Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jan. 31, 2018 | Mar. 17, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | Summit Networks Inc. | |
Entity Central Index Key | 1,619,096 | |
Document Type | 10-Q | |
Document Period End Date | Jan. 31, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --07-31 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 5,649,000 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,018 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Jan. 31, 2018 | Jul. 31, 2017 |
Current Assets | ||
Cash and cash equivalents | ||
Receivable- Escrow account | 62 | |
Total Current Assets | 62 | |
Non-current assets | ||
Other Assets | 1,000 | 1,000 |
Property & Office Equipment, net | 11,970 | 12,768 |
Deferred Tax Asset | ||
Total non-current assets | 12,970 | 13,768 |
TOTAL ASSETS | 13,032 | 13,768 |
Current Liabilities | ||
Accounts payable | 43,822 | |
Amount due to related party | 13,835 | 11,217 |
Accrued expenses | 9,907 | |
Total current liabilities | 67,564 | 11,217 |
Total Liabilities | 67,564 | 11,217 |
Stockholders' Equity | ||
Common stock, $0.001 par value, 75,000,000 shares authorized; none issued and outstanding authorized; 5,250,000 and 5,000,000 shares issued and outstanding, as at January 31, 2018 and July 31, 2017 respectively | 5,250 | 5,000 |
Additional Paid in Capital | 46,250 | 39,000 |
(Accumulated deficit) during development stage | (106,032) | (41,449) |
TOTAL STOCKHOLDERS' EQUITY | (54,532) | 2,551 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 13,032 | $ 13,768 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Jan. 31, 2018 | Jul. 31, 2017 |
Stockholders' Equity | ||
Common Stock Par Value | $ 0.001 | $ 0.001 |
Common Stock Shares Authorized | 75,000,000 | 75,000,000 |
Common Stock Shares Issued | 5,250,000 | 5,000,000 |
Common Stock Shares Outstanding | 5,250,000 | 5,000,000 |
STATEMENT OF OPERATIONS (Unaudi
STATEMENT OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | 43 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2018 | |
Statement Of Operations | |||||
Sales | $ 7,560 | $ 20,183 | $ 223,910 | ||
Cost of Goods | 3,648 | 14,917 | 163,257 | ||
Gross Profit | 3,912 | 5,266 | 60,653 | ||
Selling, General & Administrative Expenses | 11,131 | 4,362 | 64,583 | 8,239 | 168,163 |
(Loss) /Income from operations | (11,131) | (450) | (64,583) | (2,973) | (107,510) |
Other income/ (expenses) | |||||
(Loss) /Income before income taxes | (11,131) | (450) | (64,583) | (2,973) | (107,510) |
Income taxes benefit | 1,478 | ||||
Net (Loss)/Income | $ (11,131) | $ (450) | $ (64,583) | $ (2,973) | $ (106,032) |
Earnings per share of common stock - Basic | $ 0 | $ 0 | $ (0.01) | $ 0 | |
Earnings per share of common stock - Diluted | $ 0 | $ 0 | $ (0.01) | $ 0 | |
Weighted average number of common stock - Basic | 5,176,630 | 5,000,000 | 5,088,315 | 5,000,000 | |
Weighted average number of common stock - Diluted | 5,176,630 | 5,000,000 | 5,088,315 | 5,000,000 |
Statement of Stockholders' Equi
Statement of Stockholders' Equity - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated Deficit during Development Stage | Subscription Receviable | Total |
Beginning Balance, Shares at Jul. 07, 2014 | |||||
Beginning Balance, Amount at Jul. 07, 2014 | |||||
Stock issued for cash on July 23, 2014 @ $0.001 per share, Amount | $ 4,000 | 4,000 | |||
Stock issued for cash on July 23, 2014 @ $0.001 per share, Shares | 4,000,000 | ||||
Net loss | 5,090 | 5,090 | |||
Ending Balance, Shares at Jul. 31, 2014 | 4,000,000 | ||||
Ending Balance, Amount at Jul. 31, 2014 | $ 4,000 | 5,090 | 9,090 | ||
Beginning Balance, Shares at Jul. 07, 2014 | |||||
Beginning Balance, Amount at Jul. 07, 2014 | |||||
Net loss | (107,510) | ||||
Ending Balance, Shares at Jan. 31, 2018 | 5,250,000 | ||||
Ending Balance, Amount at Jan. 31, 2018 | $ 5,250 | 46,250 | (106,032) | (54,532) | |
Beginning Balance, Shares at Jul. 31, 2014 | 4,000,000 | ||||
Beginning Balance, Amount at Jul. 31, 2014 | $ 4,000 | 5,090 | 9,090 | ||
Stock issued for cash on January 29, 2015 @ $0.04 per share, Amount | $ 1,000 | 39,000 | 40,000 | ||
Stock issued for cash on January 29, 2015 @ $0.04 per share, Shares | 1,000,000 | ||||
Net loss | (22,902) | (22,902) | |||
Ending Balance, Shares at Jul. 31, 2015 | 5,000,000 | ||||
Ending Balance, Amount at Jul. 31, 2015 | $ 5,000 | 39,000 | (17,812) | 26,188 | |
