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 APRIL 30, 2017

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)

Jaunciema gatve 40,

Ziemeļu rajons, Rīga,

LV-1023, Latvia

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

(775)572-8824

(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 o

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 o

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 o NO x

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: 5,000,000 shares as of May 8, 2017.

ITEM 1. FINANCIAL STATEMENTS

SUMMIT NETWORKS INC.  

Balance Sheet  

	April 30,			July 31,
	2017			2016
	(Unaudited)			(Audited)
ASSETS
Current Assets
Cash		902			859
Total Current Assets	$	902		$	859
Other Assets		1,000			1,000
Property & Office Equipment, net		13,167			14,362
Deferred Tax Asset		-			1,478
TOTAL ASSETS	$	15,069		$	17,699
LIABILITIES & STOCKHOLDERS' EQUITY
Current Liabilities
Due to related party		458			458
Accrued expenses		500			500
Total Liabilities	$	958		$	958
Stockholders' Equity
Common stock, ($0.001 par value, 75,000,000 shares authorized; 5,000,000 shares issued and outstanding as of April 30, 2017 and July 31, 2016		5,000			5,000
Additional Paid in Capital		39,000			39,000
Income/(deficit) accumulated during development stage		(29,889	)		(27,259	)
Total Stockholders' Equity		14,111			16,741
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	15,069		$	17,699

 

See Notes to Financial Statements.

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SUMMIT NETWORKS INC.
Statement of Operations
(Unaudited)
	For the		For the			For the			For the			From Inception
	Three Months Ended		Three Months Ended			Nine Months Ended			Nine Months Ended			July 08, 2014
	April 30,		April 30,			April 30,			April 30,			To April 30,
	2017		2016			2017			2016			2017
Sales	$	8,010	$	6,869		$	28,193		$	36,247		$	223,911
Cost of Goods		6,349		5,693			21,266			21,831			163,258
Gross Profit		1,661		1,176			6,927			14,416			60,653
Selling, General & Administrative Expenses		1,320		1,600			9,559			23,927			92,021
Income/ (loss) from operations		341		(424	)		(2,632	)		(9,511	)		(31,368	)
Other income/(expenses)		-		-			-			-			-
Income before income taxes		341		(424	)		(2,632	)		(9,511	)		(31,368	)
Income tax benefit		-		-			-			-			1,478
Net Income/(Loss)		341		(424	)		(2,632	)		(9,511	)		(29,889	)
Basic and diluted earnings per share	$	0.00	$	(0.00	)	$	(0.00	)	$	(0.00	)
Weighted average number of common shares outstanding		5,000,000		5,000,000			5,000,000			5,000,000

See Notes to Financial Statements.

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SUMMIT NETWORKS INC.
Statement of Cash Flows
(Unaudited)
	For the			For the			From Inception
	Nine Months Ended			Nine Months Ended			July 08, 2014
	April 30,			April 30,			To April 30
	2017			2016			2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	(2,632	)	$	(9,511	)	$	(29,889	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation Expense		1,197			1,196			4,583
Provision (benefit) for deferred taxes		1,478			-			-
Changes in operating assets and liabilities:
Other assets		-			-			(1,000	)
Income Taxes payable		-			-			-
Accrued expenses		-			-			500
Net cash provided by (used in) operating activities		43			(8,315	)		(25,806	)
CASH FLOWS FROM INVESTING ACTIVITIES
Office & Shop		-			-			(17,750	)
Net cash provided by (used in) investing activities		-			-			(17,750	)
CASH FLOWS FROM FINANCING ACTIVITIES
Advances from related party		-			-			458
Issuance of common stock		-			-			44,000
Net cash provided by (used in) financing activities		-			-			44,458
Net increase (decrease) in cash		43			(8,315	)		902
Cash at beginning of period		859			8,711			-
Cash at end of year	$	902		$	396		$	902
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during year for :
Interest	$	-		$	-		$	-
Income Taxes	$	-		$	-		$	-

See Notes to Financial Statements.

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SUMMIT NETWORKS INC.

Notes to Financial Statements

NOTE 1. ORGANIZATION AND DESCRIPTION OF BUSINESS

Summit Networks Inc. (the “Company”) was incorporated under the laws of the State of Nevada on July 8, 2014. The Company was formed to engage in the development and operation of a business engaged in the distribution of glass craft products produced in China.

The Company is in the development stage. Its activities to date have been limited to capital formation, organization, development of its business plan and minimal sales. The Company has commenced limited operations.

