10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2019

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________

Commission File Number: 333-169805

CX Network Group, Inc.

(Exact name of registrant as specified in its charter)

Nevada	32-0538640
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

Room 1801, Vanke building Northwest Hong 7 Road Hongtupian District, Nancheng Residential District Dongguan, Guangdong Province, China	523000
(Address of Principal Executive Offices)	(ZIP Code)

+(86) 755-26412816

(Registrant’s Telephone Number, Including Area Code)

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒  No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes ☐ No ☒

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

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

As of August 13, 2019, we have 21,376,918 shares of common stock, par value $0.0001 per share issued and outstanding. 

TABLE OF CONTENTS

		Page No.
PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements	1
	Consolidated Balance Sheets as of June 30, 2019 (unaudited) and September 30, 2018	1
	Consolidated Statements of Operations and Comprehensive Loss for the nine and three months ended June 30, 2019 and 2018 (unaudited)	2
	Consolidated Statements of Changes in Stockholders’ Deficit for the nine months ended June 30, 2019 and 2018 (unaudited)	3
	Consolidated Statements of Cash Flows for the nine months ended June 30, 2019 and 2018 (unaudited)	5
	Notes to Consolidated Financial Statements (unaudited)	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	11
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	17
Item 4.	Controls and Procedures	17
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	18
Item 1A.	Risk Factors	18
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	18
Item 3.	Defaults Upon Senior Securities	18
Item 4.	Mine Safety Disclosures	18
Item 5.	Other Information	18
Item 6.	Exhibits	18

i

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Certain statements in this report contain or may contain forward-looking statements. These statements, identified by words such as “plan”, “anticipate”, “believe”, “estimate”, “should”, “expect” and similar expressions include our expectations and objectives regarding our future financial position, operating results and business strategy. These statements are subject to known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward - looking statements. These forward-looking statements were based on various factors and were derived utilizing numerous assumptions and other factors that could cause our actual results to differ materially from those in the forward-looking statements. These factors include, but are not limited to, our ability to secure suitable financing to continue with our existing business or change our business and conclude a merger, acquisition or combination with a business prospect, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk, U.S. and global competition, and other factors. Most of these factors are difficult to predict accurately and are generally beyond our control. You should consider the areas of risk described in connection with any forward-looking statements that may be made herein. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. Readers should carefully review this report in its entirety, including but not limited to our financial statements. We advise you to carefully review the reports and documents we file from time to time with the Securities and Exchange Commission (the “SEC”), particularly our annual report on Form 10-K, quarterly reports on Form 10-Q and our current reports on Form 8-K. Except for our ongoing obligations to disclose material information under the Federal securities laws, we undertake no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events.

ii

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CX NETWORK GROUP, INC.

CONSOLIDATED BALANCE SHEETS

	June 30			September 30
	2019			2018
	(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	8,522		$	21,941
Accounts receivable		545			2,426
Prepaid expenses		6,791			1,840
Security deposit, current		4,370			-
Other receivable		2,679			2,363
Total Current Assets		22,907			28,570
Property, plant and equipment, net		28,906			45,925
Security deposit, non-current		-			4,369
Total Non-current Assets		28,906			50,294
Total Assets	$	51,813		$	78,864
LIABILITIES AND STOCKHOLDERS’ DEFICIT
CURRENT LIABILITIES:
Due to related parties	$	474,380		$	374,394
Accrued liabilities and other payables		79,710			74,075
Short-term loans		57,497			57,497
Total Current Liabilities		611,587			505,966
Total Liabilities		611,587			505,966
STOCKHOLDERS’ DEFICIT:
Common stock, $.0001 par value, 40,000,000 shares authorized; 21,376,918 shares issued and outstanding at June 30, 2019; 21,216,918 shares issued and outstanding at September 30, 2018		2,138			2,122
Additional paid-in capital		1,743,629			1,695,645
Accumulated deficit		(2,275,288	)		(2,094,690	)
Accumulated other comprehensive loss		(30,253	)		(30,179	)
Total Stockholders’ Deficit		(559,774	)		(427,102	)
Total Liabilities and Stockholders’ Deficit	$	51,813		$	78,864

The accompanying notes are an integral part of these unaudited consolidated financial statements

1

CX NETWORK GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(UNAUDITED)

	For the Nine Months Ended June 30,						For the Three Months Ended June 30,
	2019			2018			2019			2018
REVENUES	$	67,589		$	461,733		$	18,943		$	27,544
COST OF REVENUES		12,289			37,993			767			4,736
GROSS PROFIT		55,300			423,740			18,176			22,808
OPERATING EXPENSES:
Selling expenses		-			88,103			-			(2,403	)
General and administrative expenses		278,761			518,705			78,194			180,746
Research and development expenses		2,001			355,402			1,501			12,853
Total Operating Expenses		280,762			962,210			79,695			191,196
LOSS FROM OPERATIONS		(225,462	)		(538,470	)		(61,519	)		(168,388	)
OTHER INCOME (EXPENSES)		44,864			88,378			(311	)		(10,792	)
LOSS BEFORE INCOME TAXES		(180,598	)		(450,092	)		(61,830	)		(179,180	)
INCOME TAXES		-			-			-			-
NET LOSS	$	(180,598	)	$	(450,092	)	$	(61,830	)	$	(179,180	)
OTHER COMPREHENSIVE GAIN (LOSS):
Foreign currency translation adjustment		(74	)		(13,474	)		2,623			5,655
COMPREHENSIVE LOSS	$	(180,672	)	$	(463,566	)	$	(59,207	)	$	(173,525	)
NET LOSS PER COMMON SHARE:
Basic & Diluted	$	(0.01	)	$	(0.04	)	$	(0.00	)	$	(0.01	)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic & Diluted		21,354,939			10,782,382			21,376,918			19,896,011

The accompanying notes are an integral part of these unaudited consolidated financial statements

2

CX NETWORK GROUP, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIT

For the Nine Months Ended June 30, 2019

(UNAUDITED)

									Additional					Accumulated Other			Total
	Common Stock				Treasury Stock, at cost				Paid-in		Accumulated			Comprehensive			Stockholders’
	Shares		Amount		Shares		Amount		Capital		Deficit			Loss			Deficit
Balance, September 30, 2018		21,216,918	$	2,122		-	$	-	$	1,695,645	$	(2,094,690	)	$	(30,179	)	$	(427,102	)
Common stock issued for cash		160,000		16						47,984								48,000
Net loss												(106,494	)					(106,494	)
Foreign currency translation adjustment															233			233
Balance, December 31, 2018		21,376,918		2,138		-		-		1,743,629		(2,201,184	)		(29,946	)		(485,363	)
Net loss												(12,274	)					(12,274	)
Foreign currency translation adjustment															(2,930	)		(2,930	)
Balance, March 31, 2019		21,376,918		2,138		-		-		1,743,629		(2,213,458	)		(32,876	)		(500,567	)
Net loss												(61,830	)					(61,830	)
Foreign currency translation adjustment															2,623			2,623
Balance, June 30, 2019		21,376,918	$	2,138		-	$	-	$	1,743,629	$	(2,275,288	)	$	(30,253	)	$	(559,774	)

The accompanying notes are an integral part of these unaudited consolidated financial statements

3

CX NETWORK GROUP, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIT

For the Nine Months Ended June 30, 2018

(UNAUDITED)

										Additional						Accumulated Other			Total
	Common Stock				Treasury Stock, at cost					Paid-in			Accumulated			Comprehensive			Stockholders’
	Shares		Amount		Shares		Amount			Capital			Deficit			Loss			Deficit
Balance, September 30, 2017		5,350,000	$	535		-	$	-		$	766,721		$	(1,546,324	)	$	(18,693	)	$	(797,761	)
Capital contribution from shareholders											928,332									928,332
Net loss														(195,383	)					(195,383	)
Foreign currency translation adjustment																	(20,257	)		(20,257	)
Balance, December 31, 2017		5,350,000		535		-		-			1,695,053			(1,741,707	)		(38,950	)		(85,069	)
Share issued in reverse merger		14,486,670		1,449		166,667		(250	)		(251,020	)								(249,821	)
Net loss														(75,529	)					(75,529	)
Foreign currency translation adjustment																	1,128			1,128
Balance, March 31, 2018		19,836,670		1,984		166,667		(250	)		1,444,033			(1,817,236	)		(37,822	)		(409,291	)
Common stock issued for debenture conversion		1,080,000		108							161,892									162,000
Share adjustment		248		-																-
Net loss														(179,180	)					(179,180	)
Foreign currency translation adjustment																	5,655			5,655
Balance, June 30, 2018		20,916,918	$	2,092	$	166,667	$	(250	)	$	1,605,925		$	(1,996,416	)	$	(32,167	)	$	(420,816	)

The accompanying notes are an integral part of these unaudited consolidated financial statements

