{
  "@context": "https://frontierpicks.com/schemas/dossier.v1.json",
  "ticker": "SKYA",
  "name": "SkyAI, Inc.",
  "url": "https://frontierpicks.com/dossiers/SKYA/",
  "json_url": "https://frontierpicks.com/dossiers/SKYA.json",
  "status": "DORMANT",
  "current_conviction": "LOW",
  "archetype": {
    "code": "a5",
    "n": 5
  },
  "current_thesis": "SkyAI, Inc. is more likely to lag the S&P 500 over three months: it expects to pay $209 million for 47 million shares at $3.00, leaving a loss-making AI finance platform. Final tender results and settlement disclosures show the cash left.",
  "invalidation_trigger": "A daily close above $3.71, which is above the $3.00 tender price and would show the shares leading the S&P 500. A new cash offer for the remaining shares above that level would also show them leading.",
  "catalyst_date": null,
  "portfolio": null,
  "pick": null,
  "themes": [
    "m-and-a-special-situations"
  ],
  "tags": [],
  "sources": [],
  "caveats": [
    {
      "claim": "Bastion Trading is bound by a three-year standstill from 2026-10-27; the agreement ends if SkyAI does not complete the tender offer.",
      "source": "Tender support and settlement agreement, 8-K filed 2026-10-27",
      "as_of": "2026-10-27"
    },
    {
      "claim": "The SkyAI board approved the tender offer and its amendments but made no recommendation on whether holders should tender shares or warrants.",
      "source": "SkyAI tender offer press release, 2026-11-02",
      "as_of": "2026-11-02"
    },
    {
      "claim": "SkyAI adopted its name and the SKYA ticker in May 2026; it was previously Sharps Technology, and older price and financial history relates to that business.",
      "source": "Form 10-Q for the quarter ended 2026-09-30",
      "as_of": "2026-11-06"
    }
  ],
  "source_links": [
    {
      "title": "SkyAI Files Amended Tender Offer Documents and Reminds Security Holders To Tender Before the November 12, 2026 Expiration",
      "url": "https://www.globenewswire.com/news-release/2026/11/02/3393163/0/en/skyai-files-amended-tender-offer-documents-and-reminds-security-holders-to-tender-before-the-november-12-2026-expiration.html",
      "date": "2026-11-02"
    },
    {
      "title": "SkyAI, Inc. - Form 10-Q - FY2026",
      "url": "https://www.sec.gov/Archives/edgar/data/0001737995/000149315226050470/form10-q.htm",
      "date": null
    },
    {
      "title": "SkyAI Annual Meeting: Directors Keep Seats Despite Up to 75% Withheld Votes, Equity Plan Rejected",
      "url": "https://solanacompass.com/news/skyai-annual-meeting-directors-keep-seats-despite-up-to-75-withheld-votes-equity-plan-rejected",
      "date": "2026-09-25"
    },
    {
      "title": "SkyAI Commences Cash Tender Offer to Purchase Up to 67.1 Million Shares and Warrants",
      "url": "https://www.globenewswire.com/news-release/2026/10/19/3383444/0/en/skyai-commences-cash-tender-offer-to-purchase-up-to-67-1-million-shares-and-warrants.html",
      "date": "2026-10-19"
    },
    {
      "title": "SkyAI (SKYA) Tender Offer: Bastion Trading Settles, Expiry Moves to Nov 12, 2M SOL Sold at $107.20",
      "url": "https://solanacompass.com/news/skyai-settles-with-bastion-trading-extends-300-tender-offer-to-november-12-and-adds-warrants",
      "date": null
    }
  ],
  "evidence": [
    {
      "claim": "SkyAI said it expects to purchase 47 million shares at $3.00 per share, with an expected aggregate purchase price of $209 million excluding fees and expenses.",
      "source": "SkyAI announcement, 2026-11-13",
      "as_of": "2026-11-13"
    },
    {
      "claim": "SkyAI reported about $223.8 million of cash after selling its entire Solana treasury; the amended offer had no financing condition.",
      "source": "SkyAI 8-K, 2026-10-27, and press release, 2026-11-02",
      "as_of": "2026-11-02"
    },
    {
      "claim": "SkyAI had 50,854,199 common shares outstanding as of 2026-11-02 and a nine-month net loss of $24.6 million to 2026-09-30.",
      "source": "Form 10-Q for the quarter ended 2026-09-30, filed 2026-11-06",
      "as_of": "2026-11-06"
    },
    {
      "claim": "Third-quarter net income of $85 million came mainly from a $90.5 million unrealized gain on digital assets that SkyAI has since sold; revenue in the quarter was $0.0 million.",
      "source": "Form 10-Q for the quarter ended 2026-09-30, filed 2026-11-06",
      "as_of": "2026-11-06"
    },
    {
      "claim": "Holders withheld 66.6% to 75.0% of votes on each director nominee and rejected the 2026 Equity Incentive Plan by 22,464,708 votes against to 5,048,520 for.",
