8-K

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the SecuritiesExchange Act of 1934

Date of Report (Date of earliest event reported):March 24, 2025

SKYX PLATFORMS CORP.

(Exact name of Registrant as Specified in its Charter)

Florida	001-41276	46-3645414
(State<br> or other jurisdiction<br><br> <br>of<br> incorporation)	(Commission<br><br> <br>File<br> Number)	(IRS<br> Employer<br><br> <br>Identification<br> No.)

2855W. McNab Road

PompanoBeach, Florida 33069

(Address of principal executive offices, including zip code)

Registrant’s telephone number, including area code: (855) 759-7584

NotApplicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written<br> communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting<br> material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement<br> communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement<br> communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title<br> of each class	Trading<br> symbol(s)	Name<br> of each exchange on which registered
Common Stock, no par value per share	SKYX	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item2.02 Results of Operations and Financial Condition

On March 24, 2025, SKYX Platforms Corp. (d/b/a Sky Technologies) (the “Company”) issued a press release announcing its financial results for the quarter ended September 30, 2024. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

Pursuant to the rules and regulations of the Securities and Exchange Commission, such exhibit and the information set forth therein and in this Item 2.02 have been furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liability under that section nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing regardless of any general incorporation language.

Item9.01 Financial Statements and Exhibits

Exhibit Number	Description
99.1	Earnings Press Release, dated March 24, 2025.
104	Cover<br> Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		SKYX PLATFORMS CORP.
Date:	March 24, 2025	By:	/s/ Leonard J. Sokolow
		Name:	Leonard<br> J. Sokolow
		Title:	Co-Chief<br> Executive Officer

Exhibit99.1

Exhibit 99.1 Earnings Press Release, dated March 24, 2025

SKYX Reports 48% Revenue Growth in 2024 — From $58.8 Million in 2023 to $86.3 Million in 2024

Salesof SKYX’s Advanced and Smart Home Related Products Surge Over 1,000%; SKYX Expects its products to be in 20,000 Units/Homes byQ1 2025 and an Additional Tens of Thousands of Units/Homes in 2025

CompanyExpects Significant Projects and Orders and to Become Cash Flow Positive in Second Half of 2025

SKYXAchieves Revenue Growth in Four Consecutive Quarters for 2024

Q1:$19M | Q2: $21M | Q3: $22.2M | Q4: $23.7M Record Sales

SKYX’sSafety Code Standardization Team Anticipates Support from Additional Safety Organizations and Leading Members for a Safety MandatoryStandardization of its Ceiling Technology

MIAMI, March 24, 2025 (GLOBE NEWSWIRE) — SKYX Platforms Corp. (NASDAQ: SKYX) (d/b/a SKYX Technologies) (the “Company” or “SKYX”), an award winning highly disruptive advanced and smart home platform technology company with over 97 U.S. and Global pending and issued patents and a portfolio of over 60 lighting and home décor websites, with a mission to make homes and buildings become advanced-safe-smart instantly as the new standard, today reported its financial and operational results for the Fourth Quarter and Fiscal Year ended December 31, 2024.

●	SKYX<br> will hold a conference call today, March 24, 2025, at 4:30 pm, Eastern Time, to discuss the<br> results. See below for dial-in information.

