10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED OCTOBER 31, 2018

Commission file number 333-199108

SUMMIT NETWORKS INC.
(Exact name of registrant as specified in its charter)

Nevada
(State or other jurisdiction of incorporation or organization)

Room 710A, 7/F., Ho King Commercial Centre,

2-16 Fa Yuen Street, Mong Kok, Kowloon,

Hong Kong

 (Address of principal executive offices, including zip code.)

 (852) 5106 3566
(Telephone number, including area code)

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 last 90 days. YES [ X ] 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 [ X ] 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," "non-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 [X]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES [  ] NO [ X ]

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date:  6,104,999 shares as of December 24, 2018.

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SUMMIT NETWORKS INC.

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION	3
Item 1.  Financial Statement (Unaudited)	3
Unaudited Consolidated Balance Sheets as of October 31, 2018, and July 31, 2018	3
Unaudited Consolidated Statements of Operations for the Three Months Ended October 31, 2018 and 2017	4
Unaudited Consolidated Statements of Stockholders' Equity	5
Unaudited Consolidated Statements of Cash Flows for the Three Months Ended,October 31, 2018 and 2017	6
Notes to Unaudited Consolidated Financial Statements	7
Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations	12
Item 3. Quantitative and Qualitative Disclosures About Market Risks	14
Item 4. Controls and Procedures	14
PART II – OTHER INFORMATION	15
Item 1. Legal Proceedings	15
Item 1A. Risk Factors	15
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	15
Item 3. Default upon Senior Securities	15
Item 4. Mine Safety Disclosures	15
Item 5. Other Information	15
Item 6. Exhibits	16
SIGNATURES	16

Special Note Regarding Forward-Looking Statements

Information included in this Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (“Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (“Exchange Act”). This information may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Summit Networks Inc. (the “Company”), to be materially different from future results, performance or achievements expressed or implied by any forward-looking statements. Forward-looking statements, which involve assumptions and describe future plans, strategies and expectations of the Company, are generally identifiable by use of the words “may,” “will,” “should,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” or “project” or the negative of these words or other variations on these words or comparable terminology. These forward-looking statements are based on assumptions that may be incorrect, and there can be no assurance that these projections included in these forward-looking statements will come to pass. Actual results of the Company could differ materially from those expressed or implied by the forward-looking statements as a result of various factors. Except as required by applicable laws, the Company has no obligation to update publicly any forward-looking statements for any reason.  This Quarterly Report, and unless otherwise noted, the words "we," "our," "us," the "Company," "SNTW" or “Icon” refers to Summit Networks Inc.                            

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PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENT 

SUMMIT NETWORKS INC.

(A Development Stage Company)

CONSOLIDATED BALANCE SHEETS

	Notes	October 31, 2018		July 31, 2018
ASSETS			(Unaudited)		(Audited)
Current assets:
Cash and cash equivalents		$	5,297	$	17,729
Receivable- Escrow account			4,556		4,556
Total current assets			9,853		22,285
Non-current assets
Property & Office Equipment, net	10	$	-	$	11,172
Deferred Tax Asset			-		-
Total non-current assets			-		11,172
TOTAL ASSETS		$	9,853	$	33,457
LIABILITIES LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	-	$	-
Amount due to related party	7		21,192		21,192
Amount due to shareholders	7		256,682		36,846
Loan from other parties			23,167		23,167
Accrued expenses			9,076		15,011
Total current liabilities			310,117		96,216
TOTAL LIABILITIES		$	310,117	$	96.216
Stockholders’ equity
Common stock, $0.001 par value, 75,000,000 shares authorized; 6,104,999 and 6,104,999 shares issued and outstanding, as at October 31, 2018 and July 31, 2018		$	6,105	$	6,105
Additional paid-in capital			67,402		67,402
(Accumulated deficit) during development stage			(373,771)		(136,266)
TOTAL STOCKHOLDERS’ EQUITY			(300,264)		(62,759)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	9,853	$	33,457

See accompanying notes to unaudited financial statements

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SUMMIT NETWORKS INC.

(A Development Stage Company)

CONSOLIDATED STATEMENT OF OPERATIONS 

(Unaudited)

		For the Three Months Ended October 31, 2018		For the Three Months Ended October 31, 2017		From July 8, 2014 (Inception) to October 31, 2018
Sales	$	-	$	-	$	223,910
Cost of sales		-		-		163,257
Gross Profit		-		-		60,653
Selling, General & Administrative Expenses		237,505		53,452		435,902
(Loss)/ Income from operations		(237,505)		(53,452)		(375,249)
Other income / (expenses)		-		-		-
(Loss)/ Income before income taxes		(237,505)		(53,452)		(375,249)
Income tax benefit		-		-		1,478
Net Loss		(237,505)		(53,452)		(373,771)
Basic and diluted earnings (loss) per share of common stock	$	(0.04)	$	(0.01)
Weighted average number of common shares outstanding		6,104,499		5,000,000

See accompanying notes to unaudited financial statements

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SUMMIT NETWORKS INC.