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Basis of Presentation

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

In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-10, “Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation.” This ASU removes the definition of a development stage entity from the ASC, thereby removing the financial reporting distinction between development stage entities and other reporting entities from GAAP. In addition, the ASU eliminates the requirements for development stage entities to (1) present inception-to-date information in the statements of operations, cash flows, and shareholders’ deficit, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. Early adoption is permitted. The Company has adopted this ASU and, accordingly, no inception to date financial information is disclosed and the accompanying financial statements are not labeled as those of a development stage entity.

The Company has a July 31, year-end.

b. Reclassification

Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported net income or losses.

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.

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SUMMIT NETWORKS INC.

Notes to Financial Statements

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

The Company has adopted the provisions of ASC No. 260.

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

d. Cash and Equivalents

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

e. Use of Estimates and Assumptions

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

f. 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.

g. Revenue Recognition

The Company records revenue on the accrual basis when all goods and services have been performed and delivered, the amounts are readily determinable, and collection is reasonably assured. The Company has generated $223,911 in revenue from the sales of glass products since its inception.

h. Allowances

All orders from customers are prepaid prior to shipment and delivery so no allowance is necessary.

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SUMMIT NETWORKS INC.

Notes to Financial Statements

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

i. Warranties

Summit, and its customers, has the right to inspect the goods upon receipt and notify the Supplier of any claim for damages. If any defect or damages is identified the Supplier will replace or repair the goods or refund the purchase price at the Suppliers option. The Supplier is liable for all damages and repairs and not the company so no warranty liability is booked.

j. Advertising

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

k. Fixed Assets

Fixed assets are stated at cost. The Company utilizes straight-line depreciation over the estimated useful life of the asset. Assets are tested for impairment annually and no impairment was found for the period ended April 30, 2017.

Property –	40 years
Office Equipment –	7 years

l. New Accounting Pronouncements

ASC 842 was added by ASU 2016-02 on February 25, 2016. It is effective for public business entities for annual periods beginning after December 15, 2018 (i.e., calendar periods beginning on January 1, 2019) and interim periods therein. For all other entities, ASC 842 will be effective for annual periods beginning after December 15, 2019 (i.e., calendar periods beginning on January 1, 2020) and interim periods thereafter. Early adoption will be permitted for all entities.

The main difference between previous GAAP and Topic 842 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. The Board ultimately reached the conclusion that the economics of leases can vary for a lessee and that those economics should be reflected in the financial statements; therefore, Topic 842 retains a distinction between finance leases and operating leases. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous leases guidance. The result of retaining a distinction between finance leases and operating leases is that under the lessee accounting model in Topic 842, the effect of leases in the statement of comprehensive income and the statement of cash flows is largely unchanged from previous GAAP.

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SUMMIT NETWORKS INC.

Notes to Financial Statements

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

The Company is currently evaluating whether ASC 842 will have a material effect on the Company’s financial statements and if so whether to early adopt the accounting standard.

The Company has evaluated all the recent accounting pronouncements through the date the financial statements were issued and filed with the Securities and Exchange Commission and other than noted above believe that none of them will have a material effect on the company’s financial statements. The Company will continue to evaluate accounting pronouncements as they are issued to determine whether they will have a material effect on the company’s financial statements.

NOTE 3. GOING CONCERN

The accompanying financial statements are presented on a going concern basis. The Company had limited operations during the period from July 8, 2014 (date of inception) to April 30, 2017 resulting in net loss of $29,889. 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 and has minimal expenses, management does not believe that the company’s current cash of $902 is sufficient to cover the expenses they will incur during the next twelve months.

NOTE 4. WARRANTS AND OPTIONS

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

NOTE 5. RELATED PARTY TRANSACTIONS

The sole officer and director of the Company 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 April 30, 2017, an amount due to Mr. Andris Berzins, CEO of the Company, was $458 which is non-interest bearing with no specific repayment terms.

NOTE 6. INCOME TAXES

	April 30, 2017
US Federal Statutory Tax Rate		15.0	%
Nevada State & Local Tax Rate		0.0	%
Net Operating Loss Carryforward		(0.0	)%
Effective Tax Rate		15.0	%

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SUMMIT NETWORKS INC.

Notes to Financial Statements

NOTE 7. 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 April 30, 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 July 23, 2014 the Company issued a total of 4,000,000 shares of common stock to a director for cash in the amount of $0.001 per share for a total of $4,000.

On January 29, 2015 the Company issued a total of 1,000,000 shares of common stock to 30 independent investors for cash in the amount of $0.04 per share for a total of $40,000.

As of April 30, 2017, the Company had 5,000,000 shares of common stock issued and outstanding.

NOTE 8: PROPERTY AND EQUIPMENT

The Company currently has property consisting of an office and shop for $8,000 located at Jaunciema gatve 40, Ziemeļu rajons, Rīga, LV-1023, Latvia. The Company has also leases executive offices at 8153 Finch Feather St., Las Vegas, NV 89143. Office Equipment is of value $9,750. Depreciation expense for the Latvia property and office equipment for the period ended April 30, 2017 was $50 and $349 respectively.

