Q3 2025 SKYX Platforms Corp Earnings Call
Speaker #3: As former CEO of AC Nielsen , I understand the importance of and the data revenue opportunity associated with it . Khadija Mustafa , former head of Microsoft AI , will be shortly expanding on this significant opportunity .
Conference specialist by pressing the star key followed by zero.
After todays presentation, there will be an opportunity to ask a question to ask a question you May Press Star then one on your telephone keypad to withdraw your question. Please press Star then two please note. This event is being recorded.
Before we begin I would like to remind everyone that today's call may contain forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995. These statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations.
For more details please refer to our Form 10-Q for the quarter ended September 30th 2025, and other filings with the SEC.
<unk> undertakes no obligation to update forward looking statements, except as required by law.
I would now like to turn the conference over to Rani Cohen founder and Executive Chairman. Please go ahead.
Thank you welcome to our third quarter conference call.
We will start to then we have some significant.
Things that are happening for us recently, and we're happy to be in share some of them moved over emphasis.
And we will pass it to Steve Schmidt.
Our CEO.
President excuse me.
Steve Schmidt, our president former CEO I should say for Nielsen.
The data Corporation.
Thank you and please.
Alright, Ronnie Hey, Thank you very very much it's great to be with you here. This afternoon I also want to welcome you to our third quarter earnings call.
Yes, youre going to hear today, we are making significant progress.
Like to emphasize that there is more significant things to come on several fronts in the very near future.
We reported record revenue of $24 million in the third quarter 2025, compared to $23 million for the second quarter 2025, as we continue to grow our market penetration. Our revenues have now increased for seven consecutive quarters from Q1, 'twenty four through Q3 of 25.
We signed an agreement with a prominent U S and international real estate developers Global Ventures group.
We deploy our advanced smart home technologies to buildings and hotels in middle East projects, including Saudi Arabia and Egypt.
We expect to deploy hundreds of thousands of units to tens of thousands of homes and hotel rooms to middle east projects, including Saudi Arabia and Egypt.
This is another major step for us as we anticipate more to come in the real estate segment.
We will be supplying our technologies to a 278 apartment project in Austin, Texas.
Built by prominent developers landmark companies.
Providing over 10000 units of our advanced and smart plug and play technologies.
Again, another major prominent development group and again, we anticipate more to come.
Okay.
As previously shared we have established a major collaboration with a Miami $3 billion mixed use urban smart homes City project.
We expect to supply over 500000 units of our advanced Smart home plug and play platform technologies for the entire Smart City project.
After our successful demonstration of our technologies during a recent Marriott hotel renovation, we expect to significantly expand our hotel segment.
We hope to share more information about our hotel channel expansion in the very near future.
We can continue to grow by developing over 50000 of our products into homes and units by the end of Q4 2025 through retail and <unk> segments.
It's important to emphasize that our technologies expansion provides additional opportunities for future recurring revenues through interchange ability upgrades AI services monitoring subscriptions and data.
As former CEO of AC Nielsen I understand the importance of data.
And the revenue opportunity associated with it.
The AGM Massawa, former head of Microsoft AI will be shortly expanding on this significant opportunity.
Regarding our safety code standardization our team continues to make progress and is receiving significant support from our prominent leader with its government safety organization process for safety mandatory standardization in homes and buildings of our ceiling outlet and Recepticle technology.
<unk>.
We are confident with the recent progress that our team is making with our mandatory application for our ceiling receptacle.
On the product front, we expect to launch our patented advanced and smart turbo heater fan and variety of plug and play ceiling fans. During this month.
We anticipate it will be a major step towards our positive cash goal.
In the area of AI, a significant development is our upcoming launch of a new AI driven software for our E. Commerce platform of 60 website expected to increase our conversion rate and sales by 30%.
The AI Native E Commerce platform designed to elevate <unk> and BDC experiences.
Innovative and smart product line.
In the area of cash as of September 32025.
We reported a total of $13 million in cash cash equivalents restricted cash and receivables.
And the company has recently raised $5 million in additional capital from two of our leading shareholders. This is another proof of confidence from our lead investors and in continuation of our path of raising funds from strategic long term investors and shareholders as well as from insiders, including myself.
Before I pass it to <unk> our CEO.
I'd like to emphasize again like I did in our last call that we are making significant progress and are working on additional significant business opportunities and we hope to be able to share a significant amount of this more in the very very near future.
Our team continues to make progress and is receiving significant support from an A prominent leader with its government. Safety organization process for safety mandatory standardization in homes and buildings of our sealing outlet and receptacle technology
With that let me turn the call over to Lynn Sokolow, our CEO Len.
This asset to lending and Lenny soft globally.
We are confident with the recent progress that our team is making with our mandatory application for our ceiling receptacle.
<unk> now our CEO afterwards, I'm going to talk in.
Last and not least we have with us today <unk> staffa former.
Iety of plug-and-play ceiling fans during this month.
Head of AI.
For Microsoft and also that has a relationship with the <unk> 42.
We anticipate it will be a major step towards our positive cash goal.
The Emirates.
Well known global AI and AR.
Development.
So please lenny.
Alright, Thank you very much and thank you Steve.
In the area of AI. A significant development is our upcoming launch of a new AI driven software. For our e-commerce platform of 60 websites expected. Increase our conversion rate in sales by 30%.
Thanks for the update just two.
Reiterate.
What we reported.
Year to year and sequential.
The AI native e-commerce platform designed to elevate B2B and b2c experience is through Innovative and smart product line.
Sequential growth.
That material for us.
In the area of cash.
Positive trends.
as of September 30th 2025,
Our expectation is that we're able to continue.
In addition to the.
We reported a total of 13 million in cash. Cash equivalents restricted cash and receivables.
<unk>.
Three of the $5 million.
In terms of recently raised capital.
It's important to understand these were from two leading shareholders of ours and.
Even greater importance is the fact.
These are these were reflected in notes approximating over $11 million.
And the company has recently raised $5 million in additional capital from two of our leading shareholders. This is further proof of confidence from our lead investors and a continuation of our path of raising funds from strategic, long-term investors and shareholders, as well as from insiders including myself.
And they're now they've been restructured and coming due.
Before I pass it to Lens, Sicalo, our CEO.
Maturity date out five years to 2030.
Very reflective of the.
Understand you know, where we are and their belief in what we have confidence in our strategy and our development.
I'd like to emphasize again like I did in our last call that we are making significant progress and are working on additional significant business opportunities. And we hope to be able to share a significant amount of this more in the very, very near future.
So and I think that'll be reflected.
So with that, let me turn the call over to Len sicalo, our CEO Len.
We will see.
This quarter's disclosures.
Just pass it to Lenny and Lenny, s, you know.
Disclosures.
Coming into the end of the year.
We continue to use our leverage our cash position through the e-commerce platform of our 60 websites.
Other methods, including the support from leading strategic investors and insiders.
Interesting note.
We have a growth we're showing in our deferred revenue, which are revenues that are sold products primarily from our websites that are in transit for a day or two until the customer receiver that growth is showing.
Talk now our CEO uh afterwards I'm going to talk and uh last and not least we have with us today Kadija Mustafa. He's a former um head of AI uh from Microsoft and also uh that has a relationship with the g42 uh uh Emirates uh well known Global Ai and uh development firm. So please lend me.
