers would want in their stores and want to be able to start selling once it's available.
Speaker #6: But I'm also wondering you know, are there any sort of any partnerships with other developers that might potentially hinge on that product becoming available?
Speaker #6: What other opportunities might that open up, if any?
Speaker #2: Yes, we are working on several channels with that advance and smart plug and play heater all in one and including global and that collaboration with Tower Uncle opens you know, markets here in the US, but definitely global markets.
Steve Schmidt: Yes. So we are working on several channels with that advanced and smart plug-and-play heater all in one, and including global. And that collaboration with Parrot Uncle opens, you know, markets here in the US, but definitely global markets. They have great businesses in Europe and Asia. And we think that that can be a global product. There's many places that people don't use AC or don't have AC or don't want a central AC, want to heat in one room in a safe way. And the same for the summer. So many see in that product with some great potential. And yes, we are working with several big boxes and other channels that we hope to be able to announce soon once those heater fans land towards the winter here.
Speaker #2: They have great businesses in Europe and Asia and we think that that can be a global product. There's many places that people don't use AC or don't have AC.
Speaker #2: Or once you know, don't want to central AC, want you know, to heat in one room in a safe way. And the same for the summer.
Speaker #2: So many are seeing that product with great potential. And yes, we are working with several big box retailers and other channels that we hope to be able to announce soon, once those heater fans land.
Speaker #2: Towards the winter here. And definitely working also with some builders and developers that like our entire assortment and also very much like our the smart heater fan and other products as well.
Steve Schmidt: And definitely working also with some builders and developers that like our entire assortment and also very much like the smart heater fan and other products as well. So we hope to have some announcements in the coming weeks or months with projects, with some channels, new channels we're opening up.
Speaker #2: So we hope to have some announcements in the coming weeks or months with project with some you know, some channels new channels we're opening up.
Speaker #6: Excellent. And I was also wondering with regard to the Smart City development. Does that collaboration serve as a bit of a proof point for other developers that maybe would not have necessarily considered working with you previously, but upon seeing you be involved in that project, are you know, you're hitting other developers' radar screens and you know, are you seeing any extra traction with new partnerships with builders that you might think is a direct result of making that such a large announcement and being part of such a big project?
Pat McCann: Excellent. And I was also wondering, with regard to the smart city development, does that collaboration serve as a bit of a proof point for other developers that maybe would not have necessarily considered working with you previously, but upon seeing you be involved in that project, you know, you're hitting other developers' radar screens. And you know, are you seeing any extra traction with new partnerships with builders that you might think is a direct result of making that such a large announcement and being part of such a big project?
Speaker #2: Thank you, Pat. That's a perfect question for us because we must say we're all smiling here in the room and we're listening to you, but to that question, but yes, we're getting great interest and we're working as Steve mentioned Steve said, as I mentioned, wait for some good major news for us and that last quarter call.
Steve Schmidt: Thank you, Pat. That's a perfect question for us because we must say we're all smiling here in the room when we listen to you about that question. But yes, we're getting great interest. And we're working, as Steve mentioned, Steve said, as I mentioned, wait for some good major news for us. And that last quarter call, he said that. And he said we came with the smart city. So he's, as he said here earlier, we're working on some other major aspects that are related to this. And yes, we got a lot of recognition and a lot of good discussions. And we're exploring many opportunities based on that smart city announcement. So perfect question for us. And it's absolutely yes.
Speaker #2: He said that and he said we came with the Smart City. So he's as he said here earlier, we're working on some other major aspects that are related to this.
Speaker #2: And yes, we got a lot of recognition and a lot of good discussions, and we're exploring many opportunities based on that Smart City announcement.
Speaker #2: So, perfect question for us. And it's absolutely yes.
Speaker #6: Excellent. Well, then I'll end on a high note. I appreciate all the extra color.
Pat McCann: Excellent. Well, then I'll end on a high note. I appreciate all the extra color.
Speaker #2: Okay.
Speaker #5: Thank you, Pat.
Steve Schmidt: Okay.
Pat McCann: Thank you, Ben.
Speaker #2: Okay, so let me see if there's can you show me the other screen? Okay, so I think we're great with questions here. We very much appreciate everyone's time.
Steve Schmidt: Okay. So let me see if there's a can you show me the other screen? Okay. So I think we're great with the questions here. We very much appreciate everyone's time. And we're looking forward for our next call with you guys or other updates in between those calls. Thank you, Steve Schmidt, our president, Lenny Sokolow, CEO. Thank you very much. And hopefully, we'll see you or talk to you soon in the next call. Thank you.
Speaker #2: And we're looking forward for our next call with you guys or other updates in between those calls. Thank you, Steve. Schmidt, our president, Lenny Sokolow, CEO, thank you very much.
Speaker #2: And hopefully we'll see you or talk to you soon in the next call. Thank you.
Speaker 8: Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.