Fourth Quarter 2024 and Subsequent Highlights

●	SKYX<br> Reports 48% Growth in 2024 Revenues From $58.8 million in 2023 to $86.3 million in 2024
●	Generated<br> a record $23.7 million in revenue in Q-4 2024 compared to $22.2M in Q-4 2023.
●	Reported<br> $15.5 million in cash, cash equivalents, and restricted cash, as of December 31, 2024, compared<br> to $13.0 million as of September 30, 2024.
●	In<br> March 2025, the Company secured additional $1.45 million funding including from a strategic investor<br> through its $2.00 Series A-1 Preferred Offering.
●	As<br> common with companies such as ours when sales are converted into cash rapidly, often referred<br> to as the “Dell Working Capital Model”, the Company continues to leverage its<br> trades payable to finance its operations, to enhance its cash position and to lower its cost<br> of capital.
●	Management<br> anticipates significant orders and to become cash flow positive during the second half of<br> 2025.
●	Reported<br> a reduction in General and Administrative expenses by $5.7 million to $31.4 million as of<br> December 31, 2024 from $37.0 million as of December 31, 2023.
●	SKYX<br> reported a $3.3 million decrease in total liabilities and a reduction of $3.9 million in<br> net loss.
●	Net<br> loss per share decreased by $0.09 to ($0.36) per share in 2024 compared to ($0.45) in 2023.<br> Adjusted EBITDA loss per share, a non-GAAP measure, amounted to $(0.13) per share in 2024,<br> as compared to $(0.17) per share, in 2023.
●	In<br> 2024, Company Secured $11 million equity preferred stock investment led by the Shaner Group,<br> a leading Marriott hotel owner with over 70 hotels, including significant insider investing<br> by SKYX’s President Steve Schmidt, who invested $500,000, Co-CEO Lenny Sokolow and<br> Co-CEO John Campi, who each invested $250,000. Preferred investment representing $2.00 per<br> share of common stock with NO warrants.

Market Acceptance and Recent Events:

●	Company<br> expects to continue increasing units and grow its revenue to pro, builders, and retail segment.<br> Company continues to grow its market penetration of its advanced and smart plug & play<br> products, expecting its products to be in 20,000 U.S. and Canadian units/homes by the end<br> of Q-1 2025.
●	Company<br> expects its products to be in tens of thousands additional homes, incrementally in 2025.
●	SKYX’s<br> technologies provide opportunities for recurring revenues through interchangeability, upgrades,<br> monitoring, and subscriptions.
●	Company<br> is focused on the “Razor & Blades” model and its product range includes its<br> advanced ceiling electrical outlet (Razor) and its advance and smart home plug & play<br> products (Blades) including lighting, Chandeliers/Pendants, ceiling fans, recessed lights,<br> down lights, exit signs, emergency lights, holiday/kids/themes lights, indoor/outdoor wall<br> lights among others smart products.
●	Company<br> continues to utilize its e-commerce platform of over 60 websites for lighting and home décor<br> to educate and enhance its market penetration to both retail and professional segments.
●	SKYX<br> collaborates with Home Depot for its Advanced and Smart Plug & Play Products for both<br> retail and professional segments. SKYX’s product offering will include a variety of<br> its Advanced and Smart Plug & Play Products including Retrofit Kits, Smart Light Fixtures,<br> Smart Ceiling Fans, Ceiling Outlet Receptacles, Recessed Lights and more.
●	Company<br> collaborates with Wayfair for Its Advanced and Smart Plug & Play Products for both retail<br> and professional segments. SKYX’s product offering will include a variety of its advanced<br> and Smart Plug & Play products including Retrofit Kits, Smart Light Fixtures, Smart Ceiling<br> Fans, Ceiling Outlet Receptacles, Recessed Lights and more.
●	SKYX<br> collaborates with U.S. and world leading lighting companies including Kichler Quoizel, European<br> leading company, EGLO, and worlding lighting manufacturer Ruee.
●	Collaborated<br> with Cavco Homes, a leading U.S. prefabricated home manufacturer, for integrating our advanced<br> and smart plug & play technologies into Cavco’s high-end premium homes shown at<br> the builder show. Cavco is a public company that has sold nearly one million homes and continues<br> to deliver close to 20,000 annually.
●	Three<br> luxury developments by Forte Developments, including an 80-story high-rise in Miami’s<br> Brickell District and projects in Clearwater Beach and Jupiter, Florida, will feature SKYX’s<br> technology. More than 12,000 smart plug & play products, including ceiling outlets, lighting,<br> fans, and emergency fixtures, will be supplied across 400+ units.
●	A<br> 1,000-unit mixed-use development by Jeremiah Baron Companies will incorporate smart plug<br> & play technologies, with 140 units receiving initial product supply. This product rollout<br> will include ceiling outlets, lighting, fans, and emergency fixtures, with deliveries continuing<br> throughout construction.
●	A<br> strategic partnership with JIT Electrical Supply, a leading builder supplier, will expand<br> SKYX’s footprint in electrical, lighting, and ceiling fan markets. JIT, which has supplied<br> over 100,000 U.S. homes, will distribute SKYX’s lighting solutions, ceiling fans, recessed<br> lights, emergency lights, exit signs, and indoor/outdoor wall lights beginning early 2025.
●	Huey<br> Long, former Amazon E-Commerce Director and executive at Walmart and Ashley Furniture, has<br> joined as head of SKYX’s e-commerce platform. He will collaborate with the existing<br> team to expand market penetration across 60 lighting and home décor websites and other<br> key e-commerce channels in the U.S. and Canada.
●	Greg<br> St. John, former Home Depot lighting head and CEO of Eglo and Cordelia Lighting, has been<br> appointed President of Lighting, Fans, and Smart Home Products. With 30+ years of industry<br> experience, he will lead expansion efforts in retail, homebuilder, and commercial markets,<br> overseeing partnerships with Home Depot, Wayfair, and other major retailers.