4

CX NETWORK GROUP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	For the Nine Months Ended June 30,
	2019			2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(180,598	)	$	(450,092	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense		17,119			28,560
Gain on disposal of property and equipment		-			26,529
Amortization of debt discount on note payable		-			12,945
Changes in operating assets and liabilities:
Accounts receivable		1,892			250
Prepaid expenses		(4,978	)		(1,008	)
Other receivable		(320	)		577
Security deposits		-			32,910
Accrued liabilities and other payables		9,568			(224,600	)
NET CASH FLOWS USED IN OPERATING ACTIVITIES		(157,317	)		(573,929	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash received in reverse merger		-			145
Proceeds from disposal of property and equipment		-			31
Purchase of property and equipment		-			(8,479	)
NET CASH FLOWS USED IN INVESTING ACTIVITIES		-			(8,303	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments to related parties		(42,922	)		(241,294	)
Proceeds from related parties		138,837			802,024
Proceeds from stock issuance		48,000			-
NET CASH PROVIDED BY FINANCING ACTIVITIES		143,915			560,730
EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		(17	)		539
NET DECREASE IN CASH AND CASH EQUIVALENTS		(13,419	)		(20,963	)
CASH AND CASH EQUIVALENTS  - beginning of period		21,941			35,456
CASH AND CASH EQUIVALENTS - end of period	$	8,522		$	14,493
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for:
Interest	$	-		$	-
Income taxes	$	-		$	-
Non-cash financing and investing activities:
Expenses paid by related party on behalf of the Company	$	4,060		$	-
Common stock issued for debenture conversion and accrued interest	$	-		$	162,000
Capital contribution in the form of reduction of related party loans	$	-		$	928,332

The accompanying notes are an integral part of these unaudited consolidated financial statements

5

CX NETWORK GROUP, INC.

Notes to Consolidated Financial Statements (unaudited)

NOTE 1 – ORGANIZATION AND GOING CONCERN

ORGANIZATION

The Company was incorporated in the State of Florida on September 3, 2010 under the name of “mLight Tech, Inc.” (“MLGT”). On July 11, 2017, MLGT merged with and into CX Network Group, Inc. (“CXKJ”), a Nevada corporation, with CXKJ as the surviving corporation that operates under the name “CX Network Group, Inc.” (the “Name Change”), pursuant to an agreement and plan of merger (the “Merger Agreement”) dated July 3, 2017.

Pursuant to the Merger Agreement, immediately after the effective time of the Merger, the Company’s corporate existence is governed by the laws of the State of Nevada and the Articles of Incorporation and bylaws of CXKJ (the “Domicile Change”), and each outstanding share of MLGT’s common stock, par value $0.0001 per share was converted into 0.0667 outstanding share of common stock of CXKJ, par value $0.0001 per share at a one-for-fifteen reverse split ratio (the “Reverse Stock Split”) which resulted in reclassification of capital from par value to capital in excess of par value. Immediately prior to the effectiveness of the reverse stock split, we had 217,300,000 shares of common stock of MLGT issued and outstanding. Immediately upon the effectiveness of the reverse stock split, we had 14,486,670 shares of common stock of CXKJ issued and outstanding.

The Name Change, Domicile Change, and Reverse Stock Split went effective on June 12, 2017. Subsequently, the Company’s trading symbol for its common stock was changed to “CXKJ”.

On March 20, 2018, CXKJ entered into a share exchange agreement (the “Share Exchange”) with Chuangxiang Holdings Inc. (“CX Cayman”). Under the Share Exchange, CX Network Group, Inc. issued an aggregate of 5,350,000 shares of common stock, par value $0.0001 per share to the shareholders of CX Cayman in exchange for 100% of the issued and outstanding equity securities of CX Cayman. The Share Exchange was closed on March 20, 2018. As a result of the Share Exchange, CX Cayman became the Company’s wholly-owned subsidiary.

CX Cayman was incorporated on February 4, 2016 under the laws of Cayman Islands.

Chuangxiang (Hong Kong) Holdings Limited (“CX HK”) was incorporated on February 23, 2016 and became CX Cayman’s wholly owned subsidiary on December 1, 2016. CX HK operates through its subsidiary, Shenzhen Chuangxiang Network Technology (Shenzhen) Limited (“CX Network”). CX Network was incorporated by CX HK on April 12, 2016 under the laws of People’s Republic of China (“PRC”) as a wholly foreign owned enterprise.

Shenzhen Chuangxiang Network Technology Limited (“Shenzhen CX”) is a limited liability company formed under the laws of PRC on August 14, 2015. Shenzhen CX became a variable interest entity (“VIE”) of CX Network through a series of contractual arrangements entered into on April 20, 2017. CX Network controls Shenzhen CX through agreements and arrangements that absorbs operating risk, as if Shenzhen CX is a wholly owned subsidiary of CX Network. Shenzhen CX is engaged in the business of developing and operating membership-based social network, dating and mobile gaming, and interactive live broadcast platforms.

The transaction has been treated as a recapitalization of CX Cayman and its subsidiaries, with CXKJ (the legal acquirer of CX Cayman and its subsidiaries) considered the accounting acquiree, and CX Cayman (the legal acquiree) considered the accounting acquirer. Accordingly, CX Cayman’s assets, liabilities and results of operations will become the historical financial statements of the registrant, and CXKJ’s assets, liabilities and results of operations will be consolidated with CX Cayman effective as of the date of the closing of the Share Exchange (March 20, 2018). The Company did not recognize goodwill or any intangible assets in connection with the transaction. All costs related to the transaction are being charged to operations as incurred. CX Cayman received cash of $145 and assumed $249,966 liabilities upon execution of the Share Exchange. The 5,350,000 shares of common stock issued in conjunction with the Share Exchange have been presented as outstanding for all periods.

6

As used in this report, unless otherwise indicated, the terms “we” and “us” refer to CX Network Group, Inc., a Nevada corporation (previously known as “mLight Tech, Inc.”, a Florida corporation,), its owned subsidiaries CX Cayman, CX HK, CX Network and Shenzhen CX, which is controlled by us via various contracts. 

The accompanying unaudited consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the accounts of CXKJ, its wholly owned subsidiaries, CX Cayman, CX HK, CX Network, and its VIE, Shenzhen CX. All intercompany transactions and balances have been eliminated in the consolidation. Certain information and footnote disclosures normally included in financial statements prepared in conjunction with U.S. GAAP have been condensed or omitted as permitted by the rules and regulations of the United States Securities and Exchange Commission (“SEC”). In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation. Interim operating results for the nine months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2019, or for any subsequent period. These interim consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended September 30, 2018 included in the Form 10-K filed with the SEC on January 15, 2019.  

GOING CONCERN

In assessing the Company’s liquidity, the Company monitors and analyzes its cash and cash equivalents and its operating and capital expenditure commitments. The Company’s liquidity needs are to meet its working capital requirements, operating expenses and capital expenditure obligations. As of June 30, 2019, the Company’s current liabilities exceeded the current assets, its accumulated deficit was approximately $2,275,000 and the Company has incurred losses since inception. None of the Company’s stockholders, officers or directors, or third parties, are under any obligation to advance us funds, or to invest in the Company. Accordingly, the Company may not be able to obtain additional financing. If the Company is unable to raise additional capital, the Company may be required to take additional measures to conserve liquidity, which could include, but not necessarily be limited to, curtailing operations, suspending the pursuit of our business plan, and reducing overhead expenses. In the coming years, the Company plans to develop business in oversea markets to increase its revenues to meet its future cash flow requirements. However, the Company cannot provide any assurance on the successful development of the Company’s contemplated plan of operations or the financing that will be available to us on commercially acceptable terms, if at all.

These conditions raise substantial doubt about our ability to continue as a going concern. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Recent accounting pronouncements

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” and issued subsequent amendments to the initial guidance or implementation guidance between August 2015 and November 2017 within ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-12, ASU 2016-20, ASU 2017-13, and ASU 2017-14 (collectively, including ASU 2014-09, “ASC 606”). Under ASU 2014-09, a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods and services. This guidance is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. The Company has adopted the new guidance of revenue recognition effective October 1, 2018 using the modified retrospective method. The Company identified its revenue streams and assessed each for the impacts and determined that the adoption of ASC 606 did not impact the Company’s previously reported financial statements in any prior period nor did it result in a cumulative effect adjustment to opening retained earnings.

7

Under ASC 606, the Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price, which is allocated to the respective performance obligation, when the performance obligation is satisfied.

The Company has the following main revenue streams from its operation: 1) revenue from application users in the form of à la carte online credit purchases which is recognized at a point in time when the à la carte features are enabled for the users after their payment, 2) revenue from application users in the form of membership subscription which is recognized over time using straight-line method, 3) revenue from development and sales of applications which is recognized at a point in time when the services have delivered and the customer has obtained control of promised services, and 4) revenue from co-operation of games with other companies by providing background maintenance services which is recognized over time using straight-line method.

