Document and Entity Information
Document and Entity Information | 12 Months Ended |
Jul. 31, 2019USD ($)shares | |
Document And Entity Information | |
Entity Registrant Name | SUMMIT NETWORKS INC. |
Entity Central Index Key | 0001619096 |
Document Type | 10-K/A |
Amendment Flag | true |
Amendment Description | As used in this Amendment No. 1 on Form 10-K for the year ended July 31, 2019 (the "Form 10-K/A"), the terms "Company", "our", "us" or "we" refer to Summit Networks Inc. This Form 10-K/A amends the Company's Annual Report on Form 10-K for the year ended July 31, 2019 (the "Original Report"), as originally filed with the Securities and Exchange Commission (the "SEC") on December 9, 2019. This Form 10-K/A is being filed to restate the Stockholders' equity within the audited Financial Statements for the year ended July 31, 2019. Subsequent to the filing of the July 31, 2019 Form 10-K, the Company determined that calculations related to a forward stock split on a 1:10 basis were not accounted for. The forward stock split was approved on July 17, 2019 and have been applied for retroactively. Our principal executive officer and principal financial officer has also provided new certifications as required by Sections 302 and 906 of the Sarbanes-Oxley Act of 2002. |
Entity Voluntary Filers | No |
Current Fiscal Year End Date | --07-31 |
Entity Well Known Seasoned Issuer | No |
Entity Small Business | true |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Entity Current Reporting Status | Yes |
Document Period End Date | Jul. 31, 2019 |
Entity Filer Category | Non-accelerated Filer |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2019 |
Entity Common Stock Shares Outstanding | shares | 61,049,990 |
Entity Public Float | $ | $ 730,469 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) | Jul. 31, 2019 | Jul. 31, 2018 |
Current Assets | ||
Cash & Cash Equivalents | $ 553 | $ 17,729 |
Receivable - Rick Jones - Escrow account | 4,556 | |
Total Current Assets | 553 | 22,285 |
Property & Office Equipment, net | 11,172 | |
TOTAL ASSETS | 553 | 33,457 |
Current Liabilities | ||
Accounts payable and accrued expenses | 34,252 | 15,011 |
Due to related party | 52,642 | 21,192 |
Amount due to shareholders | 36,846 | |
Loan from other parties | 23,167 | |
Total Liabilities | 86,894 | 96,216 |
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 July 31, 2019 and July 31, 2018 | 61,050 | 61,050 |
Additional Paid in Capital | 364,867 | 12,457 |
Income/(loss) accumulated during development stage | (512,258) | (136,266) |
Total Stockholders' Equity | (86,341) | (62,759) |
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ 553 | $ 33,457 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - $ / shares | Jul. 31, 2019 | Jul. 31, 2018 |
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 - USD ($) | 12 Months Ended | 61 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | |
Consolidated Statement of Operations | |||
Sales | $ 223,910 | ||
Cost of sales | 163,257 | ||
Gross Profit | 60,653 | ||
Selling, General & Administrative Expenses | 370,900 | 94,817 | 569,297 |
Income / (loss) from operations | (370,900) | (94,817) | (508,644) |
Loss on disposal of subsidiary | (5,092) | (5,092) | |
Gain on debt forgiven | |||
Income before income taxes | (375,992) | (94,817) | (513,736) |
Income tax benefit (expense) | 1,478 | ||
Net Income/(Loss) | $ (375,992) | $ (94,817) | $ (512,258) |
Basic earnings per share | $ (0.06) | $ (0.02) | |
Diluted earnings per share | $ (0.06) | $ (0.02) | |
Weighted average number of common shares outstanding | 61,044,990 | 53,603,280 | |
Diluted Weighted average number of common shares outstanding | 61,044,990 | 53,603,280 |
Statement Of Stockholder's Equi
Statement Of Stockholder's Equity - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Balance, shares at Jul. 31, 2017 | 50,000,000 | |||
Balance, amount at Jul. 31, 2017 | $ 2,551 | $ 50,000 | $ (6,000) | $ (41,449) |
Loss on acquisition of Real Capital Limited | (3,643) | (3,643) | ||
