SKYX Platforms Corp. (SKYX:NASDAQ), a leader in smart platform technology, has announced the commencement of production for its newly patented advanced, smart plug-and-play recessed light. The global recessed light market, a multi-billion-unit industry, stands to see significant contributions from this innovative product. SKYX’s latest product has secured patents in key markets including the U.S., China, Canada, Hong Kong, and Mexico, reinforcing the company's strong intellectual property portfolio.
As per the company news release, the new plug-and-play recessed lights aim to revolutionize the installation process by providing a safer and more efficient solution to eliminate contact with hazardous electrical wires. The lights can be controlled via the SKYX app, voice commands, and are compatible with major smart home systems like Apple Siri, Amazon Alexa, Google Home, and Samsung's SmartThings. This product highlights SKYX's commitment to enhancing safety and convenience in homes and buildings globally.
The Smart Home Technology and Recessed Lighting Markets
In a June 2024 report from StartUs Insights, the smart home technology sector was shown to have experienced significant growth, with an annual growth rate of 25.86% and over 7200 companies involved. The report indicated that the sector employed more than 340,000 workers, adding over 26,000 new employees in the past year. The smart home industry has filed over 7000 patents and secured more than 220 grants, demonstrating strong support for various initiatives and developments within the sector.
According to the report, investment in the smart home industry included an average funding round value of US$22.5 million, with over 1700 funding rounds closed, involving more than 450 investors and benefiting over 580 companies. The global annual internet search growth for the smart home industry reached 31.99%, reflecting increasing interest and relevance. The combined efforts of a growing workforce, numerous companies, and financial backing highlighted the dynamic and evolving nature of the smart home industry, playing a critical role in driving technological advancements and improving everyday living through smart home solutions.
In their May 31 newsletter, Joseph Gunnar & Co. recommended a Buy rating for SKYX with a price target of US$2.00.
In an article for BuiltIn, Mike Thomas wrote on June 5 that by 2029, forecasters predicted the IoT industry (Internet of Things - devices, applications, and network equipment that work in conjunction to collect, monitor, and analyze data from industrial operations) would reach a global market size of more than US$2.4 trillion, shifting from mere connectivity to IoT-powered applications, platforms, and services. Tech pioneer Kevin Ashton succinctly described the IoT as integrating "the interconnectedness of human culture — 'our things' — with the interconnectedness of our digital information system — 'the Internet.'"
As for the recessed lighting market, a July 2024 report from Market Research Future projected the industry to grow from US$78.32 billion in 2024 to US$190.04 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 11.72% during the forecast period. The report highlighted key drivers of market growth, including energy effectiveness, cost savings, flexibility in terms of aesthetics and design, better lighting quality, and technological advancements.
The market for recessed lighting had seen rapid expansion and was anticipated to continue growing in the years to come. Recessed lighting has become more popular due to its energy efficiency, with LED technology using less energy than conventional lighting sources. Cost reductions also aided in the market's expansion, as LED-powered recessed lighting fixtures had a longer lifespan and required less upkeep, saving both consumers and companies money overall.
Shining a Light on a SKYX Catalyst
A key catalyst for SKYX's growth is its extensive patent portfolio, comprising over 94 issued and pending patents, with 36 issued in the U.S. and globally, including China, India, and Europe, and specifically related to the company's advanced plug-and-play and smart home technologies. As cited by SKYX, the company's Total Addressable Market (TAM) is estimated to exceed US$500 billion, underscoring the significant potential for its technology solutions, including smart home, AI, electrical, lighting, and ceiling fans across numerous industries, including lighting, smart home, builders, apartment buildings, hotels, cruise ships, insurance companies, and electrical outlet box manufacturers.
Rani Kohen, Founder and Executive Chairman of SKYX Platforms, stated in the press release, "We are happy to announce that we will start production of our new patented and advanced, smart, plug-and-play recessed lights. Our global robust intellectual property portfolio in the critical areas of our advanced safe, smart homes and sensor technologies, position SKYX as a leading technology provider of advanced smart home platform solutions for the smart home, AI, electrical, lighting, and ceiling fan industries."
What The Experts Are Saying About SKYX
According to the Noble Research Report on May 15, analysts viewed SKYX positively, noting the company's Q1 revenue of US$19.0 million and an adjusted EBITDA loss of US$4.5 million, both of which were in line with expectations. The report highlighted SKYX's potential to benefit from several strategic partnerships with large industry players and a significant agreement with a homebuilder constructing 1,000 homes.
Analysts believed these partnerships, including a five-year licensing deal with General Electric (GE) and collaborations with leading lighting companies such as Kichler, Quoizel, and Golden Lighting, would contribute to strong revenue growth and market penetration.
The Noble Research Report also mentioned SKYX's mandatory safety standardization application filed with the National Electrical Code (NEC) in September, led by Mark Earley, former head of the NEC for 35 years. If approved, this application could lead to a significant long-term licensing opportunity. The report emphasized the company's focus on executing strategic growth initiatives and rated the shares as Outperform, suggesting a favorable risk/reward relationship. SKYX's innovative technology, including its weight-supporting ceiling receptacle and smart home devices, has been recognized by several industry standard-setting organizations such as UL, FCC, NEC, ANSI, NEMA, IAEI, and the American Institute of Architects. The report gave the company a US$5.00 target price and an Outperform rating.
In their May 31 newsletter, Joseph Gunnar & Co. recommended a Buy rating for SKYX with a price target of US$2.00. The newsletter noted the announcement of a new partnership with Chinese lighting supplier and manufacturer Ruee Appliance, which would provide crucial manufacturing and distribution capabilities. This partnership further strengthened SKYX's already substantial IP portfolio.
Joseph Gunnar & Co. also highlighted SKYX's expected positive cash flow by 2025 and the potential financial impact of the Ruee Appliance partnership. This collaboration was seen as enhancing SKYX’s retail and distribution capabilities, providing access to global markets, including the U.S., China, and Europe.
Streetwise Ownership Overview*The newsletter mentioned that Ruee Appliance's existing relationships with major U.S. brands and retail chains like Home Depot, Costco, and Walmart should ensure an immediate impact on SKYX's market presence.
Ownership and Share Structure
According to Reuters, strategic investors comprise 41.16%. Director Dov Shiff is the insider with the most shares, 14.99%. Steven Sieglaub owns 3.21%, and Thomas J. Ridge, governor, and director, owns 1.02%
Reuters data as of July 1, 2024, shows that 78 institutions hold 11.67% of SKYX. The Top 3 institutional investors are BlackRock Institutional Trust Company N.A. at 3.26%, with 3.27 million shares, The Vangaurd Group Inc. at 2.68%, with 2.68 million, and Geod Capital Management LLC at 1.23%, with 1.23 million.
Retail investors own the remaining.
SKYX Platforms has 100.17M outstanding shares and 58.94 M free float traded shares, according to MarketWatch.
Over the past 52 weeks, the company traded between US$0.72 and US$2.74 per share.
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Important Disclosures:
- SKYX Platforms Corp. has a two-year consulting relationship with Street Smart, an affiliate of Streetwise Reports, and pays US$84,000 per year in stock for such services.
- James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
- This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
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