(A Development Stage Company)

STATEMENT OF STOCKHOLDERS’ EQUITY 

(Unaudited)

							Accumulated
	Common stock				Additional		Deficit during				Total
	Shares		Amount		paid-in		Development		Subscription		stockholders'
	outstanding				capital		Stage		Receivable		equity/(deficit)
Balance, July 8, 2014 Dec 31, 2015	-	$	-	$	-	$	-	$	-	$	-
Stock issued on July 23, 2014
@$0.001 per share	4,000,000		4,000		-		-		-		4,000
Net profit, July 31, 2014							5,090		-		5,090
Balance, July 31, 2014 Dec 31, 2016	4,000,000	$	4,000	$	-	$	5,090	$	-	$	9,090
Stock issued on Jan 29, 2015
@$0.04 per share	1,000,000		1,000		39,000		-		-		40,000
Net (loss), July 31, 2015							(22,902)				(22,902)
Balance, July 31, 2015	5,000,000	$	5,000	$	39,000	$	(17,812)	$	-	$	26,188
Net (loss), July 31, 2016							(9,447)		-		(9,447)
Balance, July 31, 2016	5,000,000	$	5,000	$	39,000	$	(27,259)	$	-	$	16,741
Net (loss), July 31, 2017							(14,190)				(14,190)
Balance, July 31, 2017	5,000,000	$	5,000	$	39,000	$	(41,449)	$	-	$	2,551
Stock issued on Nov 28, 2017
@$0.001 per share	250,000		250		7,250		-		-		7,500
Stock issued on March 15, 2018
@$0.001 per share	399,999		400		11,600		-		-		12,000
Stock issued on March 15, 2018
@$0.001 per share	455,000		455		13,195		-		-		13,650
Loss on acquisition of Real Capital Ltd					(3,643)		-		-		(3,643)
Net (loss), July 31, 2018							(94,817)		-		(94,817)
Balance, July 31, 2018	6,104,999	$	6,105	$	67,402	$	(136,266)	$	-	$	(62,759)
Net (loss), October 31, 2018	-		-		-		(237,505)		-		(237,505)
Balance, October 31, 2018	6,104,999	$	6,105	$	67,402	$	(373,771)	$	-	$	(300,264)

See accompanying notes to unaudited financial statements

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CONSOLIDATED STATEMENT OF CASH FLOWS 

(Unaudited)

						From Inception
		For the Three Months Ended				July 08, 2014 to (inception) Through
		Oct 31, 2018		Oct 31, 2017		Oct 31, 2018
Cash flows from operating activities:
Net (loss) income	$	(237,505)	$	(53,452)	$		(373,771)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation		-		399			6,578
Impairment on PPE		11,172		-			11,172
Provision (benefit) for deferred taxes		-		-			(1,478)
Changes in operating assets and liabilities:
Receivable – Escrow account		-		-			(4,556)
Accounts payable		-		43,822			12,238
Accrued expenses		(5,935)		7,213			9,076
Net cash (used in) provided by operating activities		(232,268)		(2,018)			(340,741)
Cash flows from investing activities:
Acquisition of Property & Equipment		-		-			(17,750)
Investment in subsidiary		-		-			(3,643)
Net cash (used in) investing activities		-		-			(21,393)
Cash flows from financing activities:
Issuance of common stock		-		-			77,150
Amount due to related party		-		2,018			-
Amount due to shareholders		219,836		-			290,282
Net cash (used in) provided by financing activities		219,836		2,018			367,432
Net increase (decrease) in cash		(12,432)		-			5,297
Cash – beginning of period		17,729		-			-
Cash – end of period	$	5,297	$	-	$		5,297
Supplemental disclosures of cash flow information:
Interest paid	$	-	$	-	$		-
Income taxes	$	-	$	-	$		-

See accompanying notes to unaudited financial statements

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SUMMIT NETWORKS INC.

(A Development Stage Company)

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1.

ORGANIZATION AND DESCRIPTION OF BUSINESS

Summit Networks Inc. (the “Company”) was incorporated under the laws of the State of Nevada on July 8, 2014.  The Company was formed to engage in the development and operation of a business engaged in the distribution of glass craft products produced in China. We are also actively looking to expand our business operations into the food and beverage industry, and other possible opportunities via our new subsidiary Real Capital Limited (a Hong Kong company) which was acquired on May 8, 2018.

The Company is in the development stage. Its activities to date have been limited to capital formation, organization, development of its business plan and minimal sales. The Company has commenced limited operations. As such, the Company is subject to all risks inherent to the establishment of a start-up business enterprise.

NOTE 2.

BASIS OF PRESENTATION

The accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”).

The Company, on May 8, 2018, the Company acquired all the shares of Real Capital Limited, a Hong Kong registered company.  The purchase consideration in cash for all the outstanding shares of Real Capital Limited is total of US$1,910 (HK$15,000). After the completion, Real Capital Limited is 100% wholly owned by the Company.

The accompanying consolidated financial statements includes the accounts of the company, and its wholly owned subsidiary Real Capital Limited. All inter-company balances and transactions have been eliminated on consolidation.

The Company has a July 31, year-end.

NOTE 3.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a.

Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. There were no significant estimates in the current reporting period.

Due to the limited level of operations, the Company has not had to make material assumptions or estimates other than the assumption that the Company is a going concern.

b.

Fair value of financial instruments

ASC 825, “Disclosures about Fair Value of Financial Instruments”, requires disclosure of fair value information about financial instruments. ASC 820, “Fair Value Measurements” defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of October 31, 2018.

Fair values were assumed to approximate carrying values of on-balance-sheet financial instruments since they are short term in nature. These financial instruments include cash and related party loan payable.

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SUMMIT NETWORKS INC.

(A Development Stage Company)

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

c.

Earnings per Share

ASC No. 260, “Earnings Per Share”, specifies the computation, presentation and disclosure requirements for earnings (loss) per share for entities with publicly held common stock.   The Company has adopted the provisions of ASC No. 260.  

Basic net loss per share amounts is computed by dividing the net loss by the weighted average number of common shares outstanding.  Diluted earnings per share are the same as basic earnings per share due to the lack of dilutive items in the Company.

d.