And acceleration of our revenues primarily from our E Commerce platform.
So the.
Common with companies such as ours.
Joseph of hours when you were.
We have sales that are converted into cash rapidly.
Great. Thank you, Ronnie. You very much and thank you Steve for that uh update. Uh, just to um reiterate is that, you know, what we've reported is a year to year and sequential growth. I mean this is a material uh for us and it's a very positive trend uh that you know, our expectation, is that we're able to continue.
in addition to the, um,
This is often referred to as the Bill working capital model, we leverage our trades payable to finance, our operations and to enhance our cash position.
In effect lowering our cost of capital through the <unk>.
Support of our vendors. This is this opportunity and this structure is one that we've we've rolled into.
Some of our key.
Manufacturing partners that can give us the same.
The same mechanics of Brazil, working capital model.
To help finance, our purchases and <unk>.
Support our inventory needs so.
So I think it's important to understand that we're very focused on.
3, uh, the 5 million that. Uh, you know, in terms of recently raised Capital, you know, again, it's important to understand these are from 2, leading shareholders of ours and uh, are even greater importance is the fact that, you know, these, uh, these were reflected in notes approximating of 11 million dollars and they and they're now have been restructured. Incoming due uh, with a maturity date out 5 years to 2030. It's a very reflective of the of, their of their understanding of where we are their belief, and what we have, and their competence and our strategy, and our developments.
Multiple levels with respect to cash cash leverage and cash conservation.
The gross profit for the third quarter.
In September 30.
Kris sequentially by 80% by 8% $8 million compared to $7 million in the second quarter ending June 32025.
So, uh, and I think that'll be reflected, uh, as we'll see in the in this quarter's. Uh, you know, disclosures um, coming into the end of the year uh the um we continue, you know, to use our and leverage our cash position through the e-commerce platform of our 60 websites.
And this.
Also concurrent with US is the fact that <unk>.
A small decrease.
Our cash from cash from operating expenses that we've used so this is not generating the additional expenses.
Among other methods including the support from leading strategic investors and insiders. And have an interesting note is that we we have a growth we're showing in our deferred revenue which is our revenues that are of sold products primarily from our websites that are in transit for a day or 2 until the customer receives that that
As we generate more gross profit and the gross margin for the third quarter ending September 32025 increased sequentially by 4% to 32% compared to 30% in the second quarter ending June 32025.
Growth is showing, you know, an acceleration of our uh, revenues uh primarily from our e-commerce platform.
so the um as you know, common with a company, such of ours, you know judges ours when we're
And our net loss per share.
Greece by one.
<unk> to <unk> <unk> per share in the third quarter as compared to eight in the second quarter.
Adjusted EBITDA loss per share a non-GAAP measure remained.
Two cents per share in the third quarter as compared to <unk> <unk> per share in the second quarter of 2025.
But we are slowing.
The small decrease decrease in our EBITDA loss, which is.
Good.
A good indicator positive indicator for us.
So with that.
Sure.
I can I would like to pass it onto Ronnie.
Go ahead, yes. Thank you.
Of the Dell working capital model, uh, to to help Finance our purchases. And uh, and and support our inventory needs.
Steve and lending.
They cover here.
Again to emphasize some of the things that Steve mentioned, we are experiencing.
Great progress.
So I think it's important to understand that we're very focused on on multiple levels with respect to cash uh cash leverage and cash conservation. Um, the gross profit for the third quarter.
With with developers.
Started with the smart city.
Projects prior to that in Miami.
And.
Went through with the project in Austin from another prominent developer landmark.
You know, ending in September 30th. Uh, increase sequentially, you know by uh, 80% by 8% to 8 million dollars compared to 7 million in the second quarter ending June 30 2025
And now the collaboration and Theyre assigning agreement with the global ventures.
That are major and prominent developers that are expanding towards the middle east, including Saudi re.
Arabia, and Egypt and.
We're optimistic about our future to award those.
And, uh, and this, this also concurrent with, this is the fact that we had a, a small decrease in, uh, in our cache from operate cash from operating expenses, uh, that we've used. So we're this is the we're not generating additional expenses, um, as as we generate more growth profit.
<unk> and others.
We hope down the road, there will be able to share with you.
Also we are experiencing as Steve mentioned naphtha or Marriott.
and the gross margin for the third quarter, ending September 30th, 2025 increase, sequentially, by 4% to 32% compared to 30% in the second quarter, ending in June 30th 2025
Demo a successful demo.
That we shared the video online is still there somehow.
This is <unk>.
Open some doors for some significant business that we believe.
It will happen and we hope as Steve mentioned.
To announce it.
And our net loss per share, decreased by uh 1 cent to 7 cents per share and the third quarter. As compared to 8 cents in the second quarter. Adjusted IBA. Lost per share. A non-gaap measure remained at 2 cents per share in the third quarter as compared to 2 cents per share. In the second quarter of 2025
You know sooner than later.
We are working and we expect to open some more doors.
Towards those channels.
that were showing a a a small decrease in our Evita loss, which is a good, a good indicator, positive indicator for us.
And also when we're supplying to the builder and the wholesale segment as Lenny mentioned, we're leveraging our relationships with manufacturers that want to join our ride here and participate in places like the smart city and Miami or buildings.
So with that, um,
I can I like to pass it on to Ronnie if you want. Want to go ahead. Yes, uh thank you. Um, Stephen Lenny gave recovery here. Um
again, to emphasize, some of the things that that Steve mentioned, uh, we're experiencing, um,
Doing here in the U S or the hopefully the hotel segment as well as the global segment in the Middle East and we're leveraging that to get funding from them.
So that's another way, we're leveraging what we're doing and the penetration we have.
Thanks to our technology that opens doors with builders with hotels and other projects internationally and vendors don't want to participate with us and are helping us here to fund it and is there any calls that the Dell models and the concept is that we are supplying.
Uh, great progress in, uh, with with developers. Uh, I started with the smart city and projects prior to that in Miami. Uh, and uh, went to with the project in Austin from another prominent developer Landmark. Um, and uh, now the collaboration and the assigning agreement with uh Global Venture uh that are major and prominent developers that are expanding uh towards the Middle East, including Saudi Arabia.
Getting paid and pay the vendors that after so that's quite significant when it comes to continue managing our cash flow here.
And <unk>.
Last but not least before I move it on to confuse them with staff the former.
And Egypt. And uh, we we're optimistic about a future towards those, uh, regions and others. Uh, that we hope uh, down the road, there will be able to share with you. Um, also, uh, we are experiencing a Steve mentioned, after our Marriott. Um,
Head of AI for Microsoft and also.
The former global head of sales for Microsoft is that as.
As Steve mentioned, we're making good progress with the mandatory.
We see some significant.
Steps they are taking behind the scenes and we hope you know.
That we're getting closer to that day.
Demo a successful demo, um, that we shared the video online is still there somehow. But, uh, this opened some doors for some significant business that we believe, uh, will happen. And, uh, we hope, as Steve mentioned, uh, to announce it.
To remind everyone people are dying people many injuries many fires.
Significant number of laterals and everything here on a daily basis, and our product can prevent.
Most if not all of these and I think we're getting some attention from very high levels and we hope that we will be able to share more in the near future. So.
With that I'll pass it to Collegium was staffer.
At least the DJ.