Net loss | (9,447) | (9,447) | |||
Ending Balance, Shares at Jul. 31, 2016 | 5,000,000 | ||||
Ending Balance, Amount at Jul. 31, 2016 | $ 5,000 | 39,000 | (27,259) | 16,741 | |
Net loss | (14,190) | (14,190) | |||
Ending Balance, Shares at Jul. 31, 2017 | 5,000,000 | ||||
Ending Balance, Amount at Jul. 31, 2017 | $ 5,000 | 39,000 | (41,449) | 2,551 | |
Stock issued on Nov 28, 2017 @$0.001 per share, Amount | $ 250 | 7,250 | 7,500 | ||
Stock issued on Nov 28, 2017 @$0.001 per share, Shares | 250,000 | ||||
Net loss | (64,583) | (64,583) | |||
Ending Balance, Shares at Jan. 31, 2018 | 5,250,000 | ||||
Ending Balance, Amount at Jan. 31, 2018 | $ 5,250 | $ 46,250 | $ (106,032) | $ (54,532) |
Statement of Cash Flows (Unaudi
Statement of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | 43 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2018 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (64,583) | $ (2,973) | $ (106,032) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation Expense | 798 | 798 | 5,780 |
Provision (benefit) for deferred taxes | 1,478 | (1,478) | |
Changes in operating assets and liabilities: | |||
Receivable – Escrow account | (62) | (62) | |
Other assets | (1,000) | ||
Accounts payable | 43,822 | 56,060 | |
Accrued expenses | 9,907 | 9,907 | |
Net cash (used in) provided by operating activities | (10,118) | (697) | (36,825) |
Cash flows from investing activities: | |||
Acquisition of Property & Equipment | (17,750) | ||
Net cash (used in) investing activities | (17,750) | ||
Cash flows from financing activities: | |||
Issuance of common stock | 7,500 | 51,500 | |
Amounts due from related party | 2,618 | 3,075 | |
Net cash (used in) provided by financing activities | 10,118 | 54,575 | |
Net increase (decrease) in cash | (697) | ||
Cash - beginning of period | 859 | ||
Cash - end of period | 162 | ||
Supplemental disclosures of cash flow information: | |||
Interest paid | |||
Income taxes |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 6 Months Ended |
Jan. 31, 2018 | |
Notes to Financial Statements | |
NOTE 1. ORGANIZATION AND DESCRIPTION OF BUSINESS | Summit Networks Inc. (the Company) was incorporated under the laws of the State of Nevada on July 8, 2014. The Company was formed to engage in the development and operation of a business engaged in the distribution of glass craft products produced in China. The Company is in the development stage. Its activities to date have been limited to capital formation, organization, development of its business plan and minimal sales. The Company has commenced limited operations. As such, the Company is subject to all risks inherent to the establishment of a start-up business enterprise. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jan. 31, 2018 | |
Notes to Financial Statements | |
NOTE 2. BASIS OF PRESENTATION | The accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (US GAAP). The Company has a July 31, year-end. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jan. 31, 2018 | |
Notes to Financial Statements | |
NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | a. Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. There were no significant estimates in the current reporting period. Due to the limited level of operations, the Company has not had to make material assumptions or estimates other than the assumption that the Company is a going concern. b. Fair value of financial instruments ASC 825, Disclosures about Fair Value of Financial Instruments, requires disclosure of fair value information about financial instruments. ASC 820, Fair Value Measurements defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of January 31, 2018. Fair values were assumed to approximate carrying values of on-balance-sheet financial instruments since they are short term in nature. These financial instruments include cash and related party loan payable. c. Earnings per Share ASC No. 260, Earnings Per Share, specifies the computation, presentation and disclosure requirements for earnings (loss) per share for entities with publicly held common stock. The Company has adopted the provisions of ASC No. 260. Basic net loss per share amounts is computed by dividing the net loss by the weighted average number of common shares outstanding. Diluted earnings per share