The following discussion and analysis should be read in conjunction with the unaudited consolidated financial statements and related notes included elsewhere in this Form 10-Q and our audited financial statements and related notes thereto for the year endedDecember 31, 2021 included in our Annual Report on Form 10-K for the year endedDecember 31, 2021 . This discussion and analysis and other parts of this Form 10-Q contain forward-looking statements based upon current beliefs, plans and expectations that involve risks, uncertainties and assumptions, such as statements regarding our plans, objectives, strategy, expectations, outlook, intentions and projections. Our actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of several factors, including those set forth in "Part I. Item 1A. Risk Factors" of our Annual Report on Form 10-K for the year endedDecember 31, 2021 and in other filings with theSecurities and Exchange Commission (the "SEC"). Please also see the section entitled "Cautionary Note Regarding Forward-Looking Statements" contained in this Form 10-Q. Overview We have a series of advanced-safe-smart platform technologies. Our first-generation technologies enable light fixtures, ceiling fans and other electrically wired products to be installed safely and plugged-in into 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, we have expanded the capabilities of our power-plug product to include 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, BLE and voice control. It allows scheduling, energy savings eco mode, dimming, back-up emergency light, night light, light color changing and much more. Our second-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. Our products are designed to improve all around home and building safety and lifestyle. While we have developed and created working prototypes of our advanced and smart products, we are continuing to refine the product prototypes and expect to begin commercial manufacturing and marketing in the second half of 2022 for the advanced products and the smart universal power-plug, ceiling fans and lighting products and for the Smart Sky Platform. We hold over 60 U.S. and global patents and patent applications and have received a variety of final electrical code approvals, including UL,United Laboratories of Canada (cUL) and Conformité Européenne (CE), and 2017 and 2020 inclusion in the NEC Code Book. OnApril 28, 2022 , we entered into a sublease agreement, pursuant to which we agreed to sublease approximately 3,400 square feet of office space located on the 54th floor ofCarnegie Hall Tower , located at152 West 57th Street ,New York, New York , at a fixed monthly base rent starting at$26,893 for the first year of the sublease. We plan to use theNew York office space to support our general and administrative functions, sales and marketing, and business development. The sublease will commence upon the landlord signing a consent
to the sublease agreement. 19 Results of Operations
SQL TECHNOLOGIES CORP. DISCUSSIONE E ANALISI DA PARTE DELLA DIREZIONE DELLA CONDIZIONE FINANZIARIA E DEI RISULTATI DELLA GESTIONE (modulo 10-Q) 2021
SQL TECHNOLOGIES CORP. DISCUSSIONE E ANALISI DA PARTE DELLA DIREZIONE DELLA CONDIZIONE FINANZIARIA E DEI RISULTATI DELLA GESTIONE (modulo 10-Q) 2021Confronto dei tre mesi trascorsi
For the Three Months Ended Change Between the Months Ended
March 31, March 31,
2022 2021 2022 2021
Revenue $ 6,971 $ 100,185 $ (93,214 ) (93.0 )%
Cost of revenues (31,137 ) (82,508 ) (51,371 ) (62.3 )%
Gross (loss) income (24,166 ) 17,677 (41,843 ) (236.7 )%
Selling, general and
administrative expenses 11,921,943 867,680 11,054,263 NM
Loss from operations (11,946,109 ) (850,003 ) 11,096,106 NM
Other income / (expense)
Interest expense (90,630 ) (136,958 ) (46,328 ) (33.8 )%
Other income, loan
forgiveness 178,250 - 178,250 NM
Interest income 125 22 103 463.6 %
Total other income
(expense), net 87,745 (136,936 ) 244,681 NM %
Net loss (11,858,364 ) (986,939 ) 10,871,425 NM
NM: Not meaningful
Revenue
The decrease in revenues was directly related to the planned reduction of
discontinued inventory as we continued to shift our focus to the development of
our new patented "Smart" platforms and technologies. During 2022 and 2021, we
opted to sell through our existing inventory of discontinued products to
facilitate our planned transition into our new patented product lines.
Cost of Revenues
The cost of revenues consists primarily of inspection fees related to certain
certifications. Revenues are mostly derived from the sale of a small number of
replacement parts and standard canopy kits. The inventory and related costs of
such products are not significant and are not reflected on our balance sheet nor
in the cost of revenues.The reduction in cost of revenues was related to the
decrease in sales, which resulted from our decision to discontinue our old
products and transition to our patented "Smart" platforms and technologies.
