SKYI's Revenue Pivots to RSS Feeds, IT Services Decline

TL;DR

**SKYI is a high-risk micro-cap with a single employee, shifting revenue to niche RSS feeds while its core IT and cannabis app struggle to generate meaningful income; proceed with extreme caution.**

AI Summary

Sky Century Investment, Inc. (SKYI) reported a significant shift in revenue streams for the fiscal year ended August 31, 2025. The sale of RSS feeds and Podcasts became the dominant revenue generator, accounting for 89% of total revenue in 2025, a substantial increase from 69% in 2024. Conversely, the IT Services segment, comprising Technical Support and Server Leasing, saw its contribution to total revenue decline from 31% in 2024 to 11% in 2025. The company's Cannabis News application and marketing services currently generate no revenue, despite the Cannabis News application being acquired for $198,000 in 2020. SKYI operates with a single employee, Nataliia Petranetska, who serves as President, Treasurer, and Director. Key risks include intense competition in IT, marketing, and cannabis sectors, and operational complexity due to multiple business lines. The strategic outlook involves expanding online services, enhancing the Cannabis News app, and scaling RSS feed offerings, with expected enhancements to marketing and IT services by the end of 2026.

Why It Matters

This filing reveals a micro-cap company with a highly concentrated operational structure and a significant shift in its revenue composition, which is critical for investors. The reliance on a single employee, Nataliia Petranetska, for all business operations and future development introduces substantial key-person risk. While the company aims to expand its IT and marketing services, these currently contribute minimally or nothing to revenue, indicating a challenging competitive landscape against more established players. For customers, the company's ability to deliver on expanded service promises with limited resources remains a question, potentially impacting service quality and innovation in competitive markets like IT solutions and digital marketing.

Risk Assessment

Risk Level: high — The risk level is high due to the company's reliance on a single employee, Nataliia Petranetska, for all operations and future development, as stated in the filing. Additionally, the Cannabis News application, acquired for $198,000, is not commercially viable and generates no revenue, indicating a failed investment. The company also faces intense competition across its multiple business lines (IT, marketing, RSS feeds, cannabis industry) from entities with potentially greater financial resources.

Analyst Insight

Investors should avoid SKYI due to its extremely high operational risk, single-employee dependency, and unproven business model. The company's inability to monetize its Cannabis News application and the declining contribution of IT services to revenue signal significant challenges in achieving sustainable growth.

Revenue Breakdown

Key Numbers

• $198,000 — Purchase price of Cannabis News LLC (fully repaid promissory note for the acquisition on February 29, 2020)
• 89% — Percentage of total revenue from RSS feeds and Podcasts (increased from 69% in 2024, making it the primary revenue source in 2025)
• 11% — Percentage of total revenue from IT Services (decreased from 31% in 2024, indicating a decline in this segment's contribution)
• 1 — Number of employees (Nataliia Petranetska is the sole employee, responsible for all operations)
• $359,488.74 — Aggregate market value of common equity held by non-affiliates (as of February 28, 2025)
• 223,548,220 — Shares outstanding of common stock (as of December 16, 2025)

Key Players & Entities

• Sky Century Investment, Inc. (company) — registrant
• Nataliia Petranetska (person) — President, Treasurer, Director, and sole employee
• Cannabis News LLC (company) — acquired proprietorship
• Alimzhanov (person) — personally funded software development for Cannabis News application
• Nevada (regulator) — state of incorporation
• February 28, 2025 (date) — date for non-affiliate share calculation
• December 16, 2025 (date) — date for outstanding common stock calculation
• August 31, 2025 (date) — fiscal year end
• August 31, 2024 (date) — prior fiscal year end

