Q1 2026 SKYX Platforms Corp Earnings Call

May 11, 2026

Operator 2: Good afternoon, ladies and gentlemen, welcome to SKYX Platforms Corp.'s Earnings Conference Call. Before we begin, I would like to remind everyone that statements made during this call may include forward-looking statements within the meanings of the federal securities laws. These statements are based on current expectations and assumptions and are subject to the risk and uncertainties that could cause actual results to differ materially. Please refer to the company's SEC filings, including its most recent Forms 10-Q for a discussion of these risks and uncertainties. The company undertakes no obligation to update any forward-looking statements except as required by law. In addition, the company may discuss certain non-GAAP financial measures during today's call. Reconciliations to most directly comparable GAAP measures are available in the company's earnings press release. I would now like to turn the call over to Founder and Executive Chairman, Rani Kohen.

Operator: Good afternoon, ladies and gentlemen, welcome to SKYX Platforms Corp.'s Earnings Conference Call. Before we begin, I would like to remind everyone that statements made during this call may include forward-looking statements within the meanings of the federal securities laws. These statements are based on current expectations and assumptions and are subject to the risk and uncertainties that could cause actual results to differ materially. Please refer to the company's SEC filings, including its most recent Forms 10-Q for a discussion of these risks and uncertainties.

Speaker #1: afternoon, ladies and gentlemen, and welcome to SKYX Platforms Corps. Earnings Conference Call. Before we begin, I that statements made during this call may include forward-looking statements, within the meanings of the Federal Securities Laws.

Speaker #1: These statements are based on current expectations and assumptions, and are subject to the risk and uncertainties that could cause actual results to differ materially.

Speaker #1: Please refer to the company's SEC filings, including its most recent Forms 10-Q, for further discussion. These are risks and uncertainties. The company undertakes no obligation to update any forward-looking statements, except as required by law.

Operator: The company undertakes no obligation to update any forward-looking statements except as required by law. In addition, the company may discuss certain non-GAAP financial measures during today's call. Reconciliations to most directly comparable GAAP measures are available in the company's earnings press release. I would now like to turn the call over to Founder and Executive Chairman, Rani Kohen. Please go ahead, sir.

Speaker #1: In addition, the company may discuss certain non-GAAP financial measures during today's call. Reconciliations to the most directly comparable GAAP measures are available in the company's earnings press release.

Speaker #1: I would now like to turn the call over to founder and Executive Chairman, Ran Kohen. Please give a heads up.

Operator 2: Please go ahead, sir.

Speaker #2: Thank you very much. Good afternoon. To all. We welcome you to our Q1 2026 earning call. And I'll pass it to our president, Steve Schmidt.

Rani Kohen: Thank you very much. Good afternoon to all. We welcome you to our Q1 2026 earnings call. I'll pass it to our President, Steven Schmidt. Thank you, Steve.

Rani Kohen: Thank you very much. Good afternoon to all. We welcome you to our Q1 2026 earnings call. I'll pass it to our President, Steve Schmidt. Thank you, Steve.

Speaker #2: Thank you, Steve.

Speaker #3: All right. First of all, excuse me. I'm sorry, Ronnie. Thank you very much. First of all, good afternoon to

Steven Schmidt: All right. Lenny, First of all, excuse me. Sorry, Ronnie. Thank you very much. First of all, good afternoon to everybody. Let me start by saying that we are happy to share that we are continuing our progress in growing our market penetration, and remain focused on our razor and blade model through B2B segments for hotels and builders, as well as on the retail aspects through our e-commerce platform and big box retail. As we previously have discussed, we are continuing our growth despite the slow new build market that is affecting smart home, lighting, and home decor segments. Let's start with four key financial points demonstrating our positive progress.

Steve Schmidt: All right. Lenny, First of all, excuse me. Sorry, Ronnie. Thank you very much. First of all, good afternoon to everybody. Let me start by saying that we are happy to share that we are continuing our progress in growing our market penetration, and remain focused on our razor and blade model through B2B segments for hotels and builders, as well as on the retail aspects through our e-commerce platform and big box retail. As we previously have discussed, we are continuing our growth despite the slow new build market that is affecting smart home, lighting, and home decor segments. Let's start with four key financial points demonstrating our positive progress.

Speaker #3: everybody. And let me start by saying that we are happy to share that we Good are continuing our progress in growing our market penetration and remain focused on our razor-and-blade model through B2B segments for hotels and builders, as well as on the retail aspects through our e-commerce platform and big box retail.

Speaker #3: As we previously have discussed, we are continuing our growth despite the slow new build market that is affecting smart home, lighting, and home decor segments.

Speaker #3: So let's start with four key financial points demonstrating our positive progress. First, we're pleased to report nine consecutive quarters of growth year over year, with a 10% increase in record revenues for Q1 '26, with $22 million compared to $20 million in Q1 '25.

Steven Schmidt: First, we're pleased to report 9 consecutive quarters of growth year-over-year, with a 10% increase in record revenues for Q1 2026, with $22 million compared to $20 million in Q1 2025 as we continue to grow our market penetration. Next, our cash position improved significantly to over $32 million in cash and cash equivalents as of 31 March 2026. We believe we have sufficient cash to achieve our goal of becoming cash flow positive in 2026. Our gross profit improved by 16% to $7 million in Q1 2026, compared to $6 million in Q1 2025. Finally, our gross margin improved to 30% in Q1 from 28% in Q1 2025. Leonard Sokolow will be providing additional insights shortly on these financial results. Let's talk about the business front.

Steve Schmidt: First, we're pleased to report 9 consecutive quarters of growth year-over-year, with a 10% increase in record revenues for Q1 2026, with $22 million compared to $20 million in Q1 2025 as we continue to grow our market penetration. Next, our cash position improved significantly to over $32 million in cash and cash equivalents as of 31 March 2026. We believe we have sufficient cash to achieve our goal of becoming cash flow positive in 2026. Our gross profit improved by 16% to $7 million in Q1 2026, compared to $6 million in Q1 2025. Finally, our gross margin improved to 30% in Q1 from 28% in Q1 2025. Leonard Sokolow will be providing additional insights shortly on these financial results. Let's talk about the business front.

Speaker #3: As we continue to grow our market penetration, next, our cash position improved significantly to over $32 million in cash and cash equivalent as of March 31, 2026.

Speaker #3: We believe we have sufficient cash to achieve our goal of becoming cash flow positive in 2026. Our gross profit improved by 16% to $7 million in Q1 26 compared to $6 million in Q1 25.

Speaker #3: And finally, our gross margin improved to 30% in Q1 from 28% in Q1 '25. Len Sokolow will be providing additional insights shortly on these financial results.

Speaker #3: So, let's talk about the business front. First, we've entered into a strategic partnership agreement with a prominent European hotel and real estate developer group, OT—our OT group—to deploy our advanced smart and AI platform technologies as a brand standard throughout our hotel and building segments.

Steven Schmidt: First, we've entered into a strategic partnership agreement with prominent European hotel and real estate developer Groupe OT, or OT Groupe, to deploy our advanced smart and AI platform technologies as a brand standard throughout our hotel and building segments. Groupe OT has developed over 250 hotels and buildings across Europe. Next, we just announced that we will be deploying our advanced and smart technologies to its first European hotel, master renovation of a historical architectural preservation hotel, the Grand Hotel du Bar, formerly the Grand Médicis in Bourbon, France. We also have signed an additional agreement with the Groupe OT Heritage Hospitality Group to deploy and market our technologies to the vast European hotel market over 132,000 hotels.

Steve Schmidt: First, we've entered into a strategic partnership agreement with prominent European hotel and real estate developer Groupe OT, or OT Groupe, to deploy our advanced smart and AI platform technologies as a brand standard throughout our hotel and building segments. Groupe OT has developed over 250 hotels and buildings across Europe. Next, we just announced that we will be deploying our advanced and smart technologies to its first European hotel, master renovation of a historical architectural preservation hotel, the Grand Hotel du Bar, formerly the Grand Médicis in Bourbon, France. We also have signed an additional agreement with the Groupe OT Heritage Hospitality Group to deploy and market our technologies to the vast European hotel market over 132,000 hotels.