      "source": "Solana Compass, 2026-09-25, citing SkyAI 8-K of 2026-09-24",
      "as_of": "2026-09-25"
    },
    {
      "claim": "SkyAI put the $3.00 offer price at about 0.95 times net asset value.",
      "source": "SkyAI release, 2026-10-19",
      "as_of": "2026-10-19"
    },
    {
      "claim": "Bastion Trading, a 10% owner, bought 44,000 shares at $1.78 on 2026-10-07 under a Rule 10b5-1 plan.",
      "source": "SEC Form 4 filed 2026-10-09",
      "as_of": "2026-10-09"
    }
  ],
  "view_changes": [],
  "frame": {
    "as_of": "2026-11-15",
    "business": "SkyAI, formerly Sharps Technology, built a Solana token treasury and is now developing an agentic AI finance platform. It reported $0.0 million of revenue in the quarter to 2026-09-30 (10-Q filed 2026-11-06) and has no meaningful operating income.",
    "change": {
      "now": "On 2026-11-13 SkyAI said it expects to buy 47 million shares at $3.00 in its tender offer, which expired 2026-11-12, for an aggregate price of $209 million excluding fees and expenses.",
      "next": "The cash from the sale of the Solana treasury ($223.8 million reported 2026-10-27) goes mostly to tendering holders, leaving a smaller balance to fund a business with a $24.6 million nine-month net loss.",
      "linked": "Bastion Trading, a 10% owner, agreed on 2026-10-27 to tender all its holdings and accept a three-year standstill. Forward Industries (FWDI) made an unsolicited all-stock proposal in June 2026 that SkyAI rejected."
    },
    "priced_in": "At the 2026-11-13 close (filed inputs to 2026-11-06) the shares trade at 0.5 times book value (P/B), for a market value of $118 million and an enterprise value of $111 million; P/E is not meaningful and EV/sales is not available. Those inputs predate the tender payment. The price assumes the smaller company stops losing money (nine-month net loss $24.6 million).",
    "links": {
      "customers": [],
      "suppliers": [],
      "competitors": []
    }
  },
  "filed_numbers": {
    "as_of": "2026-11-13",
    "sector": "Financial Services",
    "financials": {
      "status": "ok",
      "reason": null,
      "close_date": "2026-11-13",
      "latest_quarter": "2026-09-30",
      "figures": {
        "revenue": {
          "status": "ok",
          "quarters": [
            {
              "end": "2026-09-30",
              "filed": "2026-11-06",
              "restated": null,
              "value_musd": 0,
              "yoy_pct": -100
            },
            {
              "end": "2026-06-30",
              "filed": "2026-08-07",
              "restated": null,
              "value_musd": 0,
              "yoy_pct": -100
            },
            {
              "end": "2026-03-31",
              "filed": "2026-05-14",
              "restated": null,
              "value_musd": 0.2,
              "yoy_pct": null
            },
            {
              "end": "2025-09-30",
              "filed": "2025-11-14",
              "restated": "2026-11-06",
              "value_musd": 0.1,
              "yoy_pct": null
            },
            {
              "end": "2025-06-30",
              "filed": "2025-08-13",
              "restated": "2026-08-07",
              "value_musd": 0.1,
              "yoy_pct": null
            }
          ]
        },
        "gross_margin": {
          "status": "ok",
          "quarters": [
            {
              "end": "2026-03-31",
              "filed": "2026-05-14",
              "restated": null,
              "pct": -5.1
            },
            {
              "end": "2025-09-30",
              "filed": "2025-11-14",
              "restated": "2026-11-06",
              "pct": -4.7
            },
            {
              "end": "2025-06-30",
              "filed": "2025-08-13",
              "restated": "2026-08-07",
              "pct": -9.2
            }
          ]
        },
        "operating_margin": {
          "status": "ok",
          "quarters": [
            {
              "end": "2026-03-31",
              "filed": "2026-05-14",
              "restated": null,
              "pct": -44748.4
            },
            {
              "end": "2025-09-30",
              "filed": "2025-11-14",
              "restated": "2026-11-06",
              "pct": -135851.7
            },
            {
              "end": "2025-06-30",
              "filed": "2025-08-13",
              "restated": "2026-08-07",
              "pct": -1046.2
            }
          ]
        },
        "pretax_income": {
          "status": "ok",