Safety Standardization Mandatory Code / Insurance Specification and Recommendation

●

SKYX’s<br> code team, led by industry veterans Mark Earley, former head of the National Electrical Code<br> (NEC), and Eric Jacobson, former President and CEO of the American Lighting Association (ALA).<br> Company’s safety Code Standardization team believes it will achieve assistance from<br> additional safety organizations with its code mandatory safety standardization efforts based<br> on the product’s significant safety aspects. Mr. Earley and Mr. Jacobson were instrumental<br> in numerous code and safety changes in both the electrical and lighting industries. Both<br> strongly believe that, in light of the Company’s standardization progress including<br> its product specification approval voting for by ANSI / NEMA (American National Standardization<br> Institute / National Electrical Manufacturers Association) and being voted into 10 segments<br> in the NEC Code Book, it has met the necessary safety conditions for becoming a ceiling safety<br> standardization requirement for homes and buildings.

●

Insurance<br> Companies. Company strongly believes its products can save insurance companies many billions<br> of dollars annually by reducing fires, ladder falls, and electrocutions among other things.<br> Management expects that once it completes an entire range and variations of its safe advanced<br> plug & play products it will start being recommended by insurance companies.

2024 Financial Results:

Revenue in 2024 increased to a record $86.3 million including record sales of $23.7 million which were realized in the fourth quarter including e-commerce sales, smart home products and advanced plug & play products. Gross profit in 2024 increased to $24.6 million, or 28% of revenue. Gross profit was positively impacted by the gross profit from the acquisition of the Belami e-commerce platform, which contained over 60 websites for lighting and home décor. Cash, cash equivalents and restricted cash, amounted to $15.5 million as of December 31, 2024, as compared to 13.0 million as of September 30, 2024. Cash used in operating activities for 2024 amounted to $18.3 million, as compared to $13.0 million in 2023. Adjusted EBITDA loss per share, a non-GAAP measure, amounted to $(0.13) per share in 2024, as compared to $(0.17) per share, in 2023.

The Company’s annual report on Form 10-K will be filed with the SEC and will be made available on the Company’s investor relations website: https://ir.skyplug.com/sec-filings/.

Management Commentary

Our year ended December 31, 2024 was highlighted by our four quarters of consecutive growth including sales and rollout of our advanced ceiling smart and standard plug & play platform products on many leading U.S. and Canadian websites. We believe we have accelerated our cadence of sales with a robust gross margin profile, notably managing the cash burn of SKYX. Our e-commerce platform with over 60 websites is expected to continue providing additional cash flow to the Company. Management anticipates that the Company will become cash flow positive during the second half of 2025.

About SKYX Platforms Corp.

