Financial News
Sky Technologies Reports First Quarter 2022 Financial Results
Foundation Building for Successful 2022 Commercial Launch Underway
MIAMI, FL / ACCESSWIRE / May 9, 2022 / SQL Technologies Corp. (NASDAQ:SKYX) ("Sky Technologies" "Sky" or "the Company"), a Company significantly enhancing safety in homes and buildings as well as smart home lifestyle, with highly disruptive smart platform technologies and over 60 issued and pending patents globally, today reported the Company's financial results for the first quarter ended March 31, 2022.
First Quarter 2022 and Subsequent Highlights:
- The Company anticipates starting presales of the smart connected smart SkyPlug, the all-in-one Sky Platform smart home solution and the accompanying SkyHome App - as well as an accompanying line of GE-branded smart ceiling fans and lighting fixtures - in the second half of 2022.
- Appointed Mark Earley, the former Chief Electrical Engineer of The National Electrical Code (NEC), to spearhead Sky's Safety Advisory Board as it seeks to work with regulators to encourage adoption of the SkyPlug & Receptacle by domestic and international electrical code organizations.
- Appointed world-renowned architect Bernard Zyscovich as Chair of the newly formed Architectural and Real Estate Advisory Board, which is expected to drive adoption of Sky's smart platforms into multi-family residential buildings and communities.
- Appointed insurance expert and E&Y 2017 Entrepreneur of the Year (Midwest Region), Paul Chernawsky, as Chair of the newly formed Insurance Advisory Board, with the goal of driving insurance companies and regulators to encourage adoption of the safety enhancing SkyPlug and associated smart platforms.
- Successfully completed its upsized $23.1 million initial public offering (IPO) on the Nasdaq Capital Market, selling 1,650,000 shares of common stock to the public at $14 per share.
- As of March 31, 2022, the Company's cash and cash equivalents were $27.6 million.
Management Commentary
"The first quarter of 2022 was highlighted by our upsized $23.1 million IPO on the Nasdaq, which built the foundation for an accelerated commercialization pathway and product launches," said Rani Kohen, Executive Chairman of Sky Technologies. "We are now leveraging this significant momentum to position ourselves for the upcoming launch of our smart connected SkyPlug, the all-in-one Sky Platform smart home solution and the accompanying SkyHome App - as well as an accompanying line of GE-branded smart ceiling fans and smart Plug bases for light fixtures - in the second half of 2022.
"We are planning a pre-sales and public relations campaign that will highlight the life-saving aspects, home safety benefits, cost savings, time savings and smart features of our products. We are collaborating with two marketing groups specializing in disruptive products to support our online, retail, wholesale and OEM product launch. We believe that the total addressable market for our platform products is in excess of $500 billion in the United States, spanning most every room imaginable, in homes, buildings, hotel rooms, cruise ships, hospitals, offices, retail and more.
"We have taken significant steps to put in place a strong management team, Board of Directors and advisory boards to guide our commercialization and product launches. During the quarter, we created several new advisory boards to be chaired by industry leaders, with the aim of getting insurance companies, regulators and real estate developers to encourage adoption of our technology due to its life-saving and home safety aspects. We believe that this is the foundation of a sound diving board for securing support and adoption of our technologies from any one of these groups," concluded Kohen.
First Quarter 2022 Financial Results
Cash and cash equivalents amounted to $27.6 million as of March 31, 2022, as compared with $2.4 million as of March 31, 2021.
Cash used in operations for the quarter ended March 31, 2022 was $3.4 million, as compared to $0.8 million in the quarter ended March 31, 2021. Net loss, which included stock-based compensation of $8.8 million for the quarter ended March 31, 2022, totaled $11.9 million, as compared to a net loss of $1.0 million in the quarter ended March 31, 2021.
About SQL Technologies Corp.
As electricity is a standard in every home and building, our mission is to make homes and buildings become safe-advanced and smart as the standard.
Sky Technologies (NASDAQ:SKYX) has a series of highly disruptive advanced-safe-smart platform technologies, with over 60 U.S. and global patents and patent pending applications. Our technologies place an emphasis on high quality and ease of use, while significantly enhancing both safety and lifestyle in homes and buildings. We believe that our products are a necessity in every room in both homes and other buildings in the U.S. and globally. For more information, please visit our website at https://skyplug.com.
Cautionary Statement Concerning Forward-Looking Statements
Certain statements contained in this press release constitute forward-looking statements. Management has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While they believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond management's control. These statements involve risks and uncertainties that may cause the Company's actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Forward-looking statements speak only as of the date they are made and include statements relating to the Company's ability to successfully launch in the expected timeline, develop additional features and achieve market acceptance of its smart products and technologies, the Company's expected markets, market size and platform placements, the Company's efforts and ability to drive the adoption of its platforms by real estate developers and into multi-family residential buildings and communities, its plans to work with insurance companies and safety regulators, including encouraging adoption of the SkyPlug by electrical code organizations, and other risks and uncertainties described in the Company's filings with the Securities and Exchange Commission. Readers are cautioned not to put undue reliance on forward-looking statements, and, except as required by law, the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.
Investor Relations Contact:
Lucas A. Zimmerman
MZ North America
(949) 259-4987
SKYX@mzgroup.us
SQL TECHNOLOGIES CORP.
