Sky Technologies: A Smart Home Innovator Worth Considering
Most modern-day smart homes are essentially known to comprise a number of features that can be operated with voice commands and IoT (Internet of Things) gadgets. The target market for these products is high-income populations who have enough disposable income to spend on things like saving a few seconds by not having to get up to turn off the lights.
There are very few companies that are looking to redefine the idea of a smart home to include the highest level of safety with regard to the installation of electrical devices. SKYX Platforms (NASDAQ:SKYX), known more commonly by its customer-facing name Sky Technologies, is one of them; this company is looking to create a new standard that can be used not only in luxury housing but in every type of home around the world. Its products range from the simplest ceiling outlets to fully developed smart home systems that have the potential to completely change the market.
Company overview
Sky Technologies is a maker of smart devices, ceiling fixtures and various types of smart home appliances. Its first-generation technology offerings include wall and ceiling receptacles which make it possible to install light fixtures, ceiling fans and other electrically wired items into the electrical outlet box in the ceiling with minimal exposure to wires, making the installation process safe and efficient.
With more than 15 authorized patents and 60 patent applications, Sky Technologies has pioneered a number of cutting-edge smart platform technologies for residential use. The company's products have the dual goals of improving the security and usability of smart home gadgets while also bringing benefits in terms of time and money savings and ease of use.
Its products are expected to be launched in the second half of 2022. Key revenue streams apart from product sales are expected to be in the form of licensing its intellectual property and selling country-specific rights in non-U.S. markets. Sky Technologies has licensing and branding agreements in place with General Electric (NYSE:GE) whereby it uses the GE logo and branding on its products, increasing their sellability.
The company was established in 2004 and is headquartered in Pompano Beach, Florida.
The Sky Plug & Play offering
Sky Technologies' first-generation products are a significant step in creating a completely new safety standard for the National Electric Code (NEC). The "Sky Plug & Play" ceiling holder is its major product, allowing electrically wired items like light fixtures, ceiling fans and other appliances to be placed and connected to the ceiling safely while minimizing the risk of fires and other issues related to exposed wiring. It can be simply linked to the ceiling-mounted electrical outlet box, allowing for a fast and simple plug-and-play installation of light fixtures and ceiling fans.
Given the products extreme simplicity, the company touts that it is unnecessary for electricians and installers to touch potentially dangerous electrical wires when installing light fixtures, ceiling fans and other hard-wired electrical items.
After developing the basic receptacle, the company added various smart features to it. The SkyHome App, WiFi and voice control are just a few of the smart features that allow homeowners to control lighting and ceiling fans. Schedules, energy-saving eco mode, backup emergency lights, dimming, night lighting, light color shifting and other smart functions are among the features offered. Sky Technology's first-generation products are feature-rich and ready to enter the market and also lay a solid foundation for its most solid smart home offering the Smart Platform.
The Smart Platform
The Smart Platform is the main offering of Sky Technologies' second-generation product line. It is essentially an open system that smoothly integrates incompatible safe and cutting-edge objects into a single, spatially designed unit, whose functioning is managed by an all-in-one application, the SkyHome App.
The installation of several standalone devices and their integration into useful units is not necessary when using the Smart Platform. Old and new smart home features, devices and systems can be combined with the all-in-one, "safe-smart-innovative" platform technology. The advanced platform prototype is built and designed to support additional smart home features, acting as a gateway for safe and smart technologies into buildings and rooms and acting as a bridge that can support different types of software and wireless electronic systems chips.
Additionally, the ceiling-mounted Smart Platform's design significantly enhances the WiFi and Bluetooth speed and range, sensor and alarm capabilities and overall performance of smart home goods. The product appears to be cost-effective, and with larger manufacturing orders and bulk purchases, Sky Technologies can develop economies of scale and make it an affordable option for families.
Final thoughts
We see that the relatively dormant stock of Sky Technologies has started to show some movement in the past few months. This is largely due to the fact that the company is expected to start generating revenues from the first-generation offerings in the second half of 2022.
The products have vast applications and can be used instead of the standard ceiling and wall receptacles not only in newly constructed homes but also as replacements in existing homes in the U.S. The country has nearly 140 million homes and an electric outlet after every 34 square feet on average, which implies a vast addressable market.
Overall, I believe that there is a good chance the companys offerings may become widely adopted in the years to come. It has the potential to revolutionize the smart home industry. While the company has hardly any revenues today and is definitely a risky bet, I think this is a classic high-risk / high-reward opportunity.
This article first appeared on GuruFocus.