NOTE 3 – ACCOUNTS RECEIVABLE

At June 30, 2019 and September 30, 2018, accounts receivable consisted of the following:

	June 30, 2019		September 30, 2018
Accounts receivable	$	545	$	2,426
Allowance for doubtful accounts		-		-
	$	545	$	2,426

NOTE 4 – PROPERTY AND EQUIPMENT, NET

At June 30, 2019 and September 30, 2018, property and equipment consisted of the following:

	June 30, 2019			September 30, 2018
Office equipment	$	54,612		$	54,605
Furniture and fixtures		20,938			20,935
Sub-total		75,550			75,540
Less: accumulated depreciation		(46,644	)		(29,615	)
Property and equipment, net	$	28,906		$	45,925

For the nine months ended June 30, 2019 and 2018, depreciation expense amounted to $17,119 and $28,560, respectively, which is included in general and administrative expenses, research and development expenses and cost of revenues.

NOTE 5 – SHORT-TERM LOANS

As of June 30, 2019 and September 30, 2018, the balance of the short-term loans was $57,497. The amount represents loans borrowed from an individual and a company that are unsecured, no interest bearing and due on demand.

8

NOTE 6 – INCOME TAXES

The Company accounts for income taxes pursuant to the accounting standards that requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial statements and the tax basis of assets and liabilities, and for the expected future tax benefit to be derived from tax losses and tax credit carryforwards. Additionally, the accounting standards require the establishment of a valuation allowance to reflect the likelihood of realization of deferred tax assets. The Company and its subsidiaries file separate income tax returns.

United States

CXKJ is incorporated in the State of Nevada and is subject to the United States federal income tax. No provision for income taxes in the U.S. has been made as the Company has no U.S. taxable income for the nine months ended June 30, 2019 and 2018. 

Cayman Islands

CX Cayman is incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, CX Cayman is not subject to tax on income or capital gains. In addition, upon payments of dividends by CX Cayman, no Cayman Islands withholding tax is imposed.

Hong Kong

CX HK is incorporated in Hong Kong and Hong Kong’s profits tax rate is 8.25% for the first $0.26 million (HK$2 million), the excess part will be taxed at 16.5%. CX HK did not earn any income that was derived in Hong Kong for the nine months ended June 30, 2019 and 2018. Therefore, CX HK was not subject to Hong Kong profits tax for the periods reported.

PRC

The PRC’s statutory income tax rate is 25%. The Company’s subsidiary and VIE registered in PRC are subject to income tax rate of 25%, unless otherwise specified.

CX Network did not generate taxable income in the PRC for the nine months ended June 30, 2019 and 2018. Management currently does not expect that CX Network will generate any taxable income in the near future.

Shenzhen CX was incorporated in the PRC. For the nine months ended June 30, 2019 and 2018, Shenzhen CX incurred net operating losses and, accordingly, no provision for income taxes has been recorded. A full valuation allowance has been provided against Shenzhen CX’s unused deferred income tax assets due to the uncertainty of the realization of any tax assets.

NOTE 7 – STOCKHOLDERS’ DEFICIT

In October and December 2018, the Company entered into purchase agreements with certain purchasers pursuant to which the Company offered to the purchasers, in a registered direct offering, an aggregate of 160,000 shares of common stock, par value $0.0001 per share, with a purchase price of $0.30 per share. The Company received gross proceeds of $48,000.

NOTE 8 – RELATED PARTY TRANSACTIONS

The related parties consist of the following:

Name of Related Party	Nature of Relationship
Jiyin Li	Chairman
Huibin Su	Chief Executive Officer and Chief Financial Officer
Chaoran Zhang	Significant Shareholder of Shenzhen CX
Zizhong Huang	Chief Operating Officer

9

Due to related parties

Due to related parties consist of the following:

	June 30, 2019		September 30, 2018
Jiyin Li	$	1,279	$	1,279
Huibin Su		458,536		373,115
Chaoran Zhang		14,565		-
Total	$	474,380	$	374,394

The balance of due to related parties represents expense paid by related parties on behalf of the Company and the loans the Company obtained from related parties for working capital purpose. The loans owed to the related parties are interest free, unsecured and repayable on demand.

During the nine months ended June 30, 2019 and 2018, the Company obtained loans from the above related parties in the amount of $138,837 and $802,024, respectively, and made repayment to them in the amount of $42,922 and $241,294, respectively.

During the nine months ended June 30, 2019, Huibin Su paid $4,060 of expenses on behalf of the Company.

During the nine months ended June 30, 2018, payables due to related parties in the amount of $928,332 were waived by above related parties as a form of registered capital increase in Shenzhen CX.

In addition, during the nine months ended June 30, 2019, a friend of Huibin Su provided office space to CX HK free of charge, and FirstWisdom, a company controlled by Chaoran Zhang and Huibin Su, was allowed to share the office space leased by Shenzhen CX at no cost.

NOTE 9 – OTHER INCOME

In October 2018, the Company received government subsidy of RMB 100,000 (approximately $15,000) granted by the Bureau of Innovation and Technology of Nanshan District, Shenzhen, PRC for the Intellectual Property Management System Certification Shenzhen CX obtained.

In March 2019, the Company received government subsidy of RMB 215,000 (approximately $31,000) granted by Shenzhen Science and Technology Innovation Committee for research and development projects completed by Shenzhen CX. 

10

ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

As used herein and except as otherwise noted, the term “Company”, “it(s)”, “our”, “us”, “we”, “CX” and “CXKJ” shall mean CX Network Group, Inc., a Nevada corporation (previously known as “mLight Tech Inc.” or “MLGT”, a Florida corporation), its owned subsidiaries Chuangxiang Holdings Inc.(“CX Cayman”), Chuangxiang (Hong Kong) Holdings Limited (“CX HK”), Chuangxiang Network Technology (Shenzhen) Limited (“CX Network”) and Shenzhen Chuangxiang Network Technology Limited (“Shenzhen CX”), which is controlled by us via various contracts.

This Form 10-Q contains forward-looking statements. Our actual results could differ materially from those set forth as a result of general economic conditions and changes in the assumptions used in making such forward-looking statements. The following discussion and analysis of our financial condition and results of operations should be read together with the audited financial statements and accompanying notes and the other financial information appearing in the 2018 Annual Report filed with the Securities and Exchange Commission on January 15, 2019 and elsewhere in this quarterly report. The analysis set forth below is provided pursuant to applicable Securities and Exchange Commission regulations and is not intended to serve as a basis for projections of future events.

Overview of the Business

Our business focuses on development and operation of online dating and mobile gaming products either developed and operated by us, or developed by us but co-operated by third parties; or developed by third parties but co-operated by us.

Our self-developed and self-operated online dating products Little Love (“小恋爱”) and Hotchat (“热聊”) are mobile applications geared towards Chinese singles designed to increase a user’s likelihood of finding a romantic connection. Our mission is to help individuals forge life-long relationships with others that share their interests and values. Through these mobile applications, our users can search for and communicate with other like-minded individuals. Our product creates a virtual community where users can meet, chat and message. We operate location-based social networks for meeting new people on mobile platforms, including on iPhone, Android, iPad and other tablets that facilitate interactions among users and encourage users to connect and chat with each other.

Our online dating mobile platforms monetize through advertising, in-app purchases, and paid subscriptions. The Company offers online marketing capabilities, which enable marketers to display their advertisements in different formats and in different locations. In the near future, we plan to offer sophisticated data science for highly effective hyper-targeting. The Company is actively seeking the opportunities to works with its advertisers to maximize the effectiveness of their campaigns by optimizing advertisement formats and placements. We temporarily suspended our paid advertisements for Little Love to adjust our marketing strategy of Little Love from April 2018.   In addition, we relocated from Shenzhen city to Dongguan city during the third quarter of fiscal year ended September 30, 2018. Most of our employees, including 5 full time marketing and supporting personnel, prior to relocation were local residents in Shenzhen city and they elected to resign as a result of our relocation. In July 2018, we hired 2 additional full time marketing and supporting personnel for Little Love on multiple channels, there has been an increase in the subscription of Little Loves since July 2018. As of June 30, 2019, we have 1 full time marketing and supporting personnel for Little Love. Hotchat was much less impacted by the relocation of the Company as the Company has not devoted much sources in marketing and maintenance of Hotchat other than maintaining its existing distribution channels for Hotchat since 2017.

As China mobile game market continues to grow at rapid pace, our management team believe it is the right time to leverage our expertise in gaming app development to tap into this hot market. We have been actively developing co-operation relationship with other developers and operators of two games since March 2018. Due to the control of mobile game version number by Chinese government in 2019, it’s hard to co-develop and co-operate with other parties. Now the Company has stopped the operation on these two games and was looking for better cooperation.

As of June 30, 2019, we had approximately 2,772,733 registered members for Little Love, 137,490 registered members for Hotchat.