Consolidated Balance Sheets
(Unaudited) March 31, 2022 | (Audited) December 31, 2021 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 27,568,114 | $ | 10,426,249 | ||||
Inventory | 918,651 | 918,651 | ||||||
Prepaid expenses and other assets | 1,436,382 | 41,018 | ||||||
Total current assets | 29,923,147 | 11,385,918 | ||||||
Other assets: | ||||||||
Furniture and equipment, net | 207,240 | 25,710 | ||||||
Patents, net | 576,182 | 540,033 | ||||||
Other assets | 2,174 | 2,174 | ||||||
Total other assets | 785,596 | 567,917 | ||||||
Total Assets | $ | 30,708,743 | $ | 11,953,835 | ||||
Liabilities and Stockholders' Equity (Deficit) | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 2,613,036 | $ | 1,029,336 | ||||
Notes payable, current | 405,040 | 404,648 | ||||||
Royalty obligation | 1,725,000 | 1,200,000 | ||||||
Total current liabilities | 4,743,076 | 2,633,984 | ||||||
Long term liabilities: | ||||||||
Notes payable | 5,313,090 | 5,492,572 | ||||||
Convertible notes | 1,300,000 | 1,300,000 | ||||||
Royalty obligation | 1,813,000 | 2,638,000 | ||||||
Total long-term liabilities | 8,426,090 | 9,430,572 | ||||||
Total liabilities | 13,169,166 | 12,064,556 | ||||||
Commitments and Contingent Liabilities: | ||||||||
Redeemable preferred stock - subject to redemption: $0 par value; 20,000,000 shares authorized; 3,280,400 and 13,456,936 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively | 820,099 | 3,314,233 | ||||||
Stockholders' Equity (Deficit): | ||||||||
Common stock and additional paid-in-capital: $0 par value, 500,000,000 shares authorized; and 79,217,056 and 66,295,288 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively | 107,595,436 | 70,880,386 | ||||||
Accumulated deficit | (90,875,958 | ) | (74,269,898 | ) | ||||
Total stockholders' equity (deficit) | 16,719,478 | (3,389,512 | ) | |||||
Non-controlling interest | - | (35,442 | ) | |||||
Total equity (deficit) | 16,719,478 | (3,424,954 | ) | |||||
Total Liabilities and Stockholders' Equity (Deficit) | $ | 30,708,743 | $ | 11,953,835 | ||||
SQL Technologies Corp.
Consolidated Statements of Operations
(Unaudited)
| For the three months ended March 31, | ||||||||
| 2022 | 2021 | |||||||
Revenue | $ | 6,971 | $ | 100,185 | ||||
Cost of revenues | (31,137 | ) | (82,508 | ) | ||||
Gross income (loss) | (24,166 | ) | 17,677 | |||||
Selling, general and administrative expenses | 11,921,943 | 867,680 | ||||||
Loss from operations | (11,946,109 | ) | (850,003 | ) | ||||
Other income / (expense) | ||||||||
Interest expense | (90,630 | ) | (136,958 | ) | ||||
Other income, loan forgiveness | 178,250 | - | ||||||
Interest income | 125 | 22 | ||||||
Total other (expense), net | 87,745 | (136,936 | ) | |||||
Net loss | (11,858,364 | ) | (986,939 | ) | ||||
Common stock issued pursuant to antidilutive provisions | 4,691,022 | - | ||||||
Preferred dividends | 21,232 | 32,552 | ||||||
Net loss attributed to common shareholders | $ | (16,570,618 | ) | $ | (1,019,491 | ) | ||
Net loss per share - basic and diluted | $ | (0.23 | ) | $ | (0.02 | ) | ||
Weighted average number of common shares outstanding during the year - basic and diluted | 72,818,108 | 64,559,562 | ||||||
SQL Technologies Corp.
Consolidated Statements of Cash Flows
(Unaudited)
| For the three months ended March 31, | ||||||||
| 2022 | 2021 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (11,858,364 | ) | $ | (986,939 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 21,900 | 20,773 | ||||||
(Other income), loan forgiveness | (178,250 | ) | - | |||||
Non-cash equity-based compensation expense | 8,767,894 | 187,443 | ||||||
Change in operating assets and liabilities: | ||||||||
Prepaid expenses and other assets | (1,395,366 | ) | (181,198 | ) | ||||
Royalty obligation | (300,000 | ) | (125,000 | ) | ||||
Accounts payable and accrued expenses | 1,583,700 | 320,826 | ||||||
Net cash used in operating activities | (3,358,486 | ) | (764,095 | ) | ||||
Cash flows from investing activities: | ||||||||
Purchase of property and equipment | (191,034 | ) | ||||||
Payment of patent costs | (48,544 | ) | (54,625 | ) | ||||
Net cash used in investing activities | (239,578 | ) | (54,625 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from common stock issuance | 23,100,000 | 754,464 | ||||||
Placement cost | (2,548,000 | ) | - | |||||
Proceeds from exercise of options | 210,000 | - | ||||||
Proceeds from SBA - PPP notes payable | - | 178,235 | ||||||
Proceeds from issuance of convertible notes | - | 50,000 | ||||||
Dividends paid | (21,232 | ) | (32,552 | ) | ||||
Principal repayments of notes payable | (839 | ) | - | |||||
Net cash provided by financing activities | 20,739,929 | 950,147 | ||||||
Increase (decrease) cash and cash equivalents | 17,141,865 | 131,427 | ||||||
Cash and cash equivalents at beginning of period | 10,426,249 | 2,308,871 | ||||||
Cash and cash equivalents at end of period | $ | 27,568,114 | $ | 2,440,298 | ||||
Supplementary disclosure of non-cash financing activities: | ||||||||
Preferred stock conversion to common | 2,494,134 | 50,000 | ||||||
Stock issuance, cashless exercise of warrants | $ | - | 74,375 | |||||
Cash paid during the year for: | ||||||||
Interest | $ | 90,630 | $ | 136,958 | ||||
SOURCE: SQL Technologies, Inc. dba Sky Technologies
View source version on accesswire.com:
https://www.accesswire.com/700664/Sky-TechnologiesReports-First-Quarter-2022-Financial-Results
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