Skkynet Cloud Systems, Inc. reported its financial results for the three and nine months ended July 31, 2024, showing notable improvements in revenue and profitability compared to the same periods in the previous fiscal year.

For the three months ended July 31, 2024, the company generated revenue of $666,359, an increase from $630,040 in the same quarter of 2023. For the nine-month period, revenue rose to $1,898,701, up 8.6% from $1,747,623 in the prior year, primarily driven by higher sales from its subsidiary, Cogent. Operating expenses for the third quarter were $556,274, slightly down from $564,157 in the previous year, while total operating expenses for the nine-month period increased to $1,952,333 from $1,933,227.

The company reported an operating profit before tax of $121,718 for the third quarter, compared to an operating profit of $65,618 in the same quarter of 2023. However, for the nine-month period, Skkynet recorded a net operating loss of $51,675, an improvement from a loss of $195,371 in the prior year. The net income for the third quarter was $121,718, up from $65,618 in the same period last year, while the nine-month net loss narrowed to $23,401 from $165,403.

Skkynet's cash and cash equivalents increased to $1,127,206 as of July 31, 2024, compared to $916,780 at the end of October 2023. The company also reported total current assets of $1,370,597 and total stockholders’ equity of $754,147, reflecting a solid financial position. The accumulated deficit stood at $6,590,893 as of July 31, 2024.

Deferred revenue decreased to $307,262 from $360,170 as of October 31, 2023, with $247,356 classified as deferred revenue during the nine months ended July 31, 2024. The company has four primary revenue streams: direct software sales, sales through distributors, maintenance support services, and cloud services.

Skkynet identified material weaknesses in its internal control over financial reporting, attributing this to a lack of sufficient accounting and financial personnel due to budget constraints. The company has not engaged in any financing activities during the nine months ended July 31, 2024, contrasting with the previous year when it used $19,106 for loan repayments.

As of September 12, 2024, Skkynet had 53,143,822 shares of common stock and 193,661 shares of Series B preferred stock outstanding.

About Skkynet Cloud Systems, Inc.

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