NOTE 9: COMMITMENT & CONTINGENCIES

On July 30, 2014, the Company entered into Commercial Lease Agreement for three years that expires July 30, 2017 for $1,000 a month as the Company’s office space. The rent expense for the years ended July 31, 2017, 2016 and 2015 was $0 due to a free rent promotion offered by the property manager based upon the Company committing to a new lease beginning in August 2018, which has not been signed or agreed upon yet.

NOTE 10: CONCENTRATIONS

The Company’s revenue to date has been concentrated with one client. The Company’s orders to date have been from one vendor, based upon the product requirements of our client. This raises a substantial risk for the Company if we lost either the current customer or current vendor.

NOTE 11: SUBSEQUENT EVENTS

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

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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 $223,911 in revenues since our inception on July 8, 2014. Our cost of goods sold was $163,258 resulting in a gross profit of $60,653. During the period from inception to April 30, 2017, our operating expenses were comprised of selling, general and administrative expenses of $92,021, resulting in a net loss of $29,889. Our selling, general and administrative expenses consist of mainly professional fees.

During the three months ended April 30, 2017 and 2016, we generated $8,010 and $6,869, respectively, in revenues with cost of goods sold being $6,349 and $5,693, resulting in gross profits of $1,661 and $1,176. Our operating expenses for the same three month periods were comprised of selling, general and administrative expenses of $1,320 and $1,600, respectively, resulting in net gain (loss) of $341 and $(424). Our selling, general and administrative expenses for the period consisted of mainly professional fees.

During the nine months ended April 30, 2017 and 2016, we generated $28,193 and $36,247, respectively, in revenues with cost of goods sold being $21,266 and $21,831, resulting in gross profits of $6,927 and $14,416. Our operating expenses for the same nine month periods were comprised of selling, general and administrative expenses of $9,559 and $23,927, respectively, resulting in net losses of $2,632 and $9,511. Our selling, general and administrative expenses for the period consisted of mainly professional fees.

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Our total assets at April 30, 2017 were $15,069, which was $902 in cash, $1,000 in other assets and $13,167 in property and equipment. We currently anticipate that our legal and accounting fees over the next 12 months as a result of being a reporting company with the SEC, and will be approximately $9,000.

We received the initial equity funding of $4,000 from our sole officer and director who purchased 4,000,000 shares of our common stock at $0.001 per share.

On January 29, 2015 the Company issued a total of 1,000,000 shares of common stock to 30 independent investors for cash in the amount of $0.04 per share for a total of $40,000.

As of April 30, 2017 the Company had 5,000,000 shares of common stock issued and outstanding.

As of April 30, 2017, there is a total of $458 in a note payable that is owed by the company to an officer and director for expenses that he has paid on behalf of the company. The note payable is interest free and payable on demand.

Plan of Operation for the next 12 months

We closed our Offering pursuant to a Registration Statement on Form S-1. The Offering was for the sale of a total of 2,000,000 shares of common stock at a fixed price of $.04 per share. We were only able to sell 50% of the offering, 1,000,000 shares for proceeds of $40,000. Proceeds from the sale of the shares were used to fund the initial stages of our business development. 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. The business plan of our company below 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.

The following table sets forth the use of proceeds based on the sale of 50% of the securities offered for sale by the Company.

SHARES SOLD		1,000,000
GROSS PROCEEDS	$	40,000
OFFERING EXPENSES
Legal and Accounting		5,500
Publishing/Edgarizing		500
Transfer Agent		1000
SEC Filing fee		10
TOTAL OFFERING EXPENSES		7,010
NET AFTER OFFERING EXPENSES		32,990
EXPENDITURES (1)
Maintaining reporting status		9,000
Office set up		2,000
Web site development		3,500
Advertising/marketing		15,000
General administrative costs		3,490
Total Expenditures		32,990
Net Remaining Balance		-0-

________

(1) Expenditures for the next 12 months. The expenditures are categorized by significant area of activity.

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The figures above represent only estimated costs and may be adjusted based upon revenues.

We are in the early stages of developing our plan to distribute glass craft products, in forms including but not limited to glass crafts, novelties, knobs, trophies, vases, glasses, boxes, bowls, trays, plates. We currently have some operating history which includes revenues and cost of sales. Our plan of operations over the next 12 month period is as follows:

Set up Office.

Time Frame: 1st to 3rd months

Now that our Offering has closed we plan to acquire the necessary office equipment to expand operations. We have budgeted a cost of $2,000 to obtain the necessary office equipment. Andris Berzins, our sole officer and director will handle our administrative duties.

