SKYX Platforms Corp

ITEM 1A. RISK FACTORS

There have been no material changes from the risk factors set forth in Part I. Item 1A. Risk Factors of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, other than as noted below. Our business, operations and financial results are subject to various risks and uncertainties that could materially adversely affect our business, results of operations, financial condition, and the trading price of our common stock. You should carefully read and consider the risks and uncertainties included in the report referenced above, together with all of the other information in such report and this Form 10-Q, including the section titled Managements Discussion and Analysis of Financial Condition and Results of Operations and our consolidated financial statements and related notes, and other documents that we file with the SEC. The risks and uncertainties described in these reports may not be the only ones we face, and the disclosure of any risk factor should not be interpreted to imply that the risk has not already materialized. The factors discussed in these reports, among others, could cause our actual results to differ materially from historical results and those expressed in forward-looking statements made by us or on our behalf in filings with the SEC, press releases, communications with investors, and oral statements.

We may face exposure to foreign currency exchange rate fluctube adversely impacted by monetary and trade policies.

Monetary and trade policies impact in varying degrees our industry market participants ( from manufacturer to user). The reaction(s) by the market participants to such policies or changes in policies may impact our operations.

 While weall market participants react to such policies, very few economists have historically transacted in U.S. dollars with tbeen able to accurately forecast the short-term impact of the trade policies in particular. Relatively high interest rates and rapidly changing trade policies and postures create different reactions from the majority ofrket participants. For the most part so far, our custommanufacturers andhave suppliers, we have transacbstantially reduced their prices to offset the increased tariffs related in some foreign currencies, such as tto the products we market. Also, a significant portion of the products we market are manufactured in the United States. The [Chinese Renminbi], and may transact in addimanufacturers we use are all looking at alternatives to move away their productional foreign currencies in from China. Some of the futhird-party manufacture. Accordingly, changes in rs we use are located in countries which are not severely impacted by the value of foreign currencies relative ttrade policies postures. We are also looking at repatriating the manufacturing of certain components and assembly of our smart and advanced products to the U.S. dollar may affect our revenue nited States. Accordingly, with a few exceptions, we do not believe that there will be increased pressure from customer demand operating results. As a result of such foreign currency exchange rate fluctuations, it could be more difficult to detect underlying trends in our business and os to reduce our gross profit per unit. There are no guarantees that it will remain so. Changing trade policies and reactions by market participants are impossible to predict at this point. We believe that the macroeconomic conditions in the United States will improve once interest rates are lowered and trade policies are effective and predictable. Impact from the monetary and trade policies, such as tariffs, increases in interest rates, supply and overhead costs and transportation costs, may adversely affect our operating results. In addition, to the extent that flu, and we may not be able to offset increased costs with increased sales price per unit, particularly as we work toward commercial manufactuations in currency exchange rates cause our operating rring of our products. Although we do not believe that inflation has had a material impact on our financial position or results to diof operations to date, we may experience some effer from our exct in the near future (espectations or ially if tariffs are significantly increased and are not absorbed by the expectamanufacturers). In additions, we may be negatively impacted because of our investorsupply chain constraints, the trading price of ourconsequences associated with government regulations, ongoing and potential geopolitical common stock could denflicts, instability in the global banking system, employee availability and wage increase.s.