Speaker #3: Group OT has developed over 250 hotels and buildings across Europe. Next, we just announced that we will be deploying our advanced and smart technologies to its first European hotel master renovation of a historical architectural preservation hotel.

Speaker #3: The Grand Hotel du Bar, formerly the Grand Médicis, in Bordeaux, France. We also have signed an additional agreement with the group OT, Heritage Hospitality Group, to deploy and market our technologies to the vast European hotel market of over 132,000 hotels.

Speaker #3: We expect to supply our advanced smart home technologies to upcoming and future key projects in the US and globally, including New York, North Carolina, Austin, San Antonio, South Florida, including Miami's new $4 billion smart city, Saudi Arabia, and Egypt.

Steven Schmidt: We expect to supply our advanced smart home technologies to upcoming and future key projects in the US and globally, including New York, North Carolina, Austin, San Antonio, South Florida, including Miami's new $4 billion smart city, Europe, Saudi Arabia, and Egypt. Our technologies reduce up to 90% of the time and cost of buildings and hotel renovations and installations or new build. We continue our discussions with additional hotel groups and owners regarding utilization of our game-changing advanced and smart platform technologies. We expect to deploy over 1 million units of our products, including the advanced smart home plug-and-play technologies during these projects and to over 100,000 units and homes by the end of 2026 through our pro and retail segments.

Steve Schmidt: We expect to supply our advanced smart home technologies to upcoming and future key projects in the US and globally, including New York, North Carolina, Austin, San Antonio, South Florida, including Miami's new $4 billion smart city, Europe, Saudi Arabia, and Egypt. Our technologies reduce up to 90% of the time and cost of buildings and hotel renovations and installations or new build. We continue our discussions with additional hotel groups and owners regarding utilization of our game-changing advanced and smart platform technologies. We expect to deploy over 1 million units of our products, including the advanced smart home plug-and-play technologies during these projects and to over 100,000 units and homes by the end of 2026 through our pro and retail segments.

Speaker #3: Next, our technologies reduce up to 90% of the time and cost of buildings and hotel renovations and installations or new builds, and we continue our discussions with additional hotel groups and owners regarding utilization of our game-changing advanced and smart platform technologies.

Speaker #3: We expect to deploy over $1 million units of our products, including an advanced smart home plug-and-play technologies during these projects, and to over 100,000 units in homes by the end of 2026 through our pro and retail segments.

Speaker #3: Next, despite warmer weather, our sales of our patented turbo heater fan are continuing to grow, and we are expanding the category of the all-season ceiling fan heat and winter and cool and summer.

Steven Schmidt: Next, despite warmer weather, our sales of our patented Turbo Heater Fan are continuing to grow. We are expanding the category of the all-season ceiling fan, heat in winter and cool in summer. We are working on additional products in new designs and larger sizes. In Q1, we announced the beginning of our collaboration with NVIDIA Connect Program, and we expect to grow our collaboration with NVIDIA into future smart home projects. Our technology expansion provides additional opportunities for future recurring revenues through interchangeability, upgrades, AI services, monitoring, subscriptions, and more. Finally, our enhanced safety code standardization team continues its progress towards its goal of a safety-mandated standardization in homes and buildings of our life-saving ceiling outlet receptacle technology. A lot of great progress. It's my pleasure now to turn the call over to Leonard Sokolow, our CEO, who will provide additional insights. Len?

Steve Schmidt: Next, despite warmer weather, our sales of our patented Turbo Heater Fan are continuing to grow. We are expanding the category of the all-season ceiling fan, heat in winter and cool in summer. We are working on additional products in new designs and larger sizes. In Q1, we announced the beginning of our collaboration with NVIDIA Connect Program, and we expect to grow our collaboration with NVIDIA into future smart home projects. Our technology expansion provides additional opportunities for future recurring revenues through interchangeability, upgrades, AI services, monitoring, subscriptions, and more. Finally, our enhanced safety code standardization team continues its progress towards its goal of a safety-mandated standardization in homes and buildings of our life-saving ceiling outlet receptacle technology. A lot of great progress. It's my pleasure now to turn the call over to Leonard Sokolow, our CEO, who will provide additional insights. Len?

Speaker #3: And we are working on additional products in new designs and larger sizes. In Q1, we announced the beginning of our collaboration with NVIDIA. AI ecosystems connect program.

Speaker #3: And we expect to grow our collaboration with NVIDIA into future smart home projects. Our technology expansion provides additional opportunities for future recurring revenues through interchangeability, upgrades, AI services, monitoring, subscriptions, and more.

Speaker #3: And finally, our enhanced safety code standardization team continues its progress towards its goal of a safety-mandated standardization in homes and buildings of our life-saving ceiling outlet receptacle technology.

Speaker #3: A lot of great progress. So it's my pleasure now to turn the call over to Len Sokolow, our CEO, who will provide additional insights.

Speaker #3: Len?

Speaker #4: Thank you very much, Steve. Appreciate it. And I'm very pleased to announce strong financial and operational results for the first quarter and most recently.

Leonard Sokolow: Thank you very much, Steve. Appreciate it. I'm very pleased to announce, you know, strong financial and operational results for Q1 and most recently. This reflects our continued momentum in revenue growth, operational execution, and market expansion. As we have referenced, we generated the greatest increase in year-over-year revenues of 10%, with a record $22 million in revenues in Q1 2026, compared to $20 million for Q1 2025. This reflects 9 consecutive year-over-year quarters of growth. As of 31 March 2026, we reported $32 million in total cash equivalents, and restricted cash, compared to $10 million as of year-end, 31 December 2025. We continue to leverage the rapid conversion of our e-commerce sales into cash, advancing our cash position.

Len Sokolow: Thank you very much, Steve. Appreciate it. I'm very pleased to announce, you know, strong financial and operational results for Q1 and most recently. This reflects our continued momentum in revenue growth, operational execution, and market expansion. As we have referenced, we generated the greatest increase in year-over-year revenues of 10%, with a record $22 million in revenues in Q1 2026, compared to $20 million for Q1 2025. This reflects 9 consecutive year-over-year quarters of growth. As of 31 March 2026, we reported $32 million in total cash equivalents, and restricted cash, compared to $10 million as of year-end, 31 December 2025. We continue to leverage the rapid conversion of our e-commerce sales into cash, advancing our cash position.

Speaker #4: This reflects our continued momentum in revenue growth, operational execution, and market expansion. As we have referenced, we've generated the greatest increase in year-over-year revenues of 10%, with a record $22 million in revenues in the first quarter of 2026, compared to $20 million for the first quarter of 2025.

Speaker #4: This is a nine reflects nine consecutive year-over-year quarters of growth. As of March 31, 2026, we reported $32 million in total cash, cash equivalents, and restricted cash compared to $10 million as of year-end December 31, 2025.

Speaker #4: We continue to leverage the rapid conversion of our e-commerce sales into cash, advancing our cash position. This is often referred to—as we've mentioned before—the Dell working capital model.

Leonard Sokolow: This is often referred to, as we've mentioned before, the Dell working capital model, lowering our, the cost of capital along with it. We believe we have sufficient cash to achieve our goals of becoming cash flow positive exiting 2026. Our gross profit for Q1 ending 31 March 2026, increased comparatively by 16% to $7 million as we compare it to Q1 ending 31 March 2025. The gross margin for Q1 ending 31 March 2026, increased comparatively by 2% to 30% compared to 28% in Q1 ending 31 March 2025. Net loss decreased. This is net loss per share decreased by $0.02 to $0.07 per share in Q1 of 2026, compared to $0.09 in Q1 of 2025.

Len Sokolow: This is often referred to, as we've mentioned before, the Dell working capital model, lowering our, the cost of capital along with it. We believe we have sufficient cash to achieve our goals of becoming cash flow positive exiting 2026. Our gross profit for Q1 ending 31 March 2026, increased comparatively by 16% to $7 million as we compare it to Q1 ending 31 March 2025. The gross margin for Q1 ending 31 March 2026, increased comparatively by 2% to 30% compared to 28% in Q1 ending 31 March 2025. Net loss decreased. This is net loss per share decreased by $0.02 to $0.07 per share in Q1 of 2026, compared to $0.09 in Q1 of 2025.