are the same as basic earnings per share due to the lack of dilutive items in the Company. d. Cash and cash equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. e. Income Taxes Income taxes are provided in accordance with ASC No. 740, Accounting for Income Taxes. A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carry forwards. Deferred tax expense (benefit) results from the net change during the year of deferred tax assets and liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of all of the deferred tax assets will be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. f. Revenue Recognition The Company will recognize revenue in accordance with ASC topic 605 Revenue Recognition - when all goods and services have been performed and delivered, the amounts are readily determinable, and collection is reasonably assured. The Company has generated $223,910 in revenue since its inception. g. Cost of Sales Amounts that will be recorded as cost of sales relate to direct expenses incurred in order to fulfill orders of our customers. Such costs are recorded and allocated as incurred. Our cost of sales will consist primarily of the cost of product and shipping expenses. h. Advertising The Company expenses its advertising when incurred. There has been $12,498 in advertising expense since inception. i. Fixed Assets Fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, (if any). The Company utilizes straight-line depreciation over the estimated useful life of the asset. Property 40 years Office Equipment 7 years j. New Accounting Pronouncements ASC 842 was added by ASU 2016-02 on February 25, 2016. It is effective for public business entities for annual periods beginning after December 15, 2018 (i.e., calendar periods beginning on January 1, 2019) and interim periods therein. For all other entities, ASC 842 will be effective for annual periods beginning after December 15, 2019 (i.e., calendar periods beginning on January 1, 2020) and interim periods thereafter. Early adoption will be permitted for all entities the main difference between previous GAAP and Topic 842 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. The Board ultimately reached the conclusion that the economics of leases can vary for a lessee and that those economics should be reflected in the financial statements; therefore, Topic 842 retains a distinction between finance leases and operating leases. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous leases guidance. The result of retaining a distinction between finance leases and operating leases is that under the lessee accounting model in Topic 842, the effect of leases in the statement of comprehensive income and the statement of cash flows is largely unchanged from previous GAAP. The Company is currently evaluating whether ASC 842 will have a material effect on the Companys financial statements and if so whether to early adopt the accounting standard. The Company has evaluated all the recent accounting pronouncements through the date the financial statements were issued and filed with the Securities and Exchange Commission and other than noted above believe that none of them will have a material effect on the companys financial statements. The Company will continue to evaluate accounting pronouncements as they are issued to determine whether they will have a material effect on the companys financial statements. |
CONCENTRATIONS
CONCENTRATIONS | 6 Months Ended |
Jan. 31, 2018 | |
Notes to Financial Statements | |
NOTE 4. CONCENTRATIONS | Initial sales are concentrated with limited client. Sales are made without collateral and the credit-related losses are insignificant or non-existent. Accordingly, there is no provision made to include an allowance for doubtful accounts. |
GOING CONCERN
GOING CONCERN | 6 Months Ended |
Jan. 31, 2018 | |
Notes to Financial Statements | |
NOTE 5. GOING CONCERN | The accompanying financial statements and notes have been prepared assuming that the Company will continue as a going concern. The Company had limited operations during the period from July 8, 2014 (date of inception) to January 31, 2018 resulting in net loss of $105,807. There is no guarantee that Company will continue to generate revenues. At January 31, 2018, Company had $Nil in cash and there were outstanding liabilities of $67,339. This condition raises substantial doubt about the Companys ability to continue as a going concern. Even though the Company is currently in the development stage and has minimal expenses, management does not believe that the companys current cash of $0 is sufficient to cover the expenses they will incur during the next twelve months. |