20
SQL TECHNOLOGIES CORP. DISCUSSIONE E ANALISI DA PARTE DELLA DIREZIONE DELLA CONDIZIONE FINANZIARIA E DEI RISULTATI DELLA GESTIONE (modulo 10-Q) 2021
Vendite, spese generali ed amministrative
SQL TECHNOLOGIES CORP. DISCUSSIONE E ANALISI DA PARTE DELLA DIREZIONE DELLA CONDIZIONE FINANZIARIA E DEI RISULTATI DELLA GESTIONE (modulo 10-Q) 2021
Le spese di vendita, generali e amministrative consistono principalmente in un’allocazione di sviluppo del prodotto, vendite, finanza, risorse legali e umane, inclusi stipendi, stipendi e benefici, e ammortamenti, inclusi compensi non monetari basati su azioni
The increase in selling, general, and administrative expenses during the three months ended 2022 when compared to the prior year period was primarily due
to the following:
SQL TECHNOLOGIES CORP. DISCUSSIONE E ANALISI DA PARTE DELLA DIREZIONE DELLA CONDIZIONE FINANZIARIA E DEI RISULTATI DELLA GESTIONE (modulo 10-Q) 2021
? Aumento di
principalmente a causa di un maggior numero di azioni ordinarie emesse e opzioni
SQL TECHNOLOGIES CORP. DISCUSSIONE E ANALISI DA PARTE DELLA DIREZIONE DELLA CONDIZIONE FINANZIARIA E DEI RISULTATI DELLA GESTIONE (modulo 10-Q) 2021 concessi per servizi nel trimestre concluso
al periodo dell’anno precedente;
SQL TECHNOLOGIES CORP. DISCUSSIONE E ANALISI DA PARTE DELLA DIREZIONE DELLA CONDIZIONE FINANZIARIA E DEI RISULTATI DELLA GESTIONE (modulo 10-Q) 2021 ? Aumento di
in attesa del lancio delle nostre offerte di prodotti;
? Aumento delle altre spese relative al sostegno dell’ambito delle operazioni pianificate.
Other Income (Expense) The decrease in interest expense in the three months endedMarch 31, 2022 when compared to the prior year period resulted from the lower interest bearing rate associated from the conversion of the Company's line of credit to secured notes payable at the end of fiscal 2021.
L’aumento del condono di altri prestiti a reddito durante i tre mesi è terminato
Liquidità e risorse di capitale
As we develop our revenue base, we have raised additional funds through the sale of our common stock and issuance of debt, including completing our initial public offering inFebruary 2022 for gross proceeds of$23.1 million . We believe that our existing cash will be sufficient to support our working capital and capital expenditure requirements for at least the next 12 months. Our future capital requirements will depend on many factors, including our revenue growth rate, expenditures related to our headcount growth, the timing and the amount of cash received from customers, the expansion of sales and marketing activities, the timing and extent of spending to support development efforts, the price at which we are able to purchase parts to incorporate in our product offerings, the introduction of platform enhancements, and the continuing market adoption of our platforms. We may continue to enter into arrangements to acquire or invest in complementary businesses, products, and technologies. We may, as a result of those arrangements or the general expansion of our business, be required to seek additional equity or debt financing. In the event that we require additional financing, we may not be able to raise such financing on terms acceptable to us or at all. If we are unable to raise additional capital or generate cash flows necessary to expand our operations and invest in continued innovation, we may not be able to compete successfully, which would harm our business, results of operations, and financial condition. 21
Il periodo di tre mesi è terminato
SQL TECHNOLOGIES CORP. DISCUSSIONE E ANALISI DA PARTE DELLA DIREZIONE DELLA CONDIZIONE FINANZIARIA E DEI RISULTATI DELLA GESTIONE (modulo 10-Q) 2021
Abbiamo avuto
Abbiamo usato
? Compensazione basata su azioni di
? Aumento di risconti attivi di
debiti che saranno sostanzialmente rilevati e pagati in sede fiscale
2022.
Abbiamo usato
We generated$21 million in financing activities which were primarily related to proceeds we generated from the issuance of shares of common stock pursuant
to our initial public offering.
