SKYX Platforms Corp. Debt Disclosure
NOTE 5 DEBTS
The following table presents the details of the principal outstanding:
| December 31, 2024 | December 31, 2023 | APR at December 31, 2024 | Maturity | Collateral | ||||||||||||
| Convertible Notes (b)(c), (d) | 15,592,408 | 11,525,000 | 0.00 – 10.00 | % | September 2023-March 2028 | Substantially all company assets | ||||||||||
| Notes payable to financial institutionsa) | 4,515,297 | 6,493,126 | 3.75-8.5 | August 2025-November 2052 | Substantially all company assets | |||||||||||
| Notes payable to Belami sellers | 247,927 | 4.86 | % | April 2024 | – | |||||||||||
| Total | $ | 20,107,705 | $ | 18,266,053 | ||||||||||||
| Unamortized debt discount | (3,477,227 | ) | (4,591,222 | ) | ||||||||||||
| Debt, net of Unamortized debt Discount | 16,630,478 | 13,674,831 | ||||||||||||||
| For the year period ended | ||||||||
| December 31, 2024 | December 31, 2023 | |||||||
| Interest expense, net | 4,055,905 | 3,109,307 | ||||||
Interest expense is recognized as net of interest income which amounted to $ 299,452 and $ 451,703 during 2024 and 2023, respectively.
As of December 31, 2024, the expected future principal payments for the Company’s debt are due as follows:
| Twelve months ended December 31, 2025 | 8,253,576 | |||
| Twelve months ended December 31, 2026 | 368,452 | |||
| Twelve months ended December 31, 2027 | 11,352,471 | |||
| Twelve months ended December 31, 2028 | 4,032 | |||
| Twelve months ended December 31, 2029 and thereafter | 129,174 | |||
| $ | 20,107,705 |
| (a) | The unpaid principal bears annual interest at the Wall Street Journal Prime Rate plus 1.75% per year. |
| (b) | Included in Convertible Notes are loans provided to the Company from two directors and an officer. The notes each have the following terms: three-year subordinated convertible promissory note of principal face amounts. Subject to other customary terms, one of the convertible promissory note of $600,000 payable to a director matured in 2023, and the other remaining convertible promissory notes mature in May 2025, bear interest at an annual rate of 6% through December 2023 and 10% thereafter, which is payable annually in cash or common stock, at the holder’s discretion. At any time after issuance and prior to or on the maturity date, the notes are convertible at the option of the holder into shares of common stock at a conversion price ranging from $3 to $15 per share. | |
| (c) | During 2023, the Company issued convertible promissory notes for $10.4 million. As an inducement to enter the financing transactions, the Company issued 1,391,667 warrants to the noteholders at an adjusted exercise price of $2.70 per warrant. The Company recorded a debt discount aggregating $5.6 million which was recognized as debt discount and additional paid-in capital in the accompanying balance sheet. The Company recognized $ 835,496 as amortized debt discount during 2024, and it is reflected as interest expense in the accompanying unaudited consolidated statement of operations. Only the convertible promissory notes issued during fiscal 2023 are secured by substantially all of the assets of the Company. Additionally, the convertible promissory notes include a $1.0 million note payable to GE issued in April 2024. The convertible note is due in April 2027, does not bear interest and is convertible at a price of $1.07 per share. | |
| (d) | On March 29, 2024, the Company and the Belami sellers entered into a letter agreement modifying certain obligations under the Belami stock purchase agreement. In connection with the letter agreement, the Company issued convertible promissory notes to each of the sellers (the “Seller Note(s)”) in substitution of an aggregate of $3,117,408 in cash due to the sellers on the first anniversary of the closing. Each seller received a Seller Note in an amount of $1,039,303 on the same date. In addition to other customary terms, the Seller Notes bear annual interest at 10%, with interest and principal coming due on May 16, 2025, and can be converted by the Sellers at any time at $3.00 per share of our common stock. |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Mar 24, 2025 | Showing above |
| 2017 | Apr 2, 2018 | |
| 2016 | Mar 31, 2017 | |
| 2015 | Mar 30, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.