Thank you Ronnie I'm delighted to be here. So I think as you've already heard from the team skybox is gaining solid traction and expanding very fast so everything from Miami Smart City initiative, all the way to the partnership with global ventures.
You know, sooner than later, uh, but we're working and we we expect, uh, to open some more doors, uh, towards those channels. Um, uh, also, uh, when we're supplying to the Builder and the hotel segments as Lenny mentioned, uh, we're leveraging our relationships with the manufacturers that want to join, uh, right here and participate in places like the smart city and Miami or the buildings we're doing here in the US or the hopefully the hotel segment as well as the global segment in the Middle East and we'll leveraging that to get funding from them. So, that's another way, we'll leveraging what we're doing. And the penetration we have, uh,
That is opening doors for.
For projects in Saudi Arabia, Egypt and.
Sort of expanding into other parts of the middle East.
I just wanted to sort of call that out and mentioned that it's not just about growth, it's about progression towards really going into the global space and scaling out.
That's so important because if you look at what's happening in Saudi alone if I take that as an example.
Thanks to our technology, we are opening doors with builders, hotels, and other projects internationally, as well as with vendors who want to participate with us and are helping us here to fund it. As Lenny calls it, the Dell model, the concept is that we are supplying, getting paid, and paying the vendors afterward. So that's quite significant when it comes to managing our cash flow here.
I'm sure you've been watching the pace of innovation is extraordinary.
And um, last and not least before I uh, move it on to Kadija Mustafa. The former
This sector. There is rethinking itself adopting advanced next generation technologies to leapfrog, what the rest of the world has done or is doing.
They've got a lot to have dairy.
Big appetite.
So and that's just one one country out of the different areas, where sky axes.
<unk>. So this is where <unk> sits perfectly and when you combine that also.
Also with the population and urbanization trend that's happening.
Cross emerging markets getting in now means that sky actually is going to be helping set the foundation for how people are going to live and work in the years ahead and also the decades ahead, which is very important.
Now just for me personally having had a front row seat in the tech industry for 27 years.
There are a few observations.
That has sort of mid may be even more excited about the opportunity.
Former Global head of sales for Microsoft is that. Uh, as Steve mentioned, we're making progress with the mandatory. Uh, we see some significant, uh, steps that are taking behind the scenes. And we hope, you know that we're getting closer, uh, to that day. Um, there's people to remind everyone, people are dying people, many injuries, many fires, uh, significant number of ladder Falls, uh, and everything here on the daily basis and our product can prevent uh most if not all of these. And um I think we're getting some attention for from very high levels and we hope that we'll be able to share more in the near future. So um, uh, with that, I'll pass it to Mustafa, uh, please khadeejah.
And how sky is well positioned there isn't a single company, that's yet unified this smart home or smart building space.
Thank you, Ronnie.
It's still fragmented there's sort of a long tail of devices and ecosystems across different tech companies as well as.
Lots of sort of Oh.
Two of unbranded.
Be delighted to be here. So I, I think as you've already heard from the team, uh, skyex is gaining solid traction and, you know, expanding very fast. So everything from Miami, smart City initiative, all the way to the partnership with global Ventures. Uh, that's opening doors, um, for projects in Saudi Arabia Egypt, and, um, you know
Allergies that don't seamlessly talk to each other.
Sort of expanding into other parts of the Middle East.
And this is where <unk> has the potential to change that by starting where you know others.
Others have been less focused or not focused because if you think about the tech world right Theyre thinking about technology, but whats got X is doing is it's thinking about the integrated physical layer, which is going to enable the technology.
So true it standardized all in one smart sealing platform Scott.
Sky UX is really creating the infrastructure that can connect everything else.
And again this is what makes it so strategic because it completes the ecosystem not only for the.
I just wanted to sort of call that out and mention that it's not just about growth, it's about progression towards really going into the global space and scaling out. And that's so important because if you look at what's happening in Saudi alone, if I take that as an example, uh, I'm sure you've been watching. The pace of innovation is extraordinary. Uh, every sector there is rethinking itself. Uh, adopting Advanced Next Generation Technologies to LeapFrog. What the rest of the world has done or is doing
Sort of Mega cap Big Tech companies, but also for the next wave of startups driving smart.
so there's they've got a lot, you know, they have very big appetite.
Space innovation.
And.
Right now I think everyone is scrambling and getting in because we have this opportunity to really drive a lot of innovation with Eni.
So whether it's innovators.
Like I said big or small companies. There is an opportunity to build an entirely new AI driven set of services and we all know that AI integration AI incorporation is pretty much the focus of every organization and government on Earth not to talk of all the individuals in the mix, we're trying to figure out.
So and that's just 1 1 country out of the, the different areas where skyx is, uh, expanding. So this is where skyx fits perfectly and when you combine that um, also with the population and urbanization Trend that's happening across Emerging Markets, getting in now means that skyx is going to be helping set the foundation for how people are going to live and work in the years ahead. And also the decades ahead which is very, you know, important
Now, just for me personally, having had a front-row seat in the tech industry for 27 years.
How did they can sort of re skilling and really take the power of this technology and applied to everything they are doing so just to give a few examples obviously I think sky excuse opportunity is much greater but think about it.
Adaptive lighting that responds to presence and moved.
Predictive safety systems, you know Ronnie just talked about unfortunately people.
Big Big safety issues in this space for predictive safety systems that detect electrical or environmental issues before they become hazards I'm sure you've all been watching.
There are few observations, uh, you know that have sort of made, you know, made me even more excited about the opportunity. Um, and, and how skyex is, well, positioned. There isn't a single company that's yet, unified the smart home or call it smart building space, you know, it's still fragmented. Uh, there's sort of a, a long tale of devices and ecosystems across different tech companies, as well as uh, lots of sort of uh you know, uh sort of unbranded uh technologies that don't seamlessly talk to each other.
The pollution issues that are happening in a lot of seats.
Real time energy optimization tied to grid demand I think about wellness and productivity insights drawn from the spaces, we occupy every day.
Uh and this is where skyex has the potential to change that by starting where, you know, uh others have been less focused or not focused. Because if you think about the tech world, right? They're thinking about technology. But what skyex is doing is it's thinking about the integrated physical layer, which is going to enable the technology.
So I'd like to think of this in terms of sockets are nodes of intelligence.
So the first was the smartphone.
It's connecting individuals so much of that data is now being used for all these smart services. The second is the car I mean, it's connected mobility.
And in fact, we haven't even mastered the car space, but it's happening, but now Scott is defining the third chocolate or the third note and this is about the spaces, where we live and work turning them into these active intelligent nodes.
Um, so through it, uh, standardized all-in-1 smart, ceiling platform, uh, skyex is really creating the infrastructure that can connect everything else. And again, this is what makes it so strategic because it completes the ecosystem, not only for the, you know, the sort of Mega cap, big tech companies, but also for the next wave of startups, driving smart, you know, smart space innovation.
In the broader connected ecosystem so.
Steve mentioned, the incredibly rich source of data now.
Now what makes us even more significant is that it's not just about the home rights against Smart home is definitely a key place it's transformative in its own right, but it's about every kind of built environment.
The team was talking about hotels hospitals obsolescence retail spaces you name. It the list goes on so each of those becomes a new opportunity for sky excess platform to enable a wide array of.
