As shown in the accompanying financial statements,
Skkynet has an accumulated deficit of $353,944 as of October 31, 2012 and incurred a net loss of $108,327 for the year ended October
31, 2012. Unless profitability and increases in stockholders equity continues, these conditions raise doubt as to Skkynet
ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might be necessary
if Skkynet is unable to continue as a going concern.
Skkynet continues to review its expense structure
reviewing costs and their reduction to move towards profitability. The Companys expenses are planned to decrease as a percent
of revenue resulting in profitability and increased shareholders equity.