11

Foreign Operations

Substantially all of our business operations are conducted in Mainland China. Accordingly, our results of operations, financial condition and prospects are subject to a significant degree to economic, political and legal developments in the PRC. We also have operations in Hong Kong. Operating in foreign countries involves substantial risk. For example, our business activities subject us to a number of Chinese laws and regulations, such as anti-corruption laws, tax laws, foreign exchange controls and cash repatriation restrictions, data privacy and security requirements, labor laws, intellectual property laws, privacy laws, and anti-competition regulations, which have uncertainties. Any failure to comply with the PRC laws and regulations could subject us to fines and penalties, make it more difficult or impossible to do business in China and harm our reputation.

Operating in foreign countries also subjects us to risk from currency fluctuations. Our primary exposure to movements in foreign currency exchange rates relates to non-U.S. dollar denominated sales and operating expenses. The weakening of foreign currencies relative to the U.S. dollar adversely affects the U.S. dollar value of our foreign currency-denominated sales and earnings. This could either reduce the U.S. dollar value of our prices or, if we raise prices in the local currency, it could reduce the overall demand for our offerings. Either could adversely affect our revenue. Conversely, a rise in the price of local currencies relative to the U.S. dollar could adversely impact our profitability because it would increase our costs denominated in those currencies, thus adversely affecting gross margins.

Financial Operations Overview 

Results of Operations for the three months ended June 30, 2019 and 2018.

Revenues

For the three months ended June 30, 2019, we had total revenues of $18,943 as compared to $27,544 for the three months ended June 30, 2018. The revenues during the three months ended June 30, 2019 were mainly generated through in-app purchases in our mobile applications Little Love. The decrease of $8,601, or 31%, during the three months ended June 30, 2019 was primarily due to the reduction in marketing and promotion activities, which led to the decrease of in-app purchase on Hot Chat and Little Love.

Cost of Revenues

For the three months ended June 30, 2019 and 2018, cost of revenues amounted to $767 and $4,736, respectively. The decrease of cost of revenues during the three months ended June 30, 2019 compared to the three months ended June 30, 2018 was primarily attributable to the decrease of labor cost and professional expenses associated with maintenance of mobile platform. 

Gross Profit

For the three months ended June 30, 2019 and 2018, gross profit amounted to $18,176 and $22,808, respectively. The decrease of gross profit during the three months ended June 30, 2019 compared to the comparative period in 2018 was primarily attributable to the decrease in the revenues. 

Selling Expenses

For the three months ended June 30, 2019 and 2018, selling expenses amounted to $0 and ($2,403), respectively. The change in selling expenses in the amount of $2,403 was primarily attributable to a refund of promotion in the three months ended at June 30, 2018.

General and Administrative Expenses

For the three months ended June 30, 2019 and 2018, general and administrative expenses amounted to $78,194 and $180,746, respectively. The decrease of general and administrative expenses in the amount of $102,552 or 57% was primarily attributable to the decrease of salary expense, professional fees, and lease expense. 

12

Research and Development Expenses

For the three months ended June 30, 2019 and 2018, research and development expenses amounted to $1,501 and $12,853, respectively. The decrease of research and development expenses in the amount of $11,352 or 88% during the three months ended June 30, 2019 was primarily attributable to the decreased activities in developing new games and applications.

Other Expenses

For the three months ended June 30, 2019, total other expenses was $311 as compared to $10,792 for the three months ended June 30, 2018. The decrease in other expenses is primarily attributable to around $13,000 of the amortization of convertible debt discount for three months ended June 30, 2018.

Net loss

For the three months ended June 30, 2019 and 2018, net loss amounted to $61,830 and $179,180, respectively. The decrease of net loss in the amount of $117,350 or 65% for the three months ended June 30, 2019 was a result of the factors described above.

Foreign Currency Translation Adjustment

The reporting currency of the Company is the U.S. Dollar. The functional currency of Shenzhen CX and CX Network operating in the PRC is the Chinese Yuan or Renminbi (“RMB”). The financial statements of entities in PRC are translated to U.S. dollars using period end rates of exchange for assets and liabilities, historical rates of exchange for equity, and average rates of exchange during the period for results of operations. Net gains and losses resulting from foreign exchange transactions are included in the consolidated statements of operations and comprehensive loss.

As a result of these translations, which are a non-cash adjustment, we reported a foreign currency translation gain of $2,623 for the three months ended June 30, 2019 as compared to a foreign currency translation gain of $5,655 for the three months ended June 30, 2018. This non-cash gain had an effect of decreasing our reported comprehensive loss.

13

Comprehensive Loss

For the three months ended June 30, 2019, comprehensive loss of $59,207 is derived from our net loss of $61,830. For the three months ended June 30, 2018, comprehensive loss of $173,525 is derived from our net loss of $179,180.

Results of Operations for the Nine Months ended June 30, 2019 and 2018.

Revenues

For the nine months ended June 30, 2019, we had total revenues of $67,589, as compared to $461,733 for nine months ended June 30, 2018. The revenues were mainly generated through in-app purchases in our mobile applications Hot Chat and Little Love. The decrease of $394,144, or 85%, during the nine months ended June 30, 2019 was primarily attributable to the significantly decreased subscription of Little Love and Eternal Tribe, and in-app purchases. 

Cost of Revenues

For the nine months ended June 30, 2019 and 2018, cost of revenues amounted to $12,289 and $37,993, respectively. The decrease of cost of revenues in 2019 was primarily attributable to the decrease of labor cost and professional expenses associated with maintenance of mobile platform. 

Gross Profit

For the nine months ended June 30, 2019 and 2018, gross profit amounted to $55,300 and $423,740, respectively. The decrease of gross profit for the nine months ended at June 30, 2019 was primarily attributable to the decrease in revenues. 

Selling Expenses

For the nine months ended June 30, 2019 and 2018, selling expenses amounted to $0 and $88,103, respectively. The decrease of selling expenses in the amount of $88,103 in the nine months ended June 30, 2019 was primarily attributable to decrease in promotion expense.

General and Administrative Expenses

For the nine months ended June 30, 2019 and 2018, general and administrative expenses amounted to $278,761 and $518,705, respectively. The decrease of general and administrative expenses of $239,944 or 46% during the nine months ended June 30, 2019 was primarily attributable to the decrease of salaries expense, professional fees and lease expense. 

Research and Development Expenses

For the nine months ended June 30, 2019 and 2018, research and development expenses amounted to $2,001 and $355,402, respectively. The decrease of research and development expenses in the amount of $353,401 or 99% was primarily attributable to the decreased activities in developing new games and applications.

Other Income

For the nine months ended June 30, 2019, total other income was $44,864 as compared to total other income of $88,378 for the nine months ended June 30, 2018. The decrease in other income is primarily attributable to subsidy of the RMB 315,000 (approximately $46,000) granted by the government during nine months ended June 30, 2019, as compared to the RMB 1,000,000 (approximately $155,000) forfeited deposit by Guangzhou Investment Co. under the Cooperative Agreement which partially offset by about $69,000 of adjustment on leasehold improvement, non-refundable rent deposit and amortization of convertible debt discount for the nine months ended June 30, 2018.

14

Net loss

For the nine months ended June 30, 2019 and 2018, net loss amounted to $180,598 and $450,092, respectively. The decrease of net loss in the amounts of $269,494 was a result of the factors described above. 

Foreign Currency Translation Adjustment

The functional currency of our variable interest entity (the “VIE”) operating in the PRC is the Chinese Yuan or RMB. The financial statements of our VIE are translated to U.S. dollars using period end rates of exchange for assets and liabilities, and average rates of exchange (for the period) for revenues, costs, and expenses. Net gains and losses resulting from foreign exchange transactions are included in the consolidated statements of operations.

As a result of these translations, which are a non-cash adjustment, we reported a foreign currency translation loss of $74 for the nine months ended June 30, 2019 as compared to a foreign currency translation loss $13,474 for the nine months ended June 30, 2018. This non-cash loss had the effect of increasing our reported comprehensive loss. 

Comprehensive Loss

For the nine months ended June 30, 2019, comprehensive loss of $180,672 is derived from the sum of our net loss of $180,598 plus foreign currency translation loss of $74. For the nine months ended June 30, 2018, comprehensive loss of $463,566 is derived from the sum of our net loss of $450,092 plus foreign currency translation loss of $13,474.  

Liquidity and Capital Resources

In assessing the Company’s liquidity, the Company monitors and analyzes its cash and cash equivalents and its operating and capital expenditure commitments. The Company’s liquidity needs are to meet its working capital requirements, operating expenses and capital expenditure obligations. As of June 30, 2019, the Company’s working capital deficit was approximately $589,000 as compared to working capital deficit of approximately $477,000 as of September 30, 2018. As of June 30, 2019 and September 30, 2018, the Company’s accumulated deficit was approximately $2,275,000 and $2,095,000, respectively, and the Company has incurred losses since inception. None of the Company’s stockholders, officers or directors, or third parties, are under any obligation to advance the Company funds, or to invest in it. Accordingly, the Company may not be able to obtain additional financing. If the Company is unable to raise additional capital, the Company may be required to take additional measures to conserve liquidity, which could include, but not necessarily be limited to, curtailing operations, suspending the pursuit of its business plan, and reducing overhead expenses. The Company cannot provide any assurance that new financing will be available to us on commercially acceptable terms, if at all.