Develop Our Website.

Time Frame: 3rd to 5th months

When our equipment is obtained, we intend to begin developing our website. Our sole officer and director, Andris Berzins will be in charge of registering our web domain. Once we register our web domain, we plan to hire a web designer to help us design and develop our website. We do not have any written agreements with any web designers at current time. We have budgeted a cost of $3,500 for the website. It will take up to 90 days to develop our website. There will be information about us, the variety of glass craft products we will offer, information on how to order our product and other information. Updating and improving our website will continue throughout the lifetime of our operations.

Commence Marketing Campaign.

Time Frame: 6th to 12th months

Once our website is operational, we will begin to market our product. We intend to use marketing strategies, such as web advertisements, direct mailing, and phone calls to acquire potential customers. We also expect to get new clients from “word of mouth” advertising where our new clients will refer their friend and colleagues to us. We plan to attend trade shows in our industry to showcase our product with a view to find new customers. We also will use internet promotion tools on Facebook and Twitter to advertise our products and company. We intend to spend $15,000 on marketing efforts during the first year. Marketing is an ongoing matter that will continue during the life of our operations.

Negotiate service agreements with potential wholesale customers.

Time Frame: 6th to 12th months

At the same time we start our marketing campaign, we plan to contact and start negotiations with potential wholesale customers, such as glass craft distributors. Initially, our sole officer and director, Mr. Berzins, will look for potential wholesale customers. We will negotiate terms and conditions of collaboration. Even though the negotiation with potential wholesale customers will be ongoing during the life of our operations, we cannot guarantee that we will be able to establish successful agreements.

Even if we are able to obtain sufficient number of service agreements at the end of the twelve month 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.

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Based on our current operating plan, we believe that we will increase our revenue from selling our glass craft products by mid-2017. 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 April 30, 2017 we had $902 in cash and there were outstanding liabilities of $958. 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.

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 April 30, 2017.

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 April 30, 2017, 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.

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PART II. OTHER INFORMATION

ITEM 5. OTHER INFORMATION

ITEM 4.01. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT

(a) On November 23, 2016 the Board of Directors of Summit Networks Inc terminated the services of Monte C. Waldman, CPA, the company’s independent registered public account firm. The decision to terminate the services of Monte C. Waldman was made because of a letter the company received from the U.S. Securities and Exchange Commission. The audit report of Monte C. Waldman, CPA on the Company's financial statements for the year ended July 31, 2016 did not contain an adverse opinion.

There were no disagreements with Monte C. Waldman, CPA whether or not resolved, on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which, if not resolved to Monte C. Waldman, CPA's satisfaction, would have caused it to make reference to the subject matter of the disagreement in connection with its report on the registrant's financial statements.

The registrant requested that Monte C. Waldman, CPA furnish it with a letter addressed to the Securities and Exchange Commission stating whether it agrees with the above statements, and Monte C. Waldman declined the company’s request for the letter because the firm is challenging the contents of the letter the company received from the U.S. Securities and Exchange Commission.

(b) The Company’s Board of Directors engaged BF Borgers CPA of 5400 W. Cedar Avenue, Lakewood, CO 80226 to serve as the Company's independent registered public accounting firm effective December 8, 2016.

(c) On March 9, 2017, the Board of Directors of the Registrant received the resignation of BF Borgers, CPA PC as the company’s independent auditor.

There were no disagreements with BF Borgers, CPA PC whether or not resolved, on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which, if not resolved to BF Borgers, CPA PC's satisfaction, would have caused it to make reference to the subject matter of the disagreement in connection with its report on the registrant's financial statements.

The registrant requested that BF Borgers, CPA PC furnish it with a letter addressed to the Securities and Exchange Commission stating whether it agrees with the above statements. The letter has been included as Exhibit 16 to the company’s recently filed 8-K.

(d) The Company’s Board of Directors has engaged Zia Masood Kiani and Co to serve as the Company's independent registered public accounting firm effective March 13, 2017.

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ITEM 6. EXHIBITS.

