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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q  

(Mark One)

 

☒ Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934

  For the quarterly period ended June 30, 2023

   

☐ Transition Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934

  For the transition period from _______ to

 

Commission File Number: 333-211808

 

SUMMIT NETWORKS INC.

(Exact Name of Registrant as Specified in Its Charter)

     
Nevada   35-2511257

(State or Other Jurisdiction of

Incorporation or Organization)

   (I.R.S. Employer
Identification No.)

 

S101-5289 Cambie street, Vancouver BC Canada   V5Z 0J5
(Address of principal executive offices)   (Zip Code)

 

-i-

 

 

+ 1-604-336-5353

(Registrant’s telephone number, including area code)

 

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

         
Title of each class   Trading Symbol(s)   Name of each exchange on which registered
None   N/A   N/A

 

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

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

 

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

         
  Large accelerated filer ☐ Accelerated filer ☐
  Non-accelerated filer ☒ Smaller reporting company ☒
      Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

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

 

The number of shares outstanding of each of the issuer’s classes of common stock, as of June 30, 2023 is as follows:

     
Class of Securities   Shares Outstanding
Common Stock, $0.001 par value   67,139,990

 

 

-ii-

 

 

SUMMIT NETWORKS INC.

TABLE OF CONTENTS

     
    PAGE
PART I    
Item 1. Condensed Consolidated Unaudited Financial Statements 2
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 11
Item 3. Quantitative and Qualitative Disclosures About Market Risk 12
Item 4. Controls and Procedures 12
PART II    
Item 1. Legal Proceedings 14
Item 1A. Risk Factors 14
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 14
Item 3. Defaults Upon Senior Securities 14
Item 4. Mining Safety Disclosures 14
Item 5. Other Information 14
Item 6. Exhibits 15
  Signatures 15

 

Cautionary Note Regarding Forward-Looking Statements

 

This Quarterly Report includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) that are not historical facts, and involve risks and uncertainties that could cause actual results to differ materially from those expected and projected. All statements, other than statements of historical fact included in this Form 10-Q including, without limitation, statements in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” regarding the financial position, business strategy and the plans and objectives of management for future operations of Summit Networks Inc. (the “Company”), are forward-looking statements. Words such as “expect,” “believe,” “anticipate,” “intend,” “estimate,” “seek” and variations and similar words and expressions are intended to identify such forward-looking statements. Such forward-looking statements relate to future events or future performance, but reflect management’s current beliefs, based on information currently available. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the “Risk Factors” section of the Company’s Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission (the “SEC”) on December 5, 2022. The Company’s securities filings can be accessed on the EDGAR section of the SEC’s website at www.sec.gov. Except as expressly required by applicable securities law, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

 

-1-

 

 

PART I

 

FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS.

SUMMIT NETWORKS INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

           
   As of
June 30,		   As of
September 30,		 
   2023   2022 
ASSETS        
Current Assets:          
Cash & cash equivalents  $105,114   $8,829 
Deposits   2,218    - 
Prepaid expenses   45    - 
Total Current Assets   107,377    8,829 
           
Non-Current Assets:          
Fixed assets, net   -    - 
Investments   3,948    - 
Total Non-Current Assets   3,948    - 
           
TOTAL ASSETS  $111,325   $8,829 
           
LIABILITIES & STOCKHOLDERS’ DEFICIT          
Current Liabilities:          
Accounts payable and accrued expenses  $197,091   $176,167 
Accounts payable - related party   22,000    16,000 
 Due to related parties   579,000    579,000 
Total Current Liabilities   798,091    771,167 
           
Commitments and Contingencies   -    - 
           
Stockholders’ Deficit:          
Preferred stock, $0.001 par value, 10,000,000 shares authorized; 0 share issued and outstanding   -    - 
Common stock, $0.001 par value, 500,000,000 shares authorized; 67,139,990 and 62,049,990 shares issued and outstanding as of June 30, 2023 and September 30, 2022.   67,140    62,050 
Additional paid-in capital   588,867    393,867 
Accumulated deficit   (1,342,773)   (1,218,255)
Total Stockholders’ Deficit   (686,766)   (762,338)
TOTAL LIABILITIES & STOCKHOLDERS’ DEFICIT  $111,325   $8,829 

           

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

 

-2-

 

 

  SUMMIT NETWORKS INC.  

  CONSOLIDATED STATEMENTS OF OPERATIONS   

  (Unaudited)

 

                     
   For the three months ended   For the nine months ended 
   June 30,   June 30,   June 30,   June 30, 
   2023   2022   2023   2022 
Revenue  $-   $-   $-   $- 
                     
Operating Expenses:                    
General and administrative expenses   47,848    31,104    127,681    161,802 
Total operating expenses   47,848    31,104    127,681    161,802 
                     
Loss from operations   (47,848)   (31,104)   (127,681)   (161,802)
                     
Other income                    
Interest income   825    -    1,905    - 
Miscellaneous income   34    -    479    - 
Rental income   469    -    779    - 
Total other income   1,328    -    3,163    - 
                     
Loss from operation before income taxes   (46,520)   -    (124,518)   - 
                     
Income tax expenses   -    -    -    - 
                     
Net Loss  $(46,520)   (31,104)  $(124,518)  $(161,802)
Basic Net loss per share  $0.00    (0.00)  $0.00   $(0.00)
Diluted Net loss per share  $0.00    (0.00)  $0.00   $(0.00)
                     
Weighted average number of common shares outstanding   67,128,122    62,049,990    66,508,268    62,049,990 
                     
Diluted weighted average number of common shares outstanding   67,128,122    62,049,990    66,508,268    62,049,990 

 

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

 

-3-

 

 

                     
SUMMIT NETWORKS INC.
CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIT
(Unaudited)
                     
      Additional        
  Common Stock   Paid-in   Accumulated     
   Shares   Amount   Capital   Deficit   Total 
Balance as of September 30, 2022   62,049,990   $62,050   $393,867   $(1,218,255)  $(762,338)
Issuance of common stock   5,000,000    5,000    195,000    -    200,000 
Net loss   -    -    -    (28,185)   (28,185)
Balance as of December 31, 2022   67,049,990    67,050    588,867    (1,246,440)   (590,523)
Net loss   -    -    -    (49,813)   (49,813)
Balance as of March 31, 2023   67,049,990   $67,050   $588,867   $(1,296,253)  $(640,336)
Issuance of common stock   90,000    90    -    -    90 
Net loss   -    -    -    (46,520)   (46,520)
Balance as of June 30, 2023   67,139,990    67,140    588,867    1,342,773    (686,766)
                          
Balance as of September 30, 2021   62,049,990   $62,050   $393,867   $(1,110,050)  $(654,133)
Net loss   -    -    -    (76,204)   (76,204)
Balance as of December 31, 2021   62,049,990    62,050    393,867    (1,186,254)   (730,337)
Net loss   -    -    -    (54,494)   (54,494)

Balance as of March 31, 2022

   62,049,990   $62,050   $393,867   $(1,240,748)  $(784,831)
Net loss   -    -    -    (31,104)   (31,104)

Balance as of June 30, 2022

   62,049,990    62,050    393,867    (1,271,852)   (815,935)

 

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

 

-4-

 

 

           
SUMMIT NETWORKS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
   For the nine months ended 
   June 30, 
   2023   2022 
CASH FLOWS FROM OPERATING ACTIVITIES:          
Net loss  $(124,518)  $(161,802)
Adjustments to reconcile net income to net cash used in operating activities:          
Depreciation of fixed assets   -    2,794 
Changes in operating assets and liabilities:          
 Deposits   (2,218)   - 
 Prepayments   (45)    - 
 Accounts payable and accrued expenses   20,924    78,100 
 Accounts payable - related parties   6,000    18,000 
Net cash used in operating activities   (99,857)   (62,908)
           
CASH FLOWS FROM INVESTING ACTIVITY:          

Investment in mutual funds

  $(3,948)   - 
Net cash used in investing activity   (3,948)   - 
           
CASH FLOWS FROM FINANCING ACTIVITY:          
Proceeds from issuance of common stock  $200,090   $- 
Net cash generated from financing activity   200,090    - 
           
Net increase/(decrease) in cash and cash equivalents   96,285    (62,908)
Cash and cash equivalents at beginning of the period   8,829    80,878 
Cash and cash equivalents at end of the period  $105,114   $17,970 
           
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:          
Cash paid during the period for:          
Interest  $-   $- 
Income Taxes  $-   $- 

 

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

 

-5-

 

 

SUMMIT NETWORKS INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023

(Unaudited)

 

NOTE 1. ORGANIZATION AND DESCRIPTION OF BUSINESS

 

Summit Networks Inc. (together with its subsidiary, the “Company”) was incorporated under the laws of the State of Nevada on July 8, 2014. Originally, the Company was formed to engage in the development and operation of a business engaged in the distribution of glass craft products produced in China. On May 8, 2018, the Company acquired Real Capital Limited, a Hong Kong company (“Real Capital”), to seek opportunities in the food and beverage industry. On March 31, 2019, the Company entered into a Share Purchase Agreement (the “Real Capital SPA”) pursuant to which it sold its interests in Real Capital. The closing of the Real Capital SPA occurred on April 10, 2019.