Speaker #4: Lowering our cost of capital along with it. We believe we have sufficient cash to achieve our goals of becoming cash flow positive exiting 2026.

Speaker #4: Our gross profit for the first quarter ending March 31, 2026, increased comparatively by 16% to $7 million as we compare it to the first quarter ending March 31, 2025.

Speaker #4: The gross margin for the first quarter ending December ending March 31, 2026, increased comparatively by 2% to 30% compared to 28% in the first quarter.

Speaker #4: Ending March 31, 2025. Net loss decreased - and this is a net loss per share decrease by 2 cents to 7 cents per share in the first quarter of 2026 compared to 9 cents in the first quarter of 2025 - and our adjusted EBITDA loss per share, which is a non-GAAP measure, decreased to 3% per share in the first quarter of 2026 as compared to 4 cents per share in the first quarter of 2025.

Leonard Sokolow: Our adjusted EBITDA loss per share, which is a non-GAAP measure, decreased to $0.03 per share in Q1 2026 as compared to $0.04 per share in Q1 2025. If I could turn it over to Rani.

Len Sokolow: Our adjusted EBITDA loss per share, which is a non-GAAP measure, decreased to $0.03 per share in Q1 2026 as compared to $0.04 per share in Q1 2025. If I could turn it over to Rani.

Speaker #4: And if I could turn it over to Ronnie.

Speaker #5: Thank you, Steve. Thank you, Lenny. We will open in a minute our phone for Q&A. We would like to emphasize, as Steve mentioned, that we're laser-focused in our Razor and the Blade model.

Rani Kohen: Thank you, Steve. Thank you, Lenny. We will open in a minute our phone for Q&A. We would like to emphasize, as Steve mentioned, that we're laser-focused in our razor and the blade model and on the B2B segment through hotels and builders. Reaction is actually very strong and very positive and we hope we can announce more on this front in the near future. We're also happy with the growth of our retail segment. As Steve mentioned, despite warm weathers now around the country, we are continuing to see growth in our turbo heater. That's one of many products we intend to offer on the razor and the blade model.

Speaker #5: And on the B2B segment, through hotels and builders, our reaction is actually very strong and very positive. And we hope we can announce more on this front in the coming in the near future.

Speaker #5: And we're also happy with the growth of retail segment and, as Steve mentioned, despite warm weathers now around the country, we are continuing to see growth in our turbo heater.

Speaker #5: That's one of many products we intend to offer on the Razor and the Blade model. And as we mentioned before, we are going to expand that category to create an all-season ceiling fan.

Rani Kohen: As we mentioned before, we are going to expand that category to create an all-season ceiling fan. As you all know, ceiling fans is a product that's mainly focused for summertime and warm weathers. We strongly feel that this can open a whole new category, especially based on the demand we have for that product. In the next coming months, this year, we believe it's gonna be a strong aspect of our razor and blade model, showing additional types of ceiling fans in sizes of 18. As we have now 24-inch, it's gonna be 18, a bit smaller, but also a large one with 28 inches.

Speaker #5: As you all know, ceiling fans are a product that's mainly focused for summertime, in warm weather, and we strongly feel that this can open a whole new category, especially based on the demand we have for that product.

Speaker #5: And in the next coming months, and this year, we believe it's going to be a strong aspect of our Razor and the Blade model, showing additional types of ceiling fans in sizes of 18, as we have now, 24 inches.

Speaker #5: It's going to be 18, a bit smaller, but also a large one with 28 inches. And we're also going to do, for much bigger rooms, starting with 42 inches and a new model, new design with the same turbo heater, with three blades.

Rani Kohen: We're also gonna do for much bigger rooms, starting with 42 inches, a new model, new design with the same turbo heater with 3 blades at 42 inch, 54 inch, as well as 60 inch. We really think that this is a category that with time we can create a lot of demand to those different type of heater, Turbo Heater Fans. We're gonna offer them in 5 colors and we intend to expand this in the next coming months. You will see more announcements and additional products in hopefully additional places that we'll be able to announce. With that being said, we're also progressing with the standardization aspect. We also hope to introduce our products this year to insurance companies.

Speaker #5: At 42-inch, 54-inch, as well as 60-inch. So we really think that this is a category that, with time, we can create a lot of demand to those type of different type of heater, turbo heater fans.

Speaker #5: We're going to offer them in five colors. And we intend to expand this in the next coming months you will see more announcements on additional product in hopefully additional places that will be able to announce.

Speaker #5: With that being said, we're also progressing with standardization aspect. We also hope to introduce our products this year to insurance that that can have another angle of standardization as we hold many products that have strong aspects when it comes to life saving and eliminating the need to touch hazardous wires a long time on ladders.

Rani Kohen: We believe, strongly believe that that can have another angle of standardization as we hold many products that have strong aspects when it comes to life saving and eliminating the need to touch hazardous wires, long time on ladders, with heavy or large size devices. With the launch of our Generation three All-in-One Smart Platform hub, adding the smoke detectors, CO detectors, emergency light, 911 calling, night light, and many other safety features, we have strong indications that we will cooperate with insurance companies that are quite excited towards our launch in H2 2026. With that being said, thank you again, and we will pass it to Q&A here.

Speaker #5: With heavy or large-sized devices, and with the launch of our generation three all-in-one smart platform hub, adding the smoke detector, CO detectors, emergency light, 911 calling, night light, and many other safety features, we have strong indications that we will cooperate and with insurance companies that are quite excited towards our launch in the second half of 2026.

Speaker #5: With that being said, thank you again. And we will pass it to Q&A here so I think we have Jacob from StreetLake. Lake Street, first in line.

Rani Kohen: I think we have Jacob from Lake Street, first in line.

Operator 2: Thank you very much, ladies and gentlemen. We will now be conducting the question and answer session. For the participants making use of speaker equipment, it may be necessary to pick up your handset before pressing the star keys. If you'd like to ask a question, please key in star and then one on your telephone keypad. A confirmation tone will indicate that the line is in the question queue. You may key in star and then two to leave the question queue. The first question comes from Jacob Stephan of Lake Street Capital Markets. Please go ahead.

Operator: Thank you very much, ladies and gentlemen. We will now be conducting the question and answer session. For the participants making use of speaker equipment, it may be necessary to pick up your handset before pressing the star keys. If you'd like to ask a question, please key in star and then one on your telephone keypad. A confirmation tone will indicate that the line is in the question queue. You may key in star and then two to leave the question queue. The first question comes from Jacob Stephan of Lake Street Capital Markets. Please go ahead.

Speaker #6: Thank you very much, sir. Ladies and gentlemen, we will now be conducting the question-and-answer session. For the participants making use of speaking equipment, it may be necessary to pick up your handset before pressing the star keys.

Speaker #6: If you'd like to ask a question, please keep in star and then one on your telephone keypad. A confirmation turn will indicate that the line is in the question queue.

Speaker #6: You may keep in star and then two. To leave the question queue. The first question comes from Jacob Stefan of Lake Street Capital Markets.

Speaker #6: Please go ahead.

Speaker #7: Yeah, hey guys. Congrats on this quarter. Thanks for taking the questions. Maybe just first, I wanted to touch on the construction project pipeline here.

Jacob Stephan: Yeah. Hey, guys. Congrats on a nice quarter. Thanks for taking the questions. Maybe just first, wanted to touch on the construction project pipeline here. I know you got 12 major projects over the past year, 1 million total units, obviously Group OTT. I guess how many of these projects so far have moved from kind of the signed agreement to, I would guess you would call it like an active supply order? Maybe if you could give us any sense of updated timing on the Austin, New York, or Miami smart city projects, that would be great.

Speaker #7: I know you got 12 major projects over the past year—a million total units and obviously Group OTT. I guess, how many of these projects so far have moved from the signed agreement to, I would guess you would call it, an active supply order?

Speaker #7: And maybe if you could give us any sense of updated timing on the Austin-New York or Miami smart city projects. That would be great.