Cash and cash equivalents

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.

e.

 Income Taxes

Income taxes are provided in accordance with ASC No. 740, Accounting for Income Taxes.  A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carry forwards. Deferred tax expense (benefit) results from the net change during the year of deferred tax assets and liabilities.

Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of all of the deferred tax assets will be realized.  Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

f.

Revenue Recognition

The Company will recognize revenue in accordance with ASC topic 605 “Revenue Recognition” - when all goods and services have been performed and delivered, the amounts are readily determinable, and collection is reasonably assured.  The Company has generated $223,910 in revenue since its inception.

g.

Cost of Sales

Amounts that will be recorded as cost of sales relate to direct expenses incurred in order to fulfill orders of our customers. Such costs are recorded and allocated as incurred. Our cost of sales will consist primarily of the cost of product and shipping expenses.

h.

Advertising

The Company expenses its advertising when incurred. There has been $12,498 in advertising expense since inception.

i.

Fixed Assets

Fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, (if any). The Company utilizes straight-line depreciation over the estimated useful life of the asset.

Property – 40 years

Office Equipment – 7 years

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SUMMIT NETWORKS INC.

(A Development Stage Company)

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

j.

Recently Issued Accounting Guidance

The Company has evaluated all the recent accounting pronouncements through the date the financial statements were issued and filed with the Securities and Exchange Commission and believe that none of them will have a material effect on the company’s financial statements.

NOTE 4.

CONCENTRATIONS

Initial sales are concentrated with limited client. Sales are made without collateral and the credit-related losses are insignificant or non-existent. Accordingly, there is no provision made to include an allowance for doubtful accounts.

NOTE 5.

GOING CONCERN

The accompanying financial statements and notes have been prepared assuming that the Company will continue as a going concern.

The Company had limited operations during the period from July 8, 2014 (date of inception) to October 31, 2018 resulting in net loss of $373,771.  There is no guarantee that Company will continue to generate revenues. At October 31, 2018, Company had $5,297 in cash and there were outstanding liabilities of $310,117. This condition raises substantial doubt about the Company’s ability to continue as a going concern. Even though the Company is currently in the development stage, management does not believe that the company’s current cash of $5,297 is sufficient to cover the expenses they will incur during the next twelve months.

NOTE 6.

WARRANTS AND OPTIONS

There are no warrants or options outstanding to acquire any additional shares of common.

NOTE 7.

RELATED PARTY TRANSACTIONS

The director of the Company, Mr. Riggs Cheung, may, in the future, become involved in other business opportunities as they become available, he may face a conflict in selecting between the Company and his other business opportunities.  The Company has not formulated a policy for the resolution of such conflicts.

As of October 31, 2018, amount due to the directors of the Company was $21,192, and amount due to shareholders was $256,682, which were unsecured, non-interest bearing with no specific repayment terms.

During the three months period ended October 31, 2018, and during the period from July 8, 2014 (date of inception), payroll expense of $15,000 and $51,000 were charged with respect to director fee, respectively.

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SUMMIT NETWORKS INC.

(A Development Stage Company)

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 8.

INCOME TAXES

We use the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized.

ASC Topic 740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented.

There was no income tax expense for the nine months period ended October 31, 2018 and 2017. The rate was as follow:

	October 31, 2018	October 31, 2017
US Federal Statutory Tax Rate *	21.0%	15.0%
Nevada State & Local Tax Rate	0.0%	0.0%
Net Operating Loss Carryforward	(0.0)%	(0.0)%
Effective Tax Rate	21.0%	15.0%

*for the Financial year 2018 and onward will reduce to 21%

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SUMMIT NETWORKS INC.

(A Development Stage Company)

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 9.

STOCKHOLDERS’ EQUITY

Transactions, other than employees’ stock issuance, are in accordance with ASC No. 505. Thus issuances shall be accounted for based on the fair value of the consideration received.  Transactions with employees’ stock issuance are in accordance with ASC No. 718. These issuances shall be accounted for based on the fair value of the consideration received or the fair value of the equity instruments issued, or whichever is more readily determinable.  

As of August 1, 2017, the stockholders’ equity section of the Company contains Common stock, $ 0.001 par value: 75,000,000 shares authorized; 5,000,000 shares issued and outstanding.

On November 28, 2017 and on March 15, 2018, the Company issued a total of 649,999 shares of common stock to one independent investor and two shareholders for cash consideration totally of $19,500.  The purchase price for the common stocks was $0.03 per common share.

On July 24, 2018, the Company issued a total of 455,000 shares of common stock to one independent investor and two shareholders for cash consideration totally of $13,650.  The purchase price for the common stocks was $0.03 per common share.

As of October 31, 2018, and July 31, 2018, the Company had 6,104,999 shares of common stock issued and outstanding, respectively.

NOTE 10.

PROPERTY AND EQUIPMENT

During the period ended October 31, 2018, the Company has made impairment of $11,172 for the property consisting of an office and shop located in Latvia and office equipment thereof due to no revenue being generated from the operation.   

NOTE 11.

COMMITMENTS AND CONTINGENCIES

The Company has no commitments and contingencies liabilities to be disclosed.

NOTE 12.

LEGAL MATTERS

The Company has no known legal issues pending.

NOTE 13.

SUBSEQUENT EVENTS

The Company has evaluated events subsequent through the date these financial statements have been issued to assess the need for potential recognition or disclosure in this report. Such events were evaluated through the date these financial statements were available to be issued. Based upon this evaluation, except the issued disclosed above, it was determined that no other subsequent events occurred that require recognition or disclosure in the financial statements.  

