Skkynet Cloud Systems Reports Q2 2024 Results

TL;DR

**Skkynet Cloud Systems Q2 2024:** $53.1M assets, $0 liabilities, $193K revenue, $5K net loss.

AI Summary

Skkynet Cloud Systems, Inc. filed its 10-Q for the period ending April 30, 2024. The company reported total assets of $53,143,822 and total liabilities of $0 for the six months ended April 30, 2024. Revenue for the six months ended April 30, 2024, was $193,661, with a net loss of $5,000.

Why It Matters

This filing provides insight into Skkynet Cloud Systems' financial performance and position, which is crucial for investors and stakeholders to assess the company's health and future prospects.

Risk Assessment

Risk Level: medium — The company has a very low reported liability, but also very low revenue and a net loss, indicating potential financial instability.

Key Numbers

• $53.1B — Total Assets (As of April 30, 2024)
• $0 — Total Liabilities (As of April 30, 2024)
• $193,661 — Revenue (For the six months ended April 30, 2024)
• $5,000 — Net Loss (For the six months ended April 30, 2024)

Key Players & Entities

• Skkynet Cloud Systems, Inc. (company) — Filer of the 10-Q
• 20240430 (date) — End of reporting period
• $53,143,822 (dollar_amount) — Total assets as of April 30, 2024
• $0 (dollar_amount) — Total liabilities as of April 30, 2024
• $193,661 (dollar_amount) — Revenue for the six months ended April 30, 2024
• $5,000 (dollar_amount) — Net loss for the six months ended April 30, 2024

FAQ

Key Financial Figures

• $20,000 — ued a two year note for US$ 15,678 (CDN $20,000) under the Canadian Emergency Business
• $601,806 — riods ended April 30, 2024, revenue was $601,806 and $1,232,342 compared to $625,4654 an
• $1,232,342 — pril 30, 2024, revenue was $601,806 and $1,232,342 compared to $625,4654 and $1,117,583 fo
• $625,4654 — was $601,806 and $1,232,342 compared to $625,4654 and $1,117,583 for the same periods in
• $1,117,583 — nd $1,232,342 compared to $625,4654 and $1,117,583 for the same periods in 2023. Revenue i

Filing Documents

• skky_10q.htm (10-Q) — 559KB
• skky_ex311.htm (EX-31.1) — 14KB
• skky_ex312.htm (EX-31.2) — 13KB
• skky_ex321.htm (EX-32.1) — 4KB
• skky_ex322.htm (EX-32.2) — 5KB
• 0001477932-24-003702.txt ( ) — 2462KB
• skky-20240430.xsd (EX-101.SCH) — 23KB
• skky-20240430_lab.xml (EX-101.LAB) — 158KB
• skky-20240430_cal.xml (EX-101.CAL) — 31KB
• skky-20240430_pre.xml (EX-101.PRE) — 125KB
• skky-20240430_def.xml (EX-101.DEF) — 66KB
• skky_10q_htm.xml (XML) — 279KB

: FINANCIAL INFORMATION

PART I: FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Consolidated Balance Sheets as of April 30, 2024 (Unaudited) and October 31, 2023 (Audited) 4 Consolidated Statements of Operations and Comprehensive Income (Loss) for the Three And Six Months Ended April 30, 2024 and 2023 (Unaudited) 5 Consolidated Statements of Changes in Stockholders' Equity for the Three Months Ended April 30, 2024 and 2023 (Unaudited) 6 Consolidated Statements of Cash Flows for the Six Months Ended April 30, 2024 and 2023 (Unaudited) 7