Speaker #8: Yes, thank you, Jacob. We actually already have a few projects that have moved to purchase orders, and we expect to start supplying products in the next coming months to several places, including in Texas—I believe Austin—as well as, I think, New York.

Rani Kohen: Yes. Thank you, Jacob. We are actually a few projects already have moved to purchase orders, and we expect to start supplying products in the next coming months to several places, including in Texas, I believe Austin, as well as, I think New York, San Antonio, maybe, and hopefully, even to one of the European hotels we announced. It's a European, the first European hotel we announced.

Speaker #8: San Antonio may be and hopefully even to one of the European hotels we announced. So to the first European hotel we announced.

Speaker #7: Okay. And maybe, I guess, if you could kind of give us an overview of the developer pipeline, just beyond what you already have signed and purchase order?

Jacob Stephan: Okay. Maybe I guess if you could kinda give us an overview of the developer pipeline, just beyond, you know, what you already have signed and in purchase order. Maybe you could give us a sense of, you know, what the future pipeline looks.

Speaker #7: Maybe you could give us a sense of what the future pipeline looks?

Rani Kohen: We can say that we're entertaining discussions with several developers on new projects and as well as hotel developers. We're confident that this is a strong path for us, the B2B segment, as Steve mentioned, for hotels and builders. The value proposition with saving almost up to 90% of time and labor costs of those renovations and installations is quite significant. Also the razor and the blade model opens the door to start with maybe something simple, but to upgrade and then down the road, the subscription model, and AI services and recurring revenues can be quite significant for us down the road as we penetrate.

Speaker #8: We can say that we're entertaining discussions with several developers on new projects and as well as hotel developers. And we're confident that this is a strong path for us.

Speaker #8: The B2B segment, as Steve mentioned, for hotels and builders the value proposition with saving almost up to 90% of time and labor costs of those renovations and installations is quite significant.

Speaker #8: And also, the razor and the blade model opens the door to start with maybe something simple, but to upgrade, and then down the road, the subscription model and AI services and recurring revenues can be quite significant for us down the road as we penetrate.

Rani Kohen: Our goal is to focus on the razor and the blade, penetrate buildings, and then once we penetrate a property and deliver our receptacles, we kind of quote-unquote, Have an ownership on that electrical and electronic real estate that we strongly believe will be fruitful down the road.

Speaker #8: So our goal is to focus on the Razor and the Blade, penetrate buildings, and then once we penetrate a property and deliver a receptacle, we kind of 'have an ownership' on that electrical and electronic real estate that we strongly believe will be fruitful down the road.

Speaker #7: Got it. And maybe just moving on to big box retail, have the turbo heater at Home Depot, Target, Walmart, Lowe's. Maybe if you could kind of quantify what a single in-store SKU order from one of these big box retailers could be that would be helpful.

Jacob Stephan: Got it. Maybe just moving on to big box retail. You now have the Turbo Heater at Home Depot, Target, Walmart, and Lowe's. Maybe if you could kind of quantify, you know, what a single in-store SKU order from one of these big box retailers could be, that would be helpful. Maybe if you have any, you know, comments on the pipeline there.

Speaker #7: And maybe, if you have any comments on the pipeline there.

Speaker #8: So as Steve mentioned and I repeated the spike that warm weather is now, we expect that slowdown with that product. But we're happy to announce that we're actually seeing continuing growth.

Rani Kohen: as Steven Schmidt mentioned, and I repeated that despite that warm weathers now, we expect the slowdown with that product, but we're happy to announce that we're actually seeing continuing growth. I think word of mouth, people now recognizing they can buy a fan that also has a heater, all in one. That opens the doors to really good customer reviews in addition to word of mouth product, and we see that growth. As you know, dealing with big box retail, such as The Home Depot, Target, and Lowe's and others, if you penetrate those stores, if you penetrate significantly, beyond a few stores or a few hundred stores, that can be. Even a few hundred stores can be significant revenues.

Speaker #8: I think word-to-mouth, people now recognizing they can buy a fan that also has a heater. All-in-one and that opens the door to really good customer reviews in addition to word-to-mouth product.

Speaker #8: And we see that growth. And as you know, dealing with big box retail such as Home Depot and Target and Lowe's and others, if you penetrate those stores and once you start if you penetrate significantly, beyond a few stores or a few hundred stores, that can be even a few hundred stores can be significant revenues.

Speaker #8: But obviously, when you go over 1,000 or 2,000 stores, that can be a major turning point for us. And it looks promising. We hope towards the winter to or hopefully earlier to get to be able to talk about it in more detail.

Rani Kohen: Obviously, when you go over 1,000 or 2,000 stores, that can be a major turning point for us, and it looks promising. You know, we hope towards the winter, or hopefully earlier, to get to be able to talk about it in more detail.

Speaker #7: Got it. Understood. Appreciate you taking the questions.

Jacob Stephan: Got it. Understood. Appreciate you taking the questions.

Speaker #8: Thank you, Jacob. And I think we have got some Tom Hayes of Roth Capital Markets. Partners, please go ahead.

Rani Kohen: Thank you, Jacob.

Operator 2: The next question comes from.

Operator: The next question comes from.

Rani Kohen: I think.

Operator 2: Next question comes from.

Operator: Next question comes from.

Rani Kohen: Please.

Operator 2: Tom Hayes of Roth Capital Partners. Please go ahead.

Operator: Tom Hayes of Roth Capital Partners. Please go ahead.

Speaker #9: Good afternoon, guys. Can you hear me okay?

Thomas Hayes: Good afternoon, guys. Can you hear me okay?

Tom Hayes: Good afternoon, guys. Can you hear me okay?

Rani Kohen: Hi there.

Speaker #8: Hi there. Tom.

Thomas Hayes: Hey.

Tom Hayes: Hey.

Rani Kohen: Tom.

Thomas Hayes: Hey.

Tom Hayes: Hey.

Speaker #9: Hey. Hey, Ronnie. Can you hear me? Good afternoon.

Rani Kohen: Good afternoon.

Thomas Hayes: Hey, Roni. Can you hear me? Good afternoon.

Tom Hayes: Hey, Roni. Can you hear me? Good afternoon.

Speaker #8: Yes, Tom from Roth Capital. Good afternoon, Tom.

Rani Kohen: Yes, Tom, from Roth Capital. Good afternoon, Tom.

Speaker #9: Good afternoon, Ronnie. Just wondering about the strong Q1 gross margin performance. I was just wondering if you can kind of talk about what was the drivers on the year-over-year growth?

Thomas Hayes: Good afternoon, Rani. I was just wondering if you could kind of talk about what was the drivers on the year-over-year growth?

Tom Hayes: Good afternoon, Rani. I was just wondering if you could kind of talk about what was the drivers on the year-over-year growth?

Rani Kohen: I think that, you know, our focus in implementing more new products in our e-commerce and other big box retail, and a combination of our, some of our, a new software, AI driven that's already almost, I would say, in a third of our e-commerce platform. Combined, you know, products for lighting, the heaters, the home decor products. A combination of our strong emphasis and growth is starting to show, and we hope to continue to show that in the next coming quarters.

Speaker #8: I think that our focus in implementing more new products in our e-commerce and other big box retail, in combination with some of our new software—AI-driven—that's already almost, I would say, in a third of our e-commerce platforms.

Speaker #8: So combined—products for lighting, the heaters, the home decor products—a combination of our strong emphasis on growth is starting to show. And we hope to continue to show that in the next coming quarters.

Speaker #9: Okay. Appreciate that. And maybe appreciate all the color that you gave us on the turbo heater fan. I was just wondering now that it's really going to become an all-season fan, do you see more opportunity in the winter or the summer for the unit?

Thomas Hayes: Okay. Appreciate that. Maybe appreciate all the color that you gave us on the Turbo Heater Fan. I was just wondering, now that it's really gonna become an all-season fan, do you see more opportunity in the winter or the summer for the unit?

Tom Hayes: Okay. Appreciate that. Maybe appreciate all the color that you gave us on the Turbo Heater Fan. I was just wondering, now that it's really gonna become an all-season fan, do you see more opportunity in the winter or the summer for the unit?

