Skkynet Cloud Systems, Inc.
For the period ended Oct 31, 2025. Filed Jan 27, 2026.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed Jan 27, 2026
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What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2024-10-31; filed 2025-01-31.
0001477932-25-000608
Item 7. Management’s Discussion and Analysis of Financial Conditions and Results of OperationsCurrent report: 10-K
Period ended 2025-10-31; filed 2026-01-27.
0001477932-26-000435
Item 7. Management’s Discussion and Analysis of Financial Conditions 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 29 previous paragraphs and 40 current paragraphs.
19 unchanged; 8 reworded; 12 added; 2 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 1 previous and 3 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 (12)
Current report
Payments for subscription revenue has increased 268% to $364,395 in the year ended October 31, 2025 from $136,770 in 2024. Perpetual revenue for the year ended October 31, 2025 was $2,186,556 compared to $2,424,975 in 2024. The move to subscription revenue from perpetual revenue impacts near term revenue with the potential of future increased revenue.
Current report
Other Income (Expense): Other income totaled $16,914 during the year ended October 31, 2025 compared to other income of $14,265 during the same period in 2024. The currency loss in 2025 of $7,172 compares to $11,341 in currency loss for the same period in 2024. Other income of $37,761, principally interest earned, offset by bad debt expense of $13,675 and currency expense of $7,172 in 2025 compared to other income of $25,606, offset by currency loss of $11,341 in 2024 giving us the net results in each period.
Current report
Financing Activities: The Company did not have any financing activity during the years ending October 31, 2025 and 2024. The positive cash flows from operating activities allows the Company to self-finance.
Current report
Revenue Recognition
Current report
In April 2016, the FASB issued ASU 2016–10 Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The amendments in this Update do not change the core principle of the guidance in Topic 606. Rather, the amendments in this Update clarify the following two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. Topic 606 includes implementation guidance on (a) contracts with customers to transfer goods and services in exchange for consideration and (b) determining whether an entity’s promise to grant a license provides a customer with either a right to use the entity’s intellectual property (which is satisfied at a point in time) or a right to access the entity’s intellectual property (which is satisfied over time). The amendments are intended to render more detailed implementation guidance with the expectation to reduce the degree of judgement necessary to comply with Topic 606.
Current report
ASC Topic 606 prescribes a new five-step model entities should follow in order to recognize revenue in accordance with the core principle. These five steps are:
Current report
The Company has four revenue streams, each of which the revenue is recognized in accordance to the five steps included in Topic 606. The revenue streams are:
Current report
Revenue for the sale of software both directly to end users and through the distributor and channel partners is recognized upon delivery of the software and code required for the customer to install the software. The Company maintains ownership of the customer regardless of the distribution channel of the sale.
Current report
Maintenance support services are recognized as revenue on a straight-line basis over the service period of the arrangement.
Current report
Revenues from cloud services and subscription service are recognized over time (typically, on a monthly basis) as service is provided.
Current report
Payments received in advance of services being rendered are recorded as deferred revenue and recognized to revenue when earned. During the year ended October 31, 2025, $271,683 of deferred revenue was returned to sales and $284,540 was added to deferred revenue from sales. As of October 31, 2025 and 2024 the deferred revenue was $347,686 and $338,382, respectively.
Current report
Payments for subscription revenue has increased 268% to $364,395 in the year ended October 31, 2025 from $136,770 in 2024. Perpetual revenue for the year ended October 31, 2025 was $2,186,556 compared to $2,424,975 in 2024. The move to subscription revenue from perpetual revenue impacts near term revenue.
Removed paragraphs (2)
Previous report
Other Income (Expense): Other income totaled $14,265 during the year ended October 31, 2024 compared to other expense of $9,826 during the same period in 2023. The currency exchange in 2024 of $11,341 was compared to $6,087 in currency exchange for the same period in 2023. An increase in other income of $25,461 over last year is the primary reason that the Company had other income in the year ended October 31, 2024 verses other expense in the same period in 2023.
Previous report
Financing Activities: Net cash provided by financing was zero for the year ended October 31, 2024 compared to net cash used in financing activities of $19,016 in 2023. The change results from the payback of the Canadian emergency loans in 2023 of $19,106.
Reworded paragraphs (8)
Previous wording
Revenue: For the year ended October 31, 2024, the Company had revenues of $2,561,745 compared to $2,374,216 of revenues for the year ended October 31, 2023. This reflects an increase of $187,529 from 2024 over 2023. Revenue increases can be attributed to the increase of sales in the Cogent subsidiary. During the year ended October 31, 2024, the Company’s deferred revenue was $338,382 compared to a deferred revenue balance of $360,170 as of October 31, 2023, a decrease of $21,788. Deferred revenue consists of services billed but not yet provided to the customer and reflects revenues that will be recognized over the next 39 months.
Current wording
Revenue: For the year ended October 31, 2025, the Company had revenues of $2,550,951 compared to $2,561,745 of revenues for the year ended October 31, 2024. This reflects a decrease of $10,672 from 2025 over 2024. The revenue decrease is attributed to the shift in sales from one time license payments to subscription payments for software licenses. During the year ended October 31, 2025, the Company’s deferred revenue was $347,686 compared to a deferred revenue balance of $338,382 as of October 31, 2024 an increase of $9,304. Deferred revenue consists of services billed but not yet provided to the customer and reflects revenues that will be recognized over the next 12 to 39 months.