And, you know, sort of right now, I think everyone is scrambling and getting in because we have this opportunity to really drive a lot of innovation, uh, with AI. So whether it's uh, innovators, uh, you know, like I said, big or small companies. There's an opportunity to build an entirely new ai-driven set of services and we all know that AI integration AI in cooperation is pretty much the focus of every organization and government on Earth not to talk of all the individuals in the mix. Are trying to figure out, um, you know, how they can sort of rescale and and really take the power of uh, of this technology and apply it to everything they're doing.
AI powered services and capabilities.
<unk> at scale and globally and this is an opportunity both for sky acts to build on it but the entire ecosystem is going to want to get onto the bandwagon leveraging that information and then creating their own set of services.
So just to give a, you know, a few examples, obviously, I think SKYX's opportunity is much greater. But think about adaptive lighting, you know, that responds to presence and mood; predictive safety systems. You know, Ronny just talked about, unfortunately, people.
Great.
Thank you so much.
That's what we did here because we're getting a lot of questions on <unk>.
Our expansion in what type of products, we bring in we put it it usually the general title that AI services and AI ecosystem by I think you bought a lot of color here. So we want to thank you very much for this and before we move to Q&A.
I'm sure you've all been watching. Uh, you know, those, the, the pollution issues that are happening in a lot of cities, uh, real time energy optimization tied to grid, demand, uh, think about wellness and productivity insights drawn from the spaces, we occupy every day.
So I'd like to think of this in terms of sockets or nodes of intelligence.
I would like also to emphasize one of the points here that.
We're getting very close to launch.
Either fan portable heater fan and ceiling fans plug and play and we.
We anticipate that that's going to.
Bring us here.
Two very close to our goal here.
Soon of cash positive. So we were looking forward to launch those.
Um, you know, so the first was the smartphone, um, you know, it was connecting individuals so much of that data is now being used for all these smart Services. The second is the car, I mean, it's connecting mobility. And in fact, we haven't even mastered the car space, but it's happening. But now skyex is defining the third socket or the third node. And this is about the spaces where we live and work turning them into these, you know, active intelligent nodes.
Products really in the next coming weeks now it's all new production, it's all in.
So we.
We hope to have some announcements on this as well very soon.
<unk>.
Thank you.
<unk> and team and then we'll take some Q&A here.
Okay.
In the broader connected ecosystem. So uh, you know, Steve mentioned this incredibly Rich uh, source of data. Now what makes this even more significant is that it's not just about the home, right? Because smart home is definitely a key place. It's transformative in its own right, but it's about every kind of built environment. So you know the team was talking about hotels hospitals.
Very sign.
Yeah. Good afternoon can you hear me.
Yes.
Okay. Thanks for taking the question Ronny So I got a.
Couple of questions trying to get a better sense of the near term revenue outlook. If you don't mind. So you mentioned that you expect to deploy over 50000 of your products.
By the end of Q4 I assume that's the total.
Citizens retail spaces, you name it. The list goes on. So each of those becomes a new opportunity for Sky X's platform to enable a wide array of, um, you know, AI powered services and capabilities, uh, again, at scale and globally. And this is an opportunity, both both for skyex to build on it. But the entire ecosystem is going to want to get onto the bandwagon, leveraging that information and then creating their own set of services.
Unit sales in the fourth quarter and if so how does that compare to <unk> and what kind of average selling price why might we be thinking of I assume that's expensive lighting fixtures just.
Just simple sky plugs.
Can you give me a little more color on that number.
I'll give you more color to that segment, though that question in a way is to remind everyone. We always emphasize a razor and blade model, where our razor as a ceiling receptacle that opens the door for.
For a simple fixture that can cost $50 or for a fancy feature that can cost 500, or 1000 or asking BJ mentioned into our future. All in one smart platform. So you do not and we can't anticipate exactly what consumers would put in when they buy the receptacles.
And our growth is with the number of units we anticipate correctly.
Great Kaza, thank you so much. Um, that is well needed here, um, because we're getting a lot of questions and our expansion and what type of products we bring in. We put a usually is a general title that AI services and AI ecosystem, but I think you brought a lot of color here. So we want to thank you very much for this. And before we move to Q&A, um, I would like also to emphasize 1 of Steve's points here. Uh, we're getting very close to launch our, uh, heater fan, a turbo, heater fan and uh, ceiling fans, plug and play. And we, um, we anticipate that that's going to, uh, bring us here, uh, to uh, very close to our goal here. Uh, very soon of cash positive. So we're looking forward to launch those uh, products really in the next coming weeks. Now, it's all in production. It's all in right here.
Approximately 50000 by the end of this year.
So, um, we hope to have some announcements on this as well very soon. So, um,
Our mix is as more as we get to the market. For example, we are in lighting Shanda Lear's for Awhile, we started wall sconces.
Thank you again to De and team and then we'll take some Q&A here.
Um,
very sign.
We're starting now down lights, and resist life and we will start ceiling fans.
Uh, yeah, good afternoon. Can you hear me?
Yes.
And they either fine this quarter and those are.
Our revenue makers, the higher ticket per item.
So once we land them, we have we will have a better picture, but we think there's as we land.
Those significant items here.
And we expect to have a variety of plug and play ceiling fans and a variety of the heater fan in several colors, and we anticipate and we hope to get them to several places that we're working on now and we'll.
Let everyone know once we launch in each segment.
In each channel as well so.
The Big picture is and also we are actually lending soon the exit signs the emergency life there are supposed to.
Okay. Uh, thanks for taking the question, Ronnie. So, um, I agree, couple questions trying to get a better sense of the new term Revenue Outlook if you don't mind. So you mentioned, uh, that you, uh, expected to deploy over 50,000 of your products. Um, by the end of Q4, I assume that's the total uh, unit sales in the fourth quarter. And if so, how does that compare to 3Q? And what kind of um average selling price might might might we be thinking of I assume that's expensive lighting fixtures, you know uh just simple Sky plugs. Um can you give me a little more color on that number?
Land very soon so together with our turbo either fan and the plug and play and the more we add our products into the mix and the smart products that have done that come here.
I think that.
The razors.
Um, I'll give you more color to that segment or that question, uh, in a way is to remind everyone. We uh always emphasize our razor and Blade model where our razor is, the ceiling receptacle. That opens the door uh for uh simple fixture that can cause fifty dollars or for a fancy feature that can cost 500.
To start.
Accepting their blades and that delayed the more we have variety in higher ticket items that revenues should improve we also as you all know and we announced.
That we're working on a on a unique software.
That we're working to launch in our web sites that we believe will incur.
Increase our conversion rate and sales overall.
So we're optimistic because if mature we'd said.
Just wanted to try to be careful with.
What we say our numbers, but as you can see from our press releases and.
We do everything.
100 or a thousand or ask a mention to our future. Uh all-in-1 smart platform. So you do not, we can't anticipate exactly what consumers uh, will put in when they buy the receptacles. Um, and our growth is with the number of units we anticipate, uh, correct to be, um, proximately 50,000 by the end of this year. Uh, but our mix is, you know, is more as we get to the market. For example, we, we are in lighting, uh, chandeliers for a while. We started wall scans. Uh, we're starting now down lights and recess lights and we will start seeing fans.
Dave We will and we're landing products step by step and we anticipate that the numbers will come as we learn more and more products.
And if I can follow up please you just mentioned the software upgrade in the website.
