Skkynet Cloud Systems, Inc.

What they do

Skkynet operates through wholly owned subsidiaries Cogent Real-Time Systems, Skkynet (USA), and Skkynet (Canada). It provides software and related systems to collect, process, and distribute real-time information over networks, letting customers locally and remotely manage, supervise, and control industrial processes and financial information systems. Skkynet was formed to extend Cogent's middleware business into cloud-based systems and a SaaS product targeting the Industrial IoT.

Revenue drivers

• Perpetual software licenses — The largest revenue line: $2,186,556 in fiscal 2025 versus $2,424,975 in 2024, reflecting the company's shift away from one-time license payments.
• Subscription revenue — Payments for subscription revenue rose 268% to $364,395 in fiscal 2025 from $136,770 in 2024, still a small share of total revenue but the stated growth focus.
• Industrial automation customers — Cogent's primary market; software connects and acquires data from industrial hardware and software and serves it over standard network protocols.
• Financial trading customers — Acquired with little advertising because Cogent's software is source- and content-agnostic; high-speed trading and high-speed automation behave similarly at its abstraction level.

Recent performance

Fiscal 2025 revenue was $2,550,951, down $10,672 from $2,561,745 in 2024, with net income of $35,351 versus $99,090. The revenue decline is attributed to the shift from one-time license payments to subscriptions; deferred revenue rose to $347,686 from $338,382. For the quarter ended April 30, 2026, revenue was $606,106, up 4% from $583,712, but the six-month revenue fell 18% to $1,155,499 from $1,414,674. The six-month operating loss was $486,993 versus operating income of $3,544 a year earlier, and net loss to common stockholders was $341,711.

Strategy

Management is transitioning the business from perpetual licenses to subscription licenses, stating this move impacts near-term revenue with the potential for future increased revenue. It is working with Japanese partners to embed its software directly on electronic devices for embedded device manufacturers. The company says expansion into markets such as cloud industrial middleware, cloud financial services, home monitoring, fleet tracking, and energy usage monitoring requires additional cash and senior staffing, which it will only pursue after securing specific financing. It also cites growing demand from large enterprises to safely share operational data with third parties and to enable AI applications.

Risks

• Subscription transition pressure — The move from perpetual to subscription licenses reduced near-term revenue, with fiscal 2025 revenue down and the six months ended April 30, 2026 down 18% year over year.
• Operating losses — The company reported an operating loss of $486,993 for the six months ended April 30, 2026, versus operating income of $3,544 in the prior-year period.
• Financing dependence for expansion — Management states new-market expansion requires additional cash resources not currently available and will not begin marketing or senior staffing until financing is secured.
• Narrow market penetration — The company says it has existing clients in areas such as fleet tracking and energy monitoring but has not had resources to systematically market to those industries.

Outlook

Management characterizes the subscription transition as potentially increasing future revenue even as it pressures near-term results. It states that without additional capital, the present business can sustain added public-company costs only at a minimal level, and that new-market marketing and senior staffing will not begin until financing is secured. The company continues to pursue Japanese embedded device manufacturing partnerships.