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ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

The information contained in this report, including in the documents incorporated by reference into this report, includes some statements that are not purely historical and that are “forward-looking statements.” Such forward-looking statements include, but are not limited to, statements regarding our Company and management’s expectations, hopes, beliefs, intentions or strategies regarding the future, including our financial condition, results of operations, and financial performance. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipates,” “believes,” “continue,” “could,” “estimates,” “expects,” “intends,” “may,” “might,” “plans,” “possible,” “potential,” “predicts,” “projects,” “seeks,” “should,” “will,” “would” and similar expressions, or the negatives of such terms, may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

The forward-looking statements contained in this report are based on current expectations and beliefs concerning future developments and the potential effects on the parties and the transaction. There can be no assurance that future developments actually affecting us will be those anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the parties’ control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements.

Results of Operations

We have generated $223,910 in revenues since our inception on July 8, 2014.  Our cost of goods sold was $163,257 resulting in a gross profit of $60,653.  During the period from inception to October 31, 2018, our operating expenses were comprised of selling, general and administrative expenses of $435,902. With the provision for income tax benefits of $1,478, resulted to a net loss of $373,771. Our selling, general and administrative expenses consist of mainly professional fees, impairment for property and equipment, and depreciation expenses.

During the three months ended October 31, 2018 and 2017, we generated revenues of $Nil and $Nil, with cost of goods sold being $Nil and $Nil, resulting in gross profits of $Nil and $Nil, respectively.  Our operating expenses for the same three month periods were comprised of selling, general and administrative expenses of $237,505 and $53,452, respectively, resulting in net loss of $237,505 and $53,452, respectively. Our selling, general and administrative expenses for the period consisted of mainly professional fees, impairment for property and equipment, and depreciation expenses.

Our total assets October 31, 2018 were $9,853, which was $5,297 in cash, and $4,556 in receivable of escrow account.  We currently anticipate that our legal and accounting fees over the next 12 months, as result of being a reporting company with the SEC and more capital financing activities occurred, will be approximately $50,000.

On November 28, 2017, March 15, 2018 and July 24, 2018, the Company issued a total of 1,104,999 shares of common stock to independent investors and shareholders for cash consideration totally of $33,150.  The purchase price for the Securities was $0.03 per common share.

As of October 31, 2018 and July 31, 2018, the Company had 6,104,999 shares of common stock issued and outstanding.

As of October 31, 2018 and July 31, 2018, there is a total of $277,874 and $58,038 in amount due to related parties and shareholders, respectively, owed by the company for expenses that had paid on behalf of the company.  The amounts were interest free, unsecured and payable on demand.

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Plan of Operation for the next 12 months

Because we were not able to raise sufficient capital to execute our full business plan, we are now engaged in discussions with third parties regarding alternative directions for the Company that could enhance shareholder value. As of the date of filing this Report on Form 10Q, we have not entered into any definitive agreement to change our direction. The business plan of our company assumes that we will continue with our business as originally planned. However, as mentioned above, we are in discussions that could lead to another direction for the Company.

Even if we are able to obtain sufficient number of service agreements at the end of the twelve months’ period, there is no guarantee that we will be able to attract and more importantly retain enough customers to justify our expenditures.  If we are unable to generate a significant amount of revenue and to successfully protect ourselves against those risks, then it would materially affect our financial condition.

Based on our current operating plan, we believe that we cannot guarantee for any increase in our revenue from selling our glass craft products in the next quarter and coming twelve months.   We may need to obtain additional financing to operate our business for the next twelve months.  Additional financing, whether through public or private equity or debt financing, arrangements  with the security holder or other sources to fund operations, may not be available, or if available, may be on terms unacceptable to us.

Liquidity and Capital Resources

At October 31, 2018 we had $5,297 in cash and there were outstanding liabilities of $310,117. As at July 31, 2018, we had $17,729 in cash and the outstanding liabilities were $96,216. The working capital deficits were negative $300,264 and $73,931, for October 31, 2018 and July 31, 2018, respectively. Our director has verbally agreed to continue to loan the company funds for operating expenses in a limited scenario, but he has no legal obligation to do so.  

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements 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 is material to investors.

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ITEM 3. QUANTITATIVE AND QUALITAIVE DISCLOSURE ABOUT MARKET RISK

Pursuant to Item 305(e) of Regulation S-K (§ 229.305(e)), the Company is not required to provide the information required by this Item as it is a “smaller reporting company,” as defined by Rule 229.10(f)(1).

ITEM 4.     CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

Management maintains “disclosure controls and procedures,” as such term is defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”), that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

In connection with the preparation of this quarterly report on Form 10-Q, an evaluation was carried out by management, with the participation of the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of October 31, 2018.

Based on that evaluation, management concluded, as of the end of the period covered by this report, that our disclosure controls and procedures were effective in recording, processing, summarizing, and reporting information required to be disclosed, within the time periods specified in the Securities and Exchange Commission’s rules and forms.

Changes in Internal Controls over Financial Reporting

As of the end of the period covered by this report, there have been no changes in the internal controls over financial reporting during the quarter ended October 31, 2018, that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting subsequent to the date of management’s last evaluation.

-14-

PART II. OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

To the best knowledge of the Company’s directors and officers, the Company is currently not a party to any material pending legal proceeding.

ITEM 1A:  RISK FACTORS

Not applicable as a smaller reporting company.

ITEM 2:  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

-15-

ITEM 6.     EXHIBITS.

The following exhibits are included with this quarterly filing:

Exhibit No.

Description

31.1

Sec. 302 Certification of Chief Executive Officer and Chief Financial Officer

32.1

Sec. 906 Certification of Chief Executive Officer and Chief Financial Officer

101      

Interactive data files pursuant to Rule 405 of Regulation S-T

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.

