Skkynet Cloud Systems Reports 31.3% Revenue Growth to $828,052 for Quarter Ended January 31, 2025

Skkynet Cloud Systems, Inc. reported a significant increase in financial performance for the three months ended January 31, 2025, with revenue reaching $828,052, a 31.3% increase from $630,536 in the same period of 2024. The company attributed this growth primarily to higher sales from its subsidiary, Cogent Real-Time Systems, Inc., which benefited from prior investments in sales and marketing. Operating income also saw a notable rise, reaching $198,237 compared to $38,356 in the previous year, reflecting the company's ability to manage expenses effectively despite a slight increase in operating costs.

The company's total operating expenses for the quarter were $629,815, up from $592,180 in the prior year. This increase was driven by higher advertising costs, which rose to $108,560 from $53,032, while general and administrative expenses decreased. Skkynet's net income for the quarter was $229,063, a substantial increase from $21,384 in the same period last year, resulting in net income to common stockholders of $226,158 compared to $18,479 in 2024. The comprehensive income for the quarter was reported at $230,831, up from $23,951 in the previous year.

In terms of operational metrics, Skkynet's total assets increased to $1,848,344 as of January 31, 2025, compared to $1,549,486 at the end of October 2024. Current assets also rose to $1,846,834, driven by increases in cash and accounts receivable. The company reported current liabilities of $705,231, resulting in working capital of $1,141,603. The accumulated deficit decreased to $6,245,149, while total stockholders' equity increased to $1,143,113, reflecting improved financial health.

Skkynet continues to expand its market presence, operating through its subsidiaries in North America and Canada, and is focused on enhancing its Software-as-a-Service (SaaS) offerings in the Industrial Internet of Things (IoT) sector. The company has also issued stock options to employees, with a total of 8,704,700 options outstanding as of January 31, 2025. The company’s management has acknowledged material weaknesses in internal controls over financial reporting, primarily due to insufficient accounting personnel, which they are addressing.

Looking ahead, Skkynet remains optimistic about its growth trajectory, driven by increased sales and strategic investments in marketing and product development. However, the company cautions that its future performance may be influenced by various risks, including market conditions and the ability to secure necessary capital. The management's forward-looking statements indicate a commitment to enhancing operational efficiency and expanding its market share in the evolving technology landscape.