Rani Kohen: We believe that in the, in the winter, it would provide more emphasis with the and purchases, based on in addition to decorating a home, an impulse buy. Many people don't think about a ceiling fan or if they see one, if it's not urgent, will probably not buy it during the winter. If they're aware of it and there's a new category that can serve winters as well as summers, I think we strongly believe that we can continue seeing additional growth in winter times. The data shows that most of the space heaters are very strong from October through February. Those five months are probably three quarters of the market, and then March through August is really only 20%.

Speaker #8: We believe that in the winter, it would provide more emphasis with and purchases based on in addition to decorating a home and impulse buy.

Speaker #8: Because many people don't think about a ceiling fan or they see one, if it's not urgent, will probably not buy it during the winter.

Speaker #8: But if they're aware of it and there's a new category that can serve winters as well as summers, I think we strongly believe that we can continue seeing additional growth in wintertimes.

Speaker #8: The data shows that most of the space heaters are very strong from October through February. So those five months are probably three-quarters of the market.

Speaker #8: And then March through August is really only 20%. I would say 75-plus percent is through October through February, and then 25% between March and August.

Rani Kohen: I would say 75% plus through October through February and then 25% between March and August.

Speaker #8: So therefore, we think that this coming winter could be quite significant for that product, although as we mentioned, we're already seeing growth in the summer.

Thomas Hayes: Yeah

Tom Hayes: Yeah

Rani Kohen: We think that this coming winter could be quite significant for that product. Although, as we mentioned, we're already seeing growth in the summer, and that's a pleasant surprise.

Speaker #8: And that's a pleasant surprise.

Speaker #9: Okay. Appreciate that. Maybe one last one. Just wondering if you give us an update. I know you'd been working on updating your 60 websites.

Thomas Hayes: Okay. Appreciate that. Maybe one last one. Just wondering if you could give us an update. I know you'd been working on updating your 60 websites. I was just wondering kind of where you are in that process and kind of when you expect to have that all wrapped up. Thank you.

Tom Hayes: Okay. Appreciate that. Maybe one last one. Just wondering if you could give us an update. I know you'd been working on updating your 60 websites. I was just wondering kind of where you are in that process and kind of when you expect to have that all wrapped up. Thank you.

Speaker #9: I was just wondering kind of where you are in that process and kind of when you expect to have that all wrapped up. Thank you.

Speaker #8: Yes, I think we were around a third into it now. So, I think last call we were around 20% plus, and now I think we're 30% plus.

Rani Kohen: Yes. I think we're around a third into it now. I think last call we were around 20% plus, and now I think we're 30% plus of websites that merge into the AI-driven software. I think we'll continue our progress this quarter, and we hope and believe that during Q3 we can finalize that product project. That's our anticipation.

Speaker #8: Of websites that merge into the AI-driven software. And I think we'll continue our progress this quarter, and we hope and I believe that we can finalize that product project.

Speaker #8: So that's our anticipation.

Speaker #9: Thank you very much.

Thomas Hayes: Thank you very much.

Tom Hayes: Thank you very much.

Speaker #8: Thank you. Tom.

Rani Kohen: Thank you, Tom.

Operator 2: The next question comes from Barry Sine of Litchfield Hills Research. Please go ahead.

Operator: The next question comes from Barry Sine of Litchfield Hills Research. Please go ahead.

Speaker #5: The next question comes from Barry Zane of Litchfield Hills Research. Please go ahead.

Speaker #10: Hey, good afternoon, gentlemen. I want to follow up on that last question. Where we talked about the website upgrades. Obviously, you had a very strong quarter revenue up 10%.

Barry Sine: Hey, good afternoon, gentlemen. I wanna follow up on that last question where we talked about the website upgrades. Obviously, you had a very strong quarter, revenue up 10%. Could you know, give us some sense how much of that is coming from the website upgrades, you know, the contractor shipments, and then obviously the Turbo Heater sales were very strong both through your website channels as well as through retailers? If you could give us a little color on what drove the growth in the quarter, please.

Speaker #10: Could you give us some sense how much of that is coming from the website upgrades? The contractor shipments? And then obviously, the turbo heater sales were very strong.

Speaker #10: Both through your website channels as well as through retailers. So if you give us a little color on what drove the growth in the quarter, please.

Speaker #8: We really think, as I mentioned earlier, we really think it's all the above. We think we're emphasizing on growth in all aspects. So obviously, the Skyx and the SkyPlug products as much as we can, the turbo heater and definitely the new AI-driven software that we're implementing on the websites that we already completed the implementation we do see this.

Rani Kohen: We really think it's all the above. We think we're emphasizing on growth in all aspects. Obviously, the SKYX and the SkyPlug products, as much as we can, the turbo heater, and definitely the new AI-driven software that we're implementing on the websites that we already completed the implementation, we do see this. It's a combination of all the above, and our e-commerce home decor and lighting products, as well as we mentioned, our own products, including the Turbo Heater Fan. It's a consolidated effort here to continue our growth on all fronts.

Speaker #8: So it's a combination of all the above and our e-commerce home decor and lighting products as well as, as we mentioned, our own products including the turbo heater fan.

Speaker #8: So, it's a consolidated effort here to continue our growth on all fronts.

Speaker #10: Okay. And then just on the website upgrade, maybe you could give us a little more detail. What exactly are you doing with the websites and why has that been so successful?

Barry Sine: Okay. Just on the website upgrade, maybe you could give us a little more detail. What exactly are you doing with the websites, and why has that been so successful? What is causing consumers to spend more through your websites?

Speaker #10: What is causing consumers to spend more through your websites?

Speaker #8: So today, the older softwares and I can say even five years ago, if someone implemented the new software, today it's aged five years afterwards.

Rani Kohen: Today, you know, the older softwares. I can say even 5 years ago, if someone implemented the new software, today it's aged 5 years afterwards. Any improvement you have by AI identifying customers that have more, more focused on customers that are able to acquire or purchase our products within lighting, smart lighting, home decor, et cetera, that can identify better, faster turnaround of this customer, easier maneuvering through the sites. The AI would show you go to one place, you're interested in a certain area. Today, the AI is really able to profile you much faster as what type of customer you are and what type of products there are higher chances for you to acquire.

Speaker #8: So any improvement you have by AI identifying customers that have more focused on customers that are able to acquire or purchase our products within lighting, smart lighting, home decor, etc., that can identify better faster turnaround of this customer easier maneuvering through the sites and as the AI would show you, you go to one place, you're interested in a certain area.

Speaker #8: Today, the AI is really able to profile you much faster as to what type of customer you are and what type of products there are higher chances for you to acquire.

Speaker #8: So, all of this AI-driven software today—they are, as we all know about AI, way more advanced than what you had with the newest software five years ago.

Rani Kohen: All of this AI-driven software today, they are, as we all know about AI, way more advanced than what you had the newest software five years ago. The difference is, as we all know with AI, it's quite significant and AI attacks all fronts at once. This is just the beginning. We believe as we fully implement the entire AI-driven software in our platform, we will see towards the end of the year. The learning and the data that we can get is quite significant compared to what we had in our old software. It's all the above that really helps us to grow our business on the e-commerce site.

Speaker #8: So the difference is as we all know with AI, it's quite significant. And AI attacks all fronts at once. And this is just the beginning.

Speaker #8: We believe that as we fully implement the entire AI-driven software in our platform, we will see towards the end of the year that the learning and the data that we can get is quite significant compared to what we had in our old software.

Speaker #8: So, it's all of the above. That really helps us to grow our business and the e-commerce site.

Speaker #10: Okay. And then my last question on the regulatory front. Could you give us a bit more detail on what actions you took in the most recent quarter in terms of getting governed entities to do some type of a mandate whichever entity that might be?

Barry Sine: Okay. My last question on the regulatory front. Could you give us a bit more detail on what actions you took in the most recent quarter in terms of, you know, getting governed entities to do some type of a mandate, you know, whichever entity that might be, you know, how many meetings were there and so on, really feedback? A similar question with the insurance companies, because it just seems obvious the insurance companies should be requiring this, you know, for projects where they're covering workers' comp on the job site.