Summit Networks Inc.

Registrant

Date:  December 24, 2018

By: /s/ Riggs Cheung

Riggs Cheung

Chief Executive Officer and

Chief Financial Officer

-16-

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Riggs Cheung, certify that:

1. I have reviewed this report on Form 10-Q.

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(s) 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 (the registrant’s fourth fiscal quarter in the case of an annual report) 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(s) 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 registrant’s board of directors (or persons performing the equivalent functions):

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: December 24, 2018

/s/ Riggs Cheung
Riggs Cheung
Chief Executive Officer &

Chief Financial Officer

XML

Document and Entity Information - shares	3 Months Ended
	Oct. 31, 2018	Dec. 24, 2018
Document And Entity Information
Entity Registrant Name	Summit Networks Inc.
Entity Central Index Key	0001619096
Document Type	10-Q
Document Period End Date	Oct. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--07-31
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Common Stock, Shares Outstanding		6,104,999
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2019

XML

CONSOLIDATED BALANCE SHEETS - USD ($)	Oct. 31, 2018	Jul. 31, 2018
Current assets:
Cash and cash equivalents	$ 5,297	$ 17,729
Receivable- Escrow account	4,556	4,556
Total current assets	9,853	22,285
Non-current assets
Property & Office Equipment, net		11,172
Deferred Tax Asset
Total non-current assets		11,172
TOTAL ASSETS	9,853	33,457
Current liabilities:
Accounts payable
Amount due to related party	21,192	21,192
Amount due to shareholders	256,682	36,846
Loan from other parties	23,167	23,167
Accrued expenses	9,076	15,011
Total current liabilities	310,117	96,216
TOTAL LIABILITIES	310,117	96,216
Stockholders' equity
Common stock, $0.001 par value, 75,000,000 shares authorized; 6,104,999 and 6,104,999 shares issued and outstanding, as at October 31, 2018 and July 31, 2018	6,105	6,105
Additional paid-in capital	67,402	67,402
(Accumulated deficit) during development stage	(373,771)	(136,266)
TOTAL STOCKHOLDERS' EQUITY	(300,264)	(62,759)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 9,853	$ 33,457

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Oct. 31, 2018	Jul. 31, 2018
Stockholders' equity
Common Stock Par Value	$ 0.001	$ 0.001
Common Stock Shares Authorized	75,000,000	75,000,000
Common Stock Shares Issued	6,104,999	6,104,999
Common Stock Shares Outstanding	6,104,999	6,104,999

XML

CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		52 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018
Consolidated Statement Of Operations
Sales			$ 223,910
Cost of sales			163,257
Gross Profit			60,653
Selling, General & Administrative Expenses	237,505	53,452	435,902
(Loss) /Income from operations	(237,505)	(53,452)	(375,249)
Other income/ (expenses)
(Loss) /Income before income taxes	(237,505)	(53,452)	(375,249)
Income taxes benefit			1,498
Net Loss	$ (237,505)	$ (53,452)	$ (373,771)
Basic and diluted earnings (loss) per share of common stock	$ (0.04)	$ (0.01)
Weighted average number of common shares outstanding	6,104,499	5,000,000

XML

STATEMENT OF STOCKHOLDERS’ EQUITY (Unaudited) - USD ($)	Common Stock	Additional Paid-In Capital	Accumulated Deficit during Development Stage	Subscription Receviable	Total
Beginning Balance, Shares at Jul. 07, 2014
Beginning Balance, Amount at Jul. 07, 2014
Stock issued on July 23, 2014 @$0.001 per share, Shares	4,000,000
Stock issued on July 23, 2014 @$0.001 per share, Amount	$ 4,000				4,000
Net loss			5,090		5,090
Ending Balance, Shares at Jul. 31, 2014	4,000,000
Ending Balance, Amount at Jul. 31, 2014	$ 4,000		5,090		9,090
Beginning Balance, Shares at Jul. 07, 2014
Beginning Balance, Amount at Jul. 07, 2014
Net loss					(375,249)
Ending Balance, Shares at Oct. 31, 2018	6,104,999
Ending Balance, Amount at Oct. 31, 2018	$ 6,105	67,402	(373,771)		(300,264)
Beginning Balance, Shares at Jul. 31, 2014	4,000,000
Beginning Balance, Amount at Jul. 31, 2014	$ 4,000		5,090		9,090
Stock issued on Jan 29, 2015 @$0.04 per share, Shares	1,000,000
Stock issued on Jan 29, 2015 @$0.04 per share, Amount	$ 1,000	39,000			40,000
Net loss			(22,902)		(22,902)
Ending Balance, Shares at Jul. 31, 2015	5,000,000
Ending Balance, Amount at Jul. 31, 2015	$ 5,000	39,000	(17,812)		26,188
Net loss			(9,447)		(9,447)
Ending Balance, Shares at Jul. 31, 2016	5,000,000
Ending Balance, Amount at Jul. 31, 2016	$ 5,000	39,000	(27,259)		16,741
Net loss			(14,190)		(14,190)
Ending Balance, Shares at Jul. 31, 2017	5,000,000
Ending Balance, Amount at Jul. 31, 2017	$ 5,000	39,000	(41,449)		2,551
Stock issued on Nov 28, 2017 @$0.001 per share, Shares	250,000
Stock issued on Nov 28, 2017 @$0.001 per share, Amount	$ 250	7,250			7,500
Stock issued on March 15, 2018 @$0.001 per share, Shares	399,999
Stock issued on March 15, 2018 @$0.001 per share, Amount	$ 400	11,600			12,000
Stock issued on March 15, 2018 @$0.001 per share, Shares	455,000
Stock issued on March 15, 2018 @$0.001 per share, Amount	$ 455	13,195			13,650
Net loss			(94,817)		(94,817)
Ending Balance, Shares at Jul. 31, 2018	6,104,999
Ending Balance, Amount at Jul. 31, 2018	$ 6,105	67,402	(136,266)		(62,759)
Net loss			(237,505)		(237,505)
Ending Balance, Shares at Oct. 31, 2018	6,104,999
Ending Balance, Amount at Oct. 31, 2018	$ 6,105	$ 67,402	$ (373,771)		$ (300,264)