Cash flows from the Company’s operations are calculated based upon the local currencies using the average translation rate. As a result, amounts related to assets and liabilities reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets.

The following summarizes the key components of the Company’s cash flows for the nine months ended June 30, 2019 and 2018:

	Nine Months Ended June 30,
	2019			2018
Net cash used in operating activities	$	(157,317	)	$	(573,929	)
Cash flows used in investing activities	$	-		$	(8,303	)
Cash flows provided by financing activities	$	143,915		$	560,730
Effect of exchange rate on cash and cash equivalent	$	(17	)	$	539
Net decrease in cash and cash equivalents	$	(13,419	)	$	(20,963	)

15

Operating Activities. 

Net cash used in operating activities totaled $157,317 for the nine months ended June 30, 2019, which was attributable to the net loss of approximately $181,000, offset by an increase of accrued liability and other payable around $10,000 and the depreciation expense of around $17,000, as compared to net cash used in operating activities of $573,929 for the nine months ended June 30, 2018.

Investing Activities.

Net cash used in investing activities for the nine months ended June 30, 2019 was $0 as compared to $8,303 for the nine months ended June 30, 2018. The decreased in cash used in investing activities for the nine months ended June 30, 2019 was mainly due to the Company did not purchase any fixed assets.  

Financing Activities.

Net cash provided by financing activities for the nine months ended June 30, 2019 was $143,915 as compared to $560,730 for the nine months ended June 30, 2018. The decrease in cash provided by financing activities for the nine months ended June 30, 2019 was mainly due to the decrease of proceeds from related party and partially offset by the decrease in repayment to related party. 

Going Concern

In assessing the Company’s liquidity, the Company monitors and analyzes its cash and cash equivalents and its operating and capital expenditure commitments. The Company’s liquidity needs are to meet its working capital requirements, operating expenses and capital expenditure obligations. As of June 30, 2019, the Company’s current liabilities exceeded the current assets, its accumulated deficit was approximately $2,275,000 and the Company has incurred losses since inception. None of the Company’s stockholders, officers or directors, or third parties, are under any obligation to advance us funds, or to invest in us. Accordingly, we may not be able to obtain additional financing. If we are unable to raise additional capital, we may be required to take additional measures to conserve liquidity, which could include, but not necessarily be limited to, curtailing operations, suspending the pursuit of our business plan, and reducing overhead expenses. In the coming years, the Company plans to develop business in oversea markets to increase its revenues to meet its future cash flow requirements. However, the Company cannot provide any assurance on the successful development of the Company’s contemplated plan of operations or the financing that will be available to us on commercially acceptable terms, if at all.

These conditions raise substantial doubt about our ability to continue as a going concern. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern.

Off-Balance Sheet Arrangements

As of June 30, 2019 and September 30, 2018, there are no off-balance sheet arrangements between us and any other entity that have, or are reasonably likely to have, a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to our investors.

16

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable to a smaller reporting company.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures.

We maintain “disclosure controls and procedures” as such term is defined in Rule 13a-15(e) under the Securities Exchange Act of 1934. In designing and evaluating our disclosure controls and procedures, our management recognized that disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of disclosure controls and procedures are met. Additionally, in designing disclosure controls and procedures, our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures. The design of any disclosure controls and procedures also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Based on his evaluation as of the end of the nine months ended June 30, 2019, our chief executive officer, who served as both our chief financial officer and principal accounting manager, concluded that our disclosure controls and procedures were not effective such that the information relating to our company, required to be disclosed in our Securities and Exchange Commission (“SEC”) reports (i) is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and (ii) is accumulated and communicated to our management, including our chief executive officer, to allow timely decisions regarding required disclosure as a result of the material weaknesses in our internal control over financial reporting due to the existence of the following material weaknesses:

● A lack of sufficient and adequately trained internal accounting and finance personnel with appropriated understanding of U.S. GAAP and SEC reporting requirement;

● A lack of segregation of duties within significant accounts; and

● A lack of a functioning audit committee and a majority of outside directors on the Company’s board of director.

Changes in Internal Controls over Financial Reporting

There were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the third fiscal quarter covered by this quarterly report that has materially affected, or are reasonably likely to materially affect, our internal control over financial reporting other than the facts disclosed above.

17

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None. 

ITEM 1A. RISK FACTORS

As of the date of this quarterly report, there have been no material changes to the risk factors disclosed in our annual report on Form 10-K for the fiscal year ended September 30, 2018 filed with the SEC on January 15, 2019.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None. 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

3.1	Articles of Incorporation (incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K, filed on July 6, 2017).
3.2	Bylaws (incorporated by reference to Exhibit 3.2 of the Company’s Current Report on Form 8-K, filed on July 6, 2017).
31.1*	Rule 13(a)-14(a)/15(d)-14(a) Certification of principal executive officer
31.2*	Rule 13(a)-14(a)/15(d)-14(a) Certification of principal financial and accounting officer
32.1*	Section 1350 Certification of principal executive officer
32.2*	Section 1350 Certification of principal financial and accounting officer
101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema Document
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document

* filed herewith

18

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 thereunto duly authorized.

	CX NETWORK GROUP, INC.
Date: August 13, 2019	By:	/s/ Huibin Su
		Huibin Su
		Chief Executive Officer, Chief Financial Officer, Principal Accounting Manager and Director

19

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO EXCHANGE ACT RULE 13A-14(A), AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Huibin Su, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the period ended June 30, 2019 of CX Network Group, Inc.;

2 Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3 Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4 The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5 The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 13, 2019	By:	/s/ Huibin Su
		Huibin Su Chief Executive Officer (Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO EXCHANGE ACT RULE 13A-14(A), AS ADOPTED
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Huibin Su, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the period ended June 30, 2019 of CX Network Group, Inc.;

2 Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3 Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4 The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5 The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 13, 2019	By:	/s/ Huibin Su
		Huibin Su Chief Financial Officer (Principal Financial and Accounting Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Huibin Su, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

1. The Quarterly Report on Form 10-Q of CX Network Group, Inc. (the “Company”) for the period ended June 30, 2019 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (U.S.C. 78m or 78o(d)); and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 13, 2019	By:	/s/ Huibin Su
		Huibin Su
		Chief Executive Officer (Principal Executive Officer)

The foregoing certification is being furnished solely pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code) and is not being filed as part of a separate disclosure document.

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Huibin Su, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

1. The Quarterly Report on Form 10-Q of CX Network Group, Inc. (the “Company”) for the period ended June 30, 2019 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (U.S.C. 78m or 78o(d)); and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 13, 2019	By:	/s/ Huibin Su
		Huibin Su
		Chief Financial Officer (Principal Financial and Accounting Officer)

The foregoing certification is being furnished solely pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code) and is not being filed as part of a separate disclosure document.

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Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2019	Aug. 13, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	CX Network Group, Inc.
Entity Central Index Key	0001502557
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2019
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		21,376,918
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity File Number	333-169805
Entity Interactive Data Current	Yes
Entity Incorporation, State or Country Code	F4

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Consolidated Balance Sheets - USD ($)	Jun. 30, 2019	Sep. 30, 2018
CURRENT ASSETS:
Cash and cash equivalents	$ 8,522	$ 21,941
Accounts receivable	545	2,426
Prepaid expenses	6,791	1,840
Security deposit, current	4,370
Other receivable	2,679	2,363
Total Current Assets	22,907	28,570
Property, plant and equipment, net	28,906	45,925
Security deposit, non-current		4,369
Total Non-current Assets	28,906	50,294
Total Assets	51,813	78,864
CURRENT LIABILITIES:
Due to related parties	474,380	374,394
Accrued liabilities and other payables	79,710	74,075
Short-term loans	57,497	57,497
Total Current Liabilities	611,587	505,966
Total Liabilities	611,587	505,966
STOCKHOLDERS' DEFICIT:
Common stock, $.0001 par value, 40,000,000 shares authorized; 21,376,918 shares issued and outstanding at June 30, 2019; 21,216,918 shares issued and outstanding at September 30, 2018	2,138	2,122
Additional paid-in capital	1,743,629	1,695,645
Accumulated deficit	(2,275,288)	(2,094,690)
Accumulated other comprehensive loss	(30,253)	(30,179)
Total Stockholders' Deficit	(559,774)	(427,102)
Total Liabilities and Stockholders' Deficit	$ 51,813	$ 78,864

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Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2019	Sep. 30, 2018
Statement of Financial Position [Abstract]
Common stock, par value per share	$ 0.0001	$ 0.0001
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	21,376,918	21,216,918
Common stock, shares outstanding	21,376,918	21,216,918

