Smart Tech Co. Partners With Worldwide Lighting, Fan Maker

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Smart platform technology leader SKYX Platforms Corp. (SKYX:NASDAQ) announced it is collaborating with EGLO, an international market-leading designer and manufacturer of decorative and functional lighting and ceiling fans.

The two companies will explore and evaluate the development of products that “integrate SKYX’s technology for European and global markets, and the product driven needs of EGLO’s international customer base,” SKYX said in a release. “The collaboration is expected to further enhance SKYX’s U.S. and global market penetration through online, retail and builder segments.”

SKYX has more than 97 issued and pending patents in the U.S. and globally and owns over 60 lighting and home décor websites with a mission to make homes and buildings become smart, safe, and advanced.

The company's 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 and Bixby. This product highlights SKYX's commitment to enhancing safety and convenience in homes and buildings globally.

“This collaboration opportunity is just another step in expanding the applicability and penetration of our technology to European and global markets and distribution channels,” SKYX Founder and Executive Chairman Rani Kohen said. “Aligning with industry leaders who support our vision for growth and innovation in smart home and lighting sectors is significant to our global expansion strategy.

Founded in Austria, EGLO opened its first sales company in German in 1986 and now has sales companies in about 50 countries worldwide with factories in Hungary, China, and India.

Collaboration with Home Depot

Recently, SKYX also announced it would collaborate with world-leading home improvement retailer Home Depot, offering a variety of its products including retrofit kits, smart light fixtures, smart ceiling fans, ceiling outlet receptacles, and recessed lights.

A large assortment of these advanced and smart products is expected to be offered on Home Depot’s website in the next coming months, while some advanced and smart plug-and-play retrofit kit products are expected to arrive in select stores and online to be offered as a fixture upgrade.

“We view this as a significant expansion that furthers the company’s ability to reach both the retail and professional channels at scale,” Analyst Patrick McCann wrote for Noble Capital Markets on Aug. 15. “As such, we believe the inclusion of SKYX products at Home Depot could accelerate revenue growth in both customer verticals.”

The analyst noted SKYX reported a solid second quarter in line with the firm’s revenue estimate and better than its adjusted EBITDA loss estimate. Q2 revenue was US$21.4 million, roughly in line with its estimate of US$22.0 million, while an adjusted EBITDA loss of US$2.1 million was better than the forecasted loss of US$4 million.

“In our view, the sequential revenue growth, coupled with a diminishing cash burn should serve as a favorable indicator of the company’s ability to execute its growth strategy, while targeting a swing towards profitability in 2025,” wrote McCann, who rated the stock Outperform with US$5 per share target price.

The company also has announced partnerships with Ruee Appliance Co. Ltd., General Electric, world-leading lighting company Kichler, and U.S. lighting manufacturer Quoizel.

But a big possible catalyst for the company going forward is its application last year for a National Electric Code (NEC) mandate for the use of its ceiling outlets in homes and buildings.

"If granted, it would be a pivotal event for the company's history … (and) our valuation multiples would be revised to incorporate the higher revenue growth trajectory," wrote Joseph Gunnar & Co. analyst Leo Carpio in another research note. Carpio rated the stock a Buy with a US$2 per share target price.

The Catalyst: The Internet of Things

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 has described the IoT as integrating "the interconnectedness of human culture — 'our things' — with the interconnectedness of our digital information system — 'the Internet.'"

A June 2024 report from StartUs Insights showed an annual growth rate of 25.86% over 7,200 companies in the home technology sector. More than 340,000 workers are employed by the industry, which added more than 26,000 new jobs in the past year and filed 7,000 patents and secured more than 220 grants.

A July 2024 report from Market Research Future projected the recessed lighting 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. Key drivers of market growth include energy effectiveness, cost savings, flexibility in terms of aesthetics and design, better lighting quality, and technological advancements, the report noted. 

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 100.17 million outstanding shares and 58.94 million free-float traded shares. Its market cap is US$105.65 million, and the company trades in a 52-week range between US$0.72 and US$2.06 per share.