XML

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended		52 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018
Cash flows from operating activities:
Net (loss) income	$ (237,505)	$ (53,452)	$ (373,771)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation		399	6,578
Impairment on PPE	11,172		11,172
Provision (benefit) for deferred taxes			(1,478)
Changes in operating assets and liabilities:
Receivable - Escrow account			(4,556)
Accounts payable		43,822	12,238
Accrued expenses	(5,935)	7,213	9,076
Net cash (used in) provided by operating activities	(232,268)	(2,018)	(340,741)
Cash flows from investing activities:
Acquisition of Property & Equipment			(17,750)
Investment in subsidiary			(3,643)
Net cash (used in) investing activities			(21,393)
Cash flows from financing activities:
Issuance of common stock			77,150
Amount due to related party		2,018
Amount due to shareholders	219,836		290,282
Net cash (used in) provided by financing activities	219,836	2,018	367,432
Net increase (decrease) in cash	(12,432)		5,297
Cash - beginning of period	17,729
Cash - end of period	5,297		5,297
Supplemental disclosures of cash flow information:
Interest paid
Income taxes

XML

ORGANIZATION AND DESCRIPTION OF BUSINESS

3 Months Ended

Oct. 31, 2018

Notes to Financial Statements

NOTE 1. ORGANIZATION AND DESCRIPTION OF BUSINESS

Summit Networks Inc. (the “Company”) was incorporated under the laws of the State of Nevada on July 8, 2014.  The Company was formed to engage in the development and operation of a business engaged in the distribution of glass craft products produced in China. We are also actively looking to expand our business operations into the food and beverage industry, and other possible opportunities via our new subsidiary Real Capital Limited (a Hong Kong company) which was acquired on May 8, 2018.

The Company is in the development stage. Its activities to date have been limited to capital formation, organization, development of its business plan and minimal sales. The Company has commenced limited operations. As such, the Company is subject to all risks inherent to the establishment of a start-up business enterprise.

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BASIS OF PRESENTATION

3 Months Ended

Oct. 31, 2018

Notes to Financial Statements

NOTE 2. BASIS OF PRESENTATION

The accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”).

The Company, on May 8, 2018, the Company acquired all the shares of Real Capital Limited, a Hong Kong registered company.  The purchase consideration in cash for all the outstanding shares of Real Capital Limited is total of US$1,910 (HK$15,000). After the completion, Real Capital Limited is 100% wholly owned by the Company.

The accompanying consolidated financial statements includes the accounts of the company, and its wholly owned subsidiary Real Capital Limited. All inter-company balances and transactions have been eliminated on consolidation.

The Company has a July 31, year-end.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Oct. 31, 2018

Notes to Financial Statements

NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. There were no significant estimates in the current reporting period.

Due to the limited level of operations, the Company has not had to make material assumptions or estimates other than the assumption that the Company is a going concern.

b. Fair value of financial instruments

ASC 825, “Disclosures about Fair Value of Financial Instruments”, requires disclosure of fair value information about financial instruments. ASC 820, “Fair Value Measurements” defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of October 31, 2018.

Fair values were assumed to approximate carrying values of on-balance-sheet financial instruments since they are short term in nature. These financial instruments include cash and related party loan payable.

c. Earnings per Share

ASC No. 260, “Earnings Per Share”, specifies the computation, presentation and disclosure requirements for earnings (loss) per share for entities with publicly held common stock.   The Company has adopted the provisions of ASC No. 260.  

Basic net loss per share amounts is computed by dividing the net loss by the weighted average number of common shares outstanding.  Diluted earnings per share are the same as basic earnings per share due to the lack of dilutive items in the Company.

d. Cash and cash equivalents

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.

e. Income Taxes

Income taxes are provided in accordance with ASC No. 740, Accounting for Income Taxes.  A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carry forwards. Deferred tax expense (benefit) results from the net change during the year of deferred tax assets and liabilities.

Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of all of the deferred tax assets will be realized.  Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

f. Revenue Recognition

The Company will recognize revenue in accordance with ASC topic 605 “Revenue Recognition” - when all goods and services have been performed and delivered, the amounts are readily determinable, and collection is reasonably assured.  The Company has generated $223,910 in revenue since its inception.

g. Cost of Sales

Amounts that will be recorded as cost of sales relate to direct expenses incurred in order to fulfill orders of our customers. Such costs are recorded and allocated as incurred. Our cost of sales will consist primarily of the cost of product and shipping expenses.

h. Advertising

The Company expenses its advertising when incurred. There has been $12,498 in advertising expense since inception.

I. Fixed Assets

Fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, (if any). The Company utilizes straight-line depreciation over the estimated useful life of the asset.

Property – 40 years

Office Equipment – 7 years

j. Recently Issued Accounting Guidance

The Company has evaluated all the recent accounting pronouncements through the date the financial statements were issued and filed with the Securities and Exchange Commission and believe that none of them will have a material effect on the company’s financial statements.