WARRANTS AND OPTIONS
WARRANTS AND OPTIONS | 6 Months Ended |
Jan. 31, 2018 | |
Notes to Financial Statements | |
NOTE 6. WARRANTS AND OPTIONS | There are 250,000 warrants and Nil options outstanding to acquire any additional shares of common. The warrants are issued on November 28, 2017 with an exercise price of $0.05 with a valid period of two years. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jan. 31, 2018 | |
Notes to Financial Statements | |
NOTE 7. RELATED PARTY TRANSACTIONS | The director of the Company, Mr. Riggs Cheung, may, in the future, become involved in other business opportunities as they become available, he may face a conflict in selecting between the Company and his other business opportunities. The Company has not formulated a policy for the resolution of such conflicts. As of January 31, 2018, amount due to the directors of the Company is $13,835 which is unsecured, non-interest bearing with no specific repayment terms. During the period ended January 31, 2018, payroll expense of $4,000 was charged with respect to director fee. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jan. 31, 2018 | |
Notes to Financial Statements | |
NOTE 8. INCOME TAXES | We use the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, Income Taxes. Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entitys financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized. ASC Topic 740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprises financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented. There was no income tax expense for the years ended July 31, 2017 and 2016. The rate was as follow; Federal 34% Federal For the year 2018 and onward 25% State 0% The significant components of deferred tax assets and liabilities are as follows: From Inception (July 08, 2014) To January 31, 2017 January 31, July 31, 2018 2017 Deferred tax assets Net operating losses $ (64,358) $ (14,190) $ (105,807) Deferred tax liability Net deferred tax assets $ 16,090 $ 4,825 $ 26,452 Less valuation allowance $ (16,090) $ (4,825) $ (26,452) Deferred tax asset - net valuation allowance $ - $ - $ - |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Jan. 31, 2018 | |
Notes to Financial Statements | |
NOTE 9. STOCKHOLDERS' EQUITY | Transactions, other than employees stock issuance, are in accordance with ASC No. 505. Thus issuances shall be accounted for based on the fair value of the consideration received. Transactions with employees stock issuance are in accordance with ASC No. 718. These issuances shall be accounted for based on the fair value of the consideration received or the fair value of the equity instruments issued, or whichever is more readily determinable. As of January 31, 2018, the stockholders equity section of the Company contains Common stock, $ 0.001 par value: 75,000,000 shares authorized; 5,250,000 shares issued and outstanding. On July 23, 2014 the Company issued a total of 4,000,000 shares of common stock to a director for cash in the amount of $0.001 per share for a total of $4,000. On January 29, 2015 the Company issued a total of 1,000,000 shares of common stock to 30 independent investors for cash in the amount of $0.04 per share for a total of $40,000. On November 28, 2017 the Company issued 250,000 shares of common stock and warrants (collectively referred as the Securities) to one independent investor for cash totally of $7,500. The purchase price for the Securities was $0.03 per Unit and will include a full warrant per common share exercisable at $0.05 valid for a period of two years after the subscription. As of January 31, 2018, the Company had 5,250,000 shares of common stock issued and outstanding. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 6 Months Ended |
Jan. 31, 2018 | |
Notes to Financial Statements | |