Il periodo di tre mesi è terminato
Abbiamo avuto
Abbiamo usato
? Compensazione basata su azioni di
? Aumento di risconti attivi di
$320,000 which were recognized and paid during fiscal 2021.
Abbiamo usato
We generated$1.0 million in financing activities which were primarily related to proceeds we generated from the issuance of shares of common stock pursuant to a private placement of$800,000 . A majority of our sales do not require us to take delivery of inventory. Production of the Sky technology and products will commence upon receipt of FOB (free on board) purchase contracts from customers. Upon the completion of each purchase contract, the finished products will be transported from the manufacturer directly to the designated destination, upon which the products become the property of the customer. Future Impact of COVID-19
The negative impact of the COVID-19 pandemic on companies continues and we are currently unable to assess with certainty the broad effects of COVID-19 on our future business. As ofMarch 31, 2022 , we had no material assets that would be subject to impairment or change in valuation due to COVID-19. Critical Accounting Policies Our significant accounting policies are disclosed in Note 2 to our consolidated financial statements for the year endedDecember 31, 2021 contained in our Annual Report on Form 10-K for the year endedDecember 31, 2021 . The following is a summary of those accounting policies that involve significant estimates and judgment of management. Use of Estimates
La preparazione del bilancio in conformità con i GAAP richiede alla direzione di effettuare stime e ipotesi che influiscano sugli importi riportati nel nostro bilancio e nelle note di accompagnamento.
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. 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 non-conforming events. Accordingly, actual results could differ significantly from estimates.
Valore equo degli strumenti finanziari
Disclosures about fair value of financial instruments require disclosure of the fair value information, whether or not recognized in the balance sheet, where it is practicable to estimate that value. As ofMarch 31, 2022 andDecember 31, 2021 , we believe the amounts reported for cash, prepaid expenses, accounts payable, accounts payable - related party, accrued expenses and other current liabilities, accrued interest, notes payable and convertible note payable approximate fair value because of their short maturities. 22
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 established a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). These tiers include:
? Livello 1, definito come input osservabili come prezzi quotati per identici
strumenti in mercati attivi;
? Livello 2, definito come input diversi dai prezzi quotati in mercati attivi che sono
osservabili direttamente o indirettamente come i prezzi quotati per simili
strumenti in mercati attivi o prezzi quotati per identici o simili
strumenti in mercati non attivi; e
? Livello 3, definito come input non osservabili in cui scarsi o nessun dato di mercato
esiste, richiedendo quindi a un’entità di sviluppare le proprie ipotesi, come ad esempio
valutazioni derivate da tecniche di valutazione in cui una o più significative
inputs or significant value drivers are unobservable. Stock-Based Compensation Stock-based compensation is accounted for based on the requirements of ASC 718 - "Compensation-Stock Compensation", which requires recognition in the financial statements of the cost of employee, non-employee and director services received in exchange for an award of equity instruments over the period the employee or director is required to perform the services in exchange for the award (presumptively, the vesting period). The ASC also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award. Stock-based compensation is measured at the grant date based on the value of the award granted using the Black- Scholes option pricing model based on projections of various potential future outcomes and recognized over the period in which the award vests. For stock awards no longer expected to vest, any previously recognized stock compensation expense is reversed in the period of termination. The stock-based compensation expense is included in general and administrative expenses. Revenue Recognition
Contiguiamo i ricavi in conformità con l’aggiornamento dei principi contabili n. 2014-09, “Ricavi da contratti con i clienti” (Tema 606).
In base all’argomento 606, i ricavi sono rilevati quando il controllo dei beni o servizi Promessi viene trasferito ai nostri clienti, in un importo che riflette il corrispettivo che ci aspettiamo di avere diritto in cambio di tali beni o servizi.
Determiniamo il riconoscimento dei ricavi attraverso i seguenti passaggi:
? identification of the contract, or contracts, with a customer; ? identification of the performance obligations in the contract; ? determination of the transaction price;
? allocazione del prezzo della transazione alle performance obligation in
contrarre; e
? riconoscimento dei ricavi quando, o come, adempiamo un’obbligazione di fare.
Dichiarazioni contabili recenti
Although there are several new accounting pronouncements issued or proposed by theFinancial Accounting Standards Board , which we have adopted or will adopt, as applicable, we do not believe any of these accounting pronouncements has had or will have a material impact on our financial position or results of operations. 23
© Edgar Online, fonte