<div id="readability-page-1"><div>Skkynet Cloud Systems, Inc., headquartered in Mississauga, Canada, has released its annual 10-K report, providing a comprehensive overview of its financial performance, business operations, strategic initiatives, and the challenges it faces. The company, known for its secure connectivity and data acquisition solutions for industrial and office hardware, continues to focus on integrating cloud-based systems to enhance its offerings in the Industrial Internet of Things (IoT) market, also known as Industry 4.0. Financial Highlights <ul><li>Revenue: $2.55 million, reflecting a slight decrease from the previous year due to a shift from one-time license payments to subscription payments.</li><li>Operating Income (Loss): $(6,488), a decrease from the previous year's income of $58,697, attributed to increased operating expenses.</li><li>Net Income: $35,351, down from $99,090 in the previous year, impacted by the transition to subscription sales.</li><li>Net Income (Loss) Per Share to Common Shareholders, Basic: $0.00, consistent with the previous year, reflecting the impact of preferred dividends.</li><li>Net Income (Loss) Per Share to Common Shareholders, Diluted: $0.00, consistent with the previous year, indicating no significant change in share dilution impact.</li></ul> Business Highlights <ul><li>Business Overview: Skkynet operates through its subsidiaries to provide secure connectivity and data acquisition solutions for industrial and office hardware. The company focuses on integrating cloud-based systems to enhance its offerings in the Industrial Internet of Things (IoT) market.</li><li>Product and Service Offerings: Skkynet offers a range of software products, including the Cogent DataHub™ service for Microsoft Azure, which provides real-time data communication and secure connections between machines and applications. The company's software is modular, allowing for customization through Product Packs and Add-ons.</li><li>Customer Segments: The company serves over 3,000 customers across various industries, including Aerospace, Automation &amp; Control, Chemicals, Communications, Education, Engineering, Energy &amp; Utilities, Financial, Food &amp; Beverage, Government &amp; Municipal, Healthcare &amp; Pharmaceutical, Instrumentation, Manufacturing, Natural Resources, and System Integrators.</li><li>Revenue Segments: More than 70% of Skkynet's revenues are derived from software licensing for industrial automation systems, with the remainder coming from financial trading, software support, custom development, and legacy system support.</li><li>Geographical Performance: Skkynet has a global presence with approximately 50 technical partners and resellers in different geographic areas, including partnerships with major companies like Microsoft, Siemens, and AVEVA.</li><li>Operational Highlights: The company has introduced innovations such as high-speed redundancy facilities, web-based user interfaces, and high-speed storage capabilities. Skkynet's patented technologies address data transmission challenges in cloud-based systems, ensuring security and efficiency.</li><li>Future Outlook: Skkynet plans to expand its business in three primary areas: real-time data software for industrial automation, cloud-based SaaS products, and new business lines such as AI-focused providers and embedded products. The company aims to improve its cloud services and explore new markets with dedicated marketing and sales efforts.</li></ul> Strategic Initiatives <ul><li>Strategic Initiatives: Skkynet is focusing on expanding its business through the planned expansion of marketing in new markets, including Cloud industrial middleware, Cloud financial services, home monitoring, fleet tracking, and energy usage monitoring. The company is also working with Japanese companies to penetrate the embedded device manufacturing market, aiming to have its software installed directly on electronic devices.</li><li>Capital Management: The company has been self-financing through positive cash flows from operating activities, with net cash provided by operating activities amounting to $276,827 in 2025. Skkynet is attempting to secure additional capital from independent sources in the form of equity and debt to support its expansion plans. As of October 31, 2025, the company had working capital of $1,027,715, with a current ratio of 2.28 to 1. The company has not declared or paid any cash dividends on its common stock, opting to retain future earnings to finance business expansion. Dividends of 6% are being accrued on Series B preferred shares.</li><li>Future Outlook: Skkynet plans to continue expanding into new markets, which will require additional cash resources. The company intends to secure specific amounts of financing for the development of each market application before beginning marketing efforts. The company is also focused on increasing subscription revenue, which has grown by 268% in 2025, as part of its strategic shift from perpetual revenue. The company received a $1.9 million funding initiative for Industrial AI Product Development, which includes an interest-free repayable loan, indicating a focus on innovation and technology development.</li></ul> Challenges and Risks <ul><li>Operational Challenges: Skkynet faces challenges related to the geographical relocation of manufacturing facilities, which necessitates robust remote monitoring capabilities to maintain safety, confidentiality, and integrity of processes. The company also identifies a growing need for secure information sharing with third parties and AI applications, which could pose operational and security challenges.</li><li>COVID-19 Impact: The COVID-19 pandemic is highlighted as an uncontrollable event that could negatively impact operations by limiting access to customers, management, and support staff. The company acknowledges the difficulty in measuring the pandemic's impact on operations and financial condition.</li><li>Financial Challenges: The shift from perpetual to subscription revenue models presents a financial challenge, impacting near-term revenue. The company also notes the need for additional cash resources to expand into new markets, which is contingent on securing financing. The expansion into Cloud services and AI applications is seen as a growth opportunity but requires careful management of market entry and additional staffing.</li></ul>SEC Filing: Skkynet Cloud Systems, Inc. [ SKKY ] - 10-K - Jan. 27, 2026</div></div>

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Skkynet Cloud Systems, Inc. has released its annual 10-K report detailing its financial performance and strategic initiatives. The company reported a revenue of $2.55 million, a decrease attributed to a shift from one-time license payments to subscription payments. Operating income fell to $(6,488), and net income decreased to $35,351. Skkynet focuses on enhancing its offerings in the Industrial IoT market and plans to expand into new markets, including AI and cloud-based services. The company is self-financing but seeks additional capital for expansion, while facing operational challenges and the impact of COVID-19.

Skkynet Cloud Systems, Inc. SEC 10-K Report