The following exhibits are included with this quarterly filing. Those marked with an asterisk and required to be filed hereunder, are incorporated by reference and can be found in their entirety in our Registration Statement on Form S-1, filed under SEC File Number 333-199108, at the SEC website at www.sec.gov:

Exhibit No.	Description
3.1	Articles of Incorporation (filed as an exhibit to our Form S-1 Registration Statement and subsequent amendments)
3.2	Bylaws (filed as an exhibit to our Form S-1 Registration Statement and subsequent amendments)
31.1	Sec. 302 Certification of Principal Executive Officer
31.2	Sec. 302 Certification of Principal Financial Officer
32.1	Sec. 906 Certification of Principal Executive Officer
32.2	Sec. 906 Certification of Principal Financial Officer
101	Interactive data files pursuant to Rule 405 of Regulation S-T

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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: May 24, 2017	By:	/s/ Andris Berzins
		Andris Berzins
		(Principal Executive Officer, Principal Financial Officer, Principal Accounting Officer & Sole Director)

16

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Andris Berzins, 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: May 24, 2017	By:	/s/ Andris Berzins
		Andris Berzins
		President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Andris Berzins, 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: May 24, 2017	By:	/s/ Andris Berzins
		Andris Berzins
		President and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Summit Networks Inc. (the “Company”) on Form 10-Q for the period ending April 30, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Andris Berzins, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1)	The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

IN WITNESS WHEREOF, the undersigned has executed this certification as of the 24^th day of May, 2017.

By:	/s/ Andris Berzins
	Andris Berzins
	Chief Executive Officer

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Summit Networks Inc. (the “Company”) on Form 10-Q for the period ending April 30, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Andris Berzins, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(3)	The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(4)	The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

IN WITNESS WHEREOF, the undersigned has executed this certification as of the 24^th day of May, 2017.

By:	/s/ Andris Berzins
	Andris Berzins
	Chief Financial Officer

XML

Document and Entity Information - shares	9 Months Ended
	Apr. 30, 2017	May 08, 2017
Document And Entity Information
Entity Registrant Name	Summit Networks Inc.
Entity Central Index Key	0001619096
Document Type	10-Q
Document Period End Date	Apr. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--07-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		5,000,000
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2017

XML

Balance Sheets - USD ($)	Apr. 30, 2017	Jul. 31, 2016
Current Assets
Cash	$ 902	$ 859
Total Current Assets	902	859
Other Assets	1,000	1,000
Property & Office Equipment, net	13,167	14,362
Deferred Tax Asset		1,478
TOTAL ASSETS	15,069	17,699
Current Liabilities
Due to related party	458	458
Accrued expenses	500	500
Total Liabilities	958	958
Stockholders' Equity
Common stock, ($0.001 par value, 75,000,000 shares authorized; 5,000,000 shares issued and outstanding as of April 30, 2017 and July 31, 2016	5,000	5,000
Additional Paid in Capital	39,000	39,000
Income (deficit) accumulated during development stage	(29,889)	(27,259)
Total Stockholders' Equity	14,111	16,741
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$ 15,069	$ 17,699

XML

Balance Sheets (Parenthetical) - $ / shares	Apr. 30, 2017	Jul. 31, 2016
Stockholders' Equity
Common Stock Par Value	$ 0.001	$ 0.001
Common Stock Shares Authorized	75,000,000	75,000,000
Common Stock Shares Issued	5,000,000	5,000,000
Common Stock Shares Outstanding	5,000,000	5,000,000

XML

Statement of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended		34 Months Ended
	Apr. 30, 2017	Apr. 30, 2016	Apr. 30, 2017	Apr. 30, 2016	Apr. 30, 2017
Statement Of Operations
Sales	$ 8,010	$ 6,869	$ 28,193	$ 36,247	$ 223,911
Cost of Goods	6,349	5,693	21,266	21,831	163,258
Gross Profit	1,661	1,176	6,927	14,416	60,653
Selling, General & Administrative Expenses	1,320	1,600	9,559	23,927	92,021
Income/ (loss) from operations	341	(424)	(2,632)	(9,511)	(31,368)
Other income (expenses)
Income before income taxes	341	(424)	(2,632)	(9,511)	(31,368)
Income tax benefit					1,478
Net Income (Loss)	$ 341	$ (424)	$ (2,632)	$ (9,511)	$ (29,889)
Basic and diluted earnings per share	$ 0.00	$ (0.00)	$ 0.00	$ 0.00
Weighted average number of common shares outstanding	5,000,000	5,000,000	5,000,000	5,000,000

XML

Statement of Cash Flows (Unaudited) - USD ($)	9 Months Ended		34 Months Ended
	Apr. 30, 2017	Apr. 30, 2016	Apr. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ (2,632)	$ (9,511)	$ (29,889)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation Expense	1,197	1,196	4,583
Provision (benefit) for deferred taxes	1,478
Changes in operating assets and liabilities:
Other assets			(1,000)
Income Taxes payable
Accrued expenses			500
Net cash provided by (used in) operating activities	43	(8,315)	(25,806)
CASH FLOWS FROM INVESTING ACTIVITIES
Office & Shop			(17,750)
Net cash provided by (used in) investing activities			(17,750)
CASH FLOWS FROM FINANCING ACTIVITIES
Advances from related party			458
Issuance of common stock			44,000
Net cash provided by (used in) financing activities			44,458
Net increase (decrease) in cash	43	(8,315)	902
Cash at beginning of period	859	8,711
Cash at end of year	902	396	902
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during year for Interest
Cash paid during year for Income Taxes

XML

ORGANIZATION AND DESCRIPTION OF BUSINESS

9 Months Ended

Apr. 30, 2017

Notes to Financial Statements

NOTE 1. ORGANIZATION AND DESCRIPTION OF BUSINESS

Summit Networks Inc. (the “Company”) was incorporated under the laws of the State of Nevada on July 8, 2014. The Company was formed to engage in the development and operation of a business engaged in the distribution of glass craft products produced in China.

