| ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE
1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ORGANIZATION The
Company was incorporated in the State of Florida on September 3, 2010 under the name of “mLight Tech, Inc.” (“MLGT”).
On July 11, 2017, MLGT merged with and into CX Network, Group, Inc., a Nevada corporation, with CXKJ as the surviving corporation
that operates under the name “CX Network Group, Inc.” (the “Name Change”), pursuant to an agreement and
plan of merger (the “Merger Agreement”) dated July 3, 2017. Pursuant
to the Merger Agreement, immediately after the effective time of the Merger, the Company’s corporate existence is governed
by the laws of the State of Nevada and the Articles of Incorporation and bylaws of CXKJ (the “Domicile Change”), and
each outstanding share of MLGT’s common stock, par value $0.0001 per share was converted into 0.0667 outstanding share of
common stock of CXKJ, par value $0.0001 per share at a one-for-fifteen reverse split ratio (the “Reverse Stock Split”)
which resulted in reclassification of capital from par value to capital in excess of par value. Immediately prior to the effectiveness
of the reverse stock split, we had 217,300,000 shares of common stock of MLGT issued and outstanding. Immediately upon the effectiveness
of the reverse stock split, we had 14,486,670 shares of common stock of CXKJ issued and outstanding. All share and per share data
for the nine months ended June 30, 2018 and comparative periods included within our consolidated financial statements and related
footnotes have been adjusted to account for the effect of the Reverse Stock Split. The
Name Change, Domicile Change, and Reverse Stock Split went effective on June 12, 2017. Subsequently, the Company’s trading
symbol for its common stock was changed to “CXKJ” and the new CUSIP number is 12672T 108. On
March 20, 2018, CXKJ entered into a share exchange agreement (the “Share Exchange”) with Chuangxiang Holdings Inc.
(“CX Cayman”). Under the Share Exchange, CX Network Group, Inc. issued an aggregate of 5,350,000 shares of common
stock, par value $0.0001 per share to the shareholders of CX Cayman in exchange for 100% of the issued and outstanding equity
securities of CX Cayman. The Share Exchange was closed on March 20, 2018. As a result of the Share Exchange, CX Cayman became
the Company’s wholly-owned subsidiary. CX
Cayman was incorporated on February 4, 2016 under the laws of Cayman Islands. Chuangxiang
(Hong Kong) Holdings Limited (“CX HK”) was incorporated on February 23, 2016 and became CX Cayman’s wholly owned
subsidiary on December 1, 2016. CX HK operates through its subsidiary, Shenzhen Chuangxiang Network Technology (Shenzhen) Limited
(“CX Network”). CX Network was incorporated by CX HK on April 12, 2016 under the laws of People’s Republic of
China (“PRC”) as a wholly foreign owned enterprise. Shenzhen
Chuangxiang Network Technology Limited (“Shenzhen CX”) is a limited liability company formed under the laws of the
People’s Republic of China on August 14, 2015. Shenzhen CX became a variable interest entity (“VIE”) of CX Network
through a series of contractual arrangements entered into on April 20, 2017. CX Network controls Shenzhen CX through agreements
and arrangements that absorbs operating risk, as if Shenzhen CX is a wholly owned subsidiary of CX Network. Shenzhen CX is engaged
in the business of developing and operating membership-based social network, dating and mobile gaming, and interactive live broadcast
platforms. The
transaction has been treated as a recapitalization of CX Cayman and its subsidiaries, with CXKJ (the legal acquirer of CX Cayman
and its subsidiaries) considered the accounting acquiree, and CX Cayman (the legal acquiree) considered the accounting acquirer.
Accordingly, CX Cayman’s assets, liabilities and results of operations will become the historical financial statements of
the registrant, and CXKJ’s assets, liabilities and results of operations will be consolidated with CX Cayman effective as
of the date of the closing of the Share Exchange (March 20, 2018). The Company did not recognize goodwill or any intangible assets
in connection with the transaction. All costs related to the transaction are being charged to operations as incurred. CX Cayman
received cash of $145 and assumed $262,911 liabilities upon execution of the Share Exchange. The 5,350,000 shares of common stock
issued in conjunction with the Share Exchange have been presented as outstanding for all periods. As
used in this report, unless otherwise indicated, the terms “we” and “us” refer to CX Network Group, Inc.,
a Nevada corporation (previously known as “mLight Tech, Inc.”, a Florida corporation,), its owned subsidiary CX Cayman,
Chuangxiang (Hong Kong) Holdings Limited (“CX HK”), Chuangxiang Network Technology (Shenzhen) Limited (“CX Network”)
and Shenzhen Chuangxiang Network Technology Limited (“Shenzhen CX”), which is controlled by us via various contracts. The
accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles
for interim financial information. Accordingly, the consolidated financial statements do not include all the information and footnotes
required by generally accepted accounting principles for complete financial statements. In the opinion of management, the accompanying
unaudited consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, considered necessary
for a fair presentation. Interim operating results are not necessarily indicative of results that may be expected for the nine
months ending June 30, 2018, or for any subsequent period. These interim consolidated financial statements should be read in conjunction
with the Company’s audited consolidated financial statements and notes thereto for the year ended September 30, 2017 included
in the Form 8-K filed with the SEC on March 23, 2018. GOING
CONCERN In
assessing the Company’s liquidity, the Company monitors and analyzes its cash and cash equivalents and its operating and
capital expenditure commitments. The Company’s liquidity needs are to meet its working capital requirements, operating expenses
and capital expenditure obligations. As of June 30, 2018, the Company’s current liabilities exceeded the current assets,
its accumulated deficit was approximately $1,996,000 and the Company has incurred losses since inception. None of the Company’s
stockholders, officers or directors, or third parties, are under any obligation to advance us funds, or to invest in the Company.
Accordingly, the Company may not be able to obtain additional financing. If the Company is unable to raise additional capital,
the Company may be required to take additional measures to conserve liquidity, which could include, but not necessarily be limited
to, curtailing operations, suspending the pursuit of our business plan, and reducing overhead expenses. The Company cannot provide
any assurance that new financing will be available to us on commercially acceptable terms, if at all. These
conditions raise substantial doubt about our ability to continue as a going concern. The financial statements do not include any
adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications
of liabilities that may result should the Company be unable to continue as a going concern. |