NOTE 10. PROPERTY AND EQUIPMENT | The Company currently has property consisting of an office and shop for $8,000 located at Jaunciema gatve 40, Ziemeļu rajons, Rīga, LV-1023, Latvia. and office equipment for $9,750. Depreciation expense for Latvia property and office equipment was $50 and $349 respectively for the three months period ended January 31, 2018. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jan. 31, 2018 | |
Notes to Financial Statements | |
NOTE 11. COMMITMENTS AND CONTINGENCIES | On July 30, 2014, the Company entered into Commercial Lease Agreement for three years that expires on July 31, 2017 for $1,000 a month as the Companys office space. The rent expense for the years ended July 31, 2017, 2016 and 2015 was $0 due to a free rent promotion offered by the property manager based upon the Company committing to a new lease beginning in August 2018, which has not been signed or agreed upon yet. |
LEGAL MATTERS
LEGAL MATTERS | 6 Months Ended |
Jan. 31, 2018 | |
Notes to Financial Statements | |
NOTE 12. LEGAL MATTERS | The Company has no known legal issues pending. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jan. 31, 2018 | |
Notes to Financial Statements | |
NOTE 13. SUBSEQUENT EVENTS | On February 27, 2018, Ms. Qiuli Chen was appointed as director to fill the vacancy of Mr. Jay Henderson previously resigned as director on November 24, 2017. On March 15, 2018 the Company issued 399,000 shares of common stock and warrants (collectively referred as the Securities) to two investors for cash totally of $12,000. The purchase price for the Securities was $0.03 per Unit and will include a full warrant per common share exercisable at $0.05 valid for a period of two years after the subscription. The Company has evaluated events subsequent through the date these financial statements have been issued to assess the need for potential recognition or disclosure in this report. Such events were evaluated through the date these financial statements were available to be issued. Based upon this evaluation, except the issued disclosed above, it was determined that no other subsequent events occurred that require recognition or disclosure in the financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN20
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jan. 31, 2018 | |
Summary Of Significant Accounting Policies Policies | |
Use of Estimates | The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. There were no significant estimates in the current reporting period. Due to the limited level of operations, the Company has not had to make material assumptions or estimates other than the assumption that the Company is a going concern. |
Fair Value of Financial Instruments | ASC 825, Disclosures about Fair Value of Financial Instruments, requires disclosure of fair value information about financial instruments. ASC 820, Fair Value Measurements defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of January 31, 2018. Fair values were assumed to approximate carrying values of on-balance-sheet financial instruments since they are short term in nature. These financial instruments include cash and related party loan payable. |
Earnings per Share | ASC No. 260, Earnings Per Share, specifies the computation, presentation and disclosure requirements for earnings (loss) per share for entities with publicly held common stock. The Company has adopted the provisions of ASC No. 260. Basic net loss per share amounts is computed by dividing the net loss by the weighted average number of common shares outstanding. Diluted earnings per share are the same as basic earnings per share due to the lack of dilutive items in the Company. |
Cash and Equivalents | The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. |
Income Taxes | Income taxes are provided in accordance with ASC No. 740, Accounting for Income Taxes. A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carry forwards. Deferred tax expense (benefit) results from the net change during the year of deferred tax assets and liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of all of the deferred tax assets will be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. |
Revenue Recognition | The Company will recognize revenue in accordance with ASC topic 605 Revenue Recognition - when all goods and services have been performed and delivered, the amounts are readily determinable, and collection is reasonably assured. The Company has generated $223,910 in revenue since its inception. |