 

On May 8, 2020, Sumnet (Canada) Inc. (“Sumnet (Canada)”) was incorporated in Canada. Sumnet (Canada) issued all its ordinary shares to the Company so that Sumnet (Canada) became the wholly owned subsidiary of Company. On July 29, 2020, Smith Barney Enterprises Limited (“Smith Barney”) was incorporated in the British Virgin Islands. Smith Barney issued all its ordinary shares to the Company on July 29, 2020, so that Smith Barney became the wholly owned subsidiary of Company. On August 28, 2020, Green Energy (HK) Limited (“Green Energy”) was incorporated in Hong Kong. Green Energy issued all its ordinary shares to Smith Barney on August 28, 2020, so that Green Energy became the wholly owned subsidiary of Smith Barney. On September 27, 2020, Beijing Asian League Wins Technology Co., Ltd. (“Beijing ALW”) was incorporated in People’s Republic of China. Green Energy subscribed all capital stock of Beijing ALW on September 27, 2020, so that Beijing ALW became the wholly owned subsidiary of Green Energy.

 

On January 20, 2021, Beijing ALW and Green Energy entered into a series of contractual agreements (the “VIE Agreement”) with Hengshui Jingzhen Environmental Company Limited (“Hengshui Jingzhen”, or the “VIE”), whereby Beijing ALW gained control over Hengshui Jingzhen, a P.R. China company, which provides integrated hazardous waste management services, including collecting, transferring, disposing, and recycling of hazardous waste, primarily in Hebei, China. On March 29, 2021, the board of directors and a majority shareholder of the Company approved the termination of the VIE Agreements with Hengshui Jingzhen. On the same date, Beijing ALW, Hengshui Jingzhen, and Hengshui Jingzhen’s shareholders entered into a Termination Agreement (the “Termination Agreement”) to terminate all existing VIE Agreements signed on January 20, 2021. Pursuant to the Termination Agreement, all of the rights and obligations under the existing VIE Agreements were terminated and the Company no longer had control of Hengshui Jingzhen. See NOTE 4. EXECUTION AND TERMINATION OF VIE AGREEMENTS.

 

On January 20, 2021, the Company changed its fiscal year-end from July 31 to September 30.

 

On November 30, 2022, Future Era Tech, Inc. (“FET”), a corporation incorporated and existing under the laws of British Columbia entered a contract with Summit Networks, Inc. Under the terms of the Agreement, FET will acquire 5,000,000 shares of common stock of SNTW for $200,000.00. FET will then be collaborating with Sumnet (Canada), Inc. (“Sumnet”), a Canadian corporation and a wholly owned subsidiary of SNTW, in the business of designing and selling clean energy equipment, such as flameless heaters and boilers. These products will be sold to the commercial and residential markets located primarily in Asia and Europe.

 

On April 13, 2023, the Company issued 90,000 shares of its common stock, par value $0.001 per share equitably allocated to Mr. Youyang (John) Cheng, the director, Mr. Jian Hua James Shu, the director and Mr. Weiwei (Ricky) Jiang, the director.

 

Currently, we are in the stage of implementation of our new business plan dividing into three phases. In the short term, we will perform post maintenance services and supply of spare parts for welding automation lines that have already been exported. The medium term will be the implementation of services for the supply of industrial materials for projects in the Asian region. The long term will be the sale of methanol boiler heating equipment and industrial intelligence products in North America.

 

In the future, the company also plans to develop intelligent agricultural production projects in North America.

 

-6-

 

 

NOTE 2. GOING CONCERN

 

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

 

The Company had limited operations and has not generated any revenue since its inception, July 8, 2014, resulting in accumulated deficit of $1,342,773 as of June 30, 2023. There is no guarantee that Company will generate revenue and net income in the future.

 

As reflected in the accompanying unaudited consolidated financial statements, the Company incurred net losses of $124,518 and $161,802 during the nine months ended June 30, 2023 and 2022, respectively. At June 30, 2023, the Company had a working capital deficiency of $690,714. These conditions, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements do not include adjustments that might result from the outcome of this uncertainty.

 

The ability of the Company to continue as a going concern is dependent on the undertaking of its shareholders to provide continuing financial support to enable the Company to meet its liabilities as and when they fall due.

 

The Company actively looks for new business opportunities, and its operating expenses are solely relied on loans from the shareholders.

 

NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation and Consolidation

 

The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (GAAP).

 

Use of Estimates

 

The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

Cash and Cash Equivalents

 

Cash and cash equivalents are on deposit with financial institutions without any restrictions. As of June 30, 2023, and September 30, 2022, cash equivalents amounted to $105,114 and $8,829, respectively.

 

Fixed Assets

 

Property, plant and equipment are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the related capitalized assets.

 

Short-term Investments

 

The Company’s short-term investments purchased from bank. The banks invest the Company’s fund in certain financial instruments including mutual funds. The carrying values of the Company’s short-term investments approximate fair value because of their short-term maturities. The interest earned is recognized in the consolidated statements of operations over the contractual term of these investments.

 

The Company had short-term investments of $3,948 and $Nil as of June 30, 2023 and September 30, 2022, respectively. The Company recorded interest income of $1,905 and $Nil for the nine months ended June 30, 2023 and 2022, respectively.

 

Related parties

 

Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Companies are also considered to be related if they are subject to common control or common significant influence.

 

-7-

 

 

Income Taxes

 

The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, “Accounting for Income Taxes”. The asset and liability method provide that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities and for operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized.

 

ASC 740 provides guidance for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. If the Company determines that an uncertain tax position exists in which the Company could incur income taxes, the Company will evaluate whether there is a probability that the uncertain tax position taken would be sustained upon examination by the taxing authorities. A liability for uncertain tax positions would then be recorded if the Company determined it is more likely than not that a position would not be sustained upon examination or if a payment would have to be made to a taxing authority and the amount is reasonably estimable. The Company does not believe any uncertain tax positions exist that would result in the Company having a liability to the taxing authorities. The Company classifies interest and penalties related to unrecognized tax benefits, if and when required, as part of interest expense and other expense in the statements of operations. As of March 31, 2023, the Company did not have any amounts recorded pertaining to uncertain tax positions.

 

Net loss per share

 

The Company calculates net loss per share in accordance with ASC Topic 260, “Earnings per Share.” Basic income per share is computed by dividing the net income by the weighted-average number of common shares outstanding during the period. Diluted income per share is computed similar to basic income per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common stock equivalents had been issued and if the additional common shares were dilutive.

 

Fair Value Measurements

 

The Company adopted the provisions of ASC Topic 820, “Fair Value Measurements and Disclosures”, which defines fair value as used in numerous accounting pronouncements, establishes a framework for measuring fair value and expands disclosure of fair value measurements.

 

The carrying values of cash, accounts payable, and accrued liabilities approximate fair value. Pursuant to ASC 820 and 825, the fair value of cash is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets.