In this quarter, those are, uh, revenue makers—the higher ticket per item. Uh, so once we land them, we'll have a better picture. But we think that as we land, uh, those significant items here.
Maybe you could talk a little bit more exactly what you're doing how do you increase revenue by 30% with a software upgrade that sounds good.
Great upgrade, but and more importantly, when might we see that the effects on revenue might my sense is that's probably a product.
Or an upgrade that goes through to early 2026. So it's not an immediate it's not like fourth quarter is going to be up 30% whats what are you doing more specifically and when would investors see the results of that upgrade.
And we expect to have a variety of plug-and-play ceiling fans and a variety of the heater fan in several colors and uh we anticipate that, we hope to get them to several places that we're working on now and we'll, uh, uh, let everyone know once we launch in each segment, uh, in each Channel as well. So, uh, the the big picture is in. Also we are actually Landing soon. The exit signs and emergency lights there are supposed to, uh, um,
So we're in the process of merging the software in and itself.
Careful as we're emerging in because.
We want to be secured with what we're selling today and not rush it and we expect to have it.
Hopefully done by Q1 or at latest Q2 of 2026 and one fully merged once fully merged in combination with the new products we have.
We do anticipate it to increase conversion rate.
By all kinds of AI method two.
Land very soon. So together with our turbo heater fan, and the Plug and Play. And the more we add, uh, products into the mix and the smart products that's going to come here. Um, I think that uh, the the razors are going to start um, accepting uh, their blades and the blades. The more we have variety, and higher ticket items, the revenues should improve. Uh, we also, as you all know, and we announced, um, uh, that we're working on a, on a unique software, uh, uh, that we're working to launch, uh, in our websites that we believe will, uh, increase our um, conversion rate and sales.
That have better if we say radars on how what type of consumers are.
A better chance for them to for us to convert them and bring them more to our website.
Overall, uh, so we're optimistic in the future. We try to just want to try to be careful, uh, with what we say, uh, a numbers. But, uh, as you can see from our press releases and
As well as the better experience overall in.
In the website myself, but those softwares are quite sophisticated and with the AI today, there's many tools and especially when you have unique products.
Uh, we do everything. We we say, we will, and we're Landing products step by step. And, uh, we anticipate that, the numbers will come as we land more and more products
You have a better chance to drive people into your website because of uniqueness. So the combination of all our E. Commerce team is led by Huey long former.
Amazon that was the base us and actually created the brand basics and him as his team and together with our executive Chairman.
Bob Johnson is an extremely.
Capable person in the E Commerce Arena, we are working with.
Some key.
Engineers, they joined our company.
Two to maximize that potential and.
The softwares that were good five years ago 10 years ago, nothing to compare to the type of software you have today and that merge.
And if I can follow up please, you just mentioned the software upgrade in the website. Um, maybe you could talk a little bit more, um, exactly what you're doing. You know, how do you increase, you know, Revenue by 30% with the software upgrade. That sounds like a, a great upgrade but and more importantly, when might we see that the effects on Revenue, my my sense is that's probably a product or an upgrade that goes through to early 2026. So it's not an immediate, it's not, you know, like fourth quarter is going to be up, 30%, what's what what are you doing more specifically and when would investors see the results of that upgrade?
As expected too.
Really take us to the next level of E Commerce.
Okay and my next question you guys have announced.
In the area of 31 thing one thing we're going to also emphasize I'm sorry to answer your question completely.
As we stated we're going to have this and the <unk> segment in the pro segment that are currently through our website or not.
Most of the stuff, we do today in direct to builders as we in the <unk> segment, but because they are we feel and see that the even the pro and builder segment are joining us online.
So we we're in the process of merging the software in and that we're very, very careful uh, as we're merging in because uh, we want to be secured with what we're selling today. Uh, not rush it and we expect uh, to have it. Um, hopefully done by q1 or latest Q2 of, uh, 2026 and 1 fully merged 1, fully merged in combination with the new products we have. Um, we do anticipate to to increase conversion rate, uh, by all kinds of AI methods to, um, that have better if we say Radars on how what type of consumers are
Right.
So that's an additional factor.
We're focusing on.
Okay.
My next question you guys have announced so many customers.
Tomorrow announcements builders and so on and so many different places, Saudi Arabia, Egypt, Miami Marriott Hotel.
Which of those it looks like the Marriott Hotel has done from the videos the Miami project looks like it's still.
Getting permit approvals, which is which of those are currently shipping and which one of which of those are yet to come.
Uh, uh, are better chances for them to for us to convert them and bring them more to our website, uh, as well as the better experience overall, uh, in the website itself. But those softwares are quite sophisticated. And with the AI today, there's many tools and special when you have Unique Products, uh, you have a better chance to drive people into your website because of your uniqueness. So the combination of all our uh e-commerce team is led by Huey Long uh former. Um Amazon that works with Bezos and actually created the brand Basics. And him is his team and together with our executive chairman, uh, Paul Johnson. That is an extremely, uh,
So we are.
With the Marriott demo was an important demo.
Showcase.
And to open the door to much more business that we hope we will be able to expand soon.
We have some local projects that we're supplying to where it was starting to supply very soon to Austin, Texas.
As well as some projects here in Florida, and we believe the.
Um, capable person in the e-commerce Arena. We are working with, uh, some uh, key uh, Engineers that joined our company uh, to to maximize that potential. And, um, the softwares that were good 5 years ago, 10 years ago are nothing to compare to the type of software you have today. And that merge, uh, is expected to
Really take us to the next level of e-commerce.
The smart city, and Miami, and the Saudi or more next year.
Start supplying but against a razor and blade models. So there are some.
Time, but were working on other projects that hopefully we will be able to share.
With the market soon.
And then finally, you mentioned that your product will.
Smart plug will reduce injuries. So I just yesterday install the light fixture and I cut my finger and almost fell off a ladder. So I can attest to what youre, saying your products can't become mandatory fast enough.
We going to have focus on the B2B segment and the pro segments that are currently through our website are not. Uh, most of the stuff we do today is direct to builders as we and the B2B segment. But today, uh, we feel and and see that, uh, even the pro and Builder, segments are joined more online.
That's all my questions. Thank you.
And that's an additional factor, that will focus on.
Thank you and.
I wish I was that it is in and the data that we have here and then one day you will publish it and it's really shocking.
We think Theres 500 million U S installations, and if you take the Best example, let's say and perfect world that 99% of those installations go perfect. Unfortunately, its not the case, but that leaves you from.
500 about $5 million that go wrong and it doesn't mean that everything goes wrong someone gets injured or dies, but what I can tell you. There's a significant number out of those that are cutting your hand is it really you really good good spot with this next time, you'll be here, we'll show you a bit more data, but thank you very for your question.
Okay. And my my next question. You guys have announced so many, um, uh, customer announcements, Builders, and so on in so many different places. Saudi Arabia Egypt, Miami Marriott Hotel. Um, which of those it looks like the Marriott hotel is done from the videos. The Miami project looks like it's still um getting permanent approvals which which of those are currently shipping and which 1 of which of those are yet to come.
Good questions. Thank you.
So I'll make it $5 million. Thank you.
Okay, and Pat Mccann from noble cap capital Cleantech.
