2024 Q1 Form 10-K Financial Statement

#000149315224012456 Filed on April 01, 2024

View on sec.gov

Income Statement

Concept 2024 Q1 2023 Q4 2023
Revenue $18.98M $22.17M $58.79M
YoY Change 189204.95% 243303.95% 183479.29%
Cost Of Revenue $13.40M $15.54M $40.75M
YoY Change 912690.94% 1253312.1% 215359.79%
Gross Profit $5.578M $6.632M $18.04M
YoY Change 65086.98% 84166.71% 137483.72%
Gross Profit Margin 29.39% 29.91% 30.68%
Selling, General & Admin $14.47M $18.44M $55.86M
YoY Change 99.59% 308.37% 111.67%
% of Gross Profit 259.35% 278.12% 309.72%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $30.31K $785.9K $2.886M
YoY Change 36.87% 14.14% 3977.97%
% of Gross Profit 0.54% 11.85% 16.0%
Operating Expenses $14.47M $18.44M $55.86M
YoY Change 99.59% 308.37% 111.67%
Operating Profit -$8.888M -$11.81M -$37.83M
YoY Change 22.77% 161.99% 42.07%
Interest Expense $787.9K -$507.8K -$3.109M
YoY Change 7.83% 39.35% -627.89%
% of Operating Profit
Other Income/Expense, Net -$787.9K -$1.907M
YoY Change 7.83% 364.37%
Pretax Income -$9.676M -$12.32M -$39.73M
YoY Change 21.4% 152.82% 46.96%
Income Tax $0.00
% Of Pretax Income
Net Earnings -$9.676M -$12.32M -$39.73M
YoY Change 21.4% 150.71% 46.96%
Net Earnings / Revenue -50.99% -55.56% -67.59%
Basic Earnings Per Share -$0.10 -$0.45
Diluted Earnings Per Share -$0.10 -$0.13 -$0.45
COMMON SHARES
Basic Shares Outstanding 96.87M shares 92.17M shares 88.37M shares
Diluted Shares Outstanding 95.09M shares 88.37M shares

Balance Sheet

Concept 2024 Q1 2023 Q4 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $14.15M $16.81M $16.81M
YoY Change -23.05% 19.27% 19.27%
Cash & Equivalents $14.15M $16.81M $16.81M
Short-Term Investments $0.00 $0.00
Other Short-Term Assets $3.626M $3.696M $3.696M
YoY Change 2642.05% 1086.11% 1086.11%
Inventory $3.778M $3.426M $3.426M
Prepaid Expenses $630.1K $721.7K
Receivables $3.932M $3.385M $3.385M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $25.48M $27.32M $27.32M
YoY Change 23.59% 67.29% 67.29%
LONG-TERM ASSETS
Property, Plant & Equipment $459.9K $21.65M $21.65M
YoY Change 137.25% 9923.82% -6.92%
Goodwill $16.16M $16.16M
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $204.8K $3.074M $3.074M
YoY Change -49.7% 1586.22% 5.16%
Total Long-Term Assets $48.70M $49.02M $49.02M
YoY Change 70.45% 82.6% 82.6%
TOTAL ASSETS
Total Short-Term Assets $25.48M $27.32M $27.32M
Total Long-Term Assets $48.70M $49.02M $49.02M
Total Assets $74.19M $76.34M $76.34M
YoY Change 50.81% 76.81% 76.81%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $12.54M $11.51M $11.51M
YoY Change 501.47% 740.62% 740.62%
Accrued Expenses $2.161M $2.773M $2.773M
YoY Change 32.44% 62.09% 62.09%
Deferred Revenue $1.616M $1.476M
YoY Change
Short-Term Debt $750.0K $731.0K $731.0K
YoY Change
Long-Term Debt Due $6.466M $6.899M $6.899M
YoY Change 279.97% 304.42% 304.42%
Total Short-Term Liabilities $24.33M $24.19M $24.19M
YoY Change 202.02% 225.85% 225.85%
LONG-TERM LIABILITIES
Long-Term Debt $10.35M $9.814M $9.814M
YoY Change 2.87% 101.65% 101.65%
Other Long-Term Liabilities $26.01M $26.11M $26.11M
YoY Change 16.49% 14.74% 14.74%
Total Long-Term Liabilities $36.36M $35.93M $35.93M
YoY Change 12.26% 30.05% 30.05%
TOTAL LIABILITIES
Total Short-Term Liabilities $24.33M $24.19M $24.19M
Total Long-Term Liabilities $36.36M $35.93M $35.93M
Total Liabilities $60.69M $60.12M $60.12M
YoY Change 50.06% 71.52% 71.52%
SHAREHOLDERS EQUITY
Retained Earnings -$155.5M -$145.8M
YoY Change 36.34% 37.46%
Common Stock $169.0M $162.0M
YoY Change 37.86% 42.08%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $13.50M $16.22M $16.22M
YoY Change
Total Liabilities & Shareholders Equity $74.19M $76.34M $76.34M
YoY Change 50.81% 76.81% 76.81%