Speaker #10: How many meetings were there and so on? Any feedback? And then a similar question with the insurance companies. Because it just seems obvious the insurance companies should be requiring this.

Speaker #10: For projects where they're covering workman's comp on the job site.

Speaker #8: Yeah. Barry, thank you. That's a great question, actually. So as we mentioned, it's a slow process. That's the bad news. The good news is we started that process over 14 years ago.

Rani Kohen: Yeah, Barry. Thank you. That's a great question, actually. You know, as we mentioned, it's a slow process. That's the bad news. The good news is we started that process over 14 years ago and achieved a lot here. We're on the final stages, we believe, and we're working on all fronts. As we mentioned there, NFPA and NEC, there are other bodies that report directly to the government, and the government bodies that all have this clear criteria of saving lives, mitigating injuries and property damages. They were established in the past 50 to 100 years for that purpose, okay, of saving lives. They really need to find products like us and bring them to the finals. Obviously, we're helping them not to find us and we finding them.

Speaker #8: And achieved a lot here. So we're on the final stages that we believe. And we're working on all fronts as we mentioned. NFPA and NEC and then there are other bodies that report directly to the government.

Speaker #8: And the government bodies that all have this clear criteria of saving lives, mitigating injuries, and property damages—they were established in the past 50 to 100 years for that purpose.

Speaker #8: Okay? Of saving lives. And they really need to find products like us and bring them to the finals. Obviously, we're helping them not to find this.

Speaker #8: And we finding them. But that's part of that's part of that type of organization that we need to help. But our co-team led by Mark Early, the former head of the National Electrical Code and chief engineer of the National Fire Protective Association, together with Eric Jacobson, the former president and CEO of American Lighting Association, those two gentlemen are leading our team here.

Rani Kohen: That's part of, you know, that's part of that type of organizations that we need to help. Our code team, led by Mark Earley, the former head of the National Electrical Code, the chief engineer of the National Fire Protection Association, together with Eric Jacobson, the former presidency of American Lighting Association, those two gentlemen are leading our team here. They're having meetings almost every month now or even more than once a month. We're stepping it forward. We're working on some other aspects.

Speaker #8: And they're having meetings almost every month now or even more than once a month. And we're stepping it forward. We're working on some other aspects.

Speaker #8: We got some more help with hopefully with government agencies and also experts on ladder falls that joined us. To emphasize how significant our safety aspect or how much we can reduce ladder fall is quite significant.

Rani Kohen: We got some more help, with hopefully with government agencies and also experts on ladder falls that joined us, to emphasize how significant our safety aspect, or how much we can reduce ladder falls is in quite significant, in a quite significant way. As you know, or people know, most of the ladder fall happens 80%, close to 80%, according to data we saw, are in homes. Many of those ladder falls happen when you have heavy or big obstacles in your hand and/or your unstable movements that you have with trying to twist wires. Reducing that time by up to 95% to 99%, can be quite significant in reduction of ladder falls.

Speaker #8: And a quite significant way. As you know or people know, most of the ladder fall happens close to 80% according to data we saw are in homes.

Speaker #8: And many of those ladder falls happen when you have heavy or big obstacles in your hand and/or you're making unstable movements. So you have that issue with trying to twist wires.

Speaker #8: So reducing that time by up to 95 to 99 percent can be quite significant in reduction of ladder falls. With that being said, Steve Schmidt and myself with other members are actually focused now and Steve is leading it with insurance companies and we think as you mentioned that insurance companies if you look at their history, they mandated or required or promoted safety products starting with smoke detectors, CO detectors, emergency lights, and commercial buildings.

Rani Kohen: With that being said, Steven Schmidt and myself with other members are actually focused now, and Steve is leading it with insurance companies. We, we think is, as you mentioned, that insurance companies, if you look at their history, they mandated or required or promoted safety products, starting with smoke detectors, CO detectors, emergency lights in commercial buildings and other products that we're working on that we didn't disclose yet. Ethan, we have, you know, so many of them together that our initial discussions now are looking quite well and we hope that once we have the All-in-One Smart Platform in the market, we will hear some. We're confident Steve had and our team had some good discussions.

Speaker #8: And other products that we're working on that we didn't disclose yet. And we have so many of them together that our initial discussions now are looking quite well.

Speaker #8: And we hope that once we have the all-in-one smart platform in the market, we will hear some we're confident Steve had and our team had some good discussions.

Speaker #8: We're confident that we have a significant play that we strongly believe can save many billions of dollars on an annual basis to insurance companies.

Rani Kohen: We're confident on that we have a significant play that we strongly believe that can save many billions of USD on an annual basis to insurance companies. We're progressing on this front as well.

Speaker #8: So we're progressing on this front as well.

Speaker #10: Well, that's great. Thank you very much.

Barry Sine: Well, that's great. Thank you very much.

Speaker #8: Thank you, Barry. And please think that we have

Rani Kohen: Thank you, Barry.

Operator 2: Thank you.

Operator: Thank you.

Speaker #1: Thank you. Next question. Our next question comes from Jack Funder. Of Maxim Group, please go ahead.

Rani Kohen: Jack.

Operator 2: Our next question comes from Jack Vander Aarde of Maxim Group. Please go ahead.

Operator: Our next question comes from Jack Vander Aarde of Maxim Group. Please go ahead.

Speaker #10: Okay. Thanks. Congrats on the momentum. And it seems like progress is accelerating. It's great to see. So Ronnie, just it sounds like there is progress being made on the standardization front.

Jack Vander Aarde: Okay, thanks. Congrats on the momentum. It seems like progress is accelerating. It is great to see. Rani, it sounds like there is progress being made on the standardization front. It sounds like your new SkyPlug rollout is ramping. Can you maybe remind us of the vision and provide an update on your General Electric, your GE? I think you signed a 5-year global licensing partnership agreement back in, at the end of 2023. Is GE still in the cards here? What is the vision there with them if so?

Speaker #10: It sounds like your new smart plug-and-play product rollout's ramping. Can you maybe just remind us of the vision in providing update on your general electric, your GE?

Speaker #10: I think you signed a five-year global licensing partnership agreement back in at the end of 2023. Is GE still in the cards here? And what's the vision there with them if so?

Rani Kohen: As you know, yes, we have this contract. As you know, GE merged some of those divisions. The licensing division is merged with Dolby, we are in connection with the GE former, not former, but they're part of Dolby or a collaboration with Dolby on this. Yes, they're in the game, we expect that as we progress with the standardization in the mandatory, the licensing will become a major thing for us. I think this licensing segment will become quite significant for us. It's also with insurance companies that can be, if you heard our other answer. Those are two things we expect can help us significantly on the licensing aspect.

Speaker #8: As you know, yes, we have this contract. And as you know, GE merged some of those divisions or the licensing division is merged with Dolby.

Speaker #8: And we are in connection with the GE former not former, but they're part of Dolby or a collaboration with Dolby on this. So yes, they're in the game.

Speaker #8: And we expect that as we progress with the standardization, then the mandatory licensing will become a major thing for us. And then I think this licensing segment will become quite significant for us.

Speaker #8: And it's also with insurance companies—that can be, if you heard our other answer. So those two things we expect can help us significantly on the licensing aspect.

Speaker #10: Okay. Great. And then maybe a question for Lenny or Ronnie as well. I think last quarter, I believe the next gen all-in-one smart platform hub was on track for maybe a third quarter or fourth quarter launch this year.

Jack Vander Aarde: Okay, great. Maybe a question for Lenny or Roni as well. I think last quarter, I believe the next gen All-in-One Smart Platform hub was on track for maybe a Q3 or Q4 launch this year. One, just an update there. I have a follow-up.

Speaker #10: One, just an update there. And then I have a follow-up.

Leonard Sokolow: Thanks, Jack. I think we are on track. You know, we think by mid to Q3, we should be on track for the All-in-One Smart Platform. We called it our Generation three.