Stock issued for cash on July 24, 2018 @ $0.003 per share, shares | 4,550,000 | |||
Stock issued for cash on July 24, 2018 @ $0.003 per share, amount | 13,650 | $ 4,550 | 9,100 | |
Stock issued for cash on March 15, 2018 @ $0.003 per share, amount | 12,000 | $ 4,000 | 8,000 | |
Stock issued for cash on November 28, 2017 @ $0.003 per share, shares | 2,500,000 | |||
Stock issued for cash on March 15, 2018 @ $0.003 per share, shares | 3,999,990 | |||
Stock issued for cash on November 28, 2017 @ $0.003 per share, amount | 7,500 | $ 2,500 | 5,000 | |
Net Income (Loss) | $ (94,817) | $ (94,817) | ||
Balance, shares at Jul. 31, 2018 | 61,049,990 | |||
Balance, amount at Jul. 31, 2018 | $ (62,759) | $ 61,050 | $ 12,457 | $ (136,266) |
Net Income (Loss) | (375,992) | $ (375,992) | ||
Debt forgiven by related parties | 348,767 | |||
Disposal of Real Capital Limited | $ 3,643 | $ 3,643 | ||
Balance, shares at Jul. 31, 2019 | 61,049,990 | |||
Balance, amount at Jul. 31, 2019 | $ (86,341) | $ 61,050 | $ 364,867 | $ (512,258) |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) | 12 Months Ended | 61 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income (loss) | $ (375,992) | $ (94,817) | $ (512,258) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Debt forgiven by related parties | 348,767 | ||
Depreciation Expense | 1,596 | 6,578 | |
Impairment on PPE | 11,172 | 11,172 | |
Provision (benefit) for deferred taxes | (1,478) | ||
Changes in operating assets and liabilities: | |||
Receivable - Escrow account | 4,556 | (4,556) | |
Other assets | 1,000 | ||
Accounts payable and accrued expenses | 22,884 | 15,011 | 50,132 |
Net cash provided by (used in) operating activities | 11,387 | (81,766) | (97,087) |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Acquisition of Property & Equipment | (17,750) | ||
Investment in subsidiary - Real Capital | (3,643) | (3,643) | |
Net cash provided by (used in) investing activities | (3,643) | (21,393) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Advances from related party | (28,563) | 69,988 | 41,883 |
Issuance of common stock | 33,150 | 77,150 | |
Net cash provided by (used in) financing activities | (28,563) | 103,138 | 119,033 |
Net increase (decrease) in cash | (17,176) | 17,729 | 553 |
Cash at beginning of period | 17,729 | ||
Cash at end of year | $ 553 | $ 17,729 | $ 553 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 12 Months Ended |
Jul. 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, after selling its wholly subsidiary, Real Capital Limited, the Company acquired MoralArrival Environmental and Blockchain Technology Services Limited ("MoralArrival"), a corporation incorporated under the laws of the British Virgin Islands. As a result of this transaction, MoralArrival has become a wholly owned subsidiary of the Company. MoralArrival is a recently formed start-up company with nominal assets and no history of operations. MoralArrival is in the business of acting as an international agent for a Chinese environmental company, Hengshui Jingzhen Environmental Technology Company Limited of Hebei, 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 | 12 Months Ended |
Jul. 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”). On April 11, 2019, the Company acquired all the shares of MoralArrival in exchange for 300,000 shares of its common stock. As a result of this transaction, MoralArrival has become a wholly owned subsidiary of the Company. 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. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jul. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | a. Use of Estimates and Assumptions 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. 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 July 31, 2019. 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 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. Recently Issued Accounting Guidance 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 believe that none of them will have a material effect on the company’s financial statements. |
