Smart Home Product Co. Renews Licensing Agreement

SKYX Platforms Corp. (SKYX:NASDAQ) renewed its master service agreement with GE Technology Development Inc., a subsidiary of GE Inc., for an additional five years. This renewal will continue the global licensing of specific SKYX technologies, as announced in a recent press release.

The Florida, U.S.-based tech firm provides smart home electrification products for residential and commercial uses. With its foundational plug-and-play products, SkyPlug and SkyReceptacle, one can easily plug fixtures and devices into the ceiling.

"The SKYX-GE licensing service agreement is a significant step towards enhancing our market penetration through licensing channels as we continue to increase our general market penetration as well as collaborate with U.S. and world-leading strategic companies," SKYX Founder and Executive Chairman Rani Kohen said in the release.

Pursuant to the agreement, GE will provide a range of licensing services to SKYX. These services include identifying and acquiring licensees both globally and in the U.S., overseeing agreements, and conducting audits of partners. Additionally, GE will assist with monetization and protection of SKYX's intellectual property.

Of the revenue generated relative to the agreement, most will go to SKYX, and a percentage will go to GE.

Driving Product Demand

Along with its smart platform technology, which won five awards at this year's CES convention, SKYX  has a broad portfolio of intellectual property, including 77 patents, owned and pending. It also owns over 604 lighting and home decor websites, into which it recently began integrating its products, Chris Temple, editor/publisher of The National Investor, wrote in a September article. These sites include 1stoplighting.com, americanlightingstore.com, homeclick.com, and lightingdesignexpert.com.

Like the recent agreement renewal with GE, SKYX continues to sign contracts and partner with various companies and groups, thereby "driving the SkyPlug product line demand," Carpio with Joseph Gunnar & Co. noted.

The technology company is working to capture the market opportunity for SkyPlug, reported Analyst Leo Carpio with Joseph Gunnar & Co. in a November 28 update report. Like the recent agreement renewal with GE, SKYX continues to sign contracts and partner with various companies and groups, thereby "driving the SkyPlug product line demand," Carpio noted.

For instance, in Q3/23, SKYX signed an agreement with Material Bank, an architect product material supply company; collaborated with QUOIZEL, a lighting manufacturer; and secured an arrangement with the International Builders' Show, among others.

"One Florida developer's contract could provide up to US$5 million in SkyPlug sales in 2024," Carpio added.

SKYX's products are "disruptive" to the status quo and, thus, a rarity, as described by Temple.

"Such breakthrough products/technology, which end up becoming part of all our everyday lives, don't come around that often," he said. "I think SKYX's story is one of those that will be on everyone's lips not many years hence, and this remains very much a ground-floor opportunity to be a part of it as an investor, I.M.O."

Sector Having Growth Spurt

Data from Statista suggests that the U.S. smart home tech sector, popular among consumers, is growing and expected to continue doing so.  Specifically, by 2028, market revenue is forecasted to increase by 9.7% annually and potentially reach US$55 billion in volume.

Furthermore, during this period, the user base for smart home technology is projected to rise continuously to a new peak in 2028 of 785 million (785M), up 118% from the current total.

Temple of The National Investor, bullish on SKYX, also anticipates increasing sales.

Several macroeconomic trends are driving this sector expansion, purported Venture Crowd, an Australian multi-asset class crowdfunding platform. These include increasing consumer demand, awareness of energy efficiency, interest in home automation, adoption of smart tech in new home construction and Internet of Things (IoT) and connected devices.

As for the latter, Statista research shows the number of IoT devices worldwide is expected to nearly double to more than 29 billion in 2030 from 15.1 billion this year.

The Catalyst

SKYX anticipates an increase in SkyPlug sales in the fourth quarter of 2023, along with a rise in revenue from product selling costs, especially after acquiring Belami, a lighting and home décor e-commerce retailer, earlier this year.

According to Carpio, these developments could lead to narrower gross margins for the company.

Temple, bullish on SKYX, also anticipates increasing sales.

"I expect the 'uptake' for SKYX's 'plug and play' products to accelerate in the days ahead . . . as the company's story belatedly gets out," he said.

Carpio has a US$3 per share price target and a Buy rating on SKYX. The company is trading at a 1.1x price:sales multiple, Carpio wrote but warrants a higher one given the "tactical advantages, growth drivers and earnings leverage potential" of its tech platform.

Carpio has a US$3 per share price target and a Buy rating on SKYX. 

SKYX's stock is about US$1.54 per share, having traded in the past 52 weeks between US$1.20 and US$4.17 per share. From the current price, Carpio's US$3 target implies a potential return for investors of 95%.

SKYX's stock is about US$1.54 per share, having traded in the past 52 weeks between US$1.20 and US$4.17 per share. From the current price, Carpio's US$3 target implies a potential return for investors of 95%.

Technical Analyst Clive Maund, in August, asserted SKYX's stock looked ready to form the third low of a triple bottom, after which it likely would advance. He recommended those wanting to buy it do so on weakness.

According to various experts, SKYX Platforms is on an upward trajectory in terms of securing agreements and partnerships that should boost sales of its smart home electrification products. Given this momentum and forecasted growth in the smart home tech sector alone, this U.S. company is one to consider investing in.

Ownership and Share Structure

SKYX has about 92M shares outstanding and roughly 49M free float traded shares, according to Reuters.

As for ownership, Reuters indicated management and insiders hold 22.16%, nearly one-quarter, of SKYX's shares. These individuals, listed from highest to lowest ownership percentage, are Director Dov Shiff, who holds 16.28% of the company, or 15M shares; Investor Steven Siegelaub, with 3.49%, or 3.21M million shares; Co-Chief Executive Officer John P. Campi with 1.3%, or 1.2M shares; and Director Thomas J. Ridge, with 1.09%, or 1M shares.

Collectively, institutions own 29.69% of SKYX. This breaks down to KRNB Holdings LLC owning 9.92%, or 9.14M shares; Motek 7 SQL LLC owning 6.64%, or 6.12M shares; Strul Associates LP holding 5.98%, or 5.51M shares; BlackRock Institutional Trust Company having 3.39%, or 3.12M; The Vanguard Group Inc. owning 2.5%, or 2.3M shares; and Geode Capital Management LLC holding 1.26% or 1.16M shares.

Important Disclosures:

1. [SKYX Platforms Corp.] has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000. 
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of [SKYX Platforms Corp.].
3. [Doresa Banning] wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
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