The Company is in the development stage. Its activities to date have been limited to capital formation, organization, development of its business plan and minimal sales. The Company has commenced limited operations.

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Apr. 30, 2017

Notes to Financial Statements

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Basis of Presentation

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

In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-10, “Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation.” This ASU removes the definition of a development stage entity from the ASC, thereby removing the financial reporting distinction between development stage entities and other reporting entities from GAAP. In addition, the ASU eliminates the requirements for development stage entities to (1) present inception-to-date information in the statements of operations, cash flows, and shareholders’ deficit, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. Early adoption is permitted. The Company has adopted this ASU and, accordingly, no inception to date financial information is disclosed and the accompanying financial statements are not labeled as those of a development stage entity.

The Company has a July 31, year-end.

b. Reclassification

Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported net income or losses.

c. Earnings per Share

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

The Company has adopted the provisions of ASC No. 260.

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

d. Cash and Equivalents

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

e. Use of Estimates and Assumptions

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

f. 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.

g. Revenue Recognition

The Company records revenue on the accrual basis when all goods and services have been performed and delivered, the amounts are readily determinable, and collection is reasonably assured. The Company has generated $223,911 in revenue from the sales of glass products since its inception.

h. Allowances

All orders from customers are prepaid prior to shipment and delivery so no allowance is necessary.

i. Warranties

Summit, and its customers, has the right to inspect the goods upon receipt and notify the Supplier of any claim for damages. If any defect or damages is identified the Supplier will replace or repair the goods or refund the purchase price at the Suppliers option. The Supplier is liable for all damages and repairs and not the company so no warranty liability is booked.

j. Advertising

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

k. Fixed Assets

Fixed assets are stated at cost. The Company utilizes straight-line depreciation over the estimated useful life of the asset. Assets are tested for impairment annually and no impairment was found for the period ended April 30, 2017.

Property –	40 years
Office Equipment –	7 years

l. New Accounting Pronouncements

ASC 842 was added by ASU 2016-02 on February 25, 2016. It is effective for public business entities for annual periods beginning after December 15, 2018 (i.e., calendar periods beginning on January 1, 2019) and interim periods therein. For all other entities, ASC 842 will be effective for annual periods beginning after December 15, 2019 (i.e., calendar periods beginning on January 1, 2020) and interim periods thereafter. Early adoption will be permitted for all entities.

The main difference between previous GAAP and Topic 842 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. The Board ultimately reached the conclusion that the economics of leases can vary for a lessee and that those economics should be reflected in the financial statements; therefore, Topic 842 retains a distinction between finance leases and operating leases. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous leases guidance. The result of retaining a distinction between finance leases and operating leases is that under the lessee accounting model in Topic 842, the effect of leases in the statement of comprehensive income and the statement of cash flows is largely unchanged from previous GAAP.

The Company is currently evaluating whether ASC 842 will have a material effect on the Company’s financial statements and if so whether to early adopt the accounting standard.

The Company has evaluated all the recent accounting pronouncements through the date the financial statements were issued and filed with the Securities and Exchange Commission and other than noted above believe that none of them will have a material effect on the company’s financial statements. The Company will continue to evaluate accounting pronouncements as they are issued to determine whether they will have a material effect on the company’s financial statements.

XML

GOING CONCERN

9 Months Ended

Apr. 30, 2017

Notes to Financial Statements

NOTE 3. GOING CONCERN

The accompanying financial statements are presented on a going concern basis. The Company had limited operations during the period from July 8, 2014 (date of inception) to April 30, 2017 resulting in net loss of $29,889. 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 and has minimal expenses, management does not believe that the company’s current cash of $902 is sufficient to cover the expenses they will incur during the next twelve months.

XML

WARRANTS AND OPTIONS

9 Months Ended

Apr. 30, 2017

Notes to Financial Statements

NOTE 4. WARRANTS AND OPTIONS

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

XML

RELATED PARTY TRANSACTIONS

9 Months Ended

Apr. 30, 2017

Notes to Financial Statements

NOTE 5. RELATED PARTY TRANSACTIONS

The sole officer and director of the Company 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 April 30, 2017, an amount due to Mr. Andris Berzins, CEO of the Company, was $458 which is non-interest bearing with no specific repayment terms.