 

ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value:

 

Level 1 — quoted prices in active markets for identical assets or liabilities

 

Level 2 — quoted prices for similar assets and liabilities in active markets or inputs that are observable

 

Level 3 — inputs that are unobservable (for example cash flow modeling inputs based on assumptions)

 

The Company has no assets or liabilities valued at fair value on a recurring basis.

 

-8-

 

 

Recent Accounting Pronouncements

 

The Company adopts new pronouncements relating to generally accepted accounting principles applicable to the Company as they are issued, which may be in advance of their effective date. The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations. 

 

NOTE 4. EXECUTION AND TERMINATION OF VIE AGREEMENTS

 

On January 20, 2021, Beijing ALW and Green Energy entered into a series of contractual arrangements, including Equity Pledge Agreement, Exclusive Technology Development, Consulting and Services Agreement, Exclusive Option Agreement, and Irrevocable Power of Attorney (collectively, the “VIE Agreements”) with Hengshui Jingzhen, whereby Beijing ALW gained control over Hengshui Jingzhen, a P.R. China company, which provides integrated hazardous waste management services, including collecting, transferring, disposing, and recycling of hazardous waste, primarily in Hebei, China. This transaction was accounted for as a reverse merger in which the Company was the legal acquirer and Hengshui Jingzhen was the accounting acquirer.

 

On March 29, 2021, due to changes of the Company’s business plan, the board of directors and a majority shareholder of the Company approved the termination of the VIE Agreements with Hengshui Jingzhen. On the same date, Beijing ALW, Hengshui Jingzhen, and Hengshui Jingzhen’s shareholders entered into a Termination Agreement to terminate all existing VIE Agreements signed on January 20, 2021. Pursuant to the Termination Agreement, all of the rights and obligations under the existing VIE Agreements were terminated and the Company had no control of Hengshui Jingzhen.

 

NOTE 5. FIXED ASSETS

 

Fixed assets consisted of the following: 

        
         
   June 30, 2023   September 30, 2022 
         
Office furniture  $5,536   $5,536 
    5,536    5,536 
Less: Accumulated depreciation   (5,536)   (5,536)
Property, plant, and equipment, net  $-   $- 

 

Depreciation expense for the three months ended June 30, 2023 and 2022 were $Nil and $Nil, respectively.

 

NOTE 6. RELATED PARTY BALANCES AND TRANSACTIONS

 

Related Party Balances

 

(i) Accounts payable – related party

 

On June 30, 2023 and September 30, 2022, accounts payable to related party of $22,000 and $16,000, respectively, pertains to payable in respect to the office facility rental paid by Zenox Enterprises Inc. (“Zenox Enterprises”) on behalf of the Company. Zenox Enterprises is a Canadian company controlled by the Company’s former CFO. The amounts which were unsecured, non-interest bearing with no specific repayment terms.

 

(ii) Amounts due to related parties:

 

As of June 30, 2023 and September 30, 2022, the amounts due to the shareholders of the Company, Shuhua Liu and Chiu Kin Wong, were $579,000 and $579,000, respectively, which were unsecured, non-interest bearing with no specific repayment terms. 

 

-9-

 

 

NOTE 7. STOCKHOLDERS’ EQUITY

 

On July 8, 2019, the Company filed an Amended and Restated Articles of Incorporation (the “Restated Charter”) with the Secretary of State of the State of Nevada. Pursuant to the Restated Charter, the Company’s capital stock consists of 510,000,000 shares, of which 500,000,000 are designated common stock and 10,000,000 are designated as preferred stock.

 

On July 17, 2019, the Company received FINRA approval to effect a 10-for-1 stock dividend to holders of its common stock as of June 1, 2019, the record date for the dividend. As a result, common stock figures, share capital, additional paid in capital, and earnings per share information have been retroactively adjusted for all periods presented to reflect the stock dividend.

 

On January 7, 2020, in connection with the MoralArrival Share Exchange Agreement, the Company issued 3,000,000 shares of common stock to Ms. Liu. On November 11, 2020, the Share Exchange Agreement with MoralArrival was terminated and the 3,000,000 shares issued to Ms. Liu were cancelled.

 

On February 3, 2021, the Company issued 500,000 shares of common stock to Catalpa Holdings, Inc., a third party, as compensation for its consulting services. The fair value of 500,000 was determined to be $15,000 and was recognized as stock- based compensation for the year ended September 30, 2021.

 

On May 13, 2021, the Company issued 500,000 shares of common stock to Mr. Jun Du, the Chief Operating Officer. The fair value of 500,000 was determined to be $15,000 and was recognized as stock-based compensation for the year ended September 30, 2021.

 

On December 31, 2022, in connecting with the Future Era Tech Ltd (“FET”) Stock Purchase Agreement, the Company issued 5,000,000 shares of common stock to the FET. See Note 1 above.

 

On April 13, 2023, the Company issued 30,000 shares of its common stock, par value $0.001 per share to Mr. Youyang (John) Cheng, the director.

 

On April 13, 2023, the Company issued 30,000 shares of its common stock, par value $0.001 per share to Mr. Jian Hua James Shu, the director.

 

On April 13, 2023, the Company issued 30,000 shares of its common stock, par value $0.001 per share to Mr. Weiwei (Ricky) Jiang, the director.

 

As of June 30, 2023, the Company had 67,139,990 shares of common stock issued and outstanding.

 

NOTE 8 - INCOME TAXES

 

The reconciliation of income tax benefit at the U.S. statutory rate of 21% for nine months ended June 30, 2023 and 2022 to the Company’s effective tax rate is as follows:

        
   Nine Months Ended 
   June 30, 
   2023   2022 
US statutory rate   21%   21%
Income tax benefit at statutory rate  $(26,813)  $(33,978)
Change in valuation allowance   26,813    33,978 
Income tax expense  $-   $- 

 

NOTE 9. SUBSEQUENT EVENTS

 

In accordance with FASB ASC 855-10 Subsequent Events, the Company has analyzed its operations subsequent to June 30, 2023, to the date these consolidated financial statements were issued, and has determined that it does not have any material subsequent events to disclose in these consolidated financial statements, except as follow:

 

On July 27, 2023, the Company filed an uplisting application on OTCQB markets.

 

-10-

 

 

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

 

The following discussion should be read in conjunction with our financial statements, including the notes thereto, appearing elsewhere in this Report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward- looking statements. Factors that could cause or contribute to such differences include but are not limited to those discussed below and elsewhere in this Report. Our audited financial statements are stated in United States Dollars and are prepared in accordance with United States Generally Accepted Accounting Principles.

 

This section provides management’s discussion of the financial condition, changes in financial condition and results of operations of Summit Networks, Inc. with specific information on results of operations and liquidity and capital resources. It includes management’s interpretation of our financial results, the factors affecting these results, the major factors expected to affect future operating results and future investment and financing plans. This discussion should be read in conjunction with our consolidated financial statements and notes thereto.

 

Several factors exist that could influence our future financial performance and some of those are discussed below and elsewhere in this report. They should be considered in connection with evaluating forward-looking statements contained in this report or otherwise made by us or on our behalf since these factors could cause actual results and conditions to differ materially from those set out in such forward-looking statements.

 

Background

 

Summit Networks Inc. (together with its subsidiary, the “Company”) was incorporated under the laws of the State of Nevada on July 8, 2014. Originally, the Company was formed to engage in the distribution of glass craft products produced in China. On May 8, 2018, we acquired Real Capital Limited, a Hong Kong company (“Real Capital”), to seek opportunities in the food and beverage industry. On March 31, 2019, the Company entered into a Share Purchase Agreement (the “Real Capital SPA”) pursuant to which it sold its interests in Real Capital. The closing of the Real Capital SPA occurred on April 10, 2019.

 

Results of Operations

 

During the three months ended June 30, 2023 and 2022, our operating expenses for the same periods were comprised of general and administrative expenses of $47,848 and $31,104, respectively. For the nine months ended June 30, 2023 and 2022, the operating expenses for the same periods were $127,681 and $161,802, respectively. Our general and administrative expenses consisted of mainly professional fees for the nine months ended June 30, 2023 and 2022, respectively.

 

Our total assets as of June 30, 2023 were $111,325.

 

As of June 30, 2023, the Company had 67,139,990 shares of common stock issued and outstanding.