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 8

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 13

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 14

Controls and Procedures

Item 4. Controls and Procedures 14

: OTHER INFORMATION

PART II: OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 15

Risk Factors

Item 1A. Risk Factors 15

Sales of Equity Securities and Use of Proceeds

Item 2. Sales of Equity Securities and Use of Proceeds 15

Defaults upon Senior Securities

Item 3. Defaults upon Senior Securities 15

Mine Safety Information

Item 4. Mine Safety Information 15

Other Information

Item 5. Other Information 15

Exhibits

Item 6. Exhibits 16

Signatures

Signatures 17 2 Table of Contents

FORWARD LOOKING STATEMENTS

FORWARD LOOKING STATEMENTS 3 Table of Contents PART I

: FINANCIAL STATEMENTS

ITEM 1: FINANCIAL STATEMENTS SKKYNET CLOUD SYSTEMS, INC. CONSOLIDATED BALANCE SHEETS April 30, 2024 October 31, 2023 (Unaudited) (Audited) ASSETS Current Assets: Cash and cash equivalents $ 1,034,972 $ 916,780 Accounts receivable 278,783 306,255 Receivable related parties - 4,695 Prepaid expenses 9,580 24,261 Total current assets 1,323,335 1,251,991 Property and equipment, net of accumulated depreciation of $ 89,333 and$ 86,930 respectively 3,413 4,554 Total Assets $ 1,326,748 $ 1,256,545 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable and accrued expenses $ 157,603 $ 84,870 Accrued liabilities – related party 181,428 95,865 Deferred revenue 372,451 360,170 Total current liabilities 711,482 540,905 Total liabilities 711,482 540,905 Commitments and contingencies - - Stockholders' Equity: Preferred stock: $ 0.001 par value, 5,000,000 shares authorized, 5,000 shares issued and outstanding, respectively 5 5 Series B Preferred convertible stock: $ 0.001 par value, 500,000 shares authorized, 193,661 issued and outstanding, respectively 194 194 Common stock; $ 0.001 par value, 70,000,000 shares authorized, 53,143,822 shares issued and outstanding, respectively 53,145 53,145 Additional paid-in capital 7,186,769 7,146,991 Accumulative other comprehensive income 84,859 74,082 Accumulated deficit ( 6,709,706 ) ( 6,558,777 ) Total stockholders' equity 615,266 715,640 Total Liabilities and Stockholders' Equity $ 1,326,748 $ 1,256,545 The accompanying notes are an integral part of the unaudited consolidated financial statements. 4 Table of Contents SKKYNET CLOUD SYSTEMS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) FOR THREE AND SIX MONTHS ENDED APRIL 30, (Unaudited) Three Months Six Months 2024 2023 2024 2023 Revenue $ 601,806 $ 625,464 $ 1,232,342 $ 1,117,583 Operating Expense

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION Skkynet Cloud Systems, Inc. ("Skkynet" or "the Company") is a Nevada corporation formed on August 31, 2011 and headquartered in Toronto, Canada. Skkynet operates its business through its wholly owned subsidiaries Cogent Real-Time Systems, Inc. ("Cogent"), Skkynet Corp. (Canada) and Skkynet, Inc. (USA). Skkynet was formed primarily for the purpose of taking the existing business lines of Cogent and its current and future customers and integrating these businesses with Cloud based systems. We also intend to expand the areas of business activity to which the kinds of products and services we provide are applied. The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (the "SEC"), and should be read in conjunction with the audited financial statements and notes thereto contained in the Company's October 31, 2023 Annual Report on form 10-K filed with the SEC. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosure contained in the consolidated financial statements for the most recent fiscal year end October 31, 2023 as reported on Form 10-K, have been omitted. Certain prior period amounts were reclassified to conform to the manner of presentation in the current period. The reclassifications have no effect on the net loss or stockholders' equity. NOTE 2- RECENT ADOPTED ACCOUNTING STANDARDS Recen

: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 2 : MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS This report contains forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Skkynet's actual results could differ materially from those set forth on the forward-looking statements as a result of the risks set forth in Skkynet's filings with the Securities and Exchange Commission, general economic conditions, and changes in the assumptions used in making such forward looking statements. OVERVIEW Skkynet is a Nevada corporation headquartered in Mississauga, Canada. Skkynet operates three different lines of business through its wholly owned subsidiaries Cogent Real-Time Systems, Inc. ("Cogent"), Skkynet, Inc. ("Skkynet (USA)"), and Skkynet Corp. ("Skkynet (Canada)"). Skkynet was established to enhance Cogent's existing business lines through the integration of Cloud-based systems, and to deliver a Software-as-a-Service ("SaaS") product targeting the Industrial Internet of Things ("IoT") market, now referred to by the terms "Industry 4.0" and "Industrial Internet Consortium". The Company provides software and related systems and facilities to collect, process, and distribute real-time information over a network. This capability allows the customers to both locally and remotely manage, supervise, and control industrial processes and financial information systems. By using this software and, when requested by a client, our web based assets, our clients and their relevant customers are given the ability and the tools to observe and interact with these processes and services in real-time as they are underway and to give them the power to analyze, alter, stop, or otherwise influence these activities to conform to their plans. RESULTS OF OPERATIONS For the three and six month periods ended April 30, 2024, revenue was $601,806 and $1,232,342 compared to $625,4

View Full Filing

View this 10-Q filing on SEC EDGAR