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Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Statement [Abstract]
REVENUES	$ 18,943	$ 27,544	$ 67,589	$ 461,733
COST OF REVENUES	767	4,736	12,289	37,993
GROSS PROFIT	18,176	22,808	55,300	423,740
OPERATING EXPENSES:
Selling expenses		(2,403)		88,103
General and administrative expenses	78,194	180,746	278,761	518,705
Research and development expenses	1,501	12,853	2,001	355,402
Total Operating Expenses	79,695	191,196	280,762	962,210
LOSS FROM OPERATIONS	(61,519)	(168,388)	(225,462)	(538,470)
OTHER INCOME (EXPENSES)	(311)	(10,792)	44,864	88,378
LOSS BEFORE INCOME TAXES	(61,830)	(179,180)	(180,598)	(450,092)
INCOME TAXES
NET LOSS	(61,830)	(179,180)	(180,598)	(450,092)
OTHER COMPREHENSIVE GAIN (LOSS):
Foreign currency translation adjustment	2,623	5,655	(74)	(13,474)
COMPREHENSIVE LOSS	$ (59,207)	$ (173,525)	$ (180,672)	$ (463,566)
NET LOSS PER COMMON SHARE:
Basic & Diluted	$ 0.00	$ (0.01)	$ (0.01)	$ (0.04)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic & Diluted	21,376,918	19,896,011	21,354,939	10,782,382

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Consolidated Statements of Changes in Stockholders' Deficit (Unaudited) - USD ($)	Common Stock	Treasury Stock, at cost	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Loss	Total
Balance at Sep. 30, 2017	$ 535		$ 766,721	$ (1,546,324)	$ (18,693)	$ (797,761)
Balance, Shares at Sep. 30, 2017	5,350,000
Net loss				(195,383)		(195,383)
Foreign currency translation adjustment					(20,257)	(20,257)
Capital contribution from shareholders			928,332			928,332
Balance at Dec. 31, 2017	$ 535		1,695,053	(1,741,707)	(38,950)	(85,069)
Balance, Shares at Dec. 31, 2017	5,350,000
Net loss				(75,529)		(75,529)
Foreign currency translation adjustment					1,128	1,128
Share issued in reverse merger	$ 1,449	$ (250)	(251,020)			(249,821)
Share issued in reverse merger, Shares	14,486,670	166,667
Balance at Mar. 31, 2018	$ 1,984	$ (250)	1,444,033	(1,817,236)	(37,822)	(409,291)
Balance, Shares at Mar. 31, 2018	19,836,670	166,667
Net loss				(179,180)		(179,180)
Foreign currency translation adjustment					5,655	5,655
Common stock issued for debenture conversion	$ 108		161,892			162,000
Common stock issued for debenture conversion, shares	1,080,000
Share adjustment, Shares	248
Balance at Jun. 30, 2018	$ 2,092	$ (250)	1,605,925	(1,996,416)	(32,167)	(420,816)
Balance, Shares at Jun. 30, 2018	20,916,918	166,667
Balance at Sep. 30, 2018	$ 2,122		1,695,645	(2,094,690)	(30,179)	(427,102)
Balance, Shares at Sep. 30, 2018	21,216,918
Common stock issued for cash	$ 16		47,984			48,000
Common stock issued for cash, Shares	160,000
Net loss				(106,494)		(106,494)
Foreign currency translation adjustment					233	233
Balance at Dec. 31, 2018	$ 2,138		1,743,629	(2,201,184)	(29,946)	(485,363)
Balance, Shares at Dec. 31, 2018	21,376,918
Net loss				(12,274)		(12,274)
Foreign currency translation adjustment					(2,930)	(2,930)
Balance at Mar. 31, 2019	$ 2,138		1,743,629	(2,213,458)	(32,876)	(500,567)
Balance, Shares at Mar. 31, 2019	21,376,918
Net loss				(61,830)		(61,830)
Foreign currency translation adjustment					2,623	2,623
Balance at Jun. 30, 2019	$ 2,138		$ 1,743,629	$ (2,275,288)	$ (30,253)	$ (559,774)
Balance, Shares at Jun. 30, 2019	21,376,918

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Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (180,598)	$ (450,092)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense	17,119	28,560
Gain on disposal of property and equipment		26,529
Amortization of debt discount on note payable		12,945
Changes in operating assets and liabilities:
Accounts receivable	1,892	250
Prepaid expenses	(4,978)	(1,008)
Other receivable	(320)	577
Security deposits		32,910
Accrued liabilities and other payables	9,568	(224,600)
NET CASH FLOWS USED IN OPERATING ACTIVITIES	(157,317)	(573,929)
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash received in reverse merger		145
Proceeds from disposal of property and equipment		31
Purchase of property and equipment		(8,479)
NET CASH FLOWS USED IN INVESTING ACTIVITIES		(8,303)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments to related parties	(42,922)	(241,294)
Proceeds from related parties	138,837	802,024
Proceeds from stock issuance	48,000
NET CASH PROVIDED BY FINANCING ACTIVITIES	143,915	560,730
EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	(17)	539
NET DECREASE IN CASH AND CASH EQUIVALENTS	(13,419)	(20,963)
CASH AND CASH EQUIVALENTS - beginning of period	21,941	35,456
CASH AND CASH EQUIVALENTS - end of period	8,522	14,493
Cash paid for:
Interest
Income taxes
Non-cash financing and investing activities:
Expenses paid by related party on behalf of the Company	4,060
Common stock issued for debenture conversion and accrued interest		162,000
Capital contribution in the form of reduction of related party loans		$ 928,332

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Organization and Going Concern

9 Months Ended

Jun. 30, 2019

Organization and Going Concern [Abstract]

ORGANIZATION AND GOING CONCERN

NOTE 1 – ORGANIZATION AND GOING CONCERN

ORGANIZATION

The Company was incorporated in the State of Florida on September 3, 2010 under the name of “mLight Tech, Inc.” (“MLGT”). On July 11, 2017, MLGT merged with and into CX Network Group, Inc. (“CXKJ”), a Nevada corporation, with CXKJ as the surviving corporation that operates under the name “CX Network Group, Inc.” (the “Name Change”), pursuant to an agreement and plan of merger (the “Merger Agreement”) dated July 3, 2017.

Pursuant to the Merger Agreement, immediately after the effective time of the Merger, the Company’s corporate existence is governed by the laws of the State of Nevada and the Articles of Incorporation and bylaws of CXKJ (the “Domicile Change”), and each outstanding share of MLGT’s common stock, par value $0.0001 per share was converted into 0.0667 outstanding share of common stock of CXKJ, par value $0.0001 per share at a one-for-fifteen reverse split ratio (the “Reverse Stock Split”) which resulted in reclassification of capital from par value to capital in excess of par value. Immediately prior to the effectiveness of the reverse stock split, we had 217,300,000 shares of common stock of MLGT issued and outstanding. Immediately upon the effectiveness of the reverse stock split, we had 14,486,670 shares of common stock of CXKJ issued and outstanding.

The Name Change, Domicile Change, and Reverse Stock Split went effective on June 12, 2017. Subsequently, the Company’s trading symbol for its common stock was changed to “CXKJ”.

On March 20, 2018, CXKJ entered into a share exchange agreement (the “Share Exchange”) with Chuangxiang Holdings Inc. (“CX Cayman”). Under the Share Exchange, CX Network Group, Inc. issued an aggregate of 5,350,000 shares of common stock, par value $0.0001 per share to the shareholders of CX Cayman in exchange for 100% of the issued and outstanding equity securities of CX Cayman. The Share Exchange was closed on March 20, 2018. As a result of the Share Exchange, CX Cayman became the Company’s wholly-owned subsidiary.

CX Cayman was incorporated on February 4, 2016 under the laws of Cayman Islands.

Chuangxiang (Hong Kong) Holdings Limited (“CX HK”) was incorporated on February 23, 2016 and became CX Cayman’s wholly owned subsidiary on December 1, 2016. CX HK operates through its subsidiary, Shenzhen Chuangxiang Network Technology (Shenzhen) Limited (“CX Network”). CX Network was incorporated by CX HK on April 12, 2016 under the laws of People’s Republic of China (“PRC”) as a wholly foreign owned enterprise.

Shenzhen Chuangxiang Network Technology Limited (“Shenzhen CX”) is a limited liability company formed under the laws of PRC on August 14, 2015. Shenzhen CX became a variable interest entity (“VIE”) of CX Network through a series of contractual arrangements entered into on April 20, 2017. CX Network controls Shenzhen CX through agreements and arrangements that absorbs operating risk, as if Shenzhen CX is a wholly owned subsidiary of CX Network. Shenzhen CX is engaged in the business of developing and operating membership-based social network, dating and mobile gaming, and interactive live broadcast platforms.