 

As of June 30, 2023 and September 30, 2022, there are a total of $579,000 and $579,000 in amounts respectively, due to related parties and shareholders were interest free, unsecured and payable on demand.

 

Based on our current operating plan, we may need to obtain additional financing to operate our business. Additional financing, whether through public or private equity or debt financing, or if available.

 

Liquidity and Capital Resources

 

The Company had a negative operating cash flow of $99,857 for the three months ended June 30, 2023, and a negative operating cash flow of $62,908 for the nine months ended June 30, 2022. Such increase was primarily due to increase in general and administrative expenses in nine months ended June 30, 2023 and 2022.

 

The net cash generated from financing activity resulted from the proceeds from capital raising amounting to $200,090.

 

-11-

 

 

The Company’s financial statements have been prepared on a going-concern basis which contemplates the realization of an asset and the settlement of liabilities and commitments in the normal course of business. The Company’s liquidity and capital needs relate primarily to working capital and other general corporate requirements. The Company’s operations currently provide cash flow. The business will require significant amounts of capital in the near term to sustain operations and make the investments it needs to continue operations and execute its longer-term business plan. As of June 30, 2023, we had $105,114 in cash. The Company incurred net losses of $124,518 and $161,802 during the nine months ended June 30, 2023 and 2022, respectively. The working capital deficits were $690,714 and $762,338 for the nine months ended June 30, 2023, and September 30, 2022, respectively. These factors raise confidence about our ability to continue as a going concern as discussed in the footnotes to our financial statements. The Company will be able to conduct its planned operations as we plan to obtain financing in the near term to meet the needs of our on-going operations, generate future revenue from operations and/or obtain the necessary financing to meet our obligations and repay our liabilities arising from normal business operations when they come due. In order to implement its business plan, management’s plan includes raising capital by equity and/or debt financing. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. If we issue equity or equity equivalents to raise additional funds, our existing stockholders will experience substantial dilution and the new holders of securities may have rights, preferences and privileges senior to those of our existing stockholders. Management also cannot provide any assurance that unforeseen circumstances will not increase the need for the Company to raise additional capital on an immediate basis. There can be no assurance that we will be able to continue to raise funds if at all, or on terms acceptable to the Company in which case the Company may be unable to continue its operations or to meet its obligations. If adequate capital is not available when needed, we will be required to significantly modify our business model or cease operations.

 

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 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

 

Not applicable.

 

ITEM 4. CONTROLS AND PROCEDURES.

 

Evaluation of Disclosure Controls and Procedures

 

As required by Rule 13a-15 under the Exchange Act, our management has carried out an evaluation, with the participation and under the supervision of our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of June 30, 2023. Disclosure controls and procedures refer to controls and other procedures designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC and that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in evaluating and implementing possible controls and procedures.

 

-12-

 

 

Material Weakness in Internal Control Over Financial Reporting

 

Management conducted its evaluation of disclosure controls and procedures under the supervision of our chief executive officer and our chief financial officer. Based upon, and as of the date of this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were ineffective as of June 30, 2023 due to the following material weaknesses that our management identified in our internal control over financial reporting as of June 30, 2023:

     
  1). We do not have an Audit Committee — While not being legally obligated to have an audit committee, it is the management’s view that such a committee, including a financial expert member, is an utmost important entity level control over the Company’s financial statement. Currently the Board of Directors acts in the capacity of the Audit Committee and does not include a member that is considered to be independent of management to provide the necessary oversight over management’s activities.

 

  2). We lack internal accounting personnel who possesses U.S GAAP knowledge and working experience.

 

Management has evaluated, and continues to evaluate, avenues for mitigating our internal controls weaknesses, but mitigating controls to completely mitigate internal control weaknesses have been deemed to be impractical and prohibitively costly, due to the size of our organization at the current time. Management expects to continue to use reasonable care in following and seeking improvements to effective internal control processes that have been and continue to be in use at the Company.

 

We plan to take steps to remediate this material weaknesses as soon as practicable by implementing a plan to improve our internal control over financial reporting including, but not limited to, hiring additional staff who has U.S. GAAP knowledge and working experience and/or maintaining outside consultants experienced in U.S. GAAP financial reporting as well as in SEC reporting requirements. Our management team will continue to monitor and evaluate the effectiveness of our internal controls and procedures and our internal controls over financial reporting on an ongoing basis and is committed to taking further action and implementing additional enhancements or improvements.

 

Evaluation of Changes in Internal Control over Financial Reporting

 

Management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act). Internal control over financial reporting is a process designed by, or under the supervision of, our president (our principal executive officer and our principal accounting officer and principal financial officer), to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with GAAP. Internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of our company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that receipts and expenditures of our company are being made only in accordance with authorizations of management and directors of our company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not provide absolute assurance that a misstatement of our financial statements would be prevented or detected. 

 

Further, the evaluation of the effectiveness of internal control over financial reporting was made as of a specific date, and continued effectiveness in future periods is subject to the risks that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

 

-13-

 

 

Management has conducted, with the participation of our president (our principal executive officer, our principal accounting officer and our principal financial officer), an evaluation of the effectiveness of our internal control over financial reporting as of June 30, 2023 in accordance with the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control — Integrated Framework. Based on this assessment, management concluded that as of June 30, 2023, our company’s internal control over financial reporting was not effective for the reasons set forth above. Our Company is in the process of adopting specific internal control mechanisms. Future controls, among other things, will include more checks and balances and communication strategies between the management and the board to ensure efficient and effective oversight over company activities as well as more stringent accounting policies to track and update our financial reporting.

 

Changes in Internal Control over Financial Reporting

 

Except for the matter described above, there were no changes in our internal controls over financial reporting during the three months ended June 30, 2023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

PART II

OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS.

 

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

 

ITEM 1A. RISK FACTORS.

 

As a smaller reporting company, the Company is not required to provide this information.

 

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

 

On April 13, 2023 SNTW issued 90,000 shares of its common stock to its directors for services rendered.  These shares were be issued pursuant to an exemption for registration provided by Section 4(2) of the Securities Act of 1933.   This was not a public offering as defined in Section 4(2) due to the limited number of persons that received the shares, and the manner of the issuance.  In addition, the transferees of the common stock represented that they had the necessary investment intent as required by Section 4(2) of the Securities Act and agreed to receive share certificates or book entry shares containing a legend that stated the securities are restricted pursuant to Rule 144 of the Securities Act.

 

ITEM 3 DEFAULTS UPON SENIOR SECURITIES.

 

None.

 

ITEM 4. MINE SAFETY DISCLOSURES.

 

Not applicable.

 

ITEM 5. OTHER INFORMATION.

 

None.

 

-14-

 

 

ITEM 6. EXHIBITS.

 

The following exhibits are included with this quarterly filing:

     
Exhibit No.   Description
31.1*   Certification of the Chief Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a)
31.2*   Certification of the Chief Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a)
32.1*   Certification of the Chief Executive Officer required by Rule 13a-14(b) or Rule 15d-14(b) and 18 U.S.C. 1350
32.2*   Certification of the Chief Financial Officer required by Rule 13a-14(b) or Rule 15d-14(b) and 18 U.S.C. 1350
101*   XBRL Instance Document (XBRL tags are embedded within the Inline XBRL document)
104*   Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

 

* Filed herewith.

 

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.
   
Date: August 15, 2023 By /s/ Shuhua Liu
    Shuhua Liu
    Chief Executive Officer
    (Principal Executive Officer)

 

-15-

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
PURSUANT TO SECURITIES EXCHANGE ACT RULES 13A-14(A) AND 15D-14(A)
AS ADOPTED PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Shuhua Liu, certify that:

 

 

1.

I have reviewed this Quarterly Report on Form 10-Q of Summit Networks Inc.;

 

 

2.

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

 

 

3.

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

 

 

4.

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

 

 

a)

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

 

 

b)

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

 

 

c)

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

 

 

d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (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 and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (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: August 15, 2023

By:

/s/Shuhua Liu

 

 

Shuhua Liu

 

 

Chief Executive Officer and Director

 

 

(Principal Executive Officer)

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER
PURSUANT TO SECURITIES EXCHANGE ACT RULES 13A-14(A) AND 15D-14(A)
AS ADOPTED PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Yiyi Huang, certify that:

 

 

1.