Speaker #11: Yeah. Thanks, Jack. I think we’re on track. We think by mid to third quarter, we should be on track for generation all-in-one platform.

Len Sokolow: Thanks, Jack. I think we are on track. You know, we think by mid to Q3, we should be on track for the All-in-One Smart Platform. We called it our Generation three.

Speaker #11: We called it our generation three. So for getting production and so we're so far we believe that's in our projection.

Jack Vander Aarde: Okay.

Leonard Sokolow: For, you know, getting production. You know, so far we believe that's the in our projection.

Len Sokolow: For, you know, getting production. You know, so far we believe that's the in our projection.

Speaker #10: Excellent. And then just a quick follow-up there. Is this the product do you foresee this product being what unlocks a recurring revenue stream for you?

Jack Vander Aarde: Excellent. Just a quick follow-up there. Is this the product? Do you foresee this product being what unlocks a recurring revenue stream for you? Just, I don't know, is there any color you can provide on what that might look like in terms of a recurring revenue stream from this product? Thanks.

Speaker #10: And just, I don't know, is there any color you can provide on what that might look like in terms of a recurring revenue stream from this product?

Speaker #10: Thanks.

Rani Kohen: Yeah, Jack. That's a great question. Thank you. The All-in-One Smart Platform hub is actually a product that helps several industries or segments into all in one. We have the home security industry that will have our safety, home safety, home security, excuse me, home security sensors for burglars, et cetera. We will have also the home safety segment in this platform, as we discussed earlier with, for insurance companies, et cetera. That's another segment that will be inside. We have the smart home features that will be part of this. We have the communication features, Wi-Fi extenders and Wi-Fi communication, and any type of communication. We will have also hospitality sensors, that's another industry.

Speaker #8: Yeah, Jack. That's a great question. Thank you. And the all-in-one smart platform hub is actually a product that helps several industries or segments into all-in-one.

Speaker #8: So we have the home security industry that will have our safety, a home safety, a home security, excuse me, home security sensors. For burglars, etc.

Speaker #8: We will have also the home safety segment in this platform as we discussed earlier. For insurance companies, etc. So that's another segment that will be inside.

Speaker #8: We have the smart home features that will be part of this. We have the communication features Wi-Fi extenders and Wi-Fi communication. And any type of communication we will have also hospitality sensors.

Speaker #8: So that's another industry. We can do the same for the cruise industry with that platform. And that can go also to elder living. And facilities and also there's a growing market of home elder living.

Rani Kohen: We can do the same for the cruise industry with that platform, and that can go also to elder living and facilities. Also, there's a growing market of home elder living, that people stay in their homes, but they have visits and monitoring in their own homes. That can be quite significant market for that product. As well as hospitals, that's also a significant aspect for us. As you can see, there's several segments and industries that our All-in-One Smart Platform can serve.

Speaker #8: That people stay in their homes, but they have visits and monitoring in their own homes that that can be quite significant market for that product.

Speaker #8: As well as hospitals and that's also a significant aspect for us. So as you can see, there's several segments and industries that are all in one platform can serve.

Speaker #8: Now, as it comes to what we can generate—so, first of all, significant data aggregation that we have, and precise data that will help us in many aspects, and learning and studying, and very strong knowledge of those industries and where the platform, all-in-one smart platform hub, will be implemented in.

Rani Kohen: As it comes for what we can generate, First of all, significant data aggregation that we have and precise data that will help us in many aspects in learning, studying, and very strong knowledge of those industries and where the All-in-One Smart Platform hub will be implemented in. Obviously, that's gonna generate, depends on what industry, but it's gonna generate monitoring subscriptions, AI services that are definitely down the road we expect to see. To answer your question, that's definitely this product is where we expect that to open doors with the recurring monitoring subscription opportunities to come in all of those industries.

Speaker #8: And obviously, that's going to generate depends on what industry, but it's going to generate monitoring, subscriptions, AI services, that are definitely down the road we expect to see and to answer your question that definitely this product is where we expect that to open doors with the recurring monitoring subscription opportunities to come and all of those industries.

Speaker #10: Okay. Excellent. Great to hear. Congrats on the continued momentum. Thank you.

Jack Vander Aarde: Okay, excellent. Great to hear. Congrats on the continued momentum. Thank you.

Speaker #8: Thank you.

Rani Kohen: Thank you.

Speaker #11: Thank you.

[Company Representative] (SKYX Platforms): Thank you.

Len Sokolow: Thank you.

Operator 2: The next question comes from Sam Mobish with a private investor. Please go ahead.

Operator: The next question comes from Sam Mobish with a private investor. Please go ahead.

Speaker #12: The next question comes from Sam Mobish, who's a private investor. Please go ahead.

Sam Mobish: Yes. Hello, everyone.

Speaker #10: Yes, hello everyone. Again, congratulations on a stellar quarter. Lenny, I don't know if you remember, but we talked probably about six months ago or so, so thanks again for having me, and congratulations on a good quarter.

Sam Mobish: Yes. Hello, everyone.

Rani Kohen: Hi.

Sam Mobish: Again, congratulations on a stellar quarter. Lenny, I don't know if you remember, but we talked probably about 6 months ago or so. Thanks again for having me and congratulations on a good quarter. A few questions. Starting off first, about this time last year, you had announced a partnership with ProFab, a local manufacturer. Was just looking for an update on your partnership with ProFab, and kind of a guidance on what percentage of your products are now made in the US versus what percentage of your products are made in the non-US, and where kind of ProFab fits within that.

Speaker #10: A few questions starting off first. About this time last year, you had announced a partnership with Profab, a local manufacturer. Was just looking for an update on your partnership with Profab.

Speaker #10: And kind of a guidance on what percentage of your products are now made in the U.S. versus what percentage of your products are made in the non-U.S.

Speaker #10: And where kind of Profab sits within that.

Speaker #13: Yeah. I'll answer that product development question. So thank you for that question. Profab is a leading electronic sophisticated PCB, electronic boards manufacturing with the industries like our military, aviation, hospitals, and other sophisticated industries.

Rani Kohen: I'll answer that product development question. Thank you for that question. Profab is a leading electronic, sophisticated PCB electronic boards manufacturing with the industries like our military, aviation, hospitals and other sophisticated industries. They're investors in our team, they're also long-term partners of ours. We expect as we grow the All-in-One Smart Platform opportunities here in the US, to have a made in the US opportunity, part of our product development, and all the testing and manufacturing and Six Sigma process is done together with them. They're a great partner to have, really a leading manufacturer in here in South Florida now where the tech is growing.

Speaker #13: Their investors in our team and they're also long-term partners of ours. And we expect as we grow the all-in-one smart platform opportunities here in the US, to have made in the US opportunity part of our product development and all the testing and manufacturing and Six Sigma process is done together with them.

Speaker #13: So they're a great partner to have, and really a leading manufacturer here in South Florida now, where the tech is growing. That's a very—it's a growing company, not related even to us.

Rani Kohen: It's a growing company not related even to us, but great to have them as a partner and we're looking forward to manufacture together with them some of the products here with a goal to have a strong US manufacturing channel. That's in development. Once we start production of the All-in-One Smart Platform, we will look into how to start making some of this product made in the US.

Speaker #13: But great to have them as a partner and we're looking forward to manufacture together with them some of the products here with a goal to have a strong US manufacturing channel.

Speaker #13: So that's in development and once we start production of the all-in-one smart platform, we will look into how to start making some of this product made in the US.

Speaker #10: Great. Thank you. That sounds like a bright future. Do you anticipate costs being relatively manageable as you migrate the manufacturing, and especially with the all-in-one platform?

Sam Mobish: Great. Thank you. That sounds like a bright future. Do you anticipate costs being relatively manageable as you migrate the manufacturing, especially with the All-in-One Smart Platform? Are the margins, do you plan on those being able to be sustained or continue to grow as we've seen in the past few quarters?

Speaker #10: Are the margins do you plan on those being able to be sustained or continue to grow as we've seen in the past few quarters?

Speaker #13: Yes, that's a great question. So, not like in the car industry—that's still a few years away, but it's happening with Tesla and others.

