Mon, Jun 30, 4:53 PM (13 days ago)
**Summary of Sky Century Investment, Inc. (SKYI) Quarterly Financial Health** **Revenue and Profit Margins:** - For the quarter ended May 31, 2025, Sky Century Investment, Inc. (SKYI) reported total revenues of $30,838,000, a significant increase from $0 in the same period in 2024. This growth was driven by targeted customer outreach strategies. - Cost of revenues for the quarter was $12,423,000, up 48% year-over-year, primarily due to amortization expenses for intangible assets like databases, RSS feeds, API, and website update costs. - Gross profit for the quarter was $18,415,000, compared to a loss of $8,406,000 in the same period in 2024. **Operating Expenses and Net Income:** - Total operating expenses for the quarter were $31,462,000, a 77% decrease from $17,743,000 in the same period in 2024. This decrease was primarily due to higher professional fees for audit and legal services. - Net loss for the quarter was $13,047,000, an 8% decrease from $14,149,000 in the same period in 2024. The decrease in net loss was mainly due to the increase in revenue. **Cash Flow and Liquidity:** - For the nine months ended May 31, 2025, the company had a net loss of $81,420,000, a 40% increase from $58,310,000 in the same period in 2024. This increase was primarily due to higher operating expenses. - Cash flows provided by operating activities for 2025 increased by $56,407,000 compared to 2024, driven by increased accounts payable offset by amortization expense. - The company had a working capital deficit of $359,277,000 as of May 31, 2025, compared to $267,060,000 as of August 31, 2024. **Future Operations and Uncertainties:** - Sky Century Investment, Inc. is focused on expanding its online services, including marketing services, SEO services, analytics and reporting, web design, email marketing, and IT services. - The company plans to enhance and scale its application, expand its RSS feed offerings, and introduce new features to stay competitive in the market. - The company's auditors have issued a "going concern" opinion, indicating substantial doubt about the company's ability to continue as an ongoing business for the next twelve months unless additional capital is obtained. **Conclusion:** Sky Century Investment, Inc. has shown significant revenue growth in the quarter ended May 31, 2025, driven by targeted customer outreach strategies. However, the company continues to face challenges related to operating expenses and liquidity. The company's future operations will focus on expanding its service offerings and scaling its application, but it will need to secure additional capital to sustain its operations.