I have reviewed this Quarterly Report on Form 10-Q of Summit Networks Inc.;

 

 

2.

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

 

 

3.

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

 

 

4.

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

 

 

a)

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

 

 

b)

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

 

 

c)

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

 

 

d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (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 and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (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: August 15, 2023

By:

/s/YiYi Huang

 

 

Yiyi Huang

 

 

Chief Financial Officer and Director

 

 

(Principal Financial and Accounting Officer)

Exhibit 32.1

 

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report on Form 10-Q of Summit Networks Inc. (the “Company”) for the period ended June 30, 2023, as filed with the Securities and Exchange Commission (the “Report”), I, Shuhua Liu, Chief Executive Officer and Director of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 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, as amended; and

 

 

2.

To my knowledge, the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the period covered by the Report.

 

Date: August 15, 2023

By:

/s/Shuhua Liu

 

 

Shuhua Liu

 

 

Chief Executive Officer and Director

 

 

(Principal Executive Officer)

 

Exhibit 32.2

 

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report on Form 10-Q of Summit Networks Inc. (the “Company”) for the period ended June 30, 2023,, as filed with the Securities and Exchange Commission (the “Report”), I, Yiyi Huang, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 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, as amended; and

 

 

2.

To my knowledge, the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the period covered by the report.

 

Date:August 15, 2023

By:

/s/YiYi Huang

 

 

Yiyi Huang

 

 

Chief Financial Officer and Director

 

 

(Principal Financial and Accounting Officer)

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Jun. 30, 2023
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Document Fiscal Period Focus Q3
Document Fiscal Year Focus 2023
Current Fiscal Year End Date --09-30
Entity File Number 333-211808
Entity Registrant Name SUMMIT NETWORKS INC.
Entity Central Index Key 0001619096
Entity Tax Identification Number 35-2511257
Entity Incorporation, State or Country Code NV
Entity Address, Address Line One S101-5289 Cambie street
Entity Address, City or Town Vancouver
Entity Address, State or Province BC
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Entity Common Stock, Shares Outstanding 67,139,990
v3.23.2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)
Jun. 30, 2023
Sep. 30, 2022
Current Assets:    
Cash & cash equivalents $ 105,114 $ 8,829
Deposits 2,218
Prepaid expenses 45
Total Current Assets 107,377 8,829
Non-Current Assets:    
Fixed assets, net
Investments 3,948
Total Non-Current Assets 3,948
TOTAL ASSETS 111,325 8,829
Current Liabilities:    
Accounts payable and accrued expenses 197,091 176,167
Accounts payable - related party 22,000 16,000
 Due to related parties 579,000 579,000
Total Current Liabilities 798,091 771,167
Commitments and Contingencies
Stockholders’ Deficit:    
Preferred stock, $0.001 par value, 10,000,000 shares authorized; 0 share issued and outstanding
Common stock, $0.001 par value, 500,000,000 shares authorized; 67,139,990 and 62,049,990 shares issued and outstanding as of June 30, 2023 and September 30, 2022. 67,140 62,050
Additional paid-in capital 588,867 393,867
Accumulated deficit (1,342,773) (1,218,255)
Total Stockholders’ Deficit (686,766) (762,338)
TOTAL LIABILITIES & STOCKHOLDERS’ DEFICIT $ 111,325 $ 8,829
v3.23.2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares
Jun. 30, 2023
Sep. 30, 2022
Statement of Financial Position [Abstract]    
Preferred stock, par value (in Dollars per share) $ 0.001 $ 0.001
Preferred stock, shares authorized 10,000,000 10,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value (in Dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized 500,000,000 500,000,000
Common stock, shares issued 67,139,990 62,049,990
Common stock, shares outstanding 67,139,990 62,049,990
v3.23.2
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)
 3 Months Ended 9 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Income Statement [Abstract]        
Revenue
Operating Expenses:        
General and administrative expenses 47,848 31,104 127,681 161,802
Total operating expenses 47,848 31,104 127,681 161,802
Loss from operations (47,848) (31,104) (127,681) (161,802)
Other income        
Interest income 825 1,905
Miscellaneous income 34 479
Rental income 469 779
Total other income 1,328 3,163
Loss from operation before income taxes (46,520) (124,518)
Income tax expenses
Net Loss $ (46,520) $ (31,104) $ (124,518) $ (161,802)
Basic Net loss per share $ 0.00 $ (0.00) $ 0.00 $ (0.00)
Diluted Net loss per share $ 0.00 $ (0.00) $ 0.00 $ (0.00)
Weighted average number of common shares outstanding 67,128,122 62,049,990 66,508,268 62,049,990
Diluted weighted average number of common shares outstanding 67,128,122 62,049,990 66,508,268 62,049,990
v3.23.2
CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT (Unaudited) - USD ($)
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Total
Beginning balance, value at Sep. 30, 2021 $ 62,050 $ 393,867 $ (1,110,050) $ (654,133)
Beginning balance, shares at Sep. 30, 2021 62,049,990      
Net loss (76,204) (76,204)
Ending balance, value at Dec. 31, 2021 $ 62,050 393,867 (1,186,254) (730,337)
Ending balance, shares at Dec. 31, 2021 62,049,990      
Net loss (54,494) (54,494)
Ending balance, value at Mar. 31, 2022 $ 62,050 393,867 (1,240,748) (784,831)
Ending balance, shares at Mar. 31, 2022 62,049,990      
Net loss (31,104) (31,104)
Ending balance, value at Jun. 30, 2022 $ 62,050 393,867 (1,271,852) (815,935)
Ending balance, shares at Jun. 30, 2022 62,049,990      
Beginning balance, value at Sep. 30, 2022 $ 62,050 393,867 (1,218,255) (762,338)
Beginning balance, shares at Sep. 30, 2022 62,049,990      
Issuance of common stock $ 5,000 195,000 200,000
Issuance of common stock, shares 5,000,000      
Net loss (28,185) (28,185)
Ending balance, value at Dec. 31, 2022 $ 67,050 588,867 (1,246,440) (590,523)
Ending balance, shares at Dec. 31, 2022 67,049,990      
Net loss (49,813) (49,813)
Ending balance, value at Mar. 31, 2023 $ 67,050 588,867 (1,296,253) (640,336)
Ending balance, shares at Mar. 31, 2023 67,049,990      
Issuance of common stock $ 90 90
Issuance of common stock, shares 90,000      
Net loss (46,520) (46,520)
Ending balance, value at Jun. 30, 2023 $ 67,140 $ 588,867 $ 1,342,773 $ (686,766)
Ending balance, shares at Jun. 30, 2023 67,139,990      
v3.23.2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
 9 Months Ended
Jun. 30, 2023
Jun. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (124,518) $ (161,802)
Adjustments to reconcile net income to net cash used in operating activities:    
Depreciation of fixed assets 2,794
Changes in operating assets and liabilities:    
 Deposits (2,218)
 Prepayments (45)
 Accounts payable and accrued expenses 20,924 78,100
 Accounts payable - related parties 6,000 18,000
Net cash used in operating activities (99,857) (62,908)
CASH FLOWS FROM INVESTING ACTIVITY:    
Investment in mutual funds (3,948)
Net cash used in investing activity (3,948)
CASH FLOWS FROM FINANCING ACTIVITY:    
Proceeds from issuance of common stock 200,090
Net cash generated from financing activity 200,090
Net increase/(decrease) in cash and cash equivalents 96,285 (62,908)
Cash and cash equivalents at beginning of the period 8,829 80,878
Cash and cash equivalents at end of the period 105,114 17,970
Cash paid during the period for:    
Interest
Income Taxes
v3.23.2
ORGANIZATION AND DESCRIPTION OF BUSINESS
 9 Months Ended
Jun. 30, 2023
Accounting Policies [Abstract]  
ORGANIZATION AND DESCRIPTION OF BUSINESS

NOTE 1. ORGANIZATION AND DESCRIPTION OF BUSINESS

 

Summit Networks Inc. (together with its subsidiary, the “Company”) was incorporated under the laws of the State of Nevada on July 8, 2014. Originally, the Company was formed to engage in the development and operation of a business engaged in the distribution of glass craft products produced in China. On May 8, 2018, the Company acquired Real Capital Limited, a Hong Kong company (“Real Capital”), to seek opportunities in the food and beverage industry. On March 31, 2019, the Company entered into a Share Purchase Agreement (the “Real Capital SPA”) pursuant to which it sold its interests in Real Capital. The closing of the Real Capital SPA occurred on April 10, 2019.