Cashflow Statement

Concept 2024 Q1 2023 Q4 2023
OPERATING ACTIVITIES
Net Income -$9.676M -$12.32M -$39.73M
YoY Change 21.4% 150.71% 46.96%
Depreciation, Depletion And Amortization $30.31K $785.9K $2.886M
YoY Change 36.87% 14.14% 3977.97%
Cash From Operating Activities -$6.200M -$2.908M -$13.00M
YoY Change 50.52% -29.27% -6.07%
INVESTING ACTIVITIES
Capital Expenditures $53.65K
YoY Change 17431.7%
Acquisitions $4.206M
YoY Change
Other Investing Activities $0.00 $10.10K $3.240M
YoY Change -100.0% 82.97% -143.57%
Cash From Investing Activities -$53.65K $130.1K $3.240M
YoY Change -68.42% -159.34% -140.22%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $9.821M
YoY Change -57.49%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $3.600M 3.097M 22.73M
YoY Change -65.21% 1291.18% 8.58%
NET CHANGE
Cash From Operating Activities -$6.200M -2.908M -13.00M
Cash From Investing Activities -$53.65K 130.1K 3.240M
Cash From Financing Activities $3.600M 3.097M 22.73M
Net Change In Cash -$2.641M 318.7K 12.97M
YoY Change -143.57% -107.76% -1444.39%
FREE CASH FLOW
Cash From Operating Activities -$6.200M -$2.908M -$13.00M
Capital Expenditures $53.65K
Free Cash Flow -$6.254M
YoY Change 51.81%