Cost of Sales | Amounts that will be recorded as cost of sales relate to direct expenses incurred in order to fulfill orders of our customers. Such costs are recorded and allocated as incurred. Our cost of sales will consist primarily of the cost of product and shipping expenses. |
Advertising | The Company expenses its advertising when incurred. There has been $12,498 in advertising expense since inception. |
Fixed Assets | Fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, (if any). The Company utilizes straight-line depreciation over the estimated useful life of the asset. Property 40 years Office Equipment 7 years |
New Accounting Pronouncements | ASC 842 was added by ASU 2016-02 on February 25, 2016. It is effective for public business entities for annual periods beginning after December 15, 2018 (i.e., calendar periods beginning on January 1, 2019) and interim periods therein. For all other entities, ASC 842 will be effective for annual periods beginning after December 15, 2019 (i.e., calendar periods beginning on January 1, 2020) and interim periods thereafter. Early adoption will be permitted for all entities the main difference between previous GAAP and Topic 842 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. The Board ultimately reached the conclusion that the economics of leases can vary for a lessee and that those economics should be reflected in the financial statements; therefore, Topic 842 retains a distinction between finance leases and operating leases. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous leases guidance. The result of retaining a distinction between finance leases and operating leases is that under the lessee accounting model in Topic 842, the effect of leases in the statement of comprehensive income and the statement of cash flows is largely unchanged from previous GAAP. The Company is currently evaluating whether ASC 842 will have a material effect on the Companys financial statements and if so whether to early adopt the accounting standard. The Company has evaluated all the recent accounting pronouncements through the date the financial statements were issued and filed with the Securities and Exchange Commission and other than noted above believe that none of them will have a material effect on the companys financial statements. The Company will continue to evaluate accounting pronouncements as they are issued to determine whether they will have a material effect on the companys financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN21
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jan. 31, 2018 | |
Summary Of Significant Accounting Policies Tables | |
Fixed Assets | Property 40 years Office Equipment 7 years |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Jan. 31, 2018 | |
Income Taxes Tables | |
Schedule of Effective Income Tax Rate | Federal 34% Federal For the year 2018 and onward 25% State 0% |
Components of deferred tax assets and liabilities | From Inception (July 08, 2014) To January 31, 2017 January 31, July 31, 2018 2017 Deferred tax assets Net operating losses $ (64,358) $ (14,190) $ (105,807) Deferred tax liability Net deferred tax assets $ 16,090 $ 4,825 $ 26,452 Less valuation allowance $ (16,090) $ (4,825) $ (26,452) Deferred tax asset - net valuation allowance $ - $ - $ - |
ORGANIZATION AND DESCRIPTION 23
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Narrative) | 6 Months Ended |
Jan. 31, 2018 | |
Organization And Description Of Business Details Narrative | |
State Country Name | State of Nevada |
Date of Incorporation | Jul. 8, 2014 |
SUMMARY OF SIGNIFICANT ACCOUN24
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 6 Months Ended |
Jan. 31, 2018 | |
Property [Member] | |
Estimated useful life | 40 years |
Office Equipment [Member] | |
Estimated useful life | 7 years |
SUMMARY OF SIGNIFICANT ACCOUN25
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 43 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2018 | |
Summary Of Significant Accounting Policies Details Narrative | |||||
Revenue | $ 7,560 | $ 20,183 | $ 223,910 | ||
Advertising expense | $ 12,498 |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 43 Months Ended | |||||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | Jul. 07, 2014 | |
Going Concern Details Narrative | ||||||||
Net income (loss) | $ (11,131) | $ (450) | $ (64,583) | $ (2,973) | $ (106,032) | |||
