Insider Filing: SKYX President Reports RSU Withholding and Convertible Preferred Exposure
Rhea-AI Filing Summary
Securities reporting shows Steven Mark Schmidt, President and director of SKYX Platforms Corp. (SKYX), reported transactions dated 09/30/2025. He directed the issuer to withhold 5,930 common shares to satisfy tax withholding on vested restricted stock units, reducing his direct common stock by that amount to 484,418 shares held following the transaction. The filing also discloses outstanding derivative holdings: 100,000 options at $12.00 (exercisable 06/01/2026), 250,000 options at $0.90 (expiring 09/15/2029), and 100,000 options at $1.09 (expiring 12/15/2029). He also holds conversion rights to Preferred A-1 convertible into 416,667 common shares and 210,000 RSUs with specified vesting schedules.
Positive
- Reporting person retained substantial direct ownership with 484,418 common shares after withholding.
- Equity alignment preserved as withholding was used to meet tax obligations rather than an open-market sale.
Negative
- Potential dilution from convertible Series A-1 Preferred (convertible into ~416,667 common shares) and outstanding options/RSUs totaling at least 460,000 underlying shares.
- Future vesting schedule includes large RSU and option tranches that may increase share count over 2025-2026.
Insights
Insider exercised tax-withholding on RSU vesting; significant option and convertible holdings remain.
The Form 4 reports a routine withholding of 5,930 shares to satisfy tax obligations on vested RSUs rather than a cash payment, indicating retention of economic exposure to the company. The reporting person remains both an officer and director and continues to hold substantial equity through direct common shares, stock options across multiple strike prices, convertible Preferred A-1 holdings and a large RSU pool that vests over 2025-2026. These holdings preserve alignment with shareholders while providing potential future dilution from conversions and option exercises.
Transaction is administrative in nature; disclosed instruments could create dilution if converted or exercised.
The disposition of 5,930 shares reflects share-withholding for tax purposes, not an active market sale. Materiality is limited: post-transaction direct common ownership is 484,418 shares. Key potential dilutive instruments include Preferred A-1 convertible into approximately 416,667 common shares and aggregate options/RSUs totaling at least 460,000 underlying common shares subject to vesting and exercise terms. Monitor scheduled vesting and exercise windows for timing of potential dilution.
Insider Trade Summary
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Tax Withholding | Common Stock, no par value | 5,930 | $1.12 | $7K |
| holding | Stock Option (right to buy) | -- | -- | -- |
| holding | Stock Option (right to buy) | -- | -- | -- |
| holding | Stock Option (right to buy) | -- | -- | -- |
| holding | Series A-1 Preferred Stock | -- | -- | -- |
Footnotes (1)
- The reporting person has elected to satisfy his tax withholding obligations in connection with the vesting of restricted stock units ("RSUs") by directing the issuer to withhold shares otherwise issuable upon vesting of the grants. These options were granted on June 1, 2021 and vested in four equal annual installments of 25,000 shares beginning on the date of grant. These options vest as follows, subject to continued employment through the vesting date: 10,000 vested on December 20, 2024, and the remaining 240,000 vest in equal quarterly installments of 20,000 beginning December 31, 2024. These options vest in two equal annual installments, beginning on January 1, 2025, subject to continued employment through the vesting date. The Series A-1 Preferred Stock (the "Preferred Stock") has an original issue price of $25.00 per share and is convertible at any time, at the holder's option, into shares of the issuer's common stock at an adjusted conversion price of $1.20 per share (or approximately 20.83 shares of common stock for each share of Preferred Stock). Until October 4, 2026, the Preferred Stock is subject to mandatory conversion by the issuer upon the occurrence of certain specified events. In addition, the issuer may redeem the Preferred Stock for cash upon the occurrence of certain events or at any time beginning October 4, 2027. The Preferred Stock has no expiration date. Includes 210,000 RSUs, which vest as follows, subject to continued employment through the vesting date: (i) 160,000 vest in equal quarterly installments of 20,000 beginning December 31, 2025, and (ii) 50,000 vest on January 1, 2026.