The transaction has been treated as a recapitalization of CX Cayman and its subsidiaries, with CXKJ (the legal acquirer of CX Cayman and its subsidiaries) considered the accounting acquiree, and CX Cayman (the legal acquiree) considered the accounting acquirer. Accordingly, CX Cayman’s assets, liabilities and results of operations will become the historical financial statements of the registrant, and CXKJ’s assets, liabilities and results of operations will be consolidated with CX Cayman effective as of the date of the closing of the Share Exchange (March 20, 2018). The Company did not recognize goodwill or any intangible assets in connection with the transaction. All costs related to the transaction are being charged to operations as incurred. CX Cayman received cash of $145 and assumed $249,966 liabilities upon execution of the Share Exchange. The 5,350,000 shares of common stock issued in conjunction with the Share Exchange have been presented as outstanding for all periods.

As used in this report, unless otherwise indicated, the terms “we” and “us” refer to CX Network Group, Inc., a Nevada corporation (previously known as “mLight Tech, Inc.”, a Florida corporation,), its owned subsidiaries CX Cayman, CX HK, CX Network and Shenzhen CX, which is controlled by us via various contracts. 

The accompanying unaudited consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the accounts of CXKJ, its wholly owned subsidiaries, CX Cayman, CX HK, CX Network, and its VIE, Shenzhen CX. All intercompany transactions and balances have been eliminated in the consolidation. Certain information and footnote disclosures normally included in financial statements prepared in conjunction with U.S. GAAP have been condensed or omitted as permitted by the rules and regulations of the United States Securities and Exchange Commission (“SEC”). In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation. Interim operating results for the nine months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2019, or for any subsequent period. These interim consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended September 30, 2018 included in the Form 10-K filed with the SEC on January 15, 2019.  

GOING CONCERN

In assessing the Company’s liquidity, the Company monitors and analyzes its cash and cash equivalents and its operating and capital expenditure commitments. The Company’s liquidity needs are to meet its working capital requirements, operating expenses and capital expenditure obligations. As of June 30, 2019, the Company’s current liabilities exceeded the current assets, its accumulated deficit was approximately $2,275,000 and the Company has incurred losses since inception. None of the Company’s stockholders, officers or directors, or third parties, are under any obligation to advance us funds, or to invest in the Company. Accordingly, the Company may not be able to obtain additional financing. If the Company is unable to raise additional capital, the Company may be required to take additional measures to conserve liquidity, which could include, but not necessarily be limited to, curtailing operations, suspending the pursuit of our business plan, and reducing overhead expenses. In the coming years, the Company plans to develop business in oversea markets to increase its revenues to meet its future cash flow requirements. However, the Company cannot provide any assurance on the successful development of the Company’s contemplated plan of operations or the financing that will be available to us on commercially acceptable terms, if at all.

These conditions raise substantial doubt about our ability to continue as a going concern. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern.

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Summary of Significant Accounting Policies

9 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Recent accounting pronouncements

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” and issued subsequent amendments to the initial guidance or implementation guidance between August 2015 and November 2017 within ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-12, ASU 2016-20, ASU 2017-13, and ASU 2017-14 (collectively, including ASU 2014-09, “ASC 606”). Under ASU 2014-09, a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods and services. This guidance is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. The Company has adopted the new guidance of revenue recognition effective October 1, 2018 using the modified retrospective method. The Company identified its revenue streams and assessed each for the impacts and determined that the adoption of ASC 606 did not impact the Company’s previously reported financial statements in any prior period nor did it result in a cumulative effect adjustment to opening retained earnings.

Under ASC 606, the Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price, which is allocated to the respective performance obligation, when the performance obligation is satisfied.

The Company has the following main revenue streams from its operation: 1) revenue from application users in the form of à la carte online credit purchases which is recognized at a point in time when the à la carte features are enabled for the users after their payment, 2) revenue from application users in the form of membership subscription which is recognized over time using straight-line method, 3) revenue from development and sales of applications which is recognized at a point in time when the services have delivered and the customer has obtained control of promised services, and 4) revenue from co-operation of games with other companies by providing background maintenance services which is recognized over time using straight-line method.

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Accounts Receivable

9 Months Ended

Jun. 30, 2019

Receivables [Abstract]

ACCOUNTS RECEIVABLE

NOTE 3 – ACCOUNTS RECEIVABLE

At June 30, 2019 and September 30, 2018, accounts receivable consisted of the following:

	June 30, 2019		September 30, 2018
Accounts receivable	$	545	$	2,426
Allowance for doubtful accounts		-		-
	$	545	$	2,426

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Property and Equipment, Net

9 Months Ended

Jun. 30, 2019

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT, NET

NOTE 4 – PROPERTY AND EQUIPMENT, NET

At June 30, 2019 and September 30, 2018, property and equipment consisted of the following:

	June 30, 2019			September 30, 2018
Office equipment	$	54,612		$	54,605
Furniture and fixtures		20,938			20,935
Sub-total		75,550			75,540
Less: accumulated depreciation		(46,644	)		(29,615	)
Property and equipment, net	$	28,906		$	45,925

For the nine months ended June 30, 2019 and 2018, depreciation expense amounted to $17,119 and $28,560, respectively, which is included in general and administrative expenses, research and development expenses and cost of revenues.

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Short-Term Loans

9 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

SHORT-TERM LOANS

NOTE 5 – SHORT-TERM LOANS

As of June 30, 2019 and September 30, 2018, the balance of the short-term loans was $57,497. The amount represents loans borrowed from an individual and a company that are unsecured, no interest bearing and due on demand.

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Income Taxes

9 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 6 – INCOME TAXES

The Company accounts for income taxes pursuant to the accounting standards that requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial statements and the tax basis of assets and liabilities, and for the expected future tax benefit to be derived from tax losses and tax credit carryforwards. Additionally, the accounting standards require the establishment of a valuation allowance to reflect the likelihood of realization of deferred tax assets. The Company and its subsidiaries file separate income tax returns.

United States

CXKJ is incorporated in the State of Nevada and is subject to the United States federal income tax. No provision for income taxes in the U.S. has been made as the Company has no U.S. taxable income for the nine months ended June 30, 2019 and 2018. 

Cayman Islands

CX Cayman is incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, CX Cayman is not subject to tax on income or capital gains. In addition, upon payments of dividends by CX Cayman, no Cayman Islands withholding tax is imposed.

Hong Kong

CX HK is incorporated in Hong Kong and Hong Kong’s profits tax rate is 8.25% for the first $0.26 million (HK$2 million), the excess part will be taxed at 16.5%. CX HK did not earn any income that was derived in Hong Kong for the nine months ended June 30, 2019 and 2018. Therefore, CX HK was not subject to Hong Kong profits tax for the periods reported.

PRC

The PRC’s statutory income tax rate is 25%. The Company’s subsidiary and VIE registered in PRC are subject to income tax rate of 25%, unless otherwise specified.

CX Network did not generate taxable income in the PRC for the nine months ended June 30, 2019 and 2018. Management currently does not expect that CX Network will generate any taxable income in the near future.

Shenzhen CX was incorporated in the PRC. For the nine months ended June 30, 2019 and 2018, Shenzhen CX incurred net operating losses and, accordingly, no provision for income taxes has been recorded. A full valuation allowance has been provided against Shenzhen CX’s unused deferred income tax assets due to the uncertainty of the realization of any tax assets.

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Stockholders' Deficit

9 Months Ended

Jun. 30, 2019

Equity [Abstract]

STOCKHOLDERS' DEFICIT

NOTE 7 – STOCKHOLDERS' DEFICIT

In October and December 2018, the Company entered into purchase agreements with certain purchasers pursuant to which the Company offered to the purchasers, in a registered direct offering, an aggregate of 160,000 shares of common stock, par value $0.0001 per share, with a purchase price of $0.30 per share. The Company received gross proceeds of $48,000.

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Related Party Transactions

9 Months Ended

Jun. 30, 2019

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

NOTE 8 – RELATED PARTY TRANSACTIONS

The related parties consist of the following:

Name of Related Party	Nature of Relationship
Jiyin Li	Chairman
Huibin Su	Chief Executive Officer and Chief Financial Officer
Chaoran Zhang	Significant Shareholder of Shenzhen CX
Zizhong Huang	Chief Operating Officer

Due to related parties

Due to related parties consist of the following:

	June 30, 2019		September 30, 2018
Jiyin Li	$	1,279	$	1,279
Huibin Su		458,536		373,115
Chaoran Zhang		14,565		-
Total	$	474,380	$	374,394

The balance of due to related parties represents expense paid by related parties on behalf of the Company and the loans the Company obtained from related parties for working capital purpose. The loans owed to the related parties are interest free, unsecured and repayable on demand.

During the nine months ended June 30, 2019 and 2018, the Company obtained loans from the above related parties in the amount of $138,837 and $802,024, respectively, and made repayment to them in the amount of $42,922 and $241,294, respectively.

During the nine months ended June 30, 2019, Huibin Su paid $4,060 of expenses on behalf of the Company.

During the nine months ended June 30, 2018, payables due to related parties in the amount of $928,332 were waived by above related parties as a form of registered capital increase in Shenzhen CX.