XML

INCOME TAXES

9 Months Ended

Apr. 30, 2017

Notes to Financial Statements

NOTE 6. INCOME TAXES

	April 30, 2017
US Federal Statutory Tax Rate		15.0	%
Nevada State & Local Tax Rate		0.0	%
Net Operating Loss Carryforward		(0.0	)%
Effective Tax Rate		15.0	%

XML

STOCKHOLDERS' EQUITY

9 Months Ended

Apr. 30, 2017

Notes to Financial Statements

NOTE 7. 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 April 30, 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 July 23, 2014 the Company issued a total of 4,000,000 shares of common stock to a director for cash in the amount of $0.001 per share for a total of $4,000.

On January 29, 2015 the Company issued a total of 1,000,000 shares of common stock to 30 independent investors for cash in the amount of $0.04 per share for a total of $40,000.

As of April 30, 2017, the Company had 5,000,000 shares of common stock issued and outstanding.

XML

PROPERTY AND EQUIPMENT

9 Months Ended

Apr. 30, 2017

Notes to Financial Statements

NOTE 8. PROPERTY AND EQUIPMENT

The Company currently has property consisting of an office and shop for $8,000 located at Jaunciema gatve 40, Ziemeļu rajons, Rīga, LV-1023, Latvia. The Company has also leases executive offices at 8153 Finch Feather St., Las Vegas, NV 89143. Office Equipment is of value $9,750. Depreciation expense for the Latvia property and office equipment for the period ended April 30, 2017 was $50 and $349 respectively.

XML

COMMITMENT & CONTINGENCIES

9 Months Ended

Apr. 30, 2017

Notes to Financial Statements

NOTE 9. COMMITMENT & CONTINGENCIES

On July 30, 2014, the Company entered into Commercial Lease Agreement for three years that expires July 30, 2017 for $1,000 a month as the Company’s office space. The rent expense for the years ended July 31, 2017, 2016 and 2015 was $0 due to a free rent promotion offered by the property manager based upon the Company committing to a new lease beginning in August 2018, which has not been signed or agreed upon yet.

XML

CONCENTRATIONS

9 Months Ended

Apr. 30, 2017

Notes to Financial Statements

NOTE 10. CONCENTRATIONS

The Company’s revenue to date has been concentrated with one client. The Company’s orders to date have been from one vendor, based upon the product requirements of our client. This raises a substantial risk for the Company if we lost either the current customer or current vendor.

XML

SUBSEQUENT EVENTS

9 Months Ended

Apr. 30, 2017

Notes to Financial Statements

NOTE 11. SUBSEQUENT EVENTS

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

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Apr. 30, 2017

Summary Of Significant Accounting Policies Policies

Basis of Presentation

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

In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-10, “Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation.” This ASU removes the definition of a development stage entity from the ASC, thereby removing the financial reporting distinction between development stage entities and other reporting entities from GAAP. In addition, the ASU eliminates the requirements for development stage entities to (1) present inception-to-date information in the statements of operations, cash flows, and shareholders’ deficit, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. Early adoption is permitted. The Company has adopted this ASU and, accordingly, no inception to date financial information is disclosed and the accompanying financial statements are not labeled as those of a development stage entity.

The Company has a July 31, year-end.

Reclassification

Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported net income or losses.

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.

Use of Estimates and Assumptions

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

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 records revenue on the accrual basis when all goods and services have been performed and delivered, the amounts are readily determinable, and collection is reasonably assured. The Company has generated $223,911 in revenue from the sales of glass products since its inception.

Allowances

All orders from customers are prepaid prior to shipment and delivery so no allowance is necessary.

Warranties

Summit, and its customers, has the right to inspect the goods upon receipt and notify the Supplier of any claim for damages. If any defect or damages is identified the Supplier will replace or repair the goods or refund the purchase price at the Suppliers option. The Supplier is liable for all damages and repairs and not the company so no warranty liability is booked.

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. The Company utilizes straight-line depreciation over the estimated useful life of the asset. Assets are tested for impairment annually and no impairment was found for the period ended April 30, 2017.

Property –	40 years
Office Equipment –	7 years

New Accounting Pronouncements

ASC 842 was added by ASU 2016-02 on February 25, 2016. It is effective for public business entities for annual periods beginning after December 15, 2018 (i.e., calendar periods beginning on January 1, 2019) and interim periods therein. For all other entities, ASC 842 will be effective for annual periods beginning after December 15, 2019 (i.e., calendar periods beginning on January 1, 2020) and interim periods thereafter. Early adoption will be permitted for all entities.