 

On May 8, 2020, Sumnet (Canada) Inc. (“Sumnet (Canada)”) was incorporated in Canada. Sumnet (Canada) issued all its ordinary shares to the Company so that Sumnet (Canada) became the wholly owned subsidiary of Company. On July 29, 2020, Smith Barney Enterprises Limited (“Smith Barney”) was incorporated in the British Virgin Islands. Smith Barney issued all its ordinary shares to the Company on July 29, 2020, so that Smith Barney became the wholly owned subsidiary of Company. On August 28, 2020, Green Energy (HK) Limited (“Green Energy”) was incorporated in Hong Kong. Green Energy issued all its ordinary shares to Smith Barney on August 28, 2020, so that Green Energy became the wholly owned subsidiary of Smith Barney. On September 27, 2020, Beijing Asian League Wins Technology Co., Ltd. (“Beijing ALW”) was incorporated in People’s Republic of China. Green Energy subscribed all capital stock of Beijing ALW on September 27, 2020, so that Beijing ALW became the wholly owned subsidiary of Green Energy.

 

On January 20, 2021, Beijing ALW and Green Energy entered into a series of contractual agreements (the “VIE Agreement”) with Hengshui Jingzhen Environmental Company Limited (“Hengshui Jingzhen”, or the “VIE”), whereby Beijing ALW gained control over Hengshui Jingzhen, a P.R. China company, which provides integrated hazardous waste management services, including collecting, transferring, disposing, and recycling of hazardous waste, primarily in Hebei, China. On March 29, 2021, the board of directors and a majority shareholder of the Company approved the termination of the VIE Agreements with Hengshui Jingzhen. On the same date, Beijing ALW, Hengshui Jingzhen, and Hengshui Jingzhen’s shareholders entered into a Termination Agreement (the “Termination Agreement”) to terminate all existing VIE Agreements signed on January 20, 2021. Pursuant to the Termination Agreement, all of the rights and obligations under the existing VIE Agreements were terminated and the Company no longer had control of Hengshui Jingzhen. See NOTE 4. EXECUTION AND TERMINATION OF VIE AGREEMENTS.

 

On January 20, 2021, the Company changed its fiscal year-end from July 31 to September 30.

 

On November 30, 2022, Future Era Tech, Inc. (“FET”), a corporation incorporated and existing under the laws of British Columbia entered a contract with Summit Networks, Inc. Under the terms of the Agreement, FET will acquire 5,000,000 shares of common stock of SNTW for $200,000.00. FET will then be collaborating with Sumnet (Canada), Inc. (“Sumnet”), a Canadian corporation and a wholly owned subsidiary of SNTW, in the business of designing and selling clean energy equipment, such as flameless heaters and boilers. These products will be sold to the commercial and residential markets located primarily in Asia and Europe.

 

On April 13, 2023, the Company issued 90,000 shares of its common stock, par value $0.001 per share equitably allocated to Mr. Youyang (John) Cheng, the director, Mr. Jian Hua James Shu, the director and Mr. Weiwei (Ricky) Jiang, the director.

 

Currently, we are in the stage of implementation of our new business plan dividing into three phases. In the short term, we will perform post maintenance services and supply of spare parts for welding automation lines that have already been exported. The medium term will be the implementation of services for the supply of industrial materials for projects in the Asian region. The long term will be the sale of methanol boiler heating equipment and industrial intelligence products in North America.

 

In the future, the company also plans to develop intelligent agricultural production projects in North America.

 
v3.23.2
GOING CONCERN
 9 Months Ended
Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
GOING CONCERN

NOTE 2. GOING CONCERN

 

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

 

The Company had limited operations and has not generated any revenue since its inception, July 8, 2014, resulting in accumulated deficit of $1,342,773 as of June 30, 2023. There is no guarantee that Company will generate revenue and net income in the future.

 

As reflected in the accompanying unaudited consolidated financial statements, the Company incurred net losses of $124,518 and $161,802 during the nine months ended June 30, 2023 and 2022, respectively. At June 30, 2023, the Company had a working capital deficiency of $690,714. These conditions, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements do not include adjustments that might result from the outcome of this uncertainty.

 

The ability of the Company to continue as a going concern is dependent on the undertaking of its shareholders to provide continuing financial support to enable the Company to meet its liabilities as and when they fall due.

 

The Company actively looks for new business opportunities, and its operating expenses are solely relied on loans from the shareholders.

 
v3.23.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 9 Months Ended
Jun. 30, 2023
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation and Consolidation

 

The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (GAAP).

 

Use of Estimates

 

The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

Cash and Cash Equivalents

 

Cash and cash equivalents are on deposit with financial institutions without any restrictions. As of June 30, 2023, and September 30, 2022, cash equivalents amounted to $105,114 and $8,829, respectively.

 

Fixed Assets

 

Property, plant and equipment are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the related capitalized assets.

 

Short-term Investments

 

The Company’s short-term investments purchased from bank. The banks invest the Company’s fund in certain financial instruments including mutual funds. The carrying values of the Company’s short-term investments approximate fair value because of their short-term maturities. The interest earned is recognized in the consolidated statements of operations over the contractual term of these investments.

 

The Company had short-term investments of $3,948 and $Nil as of June 30, 2023 and September 30, 2022, respectively. The Company recorded interest income of $1,905 and $Nil for the nine months ended June 30, 2023 and 2022, respectively.

 

Related parties

 

Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Companies are also considered to be related if they are subject to common control or common significant influence.

 

Income Taxes

 

The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, “Accounting for Income Taxes”. The asset and liability method provide that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities and for operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized.

 

ASC 740 provides guidance for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. If the Company determines that an uncertain tax position exists in which the Company could incur income taxes, the Company will evaluate whether there is a probability that the uncertain tax position taken would be sustained upon examination by the taxing authorities. A liability for uncertain tax positions would then be recorded if the Company determined it is more likely than not that a position would not be sustained upon examination or if a payment would have to be made to a taxing authority and the amount is reasonably estimable. The Company does not believe any uncertain tax positions exist that would result in the Company having a liability to the taxing authorities. The Company classifies interest and penalties related to unrecognized tax benefits, if and when required, as part of interest expense and other expense in the statements of operations. As of March 31, 2023, the Company did not have any amounts recorded pertaining to uncertain tax positions.

 

Net loss per share

 

The Company calculates net loss per share in accordance with ASC Topic 260, “Earnings per Share.” Basic income per share is computed by dividing the net income by the weighted-average number of common shares outstanding during the period. Diluted income per share is computed similar to basic income per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common stock equivalents had been issued and if the additional common shares were dilutive.

 

Fair Value Measurements

 

The Company adopted the provisions of ASC Topic 820, “Fair Value Measurements and Disclosures”, which defines fair value as used in numerous accounting pronouncements, establishes a framework for measuring fair value and expands disclosure of fair value measurements.

 

The carrying values of cash, accounts payable, and accrued liabilities approximate fair value. Pursuant to ASC 820 and 825, the fair value of cash is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets.

 

ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value:

 

Level 1 — quoted prices in active markets for identical assets or liabilities

 

Level 2 — quoted prices for similar assets and liabilities in active markets or inputs that are observable

 

Level 3 — inputs that are unobservable (for example cash flow modeling inputs based on assumptions)

 

The Company has no assets or liabilities valued at fair value on a recurring basis.