Previous wording
Operating Expenses: Total operating expenses, excluding depreciation, increased to $2,500,623 in the year ended October 31, 2024 compared to $2,487,967 for the same period in 2023. This was an increase of $12,656 and as a percentage of revenue G&A decreased to 97.6% in 2024 from 106% in 2023. The percentage decrease of G&A is attributed to higher revenue in the Cogent subsidiary in 2024 over 2023.
Current wording
Operating Expenses: Total operating expenses, excluding depreciation, increased to $2,555,508 in the year ended October 31, 2025 compared to $2,500,623 for the same period in 2024. This was an increase of $53,665. The increase of G&A is attributed to higher salary and wages along with higher consulting fees during the year ended October 31, 2025 over 2024.
Previous wording
Depreciation and Amortization: The Company had depreciation of $2,425 in the year ended October 31, 2024 compared to $2,447 in the same period in 2023.
Current wording
Depreciation and Amortization: The Company had depreciation of $1,931 in the year ended October 31, 2025 compared to $2,425 in the same period in 2024. During 2025 the fixed asset were completely depreciated resulting in a lower depreciation amount in 2025 over 2024.
Previous wording
Income Tax: During the years ended October 31, 2024 and 2023 the Company and its subsidiary incurred no tax. The subsidiary filed tax returns as a foreign corporation. During the year ended October 31, 2024, the subsidiary received a tax refund of $26,128 compared to a refund of $29,897 for the same period in 2023.
Current wording
Income Tax: During the years ended October 31, 2025 and 2024 the Company and its subsidiary incurred no income tax. Two subsidiaries filed tax returns as a foreign corporation. During the year ended October 31, 2025, the subsidiary received a tax refund of $24,925 compared to a refund of $26,128 for the same period in 2024.
Previous wording
Net Income (Loss): The Company recorded net income of $99,090 for the year ended October 31, 2024 compared to net loss of $97,872 in the same period in 2023, a positive variance of $196,962. The increase in sales in the Cogent subsidiary was sufficient to overcome the increase in expenses in 2024 resulting in the net income in 2024 compared to a net loss in 2023.
Current wording
Net Income (Loss): The Company recorded net income of $35,351 for the year ended October 31, 2025 compared to net income of $99,090 in the same period in 2024. Sales in 2025 were slightly lower than the same period in 2024 due to the conversion to subscription sales. The Company recorded an operating loss of $6,488 in 2025 compared to operating income of $58,697 in 2024. Other income and the tax refund resulted in the net profit $ 35,351 in 2025 compared to net profit of $99,090 in 2024.
Previous wording
Working Capital: At October 31, 2024, the Company had working capital of $887,374 with current assets of $1,547,330 and current liabilities of $659,956 with a current ratio of 2.34 to 1. The current assets consisted of cash of $1,158,255, accounts receivable of $361,480, and prepaid expense and other receivable of $27,595. The current liabilities of the Company at October 31, 2024 are composed primarily of accounts payable and accrued expenses of $154,634, accrued liabilities to related party of $166,940, and deferred revenue of $338,382. Deferred revenue consists of services billed but not yet provided to the customer and reflects revenues that will be recognized over the next 39 months.
Current wording
Working Capital: At October 31, 2025, the Company had working capital of $1,027,715 with current assets of $1,831,014 and current liabilities of $803,299 with a current ratio of 2.28 to 1. The current assets consisted of cash of $1,427,321, accounts receivable of $376,830, and prepaid expense and other receivable of $26,863. The current liabilities of the Company at October 31, 2025 are composed primarily of accounts payable and accrued expenses of $209,901, accrued liabilities to related party of $245,712, and deferred revenue of $347,686. Deferred revenue consists of services billed but not yet provided to the customer and reflects revenues that will be recognized over the next 12 months.
Previous wording
Operating Activities: Net cash provided by operating activities during the year ended October 31, 2024 was $234,638 compared to net cash provided of $207,822 for the same period in 2023. This represents a positive change of $26,816.
Current wording
Operating Activities: Net cash provided by operating activities during the year ended October 31, 2025 was $276,827 compared to net cash provided of $234,638 for the same period in 2024. This represents a positive change of $42,189 from 2024 to 2025 .
Previous wording
As of October 31, 2024, the Company had total assets of $1,549,486 and total liabilities of $659,956 compared to $1,256,545 and $540,905, respectively for the same period in 2023. Stockholders’ equity as of October 31, 2024 was $889,530 compared to stockholder’s equity of $715,640 at October 31, 2023, an increase of $173,890.
Current wording
As of October 31, 2025, the Company had total assets of $1,831,014 and total liabilities of $803,299 compared to $1,547,330 and $659,956, respectively for the same period in 2024. Stockholders’ equity as of October 31, 2025 was $1,027,715 compared to stockholder’s equity of $899,530 at October 31, 2024, an increase of $128,185. Shareholders equity has continued to grow year over year.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Management considers that of the Company’s significant accounting policies and estimates; revenue recognition involves a higher degree of judgment or complexity and is believed to be a critical accounting policy.