FAQ

Risk Factors

• Intense Competition [high — market]: Sky Century Investment, Inc. faces significant competition across its multiple business lines, including IT services, marketing, and the cannabis sector. This intense competition could impact market share and profitability.
• Operational Complexity [high — operational]: Operating multiple distinct business lines (IT Services, RSS/Podcasts, Cannabis News app, marketing) with a single employee, Nataliia Petranetska, creates significant operational complexity. This concentration of responsibility increases the risk of errors and inefficiencies.
• Cannabis Industry Volatility [medium — market]: The Cannabis News application operates within a highly regulated and volatile industry. Changes in regulations, market sentiment, or competitive pressures could negatively affect the application's potential for revenue generation.
• Dependence on Limited Revenue Streams [medium — financial]: The company's heavy reliance on RSS feeds and Podcasts (89% of revenue in 2025) makes it vulnerable to disruptions in this specific market. A downturn in this segment could severely impact overall financial performance.
• Lack of Commercial Viability [medium — operational]: The Cannabis News application, acquired for $198,000, currently has no commercial viability. This represents a sunk cost and a potential drain on resources without a clear path to profitability.

Industry Context

Sky Century Investment, Inc. operates in a fragmented landscape encompassing IT services, digital content distribution (RSS/Podcasts), and the cannabis information sector. The IT services market is characterized by intense competition and a growing demand for cloud solutions. The digital content space is rapidly evolving, with a strong emphasis on subscription and advertising models. The cannabis sector, while growing, is subject to significant regulatory scrutiny and market volatility.

Regulatory Implications

The company's operations in the cannabis information sector are subject to evolving and diverse regulations across different jurisdictions. Compliance with these regulations is critical to avoid legal challenges and operational disruptions. The IT services segment may also face data privacy and security regulations.

What Investors Should Do

1. Monitor revenue diversification efforts
2. Assess operational efficiency with a single employee
3. Track progress on Cannabis News app monetization
4. Evaluate competitive positioning in IT Services

Key Dates

• 2020-02-29: Acquisition of Cannabis News LLC — The company acquired Cannabis News LLC for $198,000, funded by a promissory note that has since been fully repaid. This marked an expansion into the cannabis information sector.
• 2025-02-28: Aggregate market value of common equity held by non-affiliates — Reported at $359,488.74, this figure provides an indication of the public market's valuation of the company's non-insider shares.
• 2025-12-16: Shares outstanding of common stock — Stood at 223,548,220 shares, this number is crucial for per-share calculations and understanding potential dilution.

Glossary

RSS feeds

A web feed that allows users and applications to access updates to websites in a standardized, computer-readable format. (A primary and growing revenue stream for Sky Century Investment, Inc., accounting for 89% of total revenue in 2025.)

Promissory Note

A written promise by one party (the maker or issuer) to pay a definite sum of money to the other party (the payee), either on demand or at a specified future date. (Used by Sky Century Investment, Inc. to finance the $198,000 acquisition of Cannabis News LLC, with the note being fully repaid.)

Server Leasing

The practice of renting out server hardware and associated infrastructure to clients, typically on a recurring basis. (A component of Sky Century Investment, Inc.'s IT Services segment, which saw its revenue contribution decline significantly.)

Cannabis News LLC

A subsidiary acquired by Sky Century Investment, Inc. that operates a Cannabis News application. (Represents a strategic acquisition that has not yet generated revenue, despite a significant initial investment.)

Year-Over-Year Comparison

Sky Century Investment, Inc. has experienced a dramatic shift in its revenue composition, with RSS feeds and Podcasts now dominating at 89% of total revenue, up from 69% in the prior year. Conversely, the IT Services segment has seen a substantial decline, dropping from 31% to 11% of total revenue. The company continues to operate with a single employee, and its Cannabis News application remains non-revenue generating despite a past acquisition cost of $198,000.

Key Financial Figures

• $198,000 — ews LLC for the total purchase price of $198,000, and it was fully repaid. Sky Century

Filing Documents

• skyi-20250831_10k.htm (10-K) — 475KB
• skyi_ex191.htm (EX-19.1) — 19KB
• skyi_ex311.htm (EX-31.1) — 8KB
• skyi_ex321.htm (EX-32.1) — 5KB
• skyiex191_1.jpg (GRAPHIC) — 3KB
• 0001555017-25-000006.txt ( ) — 2427KB
• skyi-20250831_cal.xml (EX-101.CAL) — 20KB
• skyi-20250831_def.xml (EX-101.DEF) — 57KB
• skyi-20250831_lab.xml (EX-101.LAB) — 130KB
• skyi-20250831_pre.xml (EX-101.PRE) — 124KB
• skyi-20250831.xsd (EX-101.SCH) — 27KB
• skyi-20250831_10k_htm.xml (XML) — 204KB

