Skkynet Cloud Systems, Inc.
For the period ended Jul 31, 2025. Filed Sep 15, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jul 31, 2025 · Filed Sep 15, 2025
SKKYStored price and day change unavailable
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-04-30; filed 2025-06-13.
0001477932-25-004591
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-07-31; filed 2025-09-15.
0001477932-25-006754
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 18 previous paragraphs and 18 current paragraphs.
9 unchanged; 8 reworded; 1 added; 1 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 0 previous and 0 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (1)
Current report
Operating expense was $535,085 and $1,946,305 for the three and nine month periods ended July 31, 2025 compared to $556,274 and $1,952,333 for the same periods in 2024. Compensation expense of $1,206,261 for the nine months ended July 31, 20125 consisted of payroll of $875,640 and consulting and directors’ fees of $330,621 compared to compensation of $1,190,888 consisting of payroll of $844,389 and consulting and directors’ fees of $346,499 for the same period in 2024. The change in operating expenses between the nine months in 2025 over 2024 was minimal and no specific category of expense changed significantly except for salaries and wages and general and administrative expenses.
Removed paragraphs (1)
Previous report
Operating expense was $780,405 and $1,411,220 for the three and six month periods ended April 30, 2025 compared to $803,998 and $1,396,168 for the same periods in 2024. The decrease in advertising expenses of $45,532 was offset by an increase in stock based compensation of $14,859 due to added options issued plus an increase in salaries and wages of $45,128 for the six month period ended April 30, 2025 over the same periods in 2024, resulted in an increase in the six month expenses in 2025 over the same period in 2024. Salaries and wages expense increased in the six months ended April 30, 2025 due to new hires plus increased bonus payments during that period.
Reworded paragraphs (8)
Previous wording
For the three and six month periods ended April 30, 2025, revenue was $585,712 and $1,414,764 compared to $601,806 and $1,232,342 for the same periods in 2024. Revenue increased for the six month period ended April 30, 2025 over the same period in 2024 by 14.8%. The increase in revenue for the six month period is attributed to benefiting from its prior investment in sales and marketing, which has contributed to the increase in sales. As Company sales increases, revenue from quarter to quarter is dependent on the timing of orders placed by its customers. Additionally, as larger customers place orders, the revenue volume can fluctuate significantly. During the quarter ending April 30, 2025, the Company had 14% fewer individual software orders compared to the first quarter ending January 31, 2025 resulting in 32% less revenue in the second quarter. The Company cannot determine if there were any significant external factors in the marketplace that impacted the results.
Current wording
For the three and nine month periods ended July 31, 2025, revenue was $482,682 and $1,897,446 compared to $666,359 and $1,898,701 for the same periods in 2024. Revenue decreased for the nine month period ended July 31, 2025 over the same period in 2024 by less than 1%. During the nine months ended July 31, 2025, subscription revenue accounted for 12% of sales or $224,730 versus 2% of revenue or $47,336 for the same period in 2024. The decrease in revenue for the nine month period can be partially attributed to the $177,394 increased subscription license agreements over perpetual license in 2025 over 2024. Under the subscription agreement the licensee pays for the license on an annual basis at a lower amount than if it was a perpetual license. Revenue from quarter-to-quarter is dependent on the timing of orders placed by its customers. Additionally, as larger customers place orders, the revenue volume can fluctuate significantly. The Company instituted subscription agreement terms in which the customer’s license is for two years with an option to renew each year thereafter. Payments for the software licenses are made on an annual basis compared to the one-time payment for a perpetual license. Subscription licenses impact the amount of revenue that can be recorded in a specific reporting period and may impact the comparison of revenue when compared to a previous reporting period. During the quarter ending July 31, 2025, the Company had fewer individual software orders plus increased subscription license revenue compared to the third quarter ending July 31, 2024 resulting in 28% less revenue in the second quarter. The Company cannot determine if there were any significant external factors in the marketplace that impacted the results.
Previous wording
For the three and six month periods ended April 30, 2025, the Company reported an operating loss of $194,693 and operating income of $3,544 compared to operating losses of $202,182 and $163,826 for the same periods in 2024. The operating income during the six month period ended April 30, 2025 over the operating loss for same period in 2024 is attributable to higher revenues offsetting the increased expenses in the six month period ended April 30, 2025, versus the same period in 2024.
Current wording
For the three and nine month periods ended July 31, 2025, the Company reported an operating loss of $52,403 and $48,859 compared to operating income of $110,085 and operating loss of $53,632 for the same periods in 2024. The operating loss during the nine month period ended July 31, 2025 over the operating loss for same period in 2024 is attributable to static revenues and static expenses in both nine month periods ended July 31, 2025 and 2024.