GOING CONCERN
GOING CONCERN | 12 Months Ended |
Jul. 31, 2019 | |
GOING CONCERN | |
NOTE 4. 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 July 31, 2019 resulting in accumulated deficit of $512,258. There is no guarantee that Company will continue to generate revenues. At July 31, 2019, the Company had $553 in cash and there were outstanding liabilities of $86,894. 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. |
DISPOSAL OF SUBSIDIARY
DISPOSAL OF SUBSIDIARY | 12 Months Ended |
Jul. 31, 2019 | |
DISPOSAL OF SUBSIDIARY | |
NOTE 5. DISPOSAL OF SUBSIDIARY | On March 31, 2019 the Company entered into a Share Purchase Agreement with Hang Dennis Cheung, wherein the Company sold 100 ordinary shares of its wholly owned subsidiary, Real Capital Limited (“Real Capital”), for a nominal consideration of One US Dollar (US$1.00). The 100 ordinary shares represent all of the issued and outstanding shares of Real Capital. Real Capital has had no sales revenue for the past three years and a net assets value of US$19,685 as of the closing date of the Share Purchase Agreement. The closing of the Share Purchase Agreement occurred on April 10, 2019. This transaction is not considered a “significant transaction” as that term is defined in the Exchange Act. Carrying amount of net assets of Real Capital: Cash and cash equivalents 1,450 Loan to shareholder 18,235 Net Assets 19,685 Loss on disposal: Consideration Received 1 Net Asset of Real Capital (19,685) Loan from Real Capital 18,235 Loss recognized in APIC (3,643) Loss on disposal (5,092) |
BUSINESS COMBINATION
BUSINESS COMBINATION | 12 Months Ended |
Jul. 31, 2019 | |
BUSINESS COMBINATION | |
NOTE 6. BUSINESS COMBINATION | 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 3,000,000 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. MoralArrival is a recently formed startup company with nominal assets and no history of operations. This transaction is not considered a “significant transaction” as that term is defined in the Exchange Act. As of the date of this Annual Report, these shares have not been issued. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Jul. 31, 2019 | |
PROPERTY AND EQUIPMENT | |
NOTE 7. PROPERTY AND EQUIPMENT | During the period ended January 31, 2019, the Company has made impairment of $11,172 for the property consisting of an office and shop located in Latvia and office equipment thereof due to no revenue being generated from the operation. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Jul. 31, 2019 | |
RELATED PARTY TRANSACTIONS | |
NOTE 8. RELATED PARTY TRANSACTIONS | The director of the Company, Mr. Chi Ming Tso, 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 July 31, 2019, amount due to related parties was $52,642, which were unsecured, non-interest bearing with no specific repayment terms. During the year ended July 31, 2019, the Company recognized debt forgiveness of $348,767 from related parties, which was recorded as additional paid in capital. During the year ended July 31, 2019, and during the period from July 8, 2014 (date of inception), payroll expense of $nil and $81,000 were charged with respect to directors fee respectively. Also, our CEO, Chi Ming Tso who, through Hass Group Inc., have been paid $19,230 ($3,846 per month) for his consulting services. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Jul. 31, 2019 | |
STOCKHOLDERS' EQUITY | |
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. On November 28, 2017 and on March 15, 2018, the Company issued a total of 6,499,990 shares of common stock to one independent investor and two shareholders for cash consideration totally of $19,500. The purchase price for the common stocks was $0.003 per common share. On July 24, 2018, the Company issued a total of 4,550,000 shares of common stock to one independent investor and two shareholders for cash consideration totally of $13,650. The purchase price for the common stocks was $0.003 per common share. 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 July 31, 2019, the Company had 61,049,990 shares of common stock issued and outstanding. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jul. 31, 2019 | |