As electricity is a standard in every home and building, our mission is to make homes and buildings become safe-advanced and smart as the new standard. SKYX has a series of highly disruptive advanced-safe-smart platform technologies, with over 97 U.S. and global patents and patent pending applications. Additionally, the Company owns over 60 lighting and home decor websites for both retail and commercial segments. Our technologies place an emphasis on high quality and ease of use, while significantly enhancing both safety and lifestyle in homes and buildings. We believe that our products are a necessity in every room in both homes and other buildings in the U.S. and globally. For more information, please visit our website at https://skyplug.com/ or follow us on LinkedIn.

Forward-Looking Statements

Certain statements made in this press release are not based on historical facts, but are forward-looking statements. These statements can be identified by the use of forward-looking terminology such as “aim,” “anticipate,” “believe,” “can,” “could,” “continue,” “estimate,” “expect,” “evaluate,” “forecast,” “guidance,” “intend,” “likely,” “may,” “might,” “objective,” “ongoing,” “outlook,” “plan,” “potential,” “predict,” “probable,” “project,” “seek,” “should,” “target” “view,” “will,” or “would,” or the negative thereof or other variations thereon or comparable terminology, although not all forward-looking statements contain these words. These statements reflect the Company’s reasonable judgment with respect to future events and are subject to risks, uncertainties and other factors, many of which have outcomes difficult to predict and may be outside our control, that could cause actual results or outcomes to differ materially from those in the forward-looking statements. Such risks and uncertainties include statements relating to the Company’s ability to successfully launch, commercialize, develop additional features and achieve market acceptance of its products and technologies and integrate its products and technologies with third-party platforms or technologies; the Company’s ability to achieve positive cash flows; the Company’s efforts and ability to drive the adoption of its products and technologies as a standard feature, including their use in homes, hotels, offices and cruise ships; the Company’s ability to capture market share; the Company’s estimates of its potential addressable market and demand for its products and technologies; the Company’s ability to raise additional capital to support its operations as needed, which may not be available on acceptable terms or at all; the Company’s ability to continue as a going concern; the Company’s ability to execute on any sales and licensing or other strategic opportunities; the possibility that any of the Company’s products will become National Electrical Code (NEC)-code or otherwise code mandatory in any jurisdiction, or that any of the Company’s current or future products or technologies will be adopted by any state, country, or municipality, within any specific timeframe or at all; risks arising from mergers, acquisitions, joint ventures and other collaborations; the Company’s ability to attract and retain key executives and qualified personnel; guidance provided by management, which may differ from the Company’s actual operating results; the potential impact of unstable market and economic conditions on the Company’s business, financial condition, and stock price; and other risks and uncertainties described in the Company’s filings with the Securities and Exchange Commission, including its periodic reports on Form 10-K and Form 10-Q. There can be no assurance as to any of the foregoing matters. Any forward-looking statement speaks only as of the date of this press release, and the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by U.S. federal securities laws.

Non-GAAP Financial Measures

Management considers earnings (loss) before interest, taxes, depreciation and amortization, or EBITDA, as adjusted, an important indicator in evaluating the Company’s business on a consistent basis across various periods. Due to the significance of non-recurring items, EBITDA, as adjusted, enables management to monitor and evaluate the business on a consistent basis. The Company uses EBITDA, as adjusted, as a primary measure, among others, to analyze and evaluate financial and strategic planning decisions regarding future operating investments and potential acquisitions. The Company believes that EBITDA, as adjusted, eliminates items that are not part of the Company’s core operations, such as interest expense, amortization expense, and impairment charges associated with intangible assets, or items that do not involve a cash outlay, such as share-based payments and non-recurring items, such as transaction costs. EBITDA, as adjusted, should be considered in addition to, rather than as a substitute for, pre-tax income (loss), net income (loss) and cash flows used in operating activities. This non-GAAP financial measure excludes significant expenses that are required by GAAP to be recorded in the Company’s financial statements and is subject to inherent limitations. Investors should review the reconciliation of this non-GAAP financial measure to the comparable GAAP financial measure. Investors should not rely on any single financial measure to evaluate the Company’s business.