Business

Item 1. Business. 1

Risk Factors

Item 1A. Risk Factors. 4

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments. 7

Cybersecurity

Item 1C. Cybersecurity. 7

Properties

Item 2. Properties. 8

Legal Proceedings

Item 3. Legal Proceedings. 8

Mine Safety Disclosures

Item 4. Mine Safety Disclosures. 8 PART II 8

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. 8

[Reserved]

Item 6. [Reserved] 9

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

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations. 9

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk. 12

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data. 13

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure. 28

Controls and Procedures

Item 9A. Controls and Procedures. 28

Other Information

Item 9B. Other Information. 29

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. 29 PART III 29

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance. 29

Executive Compensation

Item 11. Executive Compensation. 30

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. 31

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence. 32

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services. 33 PART IV 34

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules. 34

Form 10-K Summary

Item 16. Form 10-K Summary. 34

SIGNATURES

SIGNATURES 35 iii PART I

Business

Item 1. Business. General Background of the Company The Company was incorporated in the state of Nevada as Band Rep Management, Inc., a for-profit entity on May 4, 2012. The Company was renamed to the Sky Century Investment, Inc. on December 15, 2015. On February 29, 2020, Sky Century Investment, Inc. acquired the complete proprietorship of Cannabis News LLC, a business situated at 30 N Gould St, Ste R, Sheridan, WY 82801, USA. The Company owns Cannabis News LLC along with the Cannabis News application with Mr. Alimzhanov personally funded software development expenses. In compliance with the Asset Purchase Agreement dated February 29, 2020, the entire ownership (100%) of Cannabis News LLC, the Wyoming limited liability company, with the Cannabis News application along with all the certified access codes and licenses, exclusively owned by Cannabis News LLC, was transferred to Sky Century Investment, Inc. A Promissory Note was issued to Cannabis News LLC for the total purchase price of $198,000, and it was fully repaid. Sky Century Investment, Inc. is currently operating four primary business lines, with the majority of profits generated from two key sectors: IT Services, consisting of Technical Support and Server Leasing, and the sale of RSS feeds and Podcasts. The Company's Cannabis News application is not commercially viable at this stage, and the Company`s marketing efforts have yet to yield any revenue. The first primary business line of the Sky Century Investment, Inc. is IT Services. This segment primarily involves: 1) Technical Support: the Company provides to clients ongoing technical support, including maintenance, troubleshooting, and system upgrades, minimizing downtime and optimizing operational efficiency for clients; 2) Server Leasing: the Company offers leased high-performance servers to clients, enabling them to scale operations without significant upfront capital investment. The Company utilizes a server for subleasing purposes, which operates

Risk Factors

Item 1A. Risk Factors.

Forward-Looking Statements

Forward-Looking Statements This Form 10-K contains forward-looking statements that are based on current expectations, estimates, forecasts and projections about us, our future performance, the market in which we operate, our beliefs and our management's assumptions. In addition, other written or oral statements that constitute forward-looking statements may be made by us or on our behalf. Words such as "expects", "anticipates", "targets", "goals", "projects", "intends", "plans", "believes", "seeks", "estimates", variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict or assess. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Any investment in our shares of common stock involves a high degree of risk. You should carefully consider the following information about these risks, together with the other information contained in this annual report before you decide to invest in our common stock. Each of the following risks may materially and adversely affect our business objective, plan of operation and financial condition. These risks may cause the price of our common stock to decline, which may cause you to lose all or a part of the money you invested in our common stock. We provide the following cautionary discussion of risks, uncertainties and possible inaccurate assumptions relevant to our business plan. In addition to other information included in this annual report, the following factors should be considered in evaluating the Company's business and future prospects. Intense competition in the industry may impact our business operations. We operate in a global, competitive marketplace and face substantial competition from a limited number of established competitors, some of which may ha

View Full Filing

View this 10-K filing on SEC EDGAR