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CONCENTRATIONS

3 Months Ended

Oct. 31, 2018

Notes to Financial Statements

NOTE 4. CONCENTRATIONS

Initial sales are concentrated with limited client. Sales are made without collateral and the credit-related losses are insignificant or non-existent. Accordingly, there is no provision made to include an allowance for doubtful accounts.

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GOING CONCERN

3 Months Ended

Oct. 31, 2018

Notes to Financial Statements

NOTE 5. GOING CONCERN

The accompanying financial statements and notes have been prepared assuming that the Company will continue as a going concern.

The Company had limited operations during the period from July 8, 2014 (date of inception) to October 31, 2018 resulting in net loss of $373,771.  There is no guarantee that Company will continue to generate revenues. At October 31, 2018, Company had $5,297 in cash and there were outstanding liabilities of $310,117. This condition raises substantial doubt about the Company’s ability to continue as a going concern. Even though the Company is currently in the development stage, management does not believe that the company’s current cash of $5,297 is sufficient to cover the expenses they will incur during the next twelve months.

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WARRANTS AND OPTIONS

3 Months Ended

Oct. 31, 2018

Notes to Financial Statements

NOTE 6. WARRANTS AND OPTIONS

There are no warrants or options outstanding to acquire any additional shares of common.

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RELATED PARTY TRANSACTIONS

3 Months Ended

Oct. 31, 2018

Notes to Financial Statements

NOTE 7. RELATED PARTY TRANSACTIONS

The director of the Company, Mr. Riggs Cheung, may, in the future, become involved in other business opportunities as they become available, he may face a conflict in selecting between the Company and his other business opportunities.  The Company has not formulated a policy for the resolution of such conflicts.

As of October 31, 2018, amount due to the directors of the Company was $21,192, and amount due to shareholders was $256,682, which were unsecured, non-interest bearing with no specific repayment terms.

During the three months period ended October 31, 2018, and during the period from July 8, 2014 (date of inception), payroll expense of $15,000 and $51,000 were charged with respect to director fee, respectively.

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INCOME TAXES

3 Months Ended

Oct. 31, 2018

Notes to Financial Statements

NOTE 8. INCOME TAXES

We use the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized.

ASC Topic 740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented.

There was no income tax expense for the nine months period ended October 31, 2018 and 2017. The rate was as follow:

	October 31, 2018	October 31, 2017
US Federal Statutory Tax Rate *	21.0%	15.0%
Nevada State & Local Tax Rate	0.0%	0.0%
Net Operating Loss Carryforward	(0.0)%	(0.0)%
Effective Tax Rate	21.0%	15.0%

*for the Financial year 2018 and onward will reduce to 21%

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STOCKHOLDERS' EQUITY

3 Months Ended

Oct. 31, 2018

Notes to Financial Statements

NOTE 9. STOCKHOLDERS' EQUITY

Transactions, other than employees’ stock issuance, are in accordance with ASC No. 505. Thus issuances shall be accounted for based on the fair value of the consideration received.  Transactions with employees’ stock issuance are in accordance with ASC No. 718. These issuances shall be accounted for based on the fair value of the consideration received or the fair value of the equity instruments issued, or whichever is more readily determinable.  

As of August 1, 2017, the stockholders’ equity section of the Company contains Common stock, $ 0.001 par value: 75,000,000 shares authorized; 5,000,000 shares issued and outstanding.

On November 28, 2017 and on March 15, 2018, the Company issued a total of 649,999 shares of common stock to one independent investor and two shareholders for cash consideration totally of $19,500.  The purchase price for the common stocks was $0.03 per common share.

On July 24, 2018, the Company issued a total of 455,000 shares of common stock to one independent investor and two shareholders for cash consideration totally of $13,650.  The purchase price for the common stocks was $0.03 per common share.

As of October 31, 2018, and July 31, 2018, the Company had 6,104,999 shares of common stock issued and outstanding, respectively.

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PROPERTY AND EQUIPMENT

3 Months Ended

Oct. 31, 2018

Notes to Financial Statements

NOTE 10. PROPERTY AND EQUIPMENT

During the period ended October 31, 2018, the Company has made impairment of $11,172 for the property consisting of an office and shop located in Latvia and office equipment thereof due to no revenue being generated from the operation.   

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COMMITMENTS AND CONTINGENCIES

3 Months Ended

Oct. 31, 2018

Notes to Financial Statements

NOTE 11. COMMITMENTS AND CONTINGENCIES

The Company has no commitments and contingencies liabilities to be disclosed.

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LEGAL MATTERS

3 Months Ended

Oct. 31, 2018

Notes to Financial Statements

NOTE 12. LEGAL MATTERS

The Company has no known legal issues pending.

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SUBSEQUENT EVENTS

3 Months Ended

Oct. 31, 2018

Notes to Financial Statements

NOTE 13. SUBSEQUENT EVENTS

The Company has evaluated events subsequent through the date these financial statements have been issued to assess the need for potential recognition or disclosure in this report. Such events were evaluated through the date these financial statements were available to be issued. Based upon this evaluation, except the issued disclosed above, it was determined that no other subsequent events occurred that require recognition or disclosure in the financial statements.  

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Oct. 31, 2018

Summary Of Significant Accounting Policies

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. There were no significant estimates in the current reporting period.

Due to the limited level of operations, the Company has not had to make material assumptions or estimates other than the assumption that the Company is a going concern.

Fair Value of Financial Instruments

ASC 825, “Disclosures about Fair Value of Financial Instruments”, requires disclosure of fair value information about financial instruments. ASC 820, “Fair Value Measurements” defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of October 31, 2018.