So we are at with the Marriott demo was an important demo to to, to Showcase. And to open the door to a much more business that we hope will be able to expand soon. Um, we have some local projects that we're supplying, we're starting to supply very soon to Austin Texas. Um as well as some project.
Hey, Thanks for taking my questions first I was just curious with regard to the upcoming launch of the assuming heater fan I was wondering do you have.
Is there a level of visibility you already have in terms of billings for that but you can expect in Q4 to kind of give you that visibility towards adjusted EBITDA breakeven in Q4 or is it more just kind of an expectation of what will happen once they become available.
Uh, here in Florida, uh, and we believe the uh, the smart city in Miami and the Saudi are more next year. Uh the start supplying. But again it's a razor and the Blade model so there's some uh time but we're working on other projects that hopefully we will be able to share.
Uh, with the market soon.
We have some visibility, but again, we know we want to land them this year and its coming very soon and we need to supply them in certain times in a week, that's our main focus but.
And, and then, finally, you mentioned that your product will, um, the the smart plug will, uh, reduce injuries. So, I just yesterday installed the light fixture and I cut my finger and almost fell off the ladder so I can attest to what you're saying. Your products can't become mandatory fast enough.
That's, that's all my uh questions. Thank you.
I think today in our press release, we did say that we anticipate things to start landing this month of November so.
Once they land we have some ideas, but we want to definitely wanna be careful here.
And then it looks like we're landing also a variety of ceiling fan so.
James do you have delays and everything comes together I think that's what's happening here, we hope and once Orlando will have a better picture, but there is some anticipation here.
Got it and then my other question was just in terms of revenue mix looking ahead to 2026 do you have in <unk>.
Thank you. And I I wish you know how how sad it is that and and the data that we have here, um and 1 day, we'll publish it. It it it's it's really shocking. Get we? We we think we're, there's 500 million us installations and if you take it, the best example, let's say, in perfect world that 99% of those installations go, perfect. Unfortunately, it's not the case, but that leaves you uh, from 500 about 5 million that go wrong and doesn't mean that everything goes wrong, someone gets injured their eyes, but but I can tell you, there's a significant number out of those that uh, cut.
Of how you how you think things are going to play out in terms of the mix between.
Your hand is, is really you? You you you really good. Good spot with this. Uh, next time you'll be here, we'll show you a bit more data but thank you, Barry for your questions. Good questions. Thank you.
Consumer sales on the website and so forth versus.
Versus these build our partnerships starting to take a little more effect in.
So make it 5 million 1. Thank you. Okay, and Pat McCann from Noble cap. Capital please Pat.
<unk>.
Do you have any sense of a general.
Mix between those two revenue types.
Okay.
The mix is currently our revenues for this year are mainly retail, but we anticipate a big growth on the beat to be starting in 2026, we already see some signs of it but the major.
<unk> will start in 2026 and <unk>.
If you're asking are I think in the future.
Hey, thanks for taking my questions. Uh, first test was curious with regard to the, uh, the upcoming launch of the, the ceiling. Um, heater fan. I was wondering, do you have, you know, is there a level of visibility you already have? In terms of billing for that that you can expect in Q4 to kind of give you that visibility towards adjusted IBA break even in Q4? Or is it more just kind of an expectation of what will happen once they become available?
Next year the following year, we'll definitely see much more significant numbers coming from B to B and eventually I think need to be.
But you never know what retail because you know we have some partnership we announced with some big box like home depot.
So that can generate major numbers too, but that can also generate amendment major numbers with the beta because home depot's growing that segment as well so.
Can't really.
Come with what what's going to sell first what what the segments are going to come but we can definitely tell you that that we are anticipating to grow significantly with the <unk> segment.
We we have some visibility but again we you know, we want to land them here and it's coming very soon and we need to supply them in certain times. Then uh, we just that's our main focus. But uh, I think today in our press release, we did say that we anticipate things to start Landing this month of November. So uh, once they land we we have some ideas but we won't just like want to be careful here. Um and and it looks like we're Landing also a variety of ceiling fans. So
Thanks, that's all I had congrats on the quarter.
You know sometimes you have delays and everything comes together I think that's that's what's Happening Here, we hope. And uh once we land and we we'll have a a better picture but there's some anticipation here.
Thank you thank you for that and.
And we have jazz.
Jazz vendor.
With us.
Please Jack.
Okay, Okay, great I appreciate the update.
Clearly progress on all fronts, a lot of moving parts.
<unk> a lot.
So where do I start.
Ronnie maybe just if you could touch on.
It's just for one as well with the gross margin.
In the recent move with the websites and the new software to boost conversion rates is this what am I looking at here in the third quarter or is this this is a record gross.
These things are going to play out in terms of the mix between, uh, you know, consumer sales on the websites and so forth versus, uh, versus these Builder Partnerships starting to take, uh, a little more effect. And, and, you know, do you have any sense of a general mix between those 2 Revenue types,
um,
Margin historically on any quarter, where does this go from here I guess, maybe there's some noise in the near term but.
Are we seeing or we're going to see a big uptick in benefits or is this just product mix I mean, it seems like you have all your nexgen products coming out, which I presume are higher margin and are also pushing margins on the E. Commerce front. So just wanted to get your thoughts where are we in the big picture of further upside there.
Yeah in the Big picture.
And then maybe when he explained it nicely with the numbers.
Practically.
But the big picture, we do.
The more we merge our own products.
The higher gross margins.
We expect to see and that's what's happening with our website.
Really a combination.
Audio software that's going to kick in I think we're.
the mix is, is currently our revenues for this year are mainly retail. But, uh, we anticipate a big growth on the B2B starting in 2026. We already see some signs of it but, uh, major, uh, growth will start in 2026. And, um, if you're asking, uh, I think it the future, um, of next year or the following year will definitely see much more significant numbers coming from B2B and eventually, I think B2B. Um, but you, you never know what retails because, you know, we have some Partnerships. We announced with some big box, uh, Like Home Depot, so that can generate major numbers too. Uh, but that can also generate men major numbers with the B2B because Home Depot is growing that segment as well. So we can't really uh come with what what's going to sell first? What? What the segments are going to come, but we
Quite optimistic to gross margins growing here.
And I'd like to blend more and more in our products.
Can definitely tell you that um, that we are anticipating to to grow significantly with the B2B segment.
And obviously for success for many reasons. So the new software will definitely help on this front as well.
Thanks, that's all I had congrats on the quarter.
Thank you. Thank you. Seth.
So.
The mixture of our products into the market as a whole we have.
and we have uh, Jack vendor with us, uh, please Jack
Our own products and.
The new software.
Or both.
Because the new products, it's also to the builder segment.
And with the software.
Retail as the builders.
We see.
That's.
Our test shows that we have not.
An opportunity.
Significantly continue growing our gross margins.
What you can see this quarter is really an example of what we said before.
Thank you.
The size of the block.
So I think we've talked about it's all about good margins as well.
Yes.
So more of our our own product.
Now on our website and e-commerce.
Plug and play ready.
So.
That's important.
Uh huh.
Glen.