INCOME TAXES | |
NOTE 10. 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 entity’s 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 enterprise’s 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, 2019 and 2018. The rate was as follow: Federal 34% State 0% The significant components of deferred tax assets and liabilities are as follows: From Inception (July 08, 2014) to July 31, 2019 July 31, July 31, 2019 2018 Deferred tax assets Net operating losses $ (375,992) $ (94,817) $ (163,466) Deferred tax liability Net deferred tax assets 127,837 32,238 55,578 Less valuation allowance (127,837) (32,238) (55,578) Deferred tax asset - net valuation allowance $ - $ - $ - |
WARRANTS AND OPTIONS
WARRANTS AND OPTIONS | 12 Months Ended |
Jul. 31, 2019 | |
WARRANTS AND OPTIONS | |
NOTE 11. WARRANTS AND OPTIONS | There are no warrants or options outstanding to acquire any additional shares of common. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jul. 31, 2019 | |
COMMITMENTS AND CONTINGENCIES | |
NOTE 12. COMMITMENTS AND CONTINGENCIES | The Company has no commitments and contingencies liabilities to be disclosed. |
LEGAL MATTERS
LEGAL MATTERS | 12 Months Ended |
Jul. 31, 2019 | |
LEGAL MATTERS | |
NOTE 13. LEGAL MATTERS | The Company has no known legal issues pending. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jul. 31, 2019 | |
SUBSEQUENT EVENTS | |
NOTE 14. SUBSEQUENT EVENTS | 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, it was determined that no subsequent events occurred that require recognition or disclosure in the financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jul. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Use of Estimates and Assumptions | 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. 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 July 31, 2019. 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 |
Recently Issued Accounting Guidance | 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 believe that none of them will have a material effect on the company’s financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | |
Fixed assets estimated useful life | The Company utilizes straight-line depreciation over the estimated useful life of the asset. Property – 40 years Office Equipment – 7 years |
DISPOSAL OF SUBSIDIARY (Tables)
DISPOSAL OF SUBSIDIARY (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
DISPOSAL OF SUBSIDIARY (Tables) | |
Schedule of carrying amount of net assets of real Capital | Cash and cash equivalents 1,450 Loan to shareholder 18,235 Net Assets 19,685 |
Schedule of gain (loss) on disposal of assets | Consideration Received 1 Net Asset of Real Capital (19,685) Loan from Real Capital 18,235 Loss recognized in APIC (3,643) Loss on disposal (5,092) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
INCOME TAXES (Tables) | |
Schedule of Effective Income Tax Rate | There was no income tax expense for the years ended July 31, 2019 and 2018. The rate was as follow: Federal 34% State 0% |
Schdule of deferred tax assets and liabilities | From Inception (July 08, 2014) to July 31, 2019 July 31, July 31, 2019 2018 Deferred tax assets Net operating losses $ (375,992) $ (94,817) $ (163,466) Deferred tax liability Net deferred tax assets 127,837 32,238 55,578 Less valuation allowance (127,837) (32,238) (55,578) Deferred tax asset - net valuation allowance $ - $ - $ - |
ORGANIZATION AND DESCRIPTION _2
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Narrative) | 12 Months Ended |
Jul. 31, 2019 | |
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Narrative) | |
State of Incorporation | Nevada |
Date of Incorporation | Jul. 8, 2014 |
BASIS OF PRESENTATION (Details
