Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Oct. 31, 2019 | Dec. 19, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | SUMMIT NETWORKS INC. | |
Entity Central Index Key | 0001619096 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --07-31 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Oct. 31, 2019 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 | |
Entity Common Stock Shares Outstanding | 61,049,990 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) | Oct. 31, 2019 | Jul. 31, 2019 |
Current Assets | ||
Cash & Cash Equivalents | $ 553 | |
Total Current Assets | 553 | |
TOTAL ASSETS | 553 | |
Current Liabilities | ||
Accounts payable and accrued expenses | 45,582 | 34,252 |
Due to related party | 68,026 | 52,642 |
Total Liabilities | 113,608 | 86,894 |
Stockholders' Equity | ||
Common stock, $0.001 par value, 500,000,000 shares authorized; 61,049,990 and 61,049,990 shares issued and outstanding as of October 31, 2019, and July 31, 2019 | 61,050 | 61,050 |
Additional Paid in Capital | 364,867 | 364,867 |
Accumulated Deficit | (539,525) | (512,258) |
Total Stockholders' Equity | (113,608) | (86,341) |
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ 553 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - $ / shares | Oct. 31, 2019 | Jul. 31, 2019 |
Stockholders' Equity | ||
Common Stock Par Value | $ 0.001 | $ 0.001 |
Common Stock Shares Authorized | 500,000,000 | 500,000,000 |
Common Stock Shares Issued | 61,049,990 | 61,049,990 |
Common Stock Shares Outstanding | 61,049,990 | 61,049,990 |
Consolidated Statement of Opera
Consolidated Statement of Operations (Unaudited) - USD ($) | 3 Months Ended | 64 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | |
Consolidated Statement of Operations (Unaudited) | |||
Sales | $ 223,910 | ||
Cost of Goods | 163,257 | ||
Gross Profit | 60,653 | ||
Selling, General & Administrative Expenses | 27,267 | 237,505 | 596,564 |
Income / (loss) from operations | (27,267) | (237,505) | (535,911) |
Loss on disposal of subsidiary | (5,092) | ||
Income before income taxes | (27,267) | (237,505) | (541,003) |
Income tax benefit (expense) | 1,478 | ||
Net Income/(Loss) | $ (27,267) | $ (237,505) | $ (539,525) |
Basic earnings per share | $ 0 | $ 0 | |
Diluted earnings per share | $ 0 | $ 0 | |
Weighted average number of common shares outstanding | 61,044,990 | 61,044,990 | |
Diluted Weighted average number of common shares outstanding | 61,044,990 | 61,044,990 |
Consolidated Statement Of Stock
Consolidated Statement Of Stockholders' Deficit (Unaudited) - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Balance, shares at Jul. 31, 2018 | 61,049,990 | |||
Balance, amount at Jul. 31, 2018 | $ (62,759) | $ 61,050 | $ 12,457 | $ (136,266) |
Disposal of Real Capital Limited | 3,643 | 3,643 | ||
Net Income (Loss) | (375,992) | $ (375,992) | ||
Debt forgiven | $ 348,767 | $ 348,767 | ||
Balance, shares at Jul. 31, 2019 | 61,049,990 | |||
Balance, amount at Jul. 31, 2019 | $ (86,341) | $ 61,050 | $ 364,867 | $ (512,258) |
Net Income (Loss) | $ (27,267) | $ (27,267) | ||
Balance, shares at Oct. 31, 2019 | 61,049,990 | |||
Balance, amount at Oct. 31, 2019 | $ (113,608) | $ 61,050 | $ 364,867 | $ (539,525) |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | 64 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income (loss) | $ (27,267) | $ (237,505) | $ (539,525) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Debt forgiven by related parties | 348,767 | ||
Depreciation Expense | 6,578 | ||
Impairment on PPE | 11,172 | 11,172 | |
Provision (benefit) for deferred taxes | (1,478) | ||
Changes in operating assets and liabilities: | |||
Accounts payable and accrued expenses | 11,330 | (5,935) | 61,462 |
Net cash provided by (used in) operating activities | (15,937) | (232,268) | (113,024) |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Acquisition of Property & Equipment | (17,750) | ||
Investment in subsidiary - Real Capital | (3,643) | ||
Net cash provided by (used in) investing activities | (21,393) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Advances from related party | 15,384 | 219,836 | 57,267 |
Issuance of common stock | 77,150 | ||
Net cash provided by (used in) financing activities | 15,384 | 219,836 | 134,417 |
Net increase (decrease) in cash | (553) | (12,432) | |
Cash at beginning of period | 553 | 17,729 | |
Cash at end of period | 5,297 | ||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||
Cash paid during year for : Interest | |||
Cash paid during year for : Income Taxes |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 3 Months Ended |
Oct. 31, 2019 | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | |
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. Originally, 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. On April 9, 2019 Summit Networks, Inc. (the "Company") entered into a Share Exchange Agreement with MoralArrival Environmental and Blockchain Technology Services Limited ("MoralArrival"), a British Virgin Islands company and the shareholder of MoralArrival. Under the terms of that Share Exchange Agreement, the Company agreed to exchange 300,000 shares of its common stock for all the outstanding shares of common stock of MoralArrival. As a result of this transaction, MoralArrival will become a wholly owned subsidiary of the Company. As of the date of this Quarterly Report, these shares have not been issued. 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 | 3 Months Ended |
Oct. 31, 2019 | |