Hey. Okay, great. Uh, appreciate the update, um, clearly progress on all fronts. Uh, a lot of moving Parts, you're tackling a lot. Um, good good to hear. So where do I start? Let's Ronnie. You know, maybe just if you could talk on and maybe this is for Lenny as well with the gross margin um in in the recent uh move with the website, in in the new software to boost uh conversion rates. Is this what, what am I looking at here in the third quarter? This, this is a record gross margin. Um, historically on any quarter where where, where does this go from here? I guess maybe there's some noise in the near term but, you know, are we seeing? Are we going to see a a big uptick in benefits was this just product mix. I mean it seems like you have all your NextGen products coming out which I presume are higher margin and you're also boosting margins on the e-commerce front. So just love to get your thoughts. Where, where are we in the big picture of, uh, further upside there?
Increase.
Got it all.
Their margin profile when we go in.
Uh huh.
Right.
Chantal.
Oh My God.
Okay.
So.
When we go there we go.
<unk> profile.
E Commerce, so actually of ecommerce site grossberg.
We're gonna grow more.
Fortunately.
We don't control.
I'll find out in the market.
Well so.
A lot of.
Positive features.
A b to C beautifully.
With respect to the margin profile and we Havent experienced.
<unk>, although we're very focused on licensing, which you know which.
Yeah. And the big picture, uh, and then maybe Lenny explained it nicely with the numbers, the uh, practically. Uh, but the big picture we, the uh, the more we merge our own products. Uh, the the the higher gross margins, we expect to see and that's what's happening with our websites, including a combination, uh, of our new software that's going to kick in. I think we're uh quite optimistic to gross margins growing here um and it's like to blend more more in our products into that and and obviously for Success, many reasons, so the the new software will definitely help on this front as well. Uh, so uh the mixer of our products into the market, the more we have
The margin potential of 85% or more so.
Our own products and, uh, the more the, the, the, the new software, um, are both, um,
That's true but to be.
Realized.
In the future.
Excellent.
Sure.
Yeah, I have one more.
Because the new products is also to the Builder segments uh and and with the software it's uh to retail. And to builders we we we see um,
I appreciate all the color there and that's that's very encouraging to hear.
I guess.
Two more questions just real quick I guess I wanted to ask because of the drama with the recent U S government shutdown extended ongoing and now we're at the we're at the end of it here, but just what does this do in terms of.
That uh our Test shows that we have uh with an opportunity to to significantly continue growing our growth margins. And what you see the
This quarter is really an example of what we said quarters before.
Any of you want to have?
Youre guys this progress in seeking.
The application for standardization of your.
We talked about, it's all about the margins lens, you know. And as we as we land and sell more of our of our own product,
Of your products Youre seeing receptacle is there any is there any impact at all as this is just behind US just wanted to know if this has any implication.
It even even now on our on the websites. The e-commerce, we've done product. We're Landing so I can play Ready.
you know, so the
that supports the
The margin.
But I know.
Joe you want to share so much information, but just like to hear an update there.
Uh, plan the increase.
So.
So, you know, then then you've got a, even a different margin profile when we go, you know.
When generally with all the tariffs did what it did is you know until you know.
Sales.
Not completely settled but it looks like it will be.
Like a like a multi, you know. So you know,
That those are the signs, but that really made a lot of manufacturers much more creative and and and they went over to Taiwan, and Vietnam, and Cambodia were dealing and we and now as you recall.
Not on the website itself, but, you know, we got, you know, we have a different margin.
Source.
So so actually they it gives us more options.
Our product and sometimes its the same manufacturers. It just opened facilities in different countries and sometimes it's new manufacturers, but that actually hopefully it ends this way.
End of the day it might be a benefit that opened more doors and more channels for us to two important collaborate with additional manufacturers when it comes to the standardization.
Actually has the e-commerce site grows. We're going to, we're going to grow more B2B. Um, which will, you know, which will I think impact the top line and the margins as well. So we've got a lot of positive features, you know, uh, B to C B2B, uh, with respect to margin profile. And we haven't yet experienced, although we're very focused on licensing which, you know, which that has margin potential of 85% or more. So you know, that's you know, that's, you know, to be to be realized, you know, in the future.
I think.
One thing that's very unique to our product.
Excellent. Any other questions?
You can see that U S is now pushing the government is pushing for manufacturing in the U S. But we can tell you that what we do and when it comes to the plug in receptacle and even the smart boards.
Yeah. I I have 1 more, I appreciate all the color there and that's that's very encouraging to hear. Um I guess
Can be done here, but not only can be done here the.
The biggest problem the U S has wood manufacturing is.
2 2 more questions, just real quick. I have I wanted to ask because of the the drama with the uh the recent US Government shutdown extended ongoing and now we're at the uh we're at the end of it here but just
The labor cost despite the tenex compared to other countries, but when it comes to products like what we do the receptacle, the plug or the smart boards and even the older ones smart platform can.
Can be fully automated production and that's what we will do and that opens the door to U S. Manufacturing. So we're definitely leveraging that and I think the mandatory wall.
Do in terms of um your your guys's progress and seeking uh the application for standardization of your um, of your product. You're you're seeing receptacle, is there any is, is there any impact at all? Is this is this behind us. Just want to note, this has any implication, um, regard, but if you, I know you only want to share so much information, but just like to hear an update there.
Significantly improved U S businesses and are making.
Make America safe and maybe make America smart too because really in our product and it's a great question.
so, with with um, with generally, with all the tariffs, what it did is, you know, and it's still, you know, it's not completely settled but it looks like it will be uh,
Standardization can be contingent on U S manufacturing and we actually can meet the criteria. For example car manufacturers will take them three to five years until they get older robots in place.
Our technology is fully automated.
And manufacturing and that's something that U S expects to grow you saw probably that Apple is committed to do manufacturing here, because laptops and phones. Those industries can do to be manufactured did they fully automated.
So hopefully it will.
Get closer to standardization and Thats been opened the door for more business here in the U S.
That, that those are the signs, but that really made a lot of Manufacturers much more creative and and and they went, uh, over to Taiwan and Vietnam and Cambodia we're dealing and we, and now, as you recall, a US Source. Um, so so actually, they, it gave us more options, um, a product and, uh, sometimes it's the same manufacturers. It just, uh, open facilities in different countries and sometimes it's new manufacturers. So that actually, hopefully it ends this way. Uh, at the end of the day, it might be a benefit that opens more doors and, um, more channels for us to to import and collaborate with additional manufacturers when it comes to the standardization.
Actually just one more quick follow up for clarity.
Target for I think you were trying to track towards 50 50000 homes by the end of this year.
Is that.
Can you just maybe tie that to any of the more specific larger projects with smart city projects to hotels. All of these moving parts are you going to are you waiting to receive orders in advance of the actual installation that are going to be is that 50000, including any orders from major project developments.
I think, uh, 1 thing that's very unique to our product. Um, you can see that us is now pushing the government's pushing for manufacturing, the us, so we can tell you that what we do with, when it comes to the plug-in receptacle. And even the smartboards, uh, can be done here but not only can be done here. Um,
Not from the Miami city, yet or not.
From the hotels, yet but.
I think theres a couple of products projects that we are starting to supply.
So.
Yeah, you know the end of the year is really around the corner, So, it's 45 days and and and and the builder segment.
I think we are supplying some products and we did supply already.
But really it looks like 2026, we'll start really to be a significant part of our business the builder and b to B and hopefully the wholesale segment were working on some interesting things there and hopefully will as Steve said.
Be able to share some of it.