The main difference between previous GAAP and Topic 842 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. The Board ultimately reached the conclusion that the economics of leases can vary for a lessee and that those economics should be reflected in the financial statements; therefore, Topic 842 retains a distinction between finance leases and operating leases. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous leases guidance. The result of retaining a distinction between finance leases and operating leases is that under the lessee accounting model in Topic 842, the effect of leases in the statement of comprehensive income and the statement of cash flows is largely unchanged from previous GAAP.

The Company is currently evaluating whether ASC 842 will have a material effect on the Company’s financial statements and if so whether to early adopt the accounting standard.

The Company has evaluated all the recent accounting pronouncements through the date the financial statements were issued and filed with the Securities and Exchange Commission and other than noted above believe that none of them will have a material effect on the company’s financial statements. The Company will continue to evaluate accounting pronouncements as they are issued to determine whether they will have a material effect on the company’s financial statements.

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Apr. 30, 2017

Summary Of Significant Accounting Policies Tables

Fixed Assets

Property –	40 years
Office Equipment –	7 years

XML

INCOME TAXES (Tables)

9 Months Ended

Apr. 30, 2017

Income Taxes Tables

Schedule of Effective Income Tax Rate

	April 30, 2017
US Federal Statutory Tax Rate		15.0	%
Nevada State & Local Tax Rate		0.0	%
Net Operating Loss Carryforward		(0.0	)%
Effective Tax Rate		15.0	%

XML

ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Narrative)	9 Months Ended
	Apr. 30, 2017
Organization And Description Of Business Details Narrative
State Country Name	State of Nevada
Entity Incorporation, Date of Incorporation	Jul. 08, 2014

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	9 Months Ended
	Apr. 30, 2017
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		9 Months Ended		34 Months Ended
	Apr. 30, 2017	Apr. 30, 2016	Apr. 30, 2017	Apr. 30, 2016	Apr. 30, 2017
Summary Of Significant Accounting Policies Details Narrative
Revenue	$ 8,010	$ 6,869	$ 28,193	$ 36,247	$ 223,911
Advertising expense					$ 12,498

XML

GOING CONCERN (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended		34 Months Ended
	Apr. 30, 2017	Apr. 30, 2016	Apr. 30, 2017	Apr. 30, 2016	Apr. 30, 2017	Jul. 31, 2016
Going Concern Details Narrative
Net income (loss)	$ 341	$ (424)	$ (2,632)	$ (9,511)	$ (29,889)
Cash	$ 902		$ 902		$ 902	$ 859

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RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	Apr. 30, 2017	Jul. 31, 2016
Related Party Transactions Details Narrative
Due to related party	$ 458	$ 458

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INCOME TAXES (Details)	9 Months Ended
	Apr. 30, 2017
Income Taxes Details
US Federal Statutory Tax Rate	15.00%
Nevada State & Local Tax Rate	0.00%
Net Operating Loss Carryforward	0.00%
Effective Tax Rate	15.00%

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STOCKHOLDERS' EQUITY (Details Narrative)	1 Months Ended
	Jan. 29, 2015 USD ($) Number $ / shares shares	Jul. 23, 2014 USD ($) $ / shares shares	Apr. 30, 2017 $ / shares shares	Jul. 31, 2016 $ / shares shares
Common Stock Par Value | $ / shares			$ 0.001	$ 0.001
Common Stock Shares Authorized			75,000,000	75,000,000
Common Stock Shares Issued			5,000,000	5,000,000
Common Stock Shares Outstanding			5,000,000	5,000,000
Director [Member]
Common Stock Par Value | $ / shares		$ 0.001
Common Stock Shares Issued		4,000,000
Proceeds from issuance of common stock | $		$ 4,000
Investor [Member]
Common Stock Par Value | $ / shares	$ 0.04
Common Stock Shares Issued	1,000,000
Proceeds from issuance of common stock | $	$ 40,000
Number of independent investors | Number	30

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PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	9 Months Ended		34 Months Ended
	Apr. 30, 2017	Apr. 30, 2016	Apr. 30, 2017
Property consisting of an office and shop	$ 8,000		$ 8,000
Depreciation expense	1,197	$ 1,196	4,583
Office equipment	9,750		$ 9,750
Latvia property [Member]
Depreciation expense	$ 50	$ 349

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COMMITMENT & CONTINGENCIES (Details Narrative) - USD ($)	1 Months Ended	12 Months Ended
	Jul. 30, 2014	Jul. 31, 2017	Jul. 31, 2016	Jul. 31, 2015
Commitment Contingencies Details Narrative
Rent expense		$ 0	$ 0	$ 0
Lease Agreement Expiration Date	July 30, 2017
Amount of commercial lease agreement per month	$ 1,000