          "end": "2026-09-30",
          "filed": "2026-11-06",
          "value_musd": 84.9
        },
        "net_income": {
          "status": "ok",
          "end": "2026-09-30",
          "filed": "2026-11-06",
          "four_quarters_end": "2026-09-30",
          "value_musd": 84.9,
          "four_quarters_musd": -207.3
        },
        "operating_cash_flow": {
          "status": "not available"
        },
        "capital_spending": {
          "status": "ok",
          "end": "2025-09-30",
          "filed": "2025-11-14",
          "first_end": "2024-12-31",
          "value_musd": 3.5
        },
        "free_cash_flow": {
          "status": "not available"
        },
        "diluted_share_change": {
          "status": "ok",
          "end": "2026-09-30",
          "filed": "2026-11-06",
          "base_end": "2025-09-30",
          "pct": 194.8
        },
        "cash": {
          "status": "ok",
          "end": "2026-09-30",
          "filed": "2026-11-06",
          "value_musd": 7.5
        },
        "debt": {
          "status": "ok",
          "end": "2025-12-31",
          "filed": "2026-11-06",
          "value_musd": 3.1,
          "composition": "short-term borrowings"
        },
        "net_cash": {
          "status": "ok",
          "end": "2025-12-31",
          "filed": "2026-11-06",
          "value_musd": 7.3
        },
        "deferred_revenue": {
          "status": "not reported"
        },
        "backlog": {
          "status": "not reported"
        },
        "receivables": {
          "status": "not reported"
        },
        "inventory": {
          "status": "ok",
          "end": "2026-09-30",
          "filed": "2026-11-06",
          "value_musd": 0.2
        },
        "equity": {
          "status": "ok",
          "end": "2026-09-30",
          "filed": "2026-11-06",
          "value_musd": 241.2
        },
        "market_value": {
          "status": "ok",
          "close_date": "2026-11-13",
          "basis_end": "2026-11-02",
          "basis_filed": "2026-11-06",
          "value_musd": 118
        },
        "enterprise_value": {
          "status": "ok",
          "close_date": "2026-11-13",
          "basis_end": "2026-11-02",
          "basis_filed": "2026-11-06",
          "value_musd": 110.7
        },
        "ev_sales": {
          "status": "not available"
        },
        "ev_ebit": {
          "status": "not available"
        },
        "pe": {
          "status": "not meaningful"
        },
        "pb": {
          "status": "ok",
          "close_date": "2026-11-13",
          "basis_end": "2026-11-02",
          "basis_filed": "2026-11-06",
          "multiple": 0.5
        },
        "fcf_yield": {
          "status": "not available"
        }
      }
    },
    "short_interest": {
      "status": "ok",
      "settlement": "2026-10-15",
      "published": "2026-10-26",
      "short_pct_of_outstanding": 1.53,
      "days_to_cover": 1,
      "change_pct": 43.4
    },
    "insiders": {
      "status": "ok",
      "as_of": "2026-11-15",
      "windows": [
        {
          "days": 90,
          "status": "ok",
          "from": "2026-08-18",
          "bought_usd": 78262.8,
          "sold_usd": 0,
          "bought_unpriced": 0,
          "sold_unpriced": 0
        },
        {
          "days": 365,
          "status": "ok",
          "from": "2025-11-16",
          "bought_usd": 78262.8,
          "sold_usd": 1820752.09,
          "bought_unpriced": 0,
          "sold_unpriced": 0
        }
      ]
    }
  },
  "body_markdown": "## Current Thesis\n\nSkyAI's shares are more likely to lag the S&P 500 over the next three months. The company said on 2026-11-13 that it expects to buy 47 million shares at $3.00 for an aggregate $209 million excluding fees, which leaves a small, loss-making AI finance company whose value depends on the cash it keeps. The final tender results and the first filings after settlement show that cash.\n\nThe shares closed at $2.32 on 2026-11-13. That is below the $2.45 close of 2026-11-12 and well below the $2.97 close of 2026-11-11 and the $2.95 closes of 2026-11-06 and 2026-11-09. The tender offer expired one minute after 11:59 p.m. New York time on 2026-11-12.\n\nSkyAI's 10-Q for the quarter ended 2026-09-30, filed 2026-11-06, reports 50,854,199 common shares outstanding as of 2026-11-02. The 47 million shares the company expects to buy are most of that count. After payment, the quoted price reflects only the shares that remain, and the business behind them reported $0.0 million of revenue in the quarter to 2026-09-30.