This report contains forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Skkynet's actual results could differ materially from those set forth on the forward-looking statements as a result of the risks set forth in Skkynet's filings with the Securities and Exchange Commission, general economic conditions, and changes in the assumptions used in making such forward looking statements.





OVERVIEW

Skkynet is a Nevada corporation headquartered in Mississauga, Canada. Skkynet operates three different lines of business through its wholly owned subsidiaries Cogent Real-Time Systems, Inc. ("Cogent"), Skkynet, Inc. ("Skkynet (USA)"), and Skkynet Corp. ("Skkynet (Canada. Skkynet was established to enhance Cogent's existing business lines through the integration of Cloud-based systems, and to deliver a Software-as-a-Service ("SaaS") product targeting the Industrial Internet of Things ("IoT") market, now referred to by the terms "Industry 4.0" and "Industrial Internet Consortium".

The Company provides software and related systems and facilities to collect, process, and distribute real-time information over a network. This capability allows the customers to both locally and remotely manage, supervise, and control industrial processes and financial information systems. By using this software and, when requested by a client, our web based assets, our clients and their customers (to the extent relevant) are given the ability and the tools to observe and interact with these processes and services in real-time as they are underway and to give them the power to analyze, alter, stop, or otherwise influence these activities to conform to their plans.





RESULTS OF OPERATIONS

For the three and six month periods ended April 30, 2022, revenue was $540,093 and $1,017,272 compared to $447,972 and $886,038 for the same periods in 2021. Revenue increased for the six month periods ended April 30, 2022 over the same period in 2021 by 14.8%. The increase in revenue for the six-month period is attributed to higher sales by Cogent. The Company is benefiting from its prior investment in sales and marketing and market recognition which has contributed to the increase in Cogent's sales.

General and administrative expense was $593,080 and $1,169,719 for the three and six month periods ended April 30, 2022 compared to $$415,092 and $863,098 for the same periods in 2021. The increase in general and administrative expenses for the three and six month periods ended April 30, 2022 over the same periods in 2021, resulted from increased expenditures primarily in legal and accounting, hired consulting services, and advertising and promotion.

For the three and six month periods ended April 30, 2022, the Company reported an operating loss of $53,638 and $153,749 compared to operating income of $32,225 and $21,644 for the same periods in 2021. The operating loss during the three- and six-month periods ended April 30, 2022, over the operating income for same periods in 2021 is attributable to higher general and administrative costs in the period ended April 30, 2022, as noted in the above paragraph compared to 2021.

Other income and expense for the three and six month periods ended April 30, 2022, was other expense of $3,684 and other income of $22,263 compared to other loss of $23,310 and $54,441 for the same periods in 2021. The amount of change in both periods was due to the effect of currency exchange.






         12

  Table of Contents

Net loss after income taxes of $17,955 and $92,119 was reported for the three and six month periods ended April 30, 2022, compared to a net income before and after income taxes of $8,915 and net loss of $32,797 for the same periods in 2021. The higher net loss for the three and six month periods in 2022 can be attributed to higher general and administrative cost in 2022 compared to the same period in 2021. During the three month period ended April 30, 2022 the Company received a tax refund for development of $39,367.

Net loss to common stockholders was $20,860 and $97,929 for the three- and six-month periods ended April 30, 2022, compared to net income of $6,010 and net loss of $38,607 for the same periods in 2021. The loss includes the expense of dividend for preferred stockholders of $5,810 being accrued for the six months period ended April 30, 2022.

The Company reported comprehensive loss of $19,475 and $79,995 for the three and six month periods ended April 30, 2022 compared to a comprehensive income of $26,373 and comprehensive loss of $9,608 for the same periods in 2021. The comprehensive loss is an adjustment to net loss with foreign currency translation adjustments.

LIQUIDITY AND CAPITAL RESOURCES

At April 30, 2022, Skkynet had current assets of $916,849 and current liabilities of $494,898, resulting in working capital of $421,951. Accumulated deficit, as of April 30, 2022, was $6,568,352 with total stockholders' equity of $435,378.

Net cash used in operating activities for the six month period ended April 30, 2022, was $207,953 compared to net cash used in operating activities of $288,962 for the same period in 2021.

The decrease in cash used in operating activities for the six-month period ended April 30, 2022 over the same period in 2021 was primarily due to an increase in accounts receivable and deferred revenue offset by a decrease of accounts payable and due related parties.

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.

© Edgar Online, source Glimpses