The, the the, you know, biggest problem us has with manufacturing, is the the labor cost is 5 to 10x compared to other countries. But when it comes to products, like what we do, the receptacle, the plug, or the smartboards. And even the older ones smart platform uh, can be fully automated uh, production and that's what we will do and that opens the door to us manufacturing. So we're definitely leveraging that uh and I think a mandatory will uh significantly improve us businesses and uh you know, make America safe and may maybe make America smart too because really uh, in our product and it's a great question. Uh, standardization can be contingent on the US manufacturing and we actually can meet the criteria. For example, car manufacturers will take them 3 to 5 years until they get all the robots in place. But, um,
Okay, Great I appreciate the update guys. Thank you.
Okay.
Yes, we have.
Yes, we have Tom as well.
Ross.
Please Tom.
Hey, Thanks, guys I appreciate the time and I appreciate all the color.
Our Technologies fully automated uh uh and Manufacturing and that's something that us expects to grow. You saw probably that apple is committed to do manufacturing here because laptops and phones those Industries can do to be as manufactured today. Fully automated
I apologize if I missed it I was just weren't right can you just talk a little bit about the.
so, um, hopefully, you know, we'll get closer to standardization and that's going to open the door for more business here in the US for
The middle East opportunity I think one of your speakers discuss the opportunity there that the middle East seems to be fast adopters of this changing technology, that's going to talk about is it going to be the opportunity with commercial development, you know retail or residential development.
Excellent, just 1 more quick, follow-up, um, for clarity, the, the target kind of, for I think you're trying to track towards 50 was it 50,000 homes. Um, by the end of this year, um, is that
Broadly speaking, how do you kind of see that.
A new program working out.
So yeah in the Middle East there's as many know are.
Really a lot of emphasis there on the development of <unk>.
Advanced technologies, and I think that that's what really opened the door for us to sign that agreement with global venture group debt.
Can you just maybe tie that to any of the more specific uh larger projects like Smart City projects? The hotels, all these moving parts are you going to? Are you going to receive orders in advance of the actual installation that are going to be is that 50,000 including any orders from any of these major project developments?
Our expanding towards that region and what they feel is that our technology.
I think there's a couple of products projects that we are starting to supply.
So, um,
Can increase what theyre doing the value of what they're doing.
<unk> better.
Homes in hotels, but they also.
Anticipate that to collaborate with other bill.
Builders, there and and introduce our product because as could be gem with Stefan mentioned earlier that that region is really a massive growth now I think Saudi in particular.
People say that they want to be there.
Yeah, you know, the end of the year is really around the corner. So in 45 days and and, and the, and the Builder segment we are. I think we are supplying some products and we did Supply already. Uh, but really looks like 2026 will start really to be uh significant part of our business, the the the Builder and B2B and hopefully the whole hotel segment we're working on some interesting things there. And hopefully, we'll Steve said, be able to share some of it.
By on steroids there so.
Okay, great. I appreciate the update, guys. Thank you.
That's what we hear from people and developers.
The more advanced buildings, a b I think the better that we have into those.
Okay, um, yeah. We have, um,
yes, we have Tom hey, from
Areas, but we're here in South, Florida, and Austin, Texas, we see it locally and we're talking to other developers here in that area and nationwide and hopefully we are working on some global additional global segments.
Rock. So please Tom.
Hey thanks, guys. Appreciate the uh, the time and and appreciate all the colors today. Um, I apologize if I missed it. I was just wondering, could you talk a little bit about the, um,
So Doug.
The World is trying to get more advanced when it comes to.
Construction smart home.
And obviously safe safety is always a.
A significant item.
The Middle East opportunity. I think uh 1 of your your speakers discussed the opportunity there that the Middle East seems to be, you know, fast adopters of this changing technology. Just going to talk about, you know, is it going to be the opportunity with commercial development? You know, retail development or residential development? Just kind of, you know, probably speaking. How do you kind of see that uh, your new program working out?
I appreciate that maybe just one follow up for me on the Turbo heater fan.
Sounds like its shipping this month or this.
Certainly this quarter. This is ordering is it sort of I'm, assuming that's going to be selling through your website websites, but is that also going to be home depot item as well.
Yes, we anticipate that to be in our websites and we anticipate that to be in several accounts and we believe home depot is going to be one of them, but we'll announce a win when we can.
We're doing we have the relationships so that the public records and.
A razor and blade model is the way to expand and I think that portable heater fan.
Can be a significant item for us once landed here and hopefully we'll have more accounts.
And retailers to announce the usage of it we're working on this and we hope to be able to to announce more than home depot.
So, yeah, and Middle East as as, as many know, uh, are, um, really a lot of emphasis there on, on development of of Advanced Technologies. And I think that that's what really opened the door for us to, uh, sign that agreement, with global Venture group, uh, that, um, are are expanding towards that region. And, uh, what they feel is that our technology, uh, can, uh, increase what they're doing? The value of what they're doing, uh, provide better, uh, homes and hotels, but they also, um, uh, anticipate that to collaborate with other, uh, Builders there. And, um, and, and to reduce our product because, as Kadija Mustafa mentioned earlier that, that region is really, uh, massive growth. Now, I think Saudi in particular, uh, people say that they, they want to be Dubai and steroids there.
But we still need to see.
Alright appreciate it guys. Thank you.
Thank you.
So, um, that's what we hear from people and developers. And, you know, the more advanced buildings, uh, want to be, I think the the better fit we have into those, uh,
Okay.
Uh huh.
Yes that concludes state but.
That concludes the question and answer session I would like to turn the conference back over to Rani Cohen for any closing remarks. Please go ahead.
Thank you everyone for joining our call as you see as you saw hopefully you that we're making some progress and as Steve said.
Areas. But, you know, we're here in South Florida and Austin Texas. We see it locally and, uh, we're talking to other developers here, and that area, and and Nationwide. And hopefully, we're working on some Global additional Global segments. Uh, so definitely, I think the world is trying to get more advanced when it comes to, uh, construction Smart Home.
We are optimistic to continue that progress and talk to you soon in our next call and maybe before if we have interesting things. This year. So thank you very much again, everyone looking forward to talking to you again soon.
and obviously safe safety is always, uh,
uh, a significant item.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
I appreciate that, maybe just 1 follow-up for me on the turbo heater fan. Um, sounds like it's it's shipping this month or or, you know, this certainly this quarter this is wearing, is it certainly? I'm assuming it's going to be selling through your website websites, but is that also going to be a a Home Depot item as well.
Yeah, we anticipate that to be in our website and we anticipate that to be in several accounts. And, uh, we believe Home Depot is going to be 1 of them, um, but we'll announce it when, when we can, um, we're doing, you know, we have a relationship. So that the public records and, um,
Uh, I raised her in the Blade model, is the way to expand. And I think that turbo heater fan. Um,
Can be a significant item for us once, uh, landed here. And hopefully, uh, we'll have more, uh, accounts, um, and, and, uh, retailers to announce the usage of it. We're working on this, and we hope to be able to
All right, appreciate you guys. Thank you.
Thank you.
Okay. So, uh
Yes, that concludes. Please go ahead.
That concludes the question and answer session. I would like to turn the conference back over to Ronnie Cohen for any closing remarks. Please go ahead.
All and maybe before if we have an interesting things to share, so thank you very much. Again, everyone looking forward to talking to you again soon.
The conference is now concluded. Thank you for attending today's presentation. You may now disconnect