BASIS OF PRESENTATION (Details Narrative) - shares | Apr. 11, 2019 | Apr. 09, 2019 |
MoralArrival [Member] | ||
Shares acquired in exchange for common stock shares | 3,000,000 | 3,000,000 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Jul. 31, 2019 | |
Property [Member] | |
Estimated useful life | 40 years |
Office Equipment [Member] | |
Estimated useful life | 7 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | 61 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | |||
Revenue | $ 223,910 | ||
Advertising expense | $ 12,498 |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | Jul. 31, 2019 | Jul. 31, 2018 |
Liabilities | $ 86,894 | $ 96,216 |
Cash & Cash Equivalents | 553 | 17,729 |
Accumulated deficit | (512,258) | $ (136,266) |
Inception July 08, 2014 To July 31, 2019 [Member] | ||
Accumulated deficit | $ (512,258) |
DISPOSAL OF SUBSIDIARY (Details
DISPOSAL OF SUBSIDIARY (Details) - USD ($) | Jul. 31, 2019 | Apr. 10, 2019 | Jul. 31, 2018 |
Cash and cash equivalents | $ 553 | $ 17,729 | |
Loan to shareholder | 36,846 | ||
TOTAL ASSETS | $ 553 | $ 33,457 | |
Real Capital Limited [Member] | |||
Cash and cash equivalents | $ 1,450 | ||
Loan to shareholder | 18,235 | ||
TOTAL ASSETS | $ 19,685 |
DISPOSAL OF SUBSIDIARY (Detai_2
DISPOSAL OF SUBSIDIARY (Details 1) - Real Capital Limited [Member] | Apr. 10, 2019USD ($) |
Consideration Received | $ 1 |
Net Asset of Real Capital | (19,685) |
Loan from Real Capital | 18,235 |
Loss recognized in APIC | (3,643) |
Loss on disposal | $ (5,092) |
DISPOSAL OF SUBSIDIARY (Detai_3
DISPOSAL OF SUBSIDIARY (Details Narrative) - USD ($) | Apr. 10, 2019 | Mar. 31, 2019 |
Real Capital Limited [Member] | ||
Consideration Received | $ 1 | |
Hang Dennis Cheung [Member] | ||
Sale of common stock shares | 100 |
BUSINESS COMBINATION (Details N
BUSINESS COMBINATION (Details Narrative) - shares | Apr. 11, 2019 | Apr. 09, 2019 |
MoralArrival [Member] | ||
Common stock shares issued for exchange of shares | 3,000,000 | 3,000,000 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details Narrative) | 6 Months Ended |
Jan. 31, 2019USD ($) | |
PROPERTY AND EQUIPMENT (Details Narrative) | |
Impairement on ppe | $ 11,172 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 12 Months Ended | 61 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | |
Due to related party | $ 52,642 | $ 21,192 | $ 52,642 |
Debt forgiven by related parties | 348,767 | ||
Payroll expenses | 0 | $ 81,000 | |
CEO [Member] | |||
Consulting services | $ 19,230 |
STOCKHOLDERS' EQUITY (Details N
STOCKHOLDERS' EQUITY (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jul. 17, 2019 | Jul. 24, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Common Stock Shares Issued | 61,049,990 | 61,049,990 | ||
Stock split ratio, 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 Outstanding | 61,049,990 | 61,049,990 | ||
One Independent Investor And Two Shareholders [Member] | ||||
Common Stock Shares Issued | 4,550,000 | |||
Cash consideration | $ 13,650 | |||
Purchase price of common stock | $ 0.003 | |||
One Independent Investor And Two Shareholders [Member] | November 28, 2017 and on March 15, 2018 [Member] | ||||
Common Stock Shares Issued | 6,499,990 | |||
Cash consideration | $ 19,500 | |||
Purchase price of common stock | $ 0.003 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 12 Months Ended |
Jul. 31, 2019 | |
INCOME TAXES (Details) | |
Federal | 34.00% |
State | 0.00% |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | Jul. 31, 2019 | Jul. 31, 2018 |
Deferred tax assets | ||
Net operating losses | $ (375,992) | $ (94,817) |
Deferred tax liability | ||
Net deferred tax assets | 127,837 | 32,238 |
Less valuation allowance | (127,837) | (32,238) |
Deferred tax asset - net valuation allowance | ||
Inception July 08, 2014 To July 31, 2019 [Member] | ||
Deferred tax assets | ||
Net operating losses | (163,466) | |
Deferred tax liability | ||
Net deferred tax assets | 55,578 | |
Less valuation allowance | (55,578) | |
Deferred tax asset - net valuation allowance |