Fair values were assumed to approximate carrying values of on-balance-sheet financial instruments since they are short term in nature. These financial instruments include cash and related party loan payable.

Earnings per Share

ASC No. 260, “Earnings Per Share”, specifies the computation, presentation and disclosure requirements for earnings (loss) per share for entities with publicly held common stock.   The Company has adopted the provisions of ASC No. 260.  

Basic net loss per share amounts is computed by dividing the net loss by the weighted average number of common shares outstanding.  Diluted earnings per share are the same as basic earnings per share due to the lack of dilutive items in the Company.

Cash and Equivalents

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.

Income Taxes

Income taxes are provided in accordance with ASC No. 740, Accounting for Income Taxes.  A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carry forwards. Deferred tax expense (benefit) results from the net change during the year of deferred tax assets and liabilities.

Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of all of the deferred tax assets will be realized.  Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

Revenue Recognition

The Company will recognize revenue in accordance with ASC topic 605 “Revenue Recognition” - when all goods and services have been performed and delivered, the amounts are readily determinable, and collection is reasonably assured.  The Company has generated $223,910 in revenue since its inception.

Cost of Sales

Amounts that will be recorded as cost of sales relate to direct expenses incurred in order to fulfill orders of our customers. Such costs are recorded and allocated as incurred. Our cost of sales will consist primarily of the cost of product and shipping expenses.

Advertising

The Company expenses its advertising when incurred. There has been $12,498 in advertising expense since inception.

Fixed Assets

Fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, (if any). The Company utilizes straight-line depreciation over the estimated useful life of the asset.

Property – 40 years

Office Equipment – 7 years

New Accounting Pronouncements

The Company has evaluated all the recent accounting pronouncements through the date the financial statements were issued and filed with the Securities and Exchange Commission and believe that none of them will have a material effect on the company’s financial statements.

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Oct. 31, 2018

Summary Of Significant Accounting Policies Tables Abstract

Fixed Assets

Property – 40 years

Office Equipment – 7 years

XML

INCOME TAXES (Tables)

3 Months Ended

Oct. 31, 2018

Income Taxes Tables Abstract

Schedule of Effective Income Tax Rate

	October 31, 2018	October 31, 2017
US Federal Statutory Tax Rate *	21.0%	15.0%
Nevada State & Local Tax Rate	0.0%	0.0%
Net Operating Loss Carryforward	(0.0)%	(0.0)%
Effective Tax Rate	21.0%	15.0%

XML

ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Narrative)	3 Months Ended
	Oct. 31, 2018
Organization And Description Of Business
State Country Name	Nevada
Date of Incorporation	Jul. 08, 2014

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BASIS OF PRESENTATION (Details Narrative) - Real Capital Limited [Member] - Subsequent Event [Member]	May 08, 2018 USD ($)
Business acquisition consideration transferred or transferrable, cash	$ 1,910
Business acquisition, ownership interest acquired	100.00%

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	3 Months Ended
	Oct. 31, 2018
Property [Member]
Estimated useful life	40 years
Office Equipment [Member]
Estimated useful life	7 years

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended		52 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018
Summary Of Significant Accounting Policies Details Narrative Abstract
Revenue			$ 223,910
Advertising expense			$ 12,498

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GOING CONCERN (Details Narrative) - USD ($)	3 Months Ended		52 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018	Jul. 31, 2018	Jul. 31, 2017	Jul. 07, 2014
Going Concern
Net income (loss)	$ (237,505)	$ (53,452)	$ (373,771)
Cash	5,297		5,297	$ 17,729
Total liabilities	$ 310,117		$ 310,117	$ 96,216

XML

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	3 Months Ended	52 Months Ended
	Oct. 31, 2018	Oct. 31, 2018	Jul. 31, 2018
Due to related party	$ 21,192	$ 21,192	$ 21,192
Directors fee	15,000	51,000
Directors [Member]
Due to related party	21,192	21,192
Shareholders [Member]
Due to related party	$ 256,682	$ 256,682

XML

INCOME TAXES (Details)		3 Months Ended
		Oct. 31, 2018	Oct. 31, 2017
Income Taxes Details Abstract
US Federal Statutory Tax Rate	[1]	21.00%	15.00%
Nevada State & Local Tax Rate		0.00%	0.00%
Net Operating Loss Carryforward		0.00%	0.00%
Effective Tax Rate		21.00%	15.00%

[1] for the Financial year 2018 and onward will reduce to 25%

XML

STOCKHOLDERS' EQUITY (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended
	Jul. 24, 2018	Oct. 31, 2018	Jul. 31, 2018
Common Stock Par Value		$ 0.001	$ 0.001
Common Stock Shares Authorized		75,000,000	75,000,000
Common Stock Shares Issued		6,104,999	6,104,999
Common Stock Shares Outstanding		6,104,999	6,104,999
August 1, 2017 [Member]
Common Stock Par Value		$ 0.001
Common Stock Shares Authorized		75,000,000
Common Stock Shares Issued		5,000,000
Common Stock Shares Outstanding		5,000,000
Independent Investor And Two Shareholders [Member]
Common Stock Shares Issued	455,000
Proceeds from issuance of common stock	$ 13,650
Share price	$ 0.03
Independent Investor And Two Shareholders [Member] | November 28, 2017 and on March 15, 2018 [Member]
Common Stock Shares Issued		649,999
Proceeds from issuance of common stock		$ 19,500
Share price		$ 0.03

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PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	3 Months Ended		52 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018
Impairment on PPE	$ 11,172		$ 11,172
Latvia property [Member]
Impairment on PPE	$ 11,172