Cash | $ 162 | $ 162 | $ 859 | |||||
Total liabilities | $ 67,564 | $ 67,564 | $ 67,564 | $ 11,217 |
WARRANTS AND OPTIONS (Details N
WARRANTS AND OPTIONS (Details Narrative) - $ / shares | 1 Months Ended | ||
Nov. 28, 2017 | Jan. 31, 2018 | Jul. 31, 2017 | |
Common Stock Shares Issued | 5,250,000 | 5,000,000 | |
Warrant [Member] | |||
Exercise price | $ 0.05 |
RELATED PARTY TRANSACTIONS (De
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 6 Months Ended | |
Jan. 31, 2018 | Jul. 31, 2017 | |
Related Party Transactions Details Narrative | ||
Due to related party | $ 13,835 | $ 11,217 |
Directors fee | $ 4,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 6 Months Ended |
Jan. 31, 2018 | |
Income Taxes Details | |
Federal | 34.00% |
Federa For the year 2018 and onward | 25.00% |
State | 0.00% |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | 6 Months Ended | 12 Months Ended | 43 Months Ended | |
Jan. 31, 2018 | Jul. 31, 2016 | Jan. 31, 2018 | Jul. 31, 2017 | |
Deferred tax assets | ||||
Net operating losses | $ (64,358) | $ (14,190) | $ (105,807) | |
Deferred tax liability | ||||
Net deferred tax assets | 16,090 | 16,090 | $ 4,825 | |
Less valuation allowance | (16,090) | (16,090) | (4,825) | |
Deferred tax asset - net valuation allowance | ||||
Inception July 08, 2014 To October 31, 2017 [Member] | ||||
Deferred tax liability | ||||
Net deferred tax assets | 26,452 | 26,452 | ||
Less valuation allowance | (26,452) | (26,452) | ||
Deferred tax asset - net valuation allowance |
STOCKHOLDERS' EQUITY (Details N
STOCKHOLDERS' EQUITY (Details Narrative) | 1 Months Ended | ||||
Nov. 28, 2017USD ($)$ / sharesshares | Jan. 29, 2015USD ($)Number$ / sharesshares | Jul. 23, 2014USD ($)$ / sharesshares | Jan. 31, 2018$ / sharesshares | Jul. 31, 2017$ / sharesshares | |
Common Stock Par Value | $ / shares | $ 0.001 | $ 0.001 | |||
Common Stock Shares Authorized | shares | 75,000,000 | 75,000,000 | |||
Common Stock Shares Issued | shares | 5,250,000 | 5,000,000 | |||
Common Stock Shares Outstanding | shares | 5,250,000 | 5,000,000 | |||
Common stock and warrants issued | shares | 250,000 | ||||
Warrant [Member] | |||||
Exercise price | $ / shares | $ 0.05 | ||||
Warrant [Member] | Investor [Member] | |||||
Proceeds from issuance of common stock | $ | $ 7,500 | ||||
Purchase price | $ / shares | $ 0.03 | ||||
Exercise price | $ / shares | $ 0.05 | ||||
Director [Member] | |||||
Common Stock Par Value | $ / shares | $ 0.001 | ||||
Common Stock Shares Issued | shares | 4,000,000 | ||||
Proceeds from issuance of common stock | $ | $ 4,000 | ||||
Investor [Member] | |||||
Common Stock Par Value | $ / shares | $ 0.04 | ||||
Common Stock Shares Issued | shares | 1,000,000 | ||||
Proceeds from issuance of common stock | $ | $ 40,000 | ||||
Number of independent investors | Number | 30 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 6 Months Ended | 43 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2018 | |
Property | $ 8,000 | $ 8,000 | |
Depreciation expense | 798 | $ 798 | 5,780 |
Office equipment | 9,750 | $ 9,750 | |
Latvia property [Member] | |||
Depreciation expense | 50 | ||
Office Equipment [Member] | |||
Depreciation expense | $ 349 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jul. 30, 2014 | Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Commitments And Contingencies Details Narrative | ||||
Rent expense | $ 0 | $ 0 | $ 0 | |
Lease Agreement Expiration Date | July 31, 2017 | |||
Amount of commercial lease agreement per month | $ 1,000 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) | Mar. 15, 2018USD ($)Number$ / sharesshares | Nov. 28, 2017USD ($)$ / sharesshares |
Common stock and warrants issued | shares | 250,000 | |
Warrant [Member] | ||
Exercise price | $ 0.05 | |
Investor [Member] | Warrant [Member] | ||
Proceeds from issuance of common stock and warrants | $ | $ 7,500 | |
Purchase price | $ 0.03 | |
Exercise price | $ 0.05 | |
Subsequent Event [Member] | ||
Common stock and warrants issued | shares | 399,000 | |
Subsequent Event [Member] | Investor [Member] | ||
Number of investors | Number | 2 | |
Proceeds from issuance of common stock and warrants | $ | $ 12,000 | |
Purchase price | $ 0.03 | |
Subsequent Event [Member] | Investor [Member] | Warrant [Member] | ||
Exercise price | $ 0.05 | |
Maturity period | 2 years |