In addition, during the nine months ended June 30, 2019, a friend of Huibin Su provided office space to CX HK free of charge, and FirstWisdom, a company controlled by Chaoran Zhang and Huibin Su, was allowed to share the office space leased by Shenzhen CX at no cost.

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Other Income

9 Months Ended

Jun. 30, 2019

Other Income and Expenses [Abstract]

OTHER INCOME

NOTE 9 – OTHER INCOME

In October 2018, the Company received government subsidy of RMB 100,000 (approximately $15,000) granted by the Bureau of Innovation and Technology of Nanshan District, Shenzhen, PRC for the Intellectual Property Management System Certification Shenzhen CX obtained.

In March 2019, the Company received government subsidy of RMB 215,000 (approximately $31,000) granted by Shenzhen Science and Technology Innovation Committee for research and development projects completed by Shenzhen CX. 

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Recent accounting pronouncements

Recent accounting pronouncements

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” and issued subsequent amendments to the initial guidance or implementation guidance between August 2015 and November 2017 within ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-12, ASU 2016-20, ASU 2017-13, and ASU 2017-14 (collectively, including ASU 2014-09, “ASC 606”). Under ASU 2014-09, a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods and services. This guidance is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. The Company has adopted the new guidance of revenue recognition effective October 1, 2018 using the modified retrospective method. The Company identified its revenue streams and assessed each for the impacts and determined that the adoption of ASC 606 did not impact the Company’s previously reported financial statements in any prior period nor did it result in a cumulative effect adjustment to opening retained earnings.

Under ASC 606, the Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price, which is allocated to the respective performance obligation, when the performance obligation is satisfied.

The Company has the following main revenue streams from its operation: 1) revenue from application users in the form of à la carte online credit purchases which is recognized at a point in time when the à la carte features are enabled for the users after their payment, 2) revenue from application users in the form of membership subscription which is recognized over time using straight-line method, 3) revenue from development and sales of applications which is recognized at a point in time when the services have delivered and the customer has obtained control of promised services, and 4) revenue from co-operation of games with other companies by providing background maintenance services which is recognized over time using straight-line method.

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Accounts Receivable (Tables)

9 Months Ended

Jun. 30, 2019

Receivables [Abstract]

Schedule of accounts receivable

	June 30, 2019		September 30, 2018
Accounts receivable	$	545	$	2,426
Allowance for doubtful accounts		-		-
	$	545	$	2,426

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Property and Equipment, Net (Tables)

9 Months Ended

Jun. 30, 2019

Property, Plant and Equipment [Abstract]

Schedule of property and equipment

	June 30, 2019			September 30, 2018
Office equipment	$	54,612		$	54,605
Furniture and fixtures		20,938			20,935
Sub-total		75,550			75,540
Less: accumulated depreciation		(46,644	)		(29,615	)
Property and equipment, net	$	28,906		$	45,925

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Related Party Transactions (Tables)

9 Months Ended

Jun. 30, 2019

Related Party Transactions [Abstract]

Schedule of related parties

Name of Related Party	Nature of Relationship
Jiyin Li	Chairman
Huibin Su	Chief Executive Officer and Chief Financial Officer
Chaoran Zhang	Significant Shareholder of Shenzhen CX
Zizhong Huang	Chief Operating Officer

Schedule of due to related parties

	June 30, 2019		September 30, 2018
Jiyin Li	$	1,279	$	1,279
Huibin Su		458,536		373,115
Chaoran Zhang		14,565		-
Total	$	474,380	$	374,394

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Organization and Going Concern (Details) - USD ($)	1 Months Ended	9 Months Ended
	Mar. 20, 2018	Jun. 30, 2019	Sep. 30, 2018
Organization and Going Concern (Textual)
Accumulated deficit		$ (2,275,288)	$ (2,094,690)
CX Network Group, Inc., [Member]
Organization and Going Concern (Textual)
Description of merger	Under the Share Exchange, CX Network Group, Inc. issued an aggregate of 5,350,000 shares of common stock, par value $0.0001 per share to the shareholders of CX Cayman in exchange for 100% of the issued and outstanding equity securities of CX Cayman.
CX [Member]
Organization and Going Concern (Textual)
Description of merger		The Merger Agreement, immediately after the effective time of the Merger, the Company's corporate existence is governed by the laws of the State of Nevada and the Articles of Incorporation and bylaws of CXKJ (the "Domicile Change"), and each outstanding share of MLGT's common stock, par value $0.0001 per share was converted into 0.0667 outstanding share of common stock of CXKJ, par value $0.0001 per share at a one-for-fifteen reverse split ratio (the "Reverse Stock Split") which resulted in reclassification of capital from par value to capital in excess of par value. Immediately prior to the effectiveness of the reverse stock split, we had 217,300,000 shares of common stock of MLGT issued and outstanding. Immediately upon the effectiveness of the reverse stock split, we had 14,486,670 shares of common stock of CXKJ issued and outstanding.
CX Cayman [Member]
Organization and Going Concern (Textual)
Cash received		$ 145
Assumed liabilities		$ 249,966
Shares of common stock issued in conjunction with the share exchange		5,350,000

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Accounts Receivable (Details) - USD ($)	Jun. 30, 2019	Sep. 30, 2018
Receivables [Abstract]
Accounts receivable	$ 545	$ 2,426
Allowance for doubtful accounts
Accounts receivable, net	$ 545	$ 2,426

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Property and Equipment, Net (Details) - USD ($)	Jun. 30, 2019	Sep. 30, 2018
Sub-total	$ 75,550	$ 75,540
Less: accumulated depreciation	(46,644)	(29,615)
Property and equipment, net	28,906	45,925
Office Equipment [Member]
Sub-total	54,612	54,605
Furniture and Fixtures [Member]
Sub-total	$ 20,938	$ 20,935

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Property and Equipment, Net (Details Textual) - USD ($)	9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Property and Equipment, Net (Textual)
Depreciation expense	$ 17,119	$ 28,560

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Short-Term Loans (Details) - USD ($)	Jun. 30, 2019	Sep. 30, 2018
Short-Term Loans (Textual)
Short-term loans	$ 57,497	$ 57,497
Interest bearing and due on demand

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Income Taxes (Details) - USD ($)	9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Hong Kong [Member]
Income Taxes (Textual)
Percentage of statutory income tax rate	8.25%
Profits tax rate, percentage	16.50%
Amount of profits tax rate	$ 2,000,000	$ 260,000
PRC [Member]
Income Taxes (Textual)
Percentage of statutory income tax rate	25.00%
PRC [Member] | VIE [Member]
Income Taxes (Textual)
Percentage of statutory income tax rate	25.00%

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Stockholders' Deficit (Details) - USD ($)	1 Months Ended		9 Months Ended
	Dec. 31, 2018	Oct. 31, 2018	Jun. 30, 2019	Sep. 30, 2018
Stockholders' Deficit (Textual)
Common stock, par value per share			$ 0.0001	$ 0.0001
Aggregate gross proceeds of common stock			$ 48,000
Private Placement [Member] | Purchase Agreement [Member]
Stockholders' Deficit (Textual)
Aggregate shares of common stock	160,000	160,000
Common stock, par value per share	$ 0.0001	$ 0.0001
Purchase price of per share	$ 0.30	$ 0.30

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Related Party Transactions (Details)	9 Months Ended
	Jun. 30, 2019
Jiyin Li [Member]
Nature of Relationship	Chairman
Huibin Su [Member]
Nature of Relationship	Chief Executive Officer and Chief Financial Officer
Chaoran Zhang [Member]
Nature of Relationship	Significant Shareholder of Shenzhen CX
Zizhong Huang [Member]
Nature of Relationship	Chief Operating Officer

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Related Party Transactions (Details 1) - USD ($)	Jun. 30, 2019	Sep. 30, 2018
Due to related parties, Total	$ 474,380	$ 374,394
Jiyin Li [Member]
Due to related parties, Total	1,279	1,279
Huibin Su [Member]
Due to related parties, Total	458,536	373,115
Chaoran Zhang [Member]
Due to related parties, Total	$ 14,565

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Related Party Transactions (Details Textual) - USD ($)	9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Related Party Transactions (Textual)
Proceeds from related parties	$ 138,837	$ 802,024
Repayment of related party loan	42,922	241,294
Payables due to related parties	928,332
Expenses paid by related party on behalf of the Company	4,060
Huibin Su [Member]
Related Party Transactions (Textual)
Expenses paid by related party on behalf of the Company	$ 4,060

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Other Income (Details)	1 Months Ended
	Mar. 31, 2019	Oct. 31, 2018
Other Income (Textual)
Other income, description	The Company received government subsidy of RMB 215,000 (approximately $31,000) granted by Shenzhen Science and Technology Innovation Committee for research and development projects completed by Shenzhen CX.	The Company received government subsidy of RMB 100,000 (approximately $15,000) granted by the Bureau of Innovation and Technology of Nanshan District, Shenzhen, PRC for the Intellectual Property Management System Certification Shenzhen CX obtained.