Good day, and welcome to the SKYX Platforms Corp. Investor Update Call. Today's webinar is being recorded. Before we begin the formal presentation, I would like to remind everyone that statements made on the call and webcast including those regarding future financial results and industry prospects are forward-looking and maybe subject to number of risks and uncertainties that could cause actual results to differ materially from those described in the call. Please refer to the Company's SEC filings for a list of associated risks, and we would also refer you to the Company's website for more supporting industry information. At this time, I'd like to turn the webinar over to Rani Kohen, Executive Chairman of SKYX Platforms Corp. Sir, please go ahead.

Hi, everyone. Good morning. Thank you for joining us, and I hope everyone can see our screen. Luke, do we see our screen? I guess that's a yes.

We just see your face right now.

Okay. So no screen sharing. So we will share screen. Just one second, our screen here. We would like to share our screen. Make sure we have. Here we go. Okay. Now, I believe we can see our screen. Thank you again, everyone. Thank you for joining us this morning. We have our second quarter investor call and update. With me here, I have our CEO, John Campi; and then we have Steve Schmidt, our President, former President of Office Depot and CEO of Nielsen Corporation; and we have our CFO, Marc Boisseau. Thank you, again. What we will do today is we will go over some, management commentary about financials second quarter, we will demonstrate a video to the ones that don't know our three generation products or Generation 1, 2 and Smart. And we will also have a live demo to some of the 64 websites that we acquired at Belami. And we will have a live demo to show you what we're doing there and to demonstrate. With that being said, we would like to say that our mission is to make homes and buildings become safe and smart as the new standards. Our products significantly save lives, save costs, save time and simplify, one of those reasons by itself is a major reason can be for huge success. We have all of them in a significant way. Therefore, we strongly believe that we can revolutionize at least one or maybe two industries, with our patented plug & play technology. So with that being said, we will move the screen now and share it with our CEO, John Campi, that will, read his commentary.

Good morning, everyone. Second quarter 2023 and subsequent operational highlights. We generated $15 million in revenue in the second quarter of 2023, reflecting a partial quarter of sales, including commencement of sales of its -- of our smart and standard plug & play products. Sequentially, reduced net cash used in operating activities by $2.5 million in the quarter. Cash and cash equivalents, restricted cash and investments available for sale totaled $23.7 million, as of June 30, 2023, as compared to $16.8 million as of December 31, 2022. We've appointed several strategic advisors including Khadija Mustafa, former Microsoft AI and Global Business Leader as a senior tech AI and global business advisor; Eric Jacobson, former President and CEO of the American Lighting Association, the ALA, as a Senior Product Standardization Advisor; Al Weiss, former President of Worldwide Operations at Walt Disney Parks, Resorts, and Cruises, as a Senior Business Development Advisor. Joined the broad-market Russell 2000 and Russell 3000 indices at the conclusion of the 2023, resulting Index's annual reconstitution. Successfully acquired Belami E-commerce, a profitable conglomerate with 64 websites for lighting and home décor. The acquisition was primarily funded using the Company's stock, while the cash portion was funded by two major Sky investors. The E-commerce acquisition is expected to enhance the Company's cash flows, speed up time to market for Sky’s ceiling safe plug & play smart and standard products, as well as expand distribution across professional and retail segments, while concurrently serving as a marketing and educational platform. The Company is eligible to apply for a building safety standardization requirement with the National Electrical Code, NEC, for its ceiling out outlet receptacle and is expected to file its application within the next few weeks. Management believes that after over 12 years of its standardization process including its product specification approval voting for by ANSI and NEMA, American National Standardization Institute and the National Electrical Manufacturing Association, it has met the necessary safety conditions for becoming a ceiling safety standardization requirement for homes and buildings. In the past 12 years the Company's product was voted into 10 segments in the NEC Code Book. Voting decisions are at the discretion of NEC voting members. Our code leaders are Mark Earley, former head of the National Electrical Code, and Eric Jacobson, former President and CEO of The American Lighting Association.

Thank you, John. We will move now to our CFO, Marc Boisseau, former Chief Accounting Officer of Citrix. Please, Marc?

Good morning. Thank you, Rani. Good morning, everybody. So, basically, for Q2, as John mentioned earlier, the revenues amounted to $15 million for Q2 2023. The gross profit amounted to $4.7 million. So, both of those figures include the operations of Belami, which was acquired in late April 2023. The cash, restricted cash amounted to $23.7 million as of June 30, 2023. And if we add the marketable securities, that figure, compared to $16.8 million as of December 31, 2022. Our cash used in operating activities for the quarter amounted to $2.5 million compared to $2.8 million for the same prior year comparable quarter. A quick note to mention that our current liabilities include $5.6 million of fair value for the shares of our common stock, which is payable to the sellers of Belami in April of 2024. And a little breakdown of the operating expenses for the quarter. So, the operating expenses amounted to $17 million. There's $8.2 million, which were non-cash share-based payments. And depreciation and amortization, there's -- of that number, there's $2.2 million in share-based payment that were granted to all the newly hired Belami employees. And it includes about $5 million for Belami SG&A and about $3.7 million for SKYX SG&A. And for the net loss in the second quarter of 2023, that includes -- so the net loss was $12.3 million. That includes $8.7 million in non-cash share-based payment, depreciation and amortization, and another $3.6 million in cash-based expenses. So the net loss per share was $0.14 per share last quarter and the comparable prior year quarter was $0.06 a share. Rani?