Investor Relations Contact:

Jeff Ramson

PCG Advisory

jramson@pcgadvisory.com

Dial-In Information:

SKYX Participating Members will Include:

●	Rani<br> Kohen, Founder and Executive Chairman
●	Steve<br> Schmidt, SKYX President, (Former CEO of Nielsen Data Corporation and former President of<br> Office Depot International)
●	Lenny<br> Sokolow, Co-CEO
●	Marc<br> Boisseau, CFO

SKYX Platforms – Q4 2024 and 2024 Full Year Corporate Update Call

Date: Monday, March 24, 2025

Time: 4:30 p.m. Eastern Time

U.S./Canada Dial-in: 1-412-317-5180

International Dial-in: 1-844-825-9789

Call me™ link for instant telephone access to the event: https://callme.viavid.com/?$Y2FsbG1lPXRydWUmcGFzc2NvZGU9JmluZm89Y29tcGFueSZyPXRydWUmYj0xNg==

Call me™ Passcode: 6590713

Webcast link: https://viavid.webcasts.com/starthere.jsp?ei=1713008&tp_key=5deb952af5

Please dial in at least 10 minutes before the start of the call to ensure timely participation.

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SKYXPlatforms Corp.

ConsolidatedBalance Sheets

			December 31, 2023
Assets
Current assets:
Cash and cash equivalents	12,639,441		$	16,810,983
Restricted cash	—			2,750,000
Account receivable, net	2,415,314			3,384,976
Inventory	3,785,346			3,425,734
Deferred cost of revenues	223,214			224,445
Prepaid expenses and other assets	1,311,135			721,717
Total current assets	20,374,450			27,317,855
Long-term assets:
Furniture and equipment, net	1,349,993			436,587
Restricted cash	2,861,054			2,869,270
Right of use assets	19,750,030			21,214,652
Intangibles, definite life	5,189,713			8,141,032
Goodwill	16,157,000			16,157,000
Other assets	204,807			204,807
Total long-term assets	45,512,597			49,023,348
Total Assets	65,887,047		$	76,341,203
Liabilities and Stockholders’ Equity (Deficit)
Current liabilities:
Accounts payable and accrued expenses	13,235,221		$	12,388,475
Notes payable, current	4,011,168			5,724,129
Operating lease liabilities, current	2,350,868			1,898,428
Royalty obligations, current	800,000			800,000
Consideration payable	—			730,999
Deferred revenues	1,495,846			1,475,519
Convertible notes, current related parties	950,000			825,000
Convertible notes, current	3,292,408			350,000
Total current liabilities	26,135,511			24,192,550
Long term liabilities:
Long term accrued expenses	1,044,708			744,953
Notes payable	504,129			1,016,924
Consideration payable	—			3,038,430
Operating lease liabilities	20,376,498			22,267,558
Convertible notes	7,872,773			5,758,778
Royalty obligations	900,000			3,100,000
Total long-term liabilities	30,698,108			35,926,643
Total liabilities	56,833,619			60,119,193
Temporary equity:
Series A Preferred Stock 400,000 shares authorized and 200,000 shares outstanding, no par value at December 31, 2024	5,000,000			—
Stockholders’ Equity:
Series A-1 Preferred Stock 400,000 shares authorized and 240,000 shares outstanding, no par value at December 31, 2024	6,000,000			—
Common stock and additional paid-in capital: 0 par value, 500,000,000 shares authorized; 103,358,975 and 93,473,433 shares issued and outstanding at December 31, 2024, and December 31, 2023, respectively	179,837,253			162,025,024
Accumulated deficit	(181,783,825	)		(145,803,014	)
Accumulated other comprehensive loss	—			—
Total stockholders’ equity	4,053,428			16,222,010
Non-controlling interest	—			—
Total equity	4,053,428			16,222,010
Total Liabilities, Temporary Equity, and Stockholders’ Equity	65,887,047		$	76,341,203

All values are in US Dollars.

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SKYXPlatforms Corp.