Previous wording
Other expenses for the three and six month periods ended April 30, 2025 was $31,790 and $964, consisting of other income of $8,357 and $18,109, currency loss of $26,673 and $5,599 plus a bad debt expense of $13,474. This compared to other income of $7,296 for the three months and other loss of $9,676 during the six months period ended April 30, 2024. Other income and expense consisted of other income of $5,008 and $7,995, currency income of $2,288 and currency loss of $17,671 for the same periods in 2024. The amount of change in both periods was due to the effect of currency exchange plus bad debt expense of $13,474.
Current wording
Other income/expense for the three and nine month periods ended July 31, 2025 was income of $8,168 and $7,204, consisting of other income of $11,857 and $29,966, currency loss of $3,532 and $9,131 plus a bad debt expense of $13,631. This compared to other income of $11,633 and $1,957 for the three and nine months period ended July 31, 2024. Other income and expense consisted of other income of $6,464 and $14,459, currency income of $5,169 and currency loss of $12,502 for the same period in 2024. The amount of change in both periods was due to the effect of currency exchange, increased other income and bad debt expense of $13,631.
Previous wording
Net loss before taxes of $226,483 and net income before taxes of $2,580, was reported for the three and six month periods ended April 30, 2025, compared to net loss of $194,886 and $173,502 for the same periods in 2024. Net loss after tax for the three months periods ended April 30, 2025 was $227,723 and net income after taxes for the six months period was $1,340 compared to net loss of $166,503 and $145,119 for the same periods in 2024. These amounts reflect tax payments and refunds during the six month periods.
Current wording
Net loss before taxes of $44,235 and $41,655 was reported for the three and nine month periods ended July 31, 2025, compared to net income of $121,718 and net loss of $51,675 for the same periods in 2024. Net loss after tax for the three and nine month periods ended July 31, 2025 was $15,445 and $14,105 compared to net income of $121,718 and net loss of $23,401 for the same periods in 2024. These amounts reflect tax refunds of $28,790 and $28,274 during the nine month periods in 2025 and 2024, respectively.
Previous wording
Net loss to common stockholders was $230,628 and $4,470 for the three and six month periods ended April 30, 2025, compared to net loss of $169,408 and $150,929 for the same periods in 2024. Net income to common shareholders includes the expense of dividend for preferred stockholders of $2,905 and $5,810 being accrued for the three and six month periods ended April 30, 2025 and 2024.
Current wording
Net loss to common stockholders was $18,353 and $22,820 for the three and nine month periods ended July 31, 2025, compared to net income of $118,813 and net loss of $32,116 for the same periods in 2024. Net income or loss to common shareholders includes the expense of dividend for preferred stockholders of $2,905 and $8,715 being accrued for the three and nine month periods ended July 31, 2025 and 2024.
Previous wording
The Company reported comprehensive losses of $235,302 and $13,817 for the three and six month periods ended April 30, 2025 compared to a comprehensive loss of $174,713 and $161,706 for the same periods in 2024. Comprehensive income is an adjustment to net gain or loss with foreign currency translation adjustments.
Current wording
The Company reported comprehensive losses of $17,838 and $31,652 for the three and nine month periods ended July 31, 2025 compared to a comprehensive income of 118,634 and loss of $21,160 for the same periods in 2024. Comprehensive income is an adjustment to net gain or loss with foreign currency translation adjustments.
Previous wording
At April 30, 2025, the Company had current assets of $1,689,159 and current liabilities of $758,809, resulting in working capital of $930,350. Accumulated deficit, as of April 30, 2025, was $6,475,777 with total stockholders’ equity of $930,350.
Current wording
At July 31, 2025, the Company had current assets of $1,615,964 and current liabilities of $668,946, resulting in working capital of $946,634. Accumulated deficit, as of July 31, 2025, was $6,494,127 with total stockholders’ equity of $947,018. Stockholders’ equity increased by $57,488 during the nine month period ending July 31, 2025. The change was primarily due to the increase in current assets in the nine month period ending July 31, 2025.
Previous wording
Net cash provided by operating activities for the six month period ended April 30, 2025, was $100,616 compared to net cash provided by operating activities of $107,487 for the same period in 2024. The cash provided by operating activities for the six month period ended April 30, 2025 compared to the net cash provided in operating activities over the same period in 2024 was primarily due to a reduction of the net loss of $138,875 in the same period of 2025 over 2024.
Current wording
Net cash provided by operating activities for the nine month period ended July 31, 2025, was $203,449 compared to net cash provided by operating activities of $199,502 for the same period in 2024. The cash provided by operating activities for the nine month period ended July 31, 2025 compared to the net cash provided in operating activities over the same period in 2024 was influenced by the lower loss in 2025 over 2024.