 

Recent Accounting Pronouncements

 

The Company adopts new pronouncements relating to generally accepted accounting principles applicable to the Company as they are issued, which may be in advance of their effective date. The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations. 

 
v3.23.2
EXECUTION AND TERMINATION OF VIE AGREEMENTS
 9 Months Ended
Jun. 30, 2023
Execution And Termination Of Vie Agreements  
EXECUTION AND TERMINATION OF VIE AGREEMENTS

NOTE 4. EXECUTION AND TERMINATION OF VIE AGREEMENTS

 

On January 20, 2021, Beijing ALW and Green Energy entered into a series of contractual arrangements, including Equity Pledge Agreement, Exclusive Technology Development, Consulting and Services Agreement, Exclusive Option Agreement, and Irrevocable Power of Attorney (collectively, the “VIE Agreements”) with Hengshui Jingzhen, whereby Beijing ALW gained control over Hengshui Jingzhen, a P.R. China company, which provides integrated hazardous waste management services, including collecting, transferring, disposing, and recycling of hazardous waste, primarily in Hebei, China. This transaction was accounted for as a reverse merger in which the Company was the legal acquirer and Hengshui Jingzhen was the accounting acquirer.

 

On March 29, 2021, due to changes of the Company’s business plan, the board of directors and a majority shareholder of the Company approved the termination of the VIE Agreements with Hengshui Jingzhen. On the same date, Beijing ALW, Hengshui Jingzhen, and Hengshui Jingzhen’s shareholders entered into a Termination Agreement to terminate all existing VIE Agreements signed on January 20, 2021. Pursuant to the Termination Agreement, all of the rights and obligations under the existing VIE Agreements were terminated and the Company had no control of Hengshui Jingzhen.

 
v3.23.2
FIXED ASSETS
 9 Months Ended
Jun. 30, 2023
Property, Plant and Equipment [Abstract]  
FIXED ASSETS

NOTE 5. FIXED ASSETS

 

Fixed assets consisted of the following: 

        
         
   June 30, 2023   September 30, 2022 
         
Office furniture  $5,536   $5,536 
    5,536    5,536 
Less: Accumulated depreciation   (5,536)   (5,536)
Property, plant, and equipment, net  $-   $- 

 

Depreciation expense for the three months ended June 30, 2023 and 2022 were $Nil and $Nil, respectively.

 
v3.23.2
RELATED PARTY BALANCES AND TRANSACTIONS
 9 Months Ended
Jun. 30, 2023
Related Party Transactions [Abstract]  
RELATED PARTY BALANCES AND TRANSACTIONS

NOTE 6. RELATED PARTY BALANCES AND TRANSACTIONS

 

Related Party Balances

 

(i) Accounts payable – related party

 

On June 30, 2023 and September 30, 2022, accounts payable to related party of $22,000 and $16,000, respectively, pertains to payable in respect to the office facility rental paid by Zenox Enterprises Inc. (“Zenox Enterprises”) on behalf of the Company. Zenox Enterprises is a Canadian company controlled by the Company’s former CFO. The amounts which were unsecured, non-interest bearing with no specific repayment terms.

 

(ii) Amounts due to related parties:

 

As of June 30, 2023 and September 30, 2022, the amounts due to the shareholders of the Company, Shuhua Liu and Chiu Kin Wong, were $579,000 and $579,000, respectively, which were unsecured, non-interest bearing with no specific repayment terms. 

 
v3.23.2
STOCKHOLDERS’ EQUITY
 9 Months Ended
Jun. 30, 2023
Equity [Abstract]  
STOCKHOLDERS’ EQUITY

NOTE 7. STOCKHOLDERS’ EQUITY

 

On July 8, 2019, the Company filed an Amended and Restated Articles of Incorporation (the “Restated Charter”) with the Secretary of State of the State of Nevada. Pursuant to the Restated Charter, the Company’s capital stock consists of 510,000,000 shares, of which 500,000,000 are designated common stock and 10,000,000 are designated as preferred stock.

 

On July 17, 2019, the Company received FINRA approval to effect a 10-for-1 stock dividend to holders of its common stock as of June 1, 2019, the record date for the dividend. As a result, common stock figures, share capital, additional paid in capital, and earnings per share information have been retroactively adjusted for all periods presented to reflect the stock dividend.

 

On January 7, 2020, in connection with the MoralArrival Share Exchange Agreement, the Company issued 3,000,000 shares of common stock to Ms. Liu. On November 11, 2020, the Share Exchange Agreement with MoralArrival was terminated and the 3,000,000 shares issued to Ms. Liu were cancelled.

 

On February 3, 2021, the Company issued 500,000 shares of common stock to Catalpa Holdings, Inc., a third party, as compensation for its consulting services. The fair value of 500,000 was determined to be $15,000 and was recognized as stock- based compensation for the year ended September 30, 2021.

 

On May 13, 2021, the Company issued 500,000 shares of common stock to Mr. Jun Du, the Chief Operating Officer. The fair value of 500,000 was determined to be $15,000 and was recognized as stock-based compensation for the year ended September 30, 2021.

 

On December 31, 2022, in connecting with the Future Era Tech Ltd (“FET”) Stock Purchase Agreement, the Company issued 5,000,000 shares of common stock to the FET. See Note 1 above.

 

On April 13, 2023, the Company issued 30,000 shares of its common stock, par value $0.001 per share to Mr. Youyang (John) Cheng, the director.

 

On April 13, 2023, the Company issued 30,000 shares of its common stock, par value $0.001 per share to Mr. Jian Hua James Shu, the director.

 

On April 13, 2023, the Company issued 30,000 shares of its common stock, par value $0.001 per share to Mr. Weiwei (Ricky) Jiang, the director.

 

As of June 30, 2023, the Company had 67,139,990 shares of common stock issued and outstanding.

 
v3.23.2
INCOME TAXES
 9 Months Ended
Jun. 30, 2023
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 8 - INCOME TAXES

 

The reconciliation of income tax benefit at the U.S. statutory rate of 21% for nine months ended June 30, 2023 and 2022 to the Company’s effective tax rate is as follows:

        
   Nine Months Ended 
   June 30, 
   2023   2022 
US statutory rate   21%   21%
Income tax benefit at statutory rate  $(26,813)  $(33,978)
Change in valuation allowance   26,813    33,978 
Income tax expense  $-   $- 

 
v3.23.2
SUBSEQUENT EVENTS
 9 Months Ended
Jun. 30, 2023
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

NOTE 9. SUBSEQUENT EVENTS

 

In accordance with FASB ASC 855-10 Subsequent Events, the Company has analyzed its operations subsequent to June 30, 2023, to the date these consolidated financial statements were issued, and has determined that it does not have any material subsequent events to disclose in these consolidated financial statements, except as follow:

 

On July 27, 2023, the Company filed an uplisting application on OTCQB markets.
v3.23.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 9 Months Ended
Jun. 30, 2023
Accounting Policies [Abstract]  
Basis of Presentation and Consolidation

Basis of Presentation and Consolidation

 

The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (GAAP).

 
Use of Estimates

Use of Estimates

 

The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 
Cash and Cash Equivalents

Cash and Cash Equivalents

 

Cash and cash equivalents are on deposit with financial institutions without any restrictions. As of June 30, 2023, and September 30, 2022, cash equivalents amounted to $105,114 and $8,829, respectively.

 
Fixed Assets

Fixed Assets

 

Property, plant and equipment are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the related capitalized assets.

 
Short-term Investments

Short-term Investments

 

The Company’s short-term investments purchased from bank. The banks invest the Company’s fund in certain financial instruments including mutual funds. The carrying values of the Company’s short-term investments approximate fair value because of their short-term maturities. The interest earned is recognized in the consolidated statements of operations over the contractual term of these investments.

 

The Company had short-term investments of $3,948 and $Nil as of June 30, 2023 and September 30, 2022, respectively. The Company recorded interest income of $1,905 and $Nil for the nine months ended June 30, 2023 and 2022, respectively.

 
Related parties

Related parties

 

Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Companies are also considered to be related if they are subject to common control or common significant influence.

 
Income Taxes

Income Taxes

 

The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, “Accounting for Income Taxes”. The asset and liability method provide that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities and for operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized.