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CY2023 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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CY2022 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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CY2022 us-gaap Net Cash Provided By Used In Investing Activities
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CY2022 us-gaap Proceeds From Issuance Of Common Stock
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2548000 usd
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862301 usd
CY2023 us-gaap Proceeds From Lines Of Credit
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6500000 usd
CY2023 us-gaap Proceeds From Convertible Debt
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10350000 usd
CY2022 us-gaap Payments Of Dividends
PaymentsOfDividends
38055 usd
CY2023 us-gaap Repayments Of Notes Payable
RepaymentsOfNotesPayable
3413225 usd
CY2022 us-gaap Repayments Of Notes Payable
RepaymentsOfNotesPayable
446035 usd
CY2023 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
22726632 usd
CY2022 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
20930211 usd
CY2023 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
12968656 usd
CY2022 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
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CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
9461597 usd
CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
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CY2023Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
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CY2022Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
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CY2023 SKYX Preferred Stock Conversion To Common
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CY2022 SKYX Preferred Stock Conversion To Common
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3094134 usd
CY2023 SKYX Assets Acquired Excluding Identifiable Intangible Assets And Goodwill And Cash
AssetsAcquiredExcludingIdentifiableIntangibleAssetsAndGoodwillAndCash
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CY2023 SKYX Liabilities Assumed And Consideration Payable
LiabilitiesAssumedAndConsiderationPayable
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CY2023 SKYX Identifiable Intangible Assets And Goodwill
IdentifiableIntangibleAssetsAndGoodwill
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CY2023 SKYX Debt Discount
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5569978 usd
CY2022 SKYX Common Stock Issued Pursuant To Antidilutive Provisions
CommonStockIssuedPursuantToAntidilutiveProvisions
4691022 usd
CY2023 SKYX Stock Issued During Value Pursuant To Acquisition
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CY2023 SKYX Common Stock Pursuant To Extinguishment Of Debt
CommonStockPursuantToExtinguishmentOfDebt
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CY2022 SKYX Rightofuse Assets And Operating Lease Liabilities
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CY2023 us-gaap Interest Paid Net
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1094458 usd
CY2022 us-gaap Interest Paid Net
InterestPaidNet
303957 usd
CY2023 us-gaap Nature Of Operations
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<p id="xdx_804_eus-gaap--NatureOfOperations_zeJsCDRsYzm" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span style="text-decoration: underline">NOTE 1 <span id="xdx_82D_zGHBTMsxxCLa">ORGANIZATION AND NATURE OF OPERATIONS</span></span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">SKYX Platforms Corp., a corporation (the “Company”), was incorporated in Florida in May 2004.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company maintains offices in Sacramento, California, Johns Creek, Georgia, Miami and Pompano Beach, Florida, New York City, and Guangdong Province, China.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company has a series of advanced-safe-smart platform technologies. The Company’s first-generation technologies enable light fixtures, ceiling fans and other electrically wired products to be installed safely and plugged-in to a ceiling’s electrical outlet box within seconds, and without the need to touch hazardous wires. The plug and play technology method is a universal power-plug device that has a matching receptacle that is simply connected to the electrical outlet box on the ceiling, enabling a safe and quick plug and play installation of light fixtures and ceiling fans in just seconds. The plug and play power-plug technology, eliminates the need of touching hazardous electrical wires while installing light fixtures, ceiling fans and other hard wired electrical products. In recent years the Company has expanded the capabilities of its power-plug product, to include its second generation advanced-safe and quick universal installation methods, as well as advanced-smart capabilities. The smart features include control of light fixtures and ceiling fans by the SkyHome App, through WIFI, Bluetooth Low Energy and voice control. It allows scheduling, energy savings eco mode, dimming, back-up emergency light, night light, light color changing and much more. The Company’s third-generation technology is an all-in-one safe and smart-advanced platform that is designed to enhance all-around safety and lifestyle of homes and other buildings.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span> </p> <p style="margin: 0">Since April 2023, the Company also markets home lighting, ceiling fans and other home furnishings from third parties.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Going Concern </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company’s liquidity’s sources include $<span id="xdx_90C_eus-gaap--RestrictedCashAndCashEquivalentsAtCarryingValue_iI_pn5n6_c20231231_zBOlPJDYYx73" title="Restricted cash and cash equivalents">22.4</span> million in cash and cash equivalents, including restricted cash of $<span id="xdx_90A_eus-gaap--RestrictedCashEquivalentsCurrent_iI_pn5n6_c20231231_z5S2d5iYuAhk" title="Restricted cash">5.6</span> million, and $<span id="xdx_903_ecustom--WorkingCapital_iI_pn5n6_c20231231_zNGzLuzWrBAh" title="Working capital">3.1</span> million of working capital.  However, the Company has a history of recurring operating losses and its net cash used in operating activities amounted to $<span id="xdx_902_eus-gaap--NetCashProvidedByUsedInOperatingActivities_iN_pn5n6_di_c20230101__20231231_zrFESlOF2AYb" title="Net cash used in operating activities">13.0</span> million and $<span id="xdx_901_eus-gaap--NetCashProvidedByUsedInOperatingActivities_iN_pn5n6_di_c20220101__20221231_zsnjuWRDYGYd" title="Net cash used in operating activities">13.8</span> million during 2023 and 2022, respectively.  The Company has also generated net cash provided by financing activities of $<span id="xdx_903_eus-gaap--NetCashProvidedByUsedInFinancingActivities_pn5n6_c20230101__20231231_zIIKMlK1NDad" title="Net cash provided by financing activities">22.7</span> million and $<span id="xdx_908_eus-gaap--NetCashProvidedByUsedInFinancingActivities_pn5n6_c20220101__20221231_zepaYy7uFNK6" title="Net cash provided by financing activities">20.9</span> million during 2023 and 2022, respectively.  Accordingly, the Company’s management cannot ascertain that there is no substantial doubt that it will be able to meet its obligations as they become due within one year after the date that its financial statements are issued.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Management intends to mitigate such conditions by continuing to support its continued growth by decreasing its cash used in operating activities through increased revenues <span>and increased margins fr</span>om products sold to large retailers and its internet portals, and to the extent necessary, generate cash provided by financing activities through it’s at the market offering or other equity or debt financing means.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
CY2023Q4 us-gaap Restricted Cash And Cash Equivalents At Carrying Value