ConsolidatedStatements of Operations and Comprehensive Loss

	Year ended December 31,
	2024			2023
Revenue	$	86,276,876		$	58,785,762
Operating Costs
Cost of revenues		61,682,934			40,749,913
Selling and marketing expenses		25,353,172			18,805,069
General and administrative expenses		31,353,009			37,055,986
Total operating expenses, net		118,389,115			96,610,968
Loss from operations		(32,112,239	)		(37,825,206	)
Other income / (expense)
Interest expense - related party		(151,900	)		(76,042	)
Interest expense, net		(3,904,005	)		(3,033,265	)
Gain on extinguishment of debt		400,000			1,201,857
Total other expense, net		(3,655,905	)		(1,907,450	)
Net loss		(35,768,144	)		(39,732,656	)
Other comprehensive income (loss):
Preferred dividends - related party		(20,000	)		—
Preferred dividends		(192,667	)		—
Net loss attributed to common stockholders	$	(35,980,811	)	$	(39,732,656	)
Other comprehensive loss:
Unrealized loss on debt securities		—			62,147
Net comprehensive loss attributed to common stockholders	$	(35,980,811	)	$	(39,670,509	)
Net loss per share - basic and diluted	$	(0.36	)	$	(0.45	)
Weighted average number of common shares outstanding – basic and diluted		99,766,866			88,370,852

Theaccompanying notes are an integral part of the consolidated financial statements.

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ConsolidatedStatements of Stockholders’ Equity

	For the year ended December 31,
	2024			2023
Series A-1 Preferred stocks
Balance, beginning of period		—			—
Preferred stock issued pursuant to offerings		240,000			—
Balance, December 31,		240,000			—
Series A-1 Preferred stocks
Balance, beginning of period	$	—		$	—
‘Preferred stock issued pursuant to offerings	$	6,000,000		$	—
Balance, December 31,	$	6,000,000		$	—
Shares of common stock
Balance, beginning of year		93,473,433			82,907,541
Common stock issued pursuant to offerings		3,535,067			4,359,832
Common stock issued pursuant to services		4,369,031			2,827,662
Common stock issued pursuant to conversion of preferred stock		—			880,400
Common stock issued pursuant to exercise of options and warrants		128,023			—
Common stock issued pursuant to acquisition		1,853,421			1,923,285
Common stock issued pursuant to extinguishment of debt		—			574,713
Common stock issued pursuant to antidilutive provisions		—			—
Balance, end of year		103,358,975			93,473,433
Common stock and paid-in capital
Balance, beginning of year	$	162,025,024		$	114,039,638
Common stock issued pursuant to offerings, net of costs		4,330,295			9,289,857
Common stock issued pursuant to services		13,474,433			17,977,252
Common stock issued pursuant to conversion of preferred stock		—			220,100
Debt discount		—			5,569,978
Common stock issued pursuant to acquisition		—			12,887,968
Common stock issued pursuant to extinguishment of debt					2,040,231
Common stock issued pursuant to exercise of options and warrants		7,501			—
Common stock issued pursuant to antidilutive provisions		—			—
Balance, end of year	$	179,837,253		$	162,025,024
Accumulated deficit
Balance, beginning of year	$	(145,803,014	)	$	(106,070,358	)
Net loss		(35,768,144	)		(39,732,656	)
Preferred dividends		(212,667	)		—
Balance, end of year	$	(181,783,825	)	$	(145,803,014	)
Accumulated other comprehensive loss
Balance, beginning of year	$	—		$	(62,147	)
Other comprehensive loss		—			62,147
Balance, end of period	$	—		$	—
Total Stockholders’ equity	$	4,053,428		$	16,222,010

Theaccompanying notes are an integral part of the consolidated financial statements.