Rani Kohen: Yes, that's a great question. Not like in the car industry. That's still a few years away, but it's happening with Tesla and others, to become fully automated or 80%, 90% fully automated, with robots that are being manufactured by leading with Tesla and other companies. The electronic board, the PCB, is actually already in a mode that can be fully automated. By that, you don't have the 5 to 10x labor situation that US has compared to other places in Far East and Asia or Mexico and other places.

Speaker #13: To become fully automated or 80, 90 percent fully automated with robots that are being manufactured by leading with Tesla and other companies. The electronic board, the PCB is actually already in a mode that can be fully automated.

Speaker #13: And by that, you don't have the 5 to 10x labor situation that US has compared to other places and Far East and Asia or Mexico and other places.

Speaker #13: Therefore, the US government today is really looking into manufacturing anything that can be fully automated. Made in the US has a great chance to be manufactured in the US.

Rani Kohen: The US government today is really looking into manufacturing anything that can be fully automated, made in the US, has a great chance to be manufactured in the US because the differences will not be as significant because the labor is not a big factor during these type of productions.

Speaker #13: Because the difference will not be as significant, since labor is not a big factor during these types of productions.

Speaker #10: Understood. Thank you for shedding a little bit more light on that. A few more questions just as we think about the manufacturing for the next all-in-one platform as we think about the pipeline of these major projects that you have.

Sam Mobish: Understood. Thank you for shedding a little bit more light on that. A few more questions just as we think about the manufacturing for the next All-in-One Platform, as we think about the pipeline of these major projects that you have. Do you have any concerns about meeting the future demand, especially for those B2B contracts and, kind of as you look forward to meaningfully scaling the production of your products, do we think we can really kind of take that jump from where we are now to, say, a year from now as we're meeting, you know, kind of millions of products being deployed?

Speaker #10: Do you have any concerns about meeting the future demand? Especially for those B2B contracts and kind of as you look forward to meaningfully scaling the production of your products?

Speaker #10: Do we think we can really kind of take that jump from where we are now to say a year from now as we're meeting kind of millions of products being deployed?

Rani Kohen: As we stated this several times, including, I think, I believe in our latest press releases, including today, we are collaborating with manufacturers all around the world. In addition to China, we have Taiwan, and we have Cambodia, Philippines, US, and Vietnam options. We're in discussions with all of them because we did not want to rely on one area of the world or one country. All the manufacturers we associate ourself with are all mass production and are each one of them able to produce millions of units. It's a combination of cost and quantity. Quantity, we're okay, and we strongly believe those manufacturers are part of a validation, are capable to do the products in the million, each one of them.

Speaker #13: As we stated several times including I believe in our latest press releases including today, we are collaborating with manufacturers all around the world. We in addition to China, we have Taiwan, and we have Cambodia.

Speaker #13: Philippines, US, and Vietnam options. And we're in discussions with all of them because we did not want to rely on one area of the world or one country.

Speaker #13: So, all the manufacturers we associate ourselves with are all mass production, and each one of them is able to produce millions of units, so it's a combination of cost and quantity.

Speaker #13: Quantity we're okay and we strongly believe those manufacturers are part of a validation are capable to do the products in the million each one of them.

Rani Kohen: It's really the cost factor, what will be the best place to manufacture. When it comes to quantities, we think we're in very good shape.

Speaker #13: And it's really the cost factor where will be the best place to manufacture. But when it comes to quantities, we think we're in very good shape.

Speaker #10: Great. Thank you. Sounds like you're quite nimble as needed. And last question here hopefully it's an easy one just to have seen this in other parts of kind of my coverage.

Sam Mobish: Great. Thank you. Sounds like you're quite nimble as needed. Last question here, hopefully it's an easy one, just have seen this in other parts of kinda my coverage. You know, we've seen some disruption to Middle East funding and projects just during the recent conflict. I know that you have a few Middle East projects. Notably, you've got Egypt, you've got some Saudi Arabia plans. Are those relationships continuing to kinda stay steady? Have we seen any disruption or, say, trepidation about moving forward from those parties?

Speaker #10: We've seen some disruption to Middle East funding and projects just during the recent conflict. I know that you have a few Middle East projects notably you've got Egypt, we've got some Saudi Arabia plans.

Speaker #10: Are those relationships continuing to kind of stay steady? Have we seen any disruption or say trepidation about moving forward from those parties?

Rani Kohen: No. We are actually in discussions with those parties, and they're moving ahead with their projects. This is expected to happen. We hope to start something and be able to announce something even this year. We have discussions towards that. Those projects, Middle East is, has tremendous growth. Obviously, there was some issues with the war that probably didn't help anyone. As those projects are long-term and in planning stages, so there's no interruption to what they're doing, and we're in discussions with those groups, and looks like everything is moving forward according to plan.

Speaker #13: Well, no, we are actually in discussions with those parties, and they're moving ahead with their projects. And this is expected to happen. We hope to start something and be able to announce something even this year.

Speaker #13: We have discussions towards that. And it's those projects—the Middle East has tremendous growth. Obviously, there were some issues with the war that probably didn't help anyone.

Speaker #13: Long-term and in planning stages, so there's no interruption to what they're doing. We're in discussions with those groups, and it looks like everything is moving forward according to plan.

Speaker #10: Fabulous. Thank you for the clarity there, and thank you for taking my questions. That's all I've got. And congratulations again on a stellar quarter.

Sam Mobish: Fabulous. Thank you for the clarity there and thank you for taking my questions. That's all I've got. Congratulations again on a stellar quarter. Thank you, everyone.

Speaker #10: Thank you, everyone.

Speaker #2: If there's anything else in the SAM, if you have anything else in the future, feel free to call. So happy to answer.

Leonard Sokolow: If there's anything else in the Sam, if you have anything else in the future, feel free to call. Happy to answer any questions.

Len Sokolow: If there's anything else in the Sam, if you have anything else in the future, feel free to call. Happy to answer any questions.

Sam Mobish: Oh, thank you very much, Lenny. I appreciate that.

Speaker #10: Thank you very much, Lenny. I appreciate that.

Speaker #2: Okay. All right. All right. Take care. Bye.

Leonard Sokolow: Okay. All right. All right, take care. Bye.

Len Sokolow: Okay. All right. All right, take care. Bye.

Speaker #13: Thank you very much.

Rani Kohen: Thank you very much.

Speaker #1: Thank you.

Speaker #13: I think.

Operator 2: Thank you.

Operator: Thank you.

Rani Kohen: I think-

Speaker #1: Well, ladies and gentlemen, with no further questions in the question queue, we have reached the end of the question and answers. I will now hand back for closing remarks.

Operator 2: Ladies and gentlemen, with no further questions in the question queue, we have reached the end of the question and answers. I will now hand back for closing remarks.

Operator: Ladies and gentlemen, with no further questions in the question queue, we have reached the end of the question and answers. I will now hand back for closing remarks.

Speaker #13: Thank you again to all the participants. We look forward to continuing our progress and sharing it with you in the near future. And in our next earnings call—or hopefully sooner than that on some aspects—we will be happy to announce if we have something to share with the market.

Rani Kohen: Thank you again for all the participants. We look forward to continue our progress and sharing it with you in the near future and our next earnings call, hopefully sooner than that in some aspects. We will be happy to announce if we have something to share with the market. Thank you and good evening to all.

Speaker #13: So, thank you and good evening to all.

Operator 2: Thank you, sir.

Operator: Thank you, sir.

Speaker #1: Thank you, sir. Ladies and gentlemen.

Speaker #13: Thank you. Thank you very much.

Rani Kohen: Thank you.

Operator 2: Ladies and gentlemen.

Operator: Ladies and gentlemen.

Rani Kohen: Thank you.

Operator 2: Ladies and gentlemen, that concludes today's event. Thank you for attending. You may now disconnect your lines.

Operator: Ladies and gentlemen, that concludes today's event. Thank you for attending. You may now disconnect your lines.

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Q1 2026 SKYX Platforms Corp Earnings Call

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Q1 2026 SKYX Platforms Corp Earnings Call

Monday, May 11th, 2026 at 8:30 PM

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