SKYX Platforms Corp. (NASDAQ:SKYX), a company specializing in electric lighting and wiring equipment, has filed with the Florida Department of State to designate 400,000 shares each of its newly authorized convertible Series A Preferred Stock and Series A-1 Preferred Stock. The filing, effective as of Monday, was disclosed in a recent 8-K filing with the Securities and Exchange Commission.
The newly designated shares of Series A and Series A-1 Preferred Stock come with rights, preferences, and privileges as outlined in the Certificates of Designation filed by the Pompano Beach, Florida-based company. The specifics of these rights and preferences were not detailed in the press release but are provided in the exhibits attached to the SEC filing.
The designation of these preferred stocks represents a material modification to the rights of security holders and may potentially impact the company's capital structure. It also signifies an amendment to the company's Articles of Incorporation.
SKYX Platforms Corp., formerly known as SQL Technologies Corp. and Safety Quick Lighting & Fans Corp., has undergone several name changes, with the most recent occurring in 2016. The company's fiscal year end is December 31.
In other recent news, SKYX Platforms Corp. has reported a substantial increase in its second-quarter sales, reaching $21.4 million, a significant rise from the $15 million reported in the same quarter of the previous year. In the same period, the company successfully reduced its adjusted EBITDA loss to $2.1 million and net cash loss to $2.7 million.
SKYX Platforms Corp. has also secured a $3.5 million revolving line of credit through its subsidiary Belami, Inc., with Farmers & Merchants Bank of Central California. This development replaces and expands upon the company's previous credit facility.
Furthermore, the company is facing a potential delisting from the Nasdaq due to non-compliance with the exchange's minimum bid price requirement. The company has been granted a 180-day period to regain compliance.
Analysts from Roth/MKM have initiated coverage on SKYX, assigning a Buy rating based on the potential of the company's SkyOutlet system. The company has also announced strategic collaborations with industry giants such as Home Depot (NYSE:HD) and GE Licensing. These recent developments highlight SKYX's strategic decision to increase its credit facility, reflecting confidence in its financial stability and future prospects.
InvestingPro Insights
SKYX Platforms Corp.'s recent filing for new preferred stock series comes amid a challenging financial landscape for the company. According to InvestingPro data, SKYX has a market capitalization of $83.33 million, reflecting its current market valuation. Despite a remarkable revenue growth of 461% over the last twelve months as of Q2 2024, reaching $84.22 million, the company faces significant profitability hurdles.
InvestingPro Tips highlight that SKYX is quickly burning through cash and its short-term obligations exceed liquid assets. This context may explain the company's move to designate new preferred stock series, potentially as a means to secure additional capital or restructure its finances.
The company's stock price, which closed at $0.82 in the most recent session, represents only 49.22% of its 52-week high. This pricing, coupled with the InvestingPro Tip indicating high price volatility, suggests a turbulent period for SKYX shareholders.
Investors considering SKYX should note that analysts anticipate sales growth in the current year, which aligns with the company's recent revenue performance. However, they do not expect profitability this year, a factor that potential investors may want to weigh carefully.
For a more comprehensive analysis, InvestingPro offers 8 additional tips on SKYX, providing deeper insights into the company's financial health and market position.
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