ConsolidatedStatements of Cash Flows

	For the year ended December 31,
	2024			2023
Cash flows from operating activities:
Net loss	$	(35,768,144	)	$	(39,732,656	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		4,066,957			2,885,856
Amortization of debt discount		1,211,974			1,365,789
Gain on forgiveness of debt		(400,000	)		(1,201,857	)
Share-based payments		13,474,433			17,977,252
Impairment		1,118,750
Change in operating assets and liabilities:
Inventory		(359,612	)		283,911
Accounts receivable		969,662			(863,217	)
Prepaid expenses and other assets		(628,461	)		(218,127	)
Deferred charges		1,231			1,258,636
Deferred revenues		20,327			(453,514	)
Operating lease liabilities		(2,101,316	)		(687,849	)
Accretion operating lease liabilities		—			890,474
Other assets		—			—
Royalty obligation		(800,000	)		1,262,000	)
Accounts payable and accrued expenses		933,829			4,235,229
Net cash used in operating activities		(18,260,370	)		(12,998,073	)
Cash flows from investing activities:
Purchase of debt securities		—			(136,033	)
Proceeds from disposition of debt securities		—			7,572,136
Acquisition, net of cash acquired		(750,000	)		(4,206,200	)
Purchase of property and equipment		(981,428	)		10,194
Net cash provided by (used in) investing activities		(1,731,428	)		3,240,097
Cash flows from financing activities:
Proceeds from issuance of common stock- offerings and exercise of options		4,426,222			9,820,846
Placement costs		(88,426	)		(530,989	)
Proceeds from line of credit		500,000			6,500,000
Proceeds from issuance of convertible notes		—			10,350,000
Proceeds from issuance of preferred stocks - related party		1,000,000			—
Proceeds from issuance of preferred stocks		10,000,000			—
Principal repayments of notes payable		(2,775,756	)		(3,413,225	)
Net cash provided by financing activities		13,062,040			22,726,632
Change in cash and cash equivalents, and restricted cash		(6,929,758	)		12,968,656
Cash, cash equivalents and restricted cash at beginning of year		22,430,253			9,461,597
Cash, cash equivalents and restricted cash at end of year	$	15,500,495		$	22,430,253
Cash paid during period for:
Interest	$	3,281,597		$	1,094,458
Taxes	$	—		$	—
Supplementary disclosure of non-cash financing activities:
Substitution of consideration payable to convertible notes	$	3,117,408		$	—
Substitution of royalty payable to convertible notes		1,000,000			—
Accrued dividends payable		212,667			—
Business acquisition:
Assets acquiring excluding identifiable intangible assets and goodwill and cash		—			7,090,094
Identifiable intangible assets and goodwill>		—			19,755,903
Liabilities assumed and consideration payable		—			19,993,525
Debt discount		—			5,569,978
Common stock issued pursuant to antidilutive provisions		—			—
Fair value of shares issued pursuant to acquisition		—			7,327,716
Common stock pursuant to extinguishment of debt		—			2,040,231
Right-of-use assets and operating lease liabilities		662,698			—

Non-GAAPFinancial Measures

Management considers earnings (loss) before interest, taxes, depreciation and amortization, or EBITDA, as adjusted, an important indicator in evaluating our business on a consistent basis across various periods. Due to the significance of non-recurring items, EBITDA, as adjusted, enables our management to monitor and evaluate our business on a consistent basis. We use EBITDA, as adjusted, as a primary measure, among others, to analyze and evaluate financial and strategic planning decisions regarding future operating investments and potential acquisitions. We believe that EBITDA, as adjusted, eliminates items that are not part of our core operations, such as interest expense and amortization and impairment expense associated with intangible assets, or items that do not involve a cash outlay, such as share-based payments, and non-recurring items, such as transaction costs. EBITDA, as adjusted, should be considered in addition to, rather than as a substitute for, pre-tax income (loss), net income (loss) and cash flows used in operating activities. This non-GAAP financial measure excludes significant expenses that are required by GAAP to be recorded in our financial statements and is subject to inherent limitations. Investors should review the reconciliation of this non-GAAP financial measure to the comparable GAAP financial measure included below. Investors should not rely on any single financial measure to evaluate our business.

	For the year ended <br> December 31,
	2024			2023
Net loss	$	(35,768,144	)	$	(39,732,656	)
Share-based payments		13,474,433			17,977,252
Interest expense		4,055,905			3,109,307
Impairment		1,118,750			-
Depreciation, amortization		4,066,957			2,885,856
Transaction costs		-			516,601
EBITDA, as adjusted	$	(13,052,099	)	$	(15,243,640	)