 

ASC 740 provides guidance for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. If the Company determines that an uncertain tax position exists in which the Company could incur income taxes, the Company will evaluate whether there is a probability that the uncertain tax position taken would be sustained upon examination by the taxing authorities. A liability for uncertain tax positions would then be recorded if the Company determined it is more likely than not that a position would not be sustained upon examination or if a payment would have to be made to a taxing authority and the amount is reasonably estimable. The Company does not believe any uncertain tax positions exist that would result in the Company having a liability to the taxing authorities. The Company classifies interest and penalties related to unrecognized tax benefits, if and when required, as part of interest expense and other expense in the statements of operations. As of March 31, 2023, the Company did not have any amounts recorded pertaining to uncertain tax positions.

 
Net loss per share

Net loss per share

 

The Company calculates net loss per share in accordance with ASC Topic 260, “Earnings per Share.” Basic income per share is computed by dividing the net income by the weighted-average number of common shares outstanding during the period. Diluted income per share is computed similar to basic income per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common stock equivalents had been issued and if the additional common shares were dilutive.

 
Fair Value Measurements

Fair Value Measurements

 

The Company adopted the provisions of ASC Topic 820, “Fair Value Measurements and Disclosures”, which defines fair value as used in numerous accounting pronouncements, establishes a framework for measuring fair value and expands disclosure of fair value measurements.

 

The carrying values of cash, accounts payable, and accrued liabilities approximate fair value. Pursuant to ASC 820 and 825, the fair value of cash is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets.

 

ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value:

 

Level 1 — quoted prices in active markets for identical assets or liabilities

 

Level 2 — quoted prices for similar assets and liabilities in active markets or inputs that are observable

 

Level 3 — inputs that are unobservable (for example cash flow modeling inputs based on assumptions)

 

The Company has no assets or liabilities valued at fair value on a recurring basis.

 
Recent Accounting Pronouncements

Recent Accounting Pronouncements

 

The Company adopts new pronouncements relating to generally accepted accounting principles applicable to the Company as they are issued, which may be in advance of their effective date. The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations. 

 
v3.23.2
FIXED ASSETS (Tables)
 9 Months Ended
Jun. 30, 2023
Property, Plant and Equipment [Abstract]  
Schedule of fixed assets
        
         
   June 30, 2023   September 30, 2022 
         
Office furniture  $5,536   $5,536 
    5,536    5,536 
Less: Accumulated depreciation   (5,536)   (5,536)
Property, plant, and equipment, net  $-   $- 
v3.23.2
INCOME TAXES (Tables)
 9 Months Ended
Jun. 30, 2023
Income Tax Disclosure [Abstract]  
Schedule of reconciliation of income tax benefit
        
   Nine Months Ended 
   June 30, 
   2023   2022 
US statutory rate   21%   21%
Income tax benefit at statutory rate  $(26,813)  $(33,978)
Change in valuation allowance   26,813    33,978 
Income tax expense  $-   $- 
v3.23.2
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Narrative) - USD ($)
 1 Months Ended 9 Months Ended
Apr. 13, 2023
Nov. 30, 2022
Jun. 30, 2023
Entity incorporation, state or country code     NV
Entity incorporation, date of incorporation     Jul. 08, 2014
Shares issued 90,000    
Share Price $ 0.001    
Future Era Tech, Inc. [Member]      
Common stock acquire   5,000,000  
Common stock acquire, value   $ 200,000  
v3.23.2
GOING CONCERN (Details Narrative) - USD ($)
 3 Months Ended 9 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]          
Accumulated deficit $ 1,342,773   $ 1,342,773   $ 1,218,255
Net losses 46,520 $ 31,104 124,518 $ 161,802  
Working capital deficiency $ 690,714   $ 690,714    
v3.23.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)
 3 Months Ended 9 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Sep. 30, 2022
Accounting Policies [Abstract]          
Cash equivalents $ 105,114   $ 105,114   $ 8,829
Short-Term Investments 3,948   3,948   $ 0
Interest Income (Expense), Net $ 825 $ 1,905  
v3.23.2
FIXED ASSETS (Details) - USD ($)
Jun. 30, 2023
Sep. 30, 2022
Property, Plant and Equipment [Line Items]    
Fixed assets, gross $ 5,536 $ 5,536
Less: Accumulated depreciation (5,536) (5,536)
Property, plant, and equipment, net
Furniture and Fixtures [Member]    
Property, Plant and Equipment [Line Items]    
Fixed assets, gross $ 5,536 $ 5,536
v3.23.2
FIXED ASSETS (Details Narrative) - USD ($)
 3 Months Ended 15 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Property, Plant and Equipment [Abstract]    
Depreciation expense $ 0 $ 0
v3.23.2
RELATED PARTY BALANCES AND TRANSACTIONS (Details Narrative) - USD ($)
Jun. 30, 2023
Sep. 30, 2022
Related Party Transactions [Abstract]    
Accounts payable to related party $ 22,000 $ 16,000
Amounts due to shareholders $ 579,000 $ 579,000
v3.23.2
STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($)
 1 Months Ended 12 Months Ended
Apr. 13, 2023
Nov. 11, 2020
Jan. 07, 2020
Dec. 31, 2022
Jul. 17, 2019
Sep. 30, 2021
Jun. 30, 2023
Sep. 30, 2022
May 13, 2021
Feb. 03, 2021
Jul. 08, 2019
Accumulated Other Comprehensive Income (Loss) [Line Items]                      
Shares designated                     510,000,000
Stockholders' equity note, stock split         Company received FINRA approval to effect a 10-for-1 stock dividend to holders of its common stock as of June 1, 2019, the record date for the dividend. As a result, common stock figures, share capital, additional paid in capital, and earnings per share information have been retroactively adjusted for all periods presented to reflect the stock dividend.            
Shares issued 90,000                    
Common stock, shares issued             67,139,990 62,049,990      
Share Price $ 0.001                    
Common stock, shares outstanding             67,139,990 62,049,990      
Ms. Liu [Member]                      
Accumulated Other Comprehensive Income (Loss) [Line Items]                      
Shares cancelled   3,000,000                  
Catalpa Holdings, Inc. [Member]                      
Accumulated Other Comprehensive Income (Loss) [Line Items]                      
Common stock, shares issued                   500,000  
Fair value of stock based compensation, shares           500,000          
Stock-based compensation           $ 15,000          
Mr. Jun Du [Member]                      
Accumulated Other Comprehensive Income (Loss) [Line Items]                      
Common stock, shares issued                 500,000    
Fair value of stock based compensation, shares           500,000          
Stock-based compensation           $ 15,000          
Mr. Youyang (John) Cheng [Member]                      
Accumulated Other Comprehensive Income (Loss) [Line Items]                      
Shares issued 30,000                    
Share Price $ 0.001                    
Mr. Jian Hua James Shu [Member]                      
Accumulated Other Comprehensive Income (Loss) [Line Items]                      
Shares issued 30,000                    
Share Price $ 0.001                    
Mr. Weiwei (Ricky) Jiang [Member]                      
Accumulated Other Comprehensive Income (Loss) [Line Items]                      
Shares issued 30,000                    
Share Price $ 0.001                    
Moral Arrival Share Exchange Agreement [Member]                      
Accumulated Other Comprehensive Income (Loss) [Line Items]                      
Shares issued     3,000,000                
Stock Purchase Agreement [Member]                      
Accumulated Other Comprehensive Income (Loss) [Line Items]                      
Shares issued       5,000,000              
Common Stock [Member]                      
Accumulated Other Comprehensive Income (Loss) [Line Items]                      
Shares designated                     500,000,000
Preferred Stock [Member]                      
Accumulated Other Comprehensive Income (Loss) [Line Items]                      
Shares designated                     10,000,000
v3.23.2
INCOME TAXES (Details) - USD ($)
 3 Months Ended 9 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Income Tax Disclosure [Abstract]        
US statutory rate     21.00% 21.00%
Income tax benefit at statutory rate     $ (26,813) $ (33,978)
Change in valuation allowance     26,813 33,978
Income tax expense
v3.23.2
INCOME TAXES (Details Narrative)
 9 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Income Tax Disclosure [Abstract]    
U.S. statutory rate income tax benefit percentage 21.00% 21.00%
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