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CY2023Q4 us-gaap Restricted Cash Equivalents Current
RestrictedCashEquivalentsCurrent
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CY2023Q4 SKYX Working Capital
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CY2023 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
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CY2022 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
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CY2023 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
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CY2023 us-gaap Subsidiary Or Equity Method Investee Cumulative Percentage Ownership After All Transactions
SubsidiaryOrEquityMethodInvesteeCumulativePercentageOwnershipAfterAllTransactions
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CY2023 us-gaap Use Of Estimates
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<p id="xdx_84C_eus-gaap--UseOfEstimates_zN9WdnleTmp" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_861_zQc6S0hgMmGb">Use of Estimates</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Such estimates and assumptions impact both assets and liabilities, including but not limited to: net realizable value of accounts receivable and inventory, estimated useful lives and potential impairment of property and equipment, the valuation of intangible assets, estimate of fair value of share based payments and derivative liabilities, estimates of fair value of warrants issued and recorded as debt discount, estimates of tax liabilities and estimates of the probability and potential magnitude of contingent liabilities.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate could change in the near term due to one or more future nonconforming events. Accordingly, actual results could differ significantly from estimates.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
CY2023 us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<p id="xdx_84C_eus-gaap--PriorPeriodReclassificationAdjustmentDescription_z1BxfNfewwEj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_86C_z6wIeEnXNGCd">Reclassifications</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For comparability, reclassifications of certain prior-year balances were made to conform with current-year presentations, such as certain expenses previously included in cost of revenues and reclassified as general, and administrative expenses in 2022 and sales and marketing expenses which were previously included in selling, general, and administrative expenses in 2022.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
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CashAndCashEquivalentsAtCarryingValue
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CY2022Q4 us-gaap Cash And Cash Equivalents At Carrying Value
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6720543 usd
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CY2022Q4 us-gaap Restricted Cash
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CY2022Q3 us-gaap Restricted Cash
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RestrictedInvestments
2800000 usd
CY2022Q4 us-gaap Restricted Investments
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750000 usd
CY2023Q4 us-gaap Line Of Credit
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CY2022Q4 us-gaap Allowance For Doubtful Accounts Receivable
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0 usd
CY2023Q4 SKYX Allowance For Sales Returns
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CY2022Q4 SKYX Allowance For Sales Returns
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0 usd
CY2023Q4 us-gaap Contract With Customer Liability Current
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930252 usd
CY2022Q4 us-gaap Inventory Parts And Components Net Of Reserves
InventoryPartsAndComponentsNetOfReserves
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InventoryNet
3425734 usd
CY2022Q4 us-gaap Inventory Net
InventoryNet
1923540 usd
CY2023Q4 us-gaap Inventory Gross
InventoryGross
1300000 usd
CY2022Q4 us-gaap Inventory Gross
InventoryGross
0 usd
CY2023Q4 us-gaap Finite Lived Intangible Assets Remaining Amortization Period1
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P15Y
CY2023 us-gaap Impairment Of Intangible Assets Finitelived
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0 usd
CY2022 us-gaap Impairment Of Intangible Assets Finitelived
ImpairmentOfIntangibleAssetsFinitelived
0 usd
CY2023 us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
0 usd
CY2022 us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
0 usd
CY2023 us-gaap Derivatives Reporting Of Derivative Activity
DerivativesReportingOfDerivativeActivity
<p id="xdx_84E_eus-gaap--DerivativesReportingOfDerivativeActivity_zaHdkXukOPte" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_86E_zRhwdA3fJb4d">Embedded Conversion Features</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company evaluates embedded conversion features within convertible debt under ASC 815 “Derivatives and Hedging” to determine whether the embedded conversion feature(s) should be bifurcated from the host instrument and accounted for as a derivative at fair value with changes in fair value recorded in earnings. If the conversion feature does not require derivative treatment under ASC 815, the instrument is evaluated under ASC 470-20 “Debt with Conversion and Other Options” for consideration of any beneficial conversion features.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
CY2023 us-gaap Revenue Recognition Accounting Policy Gross And Net Revenue Disclosure
RevenueRecognitionAccountingPolicyGrossAndNetRevenueDisclosure
<p id="xdx_844_eus-gaap--RevenueRecognitionAccountingPolicyGrossAndNetRevenueDisclosure_zndmMcgRN4Ig" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_865_zewWIcey80P">Revenue Recognition</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company currently generates revenues substantially from home lighting, ceiling fans, and smart products through its family of internet sites and marketplaces. A substantial portion of the Company’s customers’ orders are made and paid contemporaneously by credit card and shipped through third-party delivery providers. The Company recognizes revenues once it concludes that the control of the product is transferred to the customer, which is upon delivery.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company records reductions to revenue for estimated customer sales returns and replacements, net of sales tax. The Company receives rebate and cooperative allowances based on a percentage of periodic purchases from certain vendors. These vendor considerations are reflected as a reduction of costs of revenues. The vendor considerations, the rights of returns and replacements are based upon estimates that are determined by historical experience, contractual terms, and current market conditions. The primary factors affecting the Company’s accrual for estimated customer rights of returns include estimated customer return rates as well as the number of units shipped that have a right of return that have not expired as of the measurement date.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p>
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ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice
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ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
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CY2023 us-gaap Business Acquisitions Pro Forma Revenue
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BusinessAcquisitionProFormaWeightedAverageNumberOfSharesOutstandingDiluted
92768792
CY2022 SKYX Business Acquisition Pro Forma Weighted Average Number Of Shares Outstanding Basic
BusinessAcquisitionProFormaWeightedAverageNumberOfSharesOutstandingBasic
84064095
CY2022 SKYX Business Acquisition Pro Forma Weighted Average Number Of Shares Outstanding Diluted
BusinessAcquisitionProFormaWeightedAverageNumberOfSharesOutstandingDiluted
84064095

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