BASIS OF PRESENTATION | |
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 accompanying consolidated financial statements includes the accounts of the company, and its wholly owned subsidiary, MoralArrival. All inter-company balances and transactions have been eliminated on consolidation. The Company has a July 31, year-end. 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 October 31, 2019, resulting in accumulated deficit of $539,525. There is no guarantee that Company will continue to generate revenues. At October 31, 2019, the Company had $nil in cash and there were outstanding liabilities of $113,608. This condition raises substantial doubt about the Company’s ability to continue as a going concern. Management does not believe that the company’s current cash position is sufficient to cover the expenses they will incur during the next twelve months. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Oct. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | This summary of significant accounting policies is presented to assist in understanding the condensed consolidated interim financial statements. The condensed consolidated interim financial statements and notes are the representations of the Corporation’s management, who is responsible for their integrity and objectivity. The condensed consolidated interim financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 210 8-03 of Regulation S-X, and therefore do not include all the information necessary for a fair presentation of financial position, results of operations and cash flows in conformity with generally accepted accounting principles. These condensed consolidated interim financial statements should be read in conjunction with the annual consolidated financial statements and footnotes for the year ended July 31, 2019 included in the Corporation’s filed Form 10-K. Use of Estimates The preparation of condensed consolidated interim financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Recent Accounting Pronouncements The Company adopts new pronouncements relating to generally accepted accounting principles applicable to the Company as they are issued, which may be in advance of their effective date. The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Oct. 31, 2019 | |
RELATED PARTY TRANSACTIONS | |
NOTE 4. RELATED PARTY TRANSACTIONS | As of July 31, 2019, amount due to related parties was $45,582, which were unsecured, non-interest bearing with no specific repayment terms. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Oct. 31, 2019 | |
STOCKHOLDERS' EQUITY | |
NOTE 5. 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. On July 17, 2019, the Company completed a 1 to 10 stock split to its common stock, with the par value of each common stock remaining at $0.001 per common stock. As a result, common stock figures, share capital, additional paid in capital, and earnings per share information have been retroactively adjusted to reflect the stock split. As of October 31, 2019, the Company had 61,049,990 shares of common stock issued and outstanding. |
WARRANTS AND OPTIONS
WARRANTS AND OPTIONS | 3 Months Ended |
Oct. 31, 2019 | |
WARRANTS AND OPTIONS | |
NOTE 6. WARRANTS AND OPTIONS | There are no warrants or options outstanding to acquire any additional shares of common. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Oct. 31, 2019 | |
COMMITMENTS AND CONTINGENCIES | |
NOTE 7. COMMITMENTS AND CONTINGENCIES | The Company has no commitments and contingencies liabilities to be disclosed. |
LEGAL MATTERS
LEGAL MATTERS | 3 Months Ended |
Oct. 31, 2019 | |
LEGAL MATTERS | |
NOTE 8. LEGAL MATTERS | The Company has no known legal issues pending. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Oct. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Use of Estimates | The preparation of condensed consolidated interim financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Recent Accounting Pronouncements | The Company adopts new pronouncements relating to generally accepted accounting principles applicable to the Company as they are issued, which may be in advance of their effective date. The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations. |
ORGANIZATION AND DESCRIPTION _2
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Narrative) - shares | 3 Months Ended | |
Oct. 31, 2019 | Apr. 09, 2019 | |
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Narrative) | ||
State of Incorporation | Nevada | |
Date of Incorporation | Jul. 8, 2014 | |
Exchange shares of common stock | 300,000 |
BASIS OF PRESENTATION (Details
BASIS OF PRESENTATION (Details Narrative) - USD ($) | Oct. 31, 2019 | Jul. 31, 2019 |
BASIS OF PRESENTATION (Details Narrative) | ||
Accumulated deficit | $ (539,525) | $ (512,258) |
Outstanding liabilities | $ 113,608 | $ 86,894 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | Oct. 31, 2019 | Jul. 31, 2019 |
Due to related party | $ 68,026 | $ 52,642 |
Unsecured Debt [Member] | ||
Due to related party | $ 45,582 |
STOCKHOLDERS' EQUITY (Details N
STOCKHOLDERS' EQUITY (Details Narrative) - shares | 1 Months Ended | ||
Jul. 17, 2019 | Oct. 31, 2019 | Jul. 31, 2019 | |
STOCKHOLDERS' EQUITY (Details Narrative) | |||
Stock split description | the Company completed a 1 to 10 stock split to its common stock, with the par value of each common stock remaining at $0.001 per common stock. | ||
Common Stock Shares Issued | 61,049,990 | 61,049,990 | |
Common Stock Shares Outstanding | 61,049,990 | 61,049,990 |