Skkynet Cloud Systems Inc

For the three month period ended January 31, 2024, revenue was $630,536 compared to $492,119 for the same period in 2023. Revenue increased for the three month period ended January 31, 2024 over the same period in 2023 by 28.1%. The increase in revenue for the three month period is attributed to higher sales by Cogent.

Operating expense was $592,180 for the three months period ended January 31, 2024 compared to $625,964 for the same period in 2023. The decrease in general and administrative expenses for the three month period ended January 31, 2024 over the same period in 2023, resulted from decreased expenditures primarily in advertising and stock compensation.

For the three month period ended January 31, 2024, the Company reported an operating income of $38,356 compared to operating loss of $133,845 for the same period in 2023. The operating income during the three month period ended January 31, 2024 over the operating loss for same period in 2023 is attributable to higher sales along with lower expenses in advertising and stock compensation expenses in the three month period ended January 31, 2024, versus the same period in 2023.

Other expense for the three month period ended January 31, 2024 was $16,972, consisting of other income of $2,987 and a currency loss of $19,959. This compared to other expenses of $13,361 consisting of other income of $10 and currency loss of $13,371 for the same period in 2023. The amount of change in both periods was due mostly to the effect of currency exchange.

Net income after income taxes of $21,384 was reported for the three month period ended January 31, 2024, compared to a net loss after income taxes of $147,206 for the same period in 2023. The net income for the three month period in 2024 can be attributed to an increase of sales of 28.1% more than during the same period in 2023. Additionally, the operating expenses for the three month period ended January 31, 2024 was $33,784 less than the same period in 2023.

Net income to common stockholders was $18,479 for the three month period ended January 31, 2024, compared to net loss of $150,111 for the same period in 2023. The reduced amounts include the expense of dividend for preferred stockholders of $2,905 being accrued for the three months period ended January 31, 2024 and 2023

The Company reported comprehensive income of $23,951 for the three month period ended January 31, 2024 compared to a comprehensive loss of $144,627 for the same period in 2023. The comprehensive loss is an adjustment to net loss with foreign currency translation adjustments.

LIQUIDITY AND CAPITAL RESOURCES

At January 31, 2024, Skkynet had current assets of $1,309,512 and current liabilities of $554,119, resulting in working capital of $755,393. Accumulated deficit, as of January 31, 2024, was $6,540,298 with total stockholders’ equity of $759,480.

Net cash used in operating activities for the three month period ended January 31, 2024, was $12 compared to net cash provided in operating activities of $36,690 for the same period in 2023. The cash used in operating activities for the three month period ended January 31, 2024 compared to the cash provided by operating activities over the same period in 2023 was primarily due an increase in accounts receivable and deferred revenue in 2024 over 2023.

Net cash provided by financing activities for the three month period ending January 31, 2024 was zero compared to net used in financing activities of $4,118 for the same period in 2023. The repayment of loans during the three months ended January 31, 2023 accounted for the use of funds during that period.

OFF-BALANCE SHEET ARRANGEMENTS

We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to stockholders.