\n\n## Bull Case\n\n- **Cash covered the offer.** An 8-K filed on 2026-10-27 reported about $223.8 million of cash after SkyAI sold its entire Solana (SOL) treasury. The 2026-11-02 release said the offer had no financing condition, and the company's 2026-11-13 announcement puts the expected payment at $209 million.\n- **The largest dissenting holder tendered.** Under the settlement of 2026-10-27, Bastion Trading, a 10% owner, agreed to tender all of its shares and warrants and accepted a three-year standstill. That removes an active opponent from the register.\n- **Crypto price risk is gone.** SkyAI sold about 2 million SOL at an average of $107.20 net per token. The company said on 2026-11-02 that it holds no SOL and will not buy it back after the offer.\n- **The shares sit above their long averages.** The $2.32 close on 2026-11-13 is above the 50-day average of $2.23 and the 200-day average of $1.71, both as of that close.\n\n## Bear Case\n\n- **The remaining company loses money.** SkyAI's 10-Q reports a nine-month net loss of $24.6 million to 2026-09-30, with selling, general and administrative expenses of $12.8 million and related-party consulting fees of $7.1 million. The third-quarter net income of $85 million came mainly from a $90.5 million unrealized gain on digital assets that SkyAI has since sold.\n- **Little revenue backs the platform.** Filed revenue was $0.0 million in the quarters to 2026-06-30 and 2026-09-30, and the diluted share count rose 194.8% from a year earlier in the quarter to 2026-09-30.\n- **Shareholders voted against management.** At the 2026-09-18 annual meeting, holders withheld 66.6% to 75.0% of votes on each director nominee and rejected the equity plan by 22,464,708 votes against to 5,048,520 for, according to Solana Compass on 2026-09-25. Directors kept their seats under plurality voting.\n- **The offer was priced below net asset value.** SkyAI's 2026-10-19 release put the $3.00 price at about 0.95 times net asset value, and Solana Compass reported on 2026-10-14 that Bastion had demanded $3.50 before it settled.\n- **The market will be thin.** With most shares bought in, a small number of trades can move the price, and the stock's own volume history will no longer describe it.\n\n## Setup & Price Structure\n\nThe shares closed at $2.32 on 2026-11-13, 36.6% below the 52-week intraday high of $3.66 set on 2025-11-13. The 3-month change is 132.0%, measured from a $1.00 close on 2026-08-17. The 52-week closing low is $0.95, on 2026-06-25.\n\nAlmost all of the three-month gain followed the tender announcement. Benzinga reported the shares rose 41.8% to $2.58 in the 2026-10-12 session, the first trading day after the plan was announced. The close then ran between $2.95 and $2.97 from 2026-11-06 to 2026-11-11 before falling to $2.45 and $2.32 in the next two sessions.\n\nPrice histories do not record cash paid in a tender. After settlement, the quoted price reflects only the shares left outstanding, so a drop in the quote can follow a completed offer without any loss to a holder who tendered. The price after settlement is a read on the remaining business and its cash alone.\n\n## Catalyst Calendar\n\n- **~2026-11-20 (est.):** Final tender results and payment to tendering holders, with the share count left outstanding. Fixes how many shares remain and how much cash SkyAI keeps after paying about $209 million, which sets the value of the untendered shares.\n- **~2027-03-31 (est.):** Annual report for fiscal 2026. First full-year filing after the tender; shows cash, operating losses and any revenue at the AI finance platform.\n\n## What Would Change Our Mind\n\nA daily close above $3.71, which is above the $3.00 tender price and would show the shares leading the S&P 500. A new cash offer for the remaining shares above that level would also show them leading.\n\n## Correlation Notes\n\nUntil settlement, the shares follow the tender terms and the completion process. They have little link to the S&P 500, to AI software stocks or to the price of SOL, which SkyAI no longer holds. Other companies running tender offers or buyouts move on their own deal events.\n\nAfter settlement, the remaining shares trade as a micro-cap AI software company with a much smaller share count, so the price can swing on single trades.",
  "first_seen": "2026-11-10",
  "last_analyzed": "2026-11-15T12:37:46+00:00",
  "last_synthesized": "2026-11-15",
  "date_modified": "2026-11-15",
  "license": "Content © FrontierPicks. Cite the canonical URL."
}