Skkynet Cloud Systems (OTCQB: SKKY) gets C$1.04M interest-free AI loan

Rhea-AI Filing Summary

Skkynet Cloud Systems, Inc. announced a C$2.6 million (US$1.9 million) Industrial AI Product Development Initiative, aimed at advancing its industrial artificial intelligence products.

The initiative is partially funded by the Government of Canada through FedDev Ontario’s Regional Artificial Intelligence Initiative. Skkynet and FedDev Ontario entered a loan agreement under which up to C$1.04 million (US$0.75 million) will be provided over the project period as an interest-free loan, repayable after project completion and subject to conditions.

Insights

Technology and corporate finance analyst

Skkynet secured an interest-free government loan to support a C$2.6M industrial AI development project.

Skkynet Cloud Systems entered a material loan agreement tied to a new Industrial AI Product Development Initiative totaling C$2.6 million (US$1.9 million). The funding is partially provided by the Government of Canada through FedDev Ontario’s Regional Artificial Intelligence Initiative, linking the project to a federal support program.

Under the agreement, FedDev Ontario will provide up to C$1.04 million (US$0.75 million) over the project period as an interest-free loan. An interest-free structure means Skkynet will not incur periodic interest charges on this borrowing, although the principal must still be repaid.

The loan is repayable after project completion and is described as subject to conditions, indicating that future cash outflows will follow once the development work concludes. Operational execution of the Industrial AI project and future disclosures around its progress and the repayment schedule will shape how this funding affects Skkynet’s longer-term financial profile.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) December 17, 2025

SKKYNET CLOUD SYSTEMS, INC

(Exact name of registrant as specified in its charter)

Nevada		000-54747		45-3757848
(State or other jurisdiction  of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

2233 Argentria Road, Suite 302, Mississauga, Ontario, Canada		L5N 2X7
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code (888) 702-7851

N/A 

(Former name or former address, if changed since last report.) 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

ITEM 1.01. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.

On December 18, 2025, Skkynet Cloud Systems, Inc. (“the Company”) announced a C$2.6 million (US$1.9 million) Industrial AI Product Development Initiative (the “Project”) partially funded by the Government of Canada through FedDev Ontario’s Regional Artificial Intelligence Initiative (“FedDev Ontario”).    The Project funding was first publicly announced by FedDev Ontario on December 17, 2025.  The Company and FedDev Ontario entered into a loan agreement whereby up to C$1.04 million (US$0.75 million) will be provided to the Company over the Project period in the form of an interest-free repayable loan after the Project completion, subject to conditions.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS

Exhibit No.		Description
99.1*		December 18, 2025 Press Release
104		Cover Page Interactive Data File (formatted as Inline XBRL)

__________

*furnished herewith

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

SKKYNET CLOUD SYSTEMS INC.

/s/ Paul Thomas

Paul Thomas

President

Date: December 18, 2025

3

FAQ

What agreement did Skkynet Cloud Systems (SKKY) enter into in December 2025?

Skkynet Cloud Systems, Inc. entered into a material loan agreement with FedDev Ontario related to an Industrial AI Product Development Initiative. The agreement provides for interest-free funding that will be repayable after the project is completed, subject to conditions.

How large is Skkynet Cloud Systems' Industrial AI Product Development Initiative?

The Industrial AI Product Development Initiative announced by Skkynet Cloud Systems totals C$2.6 million (US$1.9 million). This amount represents the overall size of the project the company plans to undertake.

How much funding will FedDev Ontario provide to Skkynet Cloud Systems (SKKY)?

Through the Regional Artificial Intelligence Initiative, FedDev Ontario agreed to provide Skkynet with up to C$1.04 million (US$0.75 million). This funding will be delivered over the project period under the terms of the loan agreement.

Is the FedDev Ontario loan to Skkynet interest-free, and when is it repayable?

Yes. The loan from FedDev Ontario to Skkynet Cloud Systems is described as interest-free. It is structured as a repayable loan that becomes due after the completion of the Industrial AI Product Development Initiative, and it is subject to stated conditions.

When was Skkynet’s Industrial AI funding first publicly announced?

The funding for Skkynet’s Industrial AI Product Development Initiative was first publicly announced by FedDev Ontario on December 17, 2025. Skkynet then announced the C$2.6 million initiative on December 18, 2025.

Who is providing support for Skkynet Cloud Systems' Industrial AI project?

The Industrial AI Product Development Initiative is partially funded by the Government of Canada through FedDev Ontario’s Regional Artificial Intelligence Initiative. FedDev Ontario is the counterparty to the interest-free loan agreement with Skkynet.