Thank you, Marc. And now, we are going to move to Steve Schmidt here, our President. Please, Steve.

Hey Rani, thank you. And good morning to everyone, and it's my pleasure to be on the call with you this morning. Before I talk about the management commentary, I just want to share a few thoughts with you. I joined this company several years ago for really five or six reasons. And I think what's really exciting to me is the five or six reasons that I joined this company have come to fruition, or will be coming to fruition very shortly. It starts every company with a leadership team. And Rani Kohen with his leadership role of both being the inventor but also the strategic aspect that he brings to the table and his ability to get things done, really makes a significant difference. The second thing is the leadership team. We have one of the smartest leadership teams I've been around. We've got expertise across the entire organization. And what speaks volumes around their commitment to this company is the fact that the majority of them, or a lot of them are taking stock and have purchased individually into the Company, which helps us reduce cash flow, but also shows their commitment to the Company. Three is our global partnership and global opportunities. This is not just a U.S. opportunity. This is a global opportunity, when we get the standardization of our products and services. Fourth, we really believe we have the ability to revolutionize several categories in the lighting industry. And when you have a company like this, what you want is proprietary products and services and technology. And with our patents, we have exclusivity. We have patents. We have the ability to protect the intellectual property of this company which we believe is absolutely critical. And then, finally, General Electric. We have a global partnership…

Thank you. We are going to show the video to emphasize, those key points that Steve just mentioned. This is a 4.5-minute video. And afterwards, we’re going to take you live and explain to you exactly what those websites do and show and why that is key and significant for us. [Audio/Video Presentation] Thank you. As we mentioned, we have won five CES awards. We have UL, FCC, NEC, ANSI/NEMA, and AIA, American Institute of Architects Vote, and endorsements by other many organizations. What we believe strongly on the global market, there's billions of installations; in the U.S. there are hundreds of millions. We strongly believe that we can take a nice piece and a percentage of this market, if it's --down the years, 5%, 10%, 20% or 30%. If it's mandatory, obviously it can be much bigger, but we also will be satisfied with 1% of the market. Should be a huge number based on the number of installations in the U.S., and we'll talk about hundreds of millions. The reason we applied for the mandatory -- we're applying for that application for standardization as this is the situation today. What you see on the left is in every ceiling in the U.S. and what we propose is the end of wires, the end of risk. You do not need to risk the life every time you go install a chandelier. This happened before. If you see the Edison bulb, Edison bulb had wires and it was installed to the ceiling for many, many years with wires. And for safety reasons, Edison invented the Edison base would became a world standard. And we strongly believe we have an opportunity to lead the standard here in the U.S. and possibly go around globally with this. We already have those major…

[Operator Instructions]

So, I will actually read the some questions we have here. Will we have retrofit utilized for existing ceiling fans? Yes, we're working on this. And after we release the retrofits, smart retrofits for light fixtures and smart retrofits -- standard retrofit for light fixtures, we will have standard plug & play for ceiling fans and smart plug & play for ceiling fans as well. So, that's the answer. Someone is asking if -- Chris Abbot [ph] is asking if we intend to do quarterly calls? Yes, we do intend to do quarterly calls. Someone is asking if all the products in the sites are already related with plug & play products? No, we're implementing now. We wish. We are on hundreds of items now. We're moving to thousands of items very soon, and tens of thousands is the next step, and hopefully one day soon to relatively everything, right, to hundreds of thousands and many fixtures. And as we're integrating to more and more fixtures, we're escalating, we're very happy for the integration of fixtures and additional websites that also going to enhance sales. And the more fixtures we integrate our smart products to or our standard plugs to, are going to increase as we go and increase our sales. So, we're very happy. We started in the second quarter in June and grew it up in July to more and more fixtures. And now in August, we expect much more fixtures. And as we go, we expect to have much more fixtures with those options and continue increasing the adoption. And what's the most important if you think about it is to get the receptacles to homes. Because once you have a receptacle in your home, it's reoccurring revenues at a future plug & play, standard or smart…

Yes. No, just we want to thank all of you for your time here this afternoon -- this morning. Excuse me. It's been our pleasure to take you through the quarterly results, and we look forward to doing this each quarter with you. So, thanks again for your time.

And John Campi, former Senior Executive in Home Depot and Chrysler, our CEO, any…?

Well, I'd also like to thank you for your participation today, and we do look forward to these quarterly reports because we can share how the progress is accelerating for us. So, thank you again, and have a great day.

With this, we conclude. Thank you very much for your questions. And we’ll look forward for our next calls. And stay tuned. When we have something to say, we will announce it. Thank you very much.

Thank you. That does conclude today's webcast. You now disconnect and enjoy the rest of your day. We do thank you for your participation today.