Kun Peng International (KPEA) 10-K 21 Dec 17 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Sep. 30, 2017	Dec. 20, 2017	Mar. 31, 2017
Document And Entity Information
Entity Registrant Name	CX Network Group, Inc.
Entity Central Index Key	1,502,557
Document Type	10-K
Document Period End Date	Sep. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Is Entity a Well-known Seasoned Issuer	No
Is Entity a Voluntary Filer	No
Is Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		14,486,670
Entity Public Float			$ 237,000
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,017

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Sep. 30, 2017	Sep. 30, 2016
Current assets
Cash and cash equivalents	$ 13,611
Accounts receivable, net of allowance of $0 and $32,578 at September 30, 2017 and September 30, 2016, respectively		122,453
Total current assets	13,611	122,453
Property and equipment, net		5,801
Security deposit		10,756
Total Assets	13,611	139,010
Current liabilities
Bank overdraft		15,153
Accounts payable	6,600	148,777
Accrued expenses		40,433
Accrued interest	5,359	18,695
Refundable deposits		1,220
Payable to officer		64,600
Purchase commitments		365,538
Notes payable, current portion, net of discount of $0 at September 30, 2017 and $34,323 at September 30, 2016	150,000	200,856
Total current liabilities	161,959	855,272
Total Liabilities	161,959	855,272
Commitments and contingencies (Notes 4, 5, 6 and 7)
Stockholders' equity (deficit)
Preferred stock, $0.0001 par value, 5,000,000 shares authorized; none issued and outstanding
Common stock, $0.0001 par value, 200,000,000 shares authorized; 14,486,670 and 13,766,666 shares issued and outstanding at September 30, 2017 and September 30, 2016, respectively	1,449	1,377
Treasury stock, 166,667 and 0 shares at September 30, 2017 and September 2016, respectively	17
Additional paid-in capital	152,184	19,273
Accumulated deficit	(301,998)	(736,912)
Total stockholders' deficit	(148,348)	(716,262)
Total Liabilities and Stockholders' Equity (Deficit)	$ 13,611	$ 139,010

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2017	Sep. 30, 2016
Current assets
Accounts receivable, net of allowance	$ 0	$ 32,578
Current liabilities
Notes payable, current portion, net of discount	$ 0	$ 34,323
Stockholders' equity (deficit)
Preferred Stock, par value per share	$ 0.0001	$ 0.0001
Preferred Stock, shares authorized	5,000,000	5,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Common Stock, par value per share	$ 0.0001	$ 0.0001
Common Stock, shares authorized	20,000,000	20,000,000
Common Stock, shares issued	14,486,670	13,766,666
Common Stock, shares outstanding	14,486,670	13,766,666
Treasury Stock Shares	166,667	0

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Revenues
Tuition	$ 1,381,872	$ 2,524,821
Licensing fees		23,750
Shipping	13,289	11,902
Total revenues	1,395,161	2,560,473
Cost of sales	638,104	1,339,314
Gross profit	757,057	1,221,159
Operating expenses
Selling, general and administrative	747,468	1,443,324
Depreciation and amortization	1,390	3,007
Total operating expenses	748,858	1,446,331
Income (loss) from continuing operations	8,200	(225,172)
Other income (expenses)
Other (expenses) income	12,895
Interest expense	(35,021)	(21,307)
Total other income (expenses)	(22,126)	(21,307)
Income (loss) from operations before income tax	(13,926)	(246,479)
Provision for Income Taxes	1,890	800
Net income (loss)	$ (15,816)	$ (247,279)
Basis and diluted net income (loss) per share	$ 0	$ (0.02)
Weighted average number of common shares outstanding basic and diluted	14,532,912	13,766,667

Statement of Changes in Stockho

Statement of Changes in Stockholders' Equity (Deficit) - USD ($)	Common Stock	Treasury Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Beginning Balance, Shares at Sep. 30, 2015	13,766,667
Beginning Balance, Amount at Sep. 30, 2015	$ 1,377		$ 19,273	$ (489,633)	$ (468,983)
Conversion of loan payable, Amount
Net loss				(247,279)	(247,279)
Ending Balance, Shares at Sep. 30, 2016	13,766,667
Ending Balance, Amount at Sep. 30, 2016	$ 1,377		19,273	(736,912)	(716,262)
Deconsolidation	$ (17)	17		450,730	450,730
Conversion of loan payable, Shares	886,667
Conversion of loan payable, Amount	$ 89		132,911		133,000
Net loss				(15,816)	(15,816)
Ending Balance, Shares at Sep. 30, 2017	14,653,333
Ending Balance, Amount at Sep. 30, 2017	$ 1,449	$ 17	$ 152,184	$ (301,998)	$ (148,348)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities
Net income (loss)	$ (15,816)	$ (247,279)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,390	3,007
Amortization of debt discount	(1,058)	14,932
Bad debts	19,054	121,832
Changes in operating assets and liabilities
Accounts receivable	(180,717)	(65,252)
Security deposit		(4,486)
Bank overdraft	(11,228)	13,452
Accounts payable	90,617	75,194
Accrued expenses	(19,585)	(9,805)
Accrued interest	(11,767)	6,275
Refundable deposits	33,925	(2,000)
Deferred revenue		(23,750)
Purchase commitments	(3,892)	(4,008)
Net cash used in operating activities	(99,077)	(121,888)
Cash flows from investing activities
Acquisition of property and equipment		(2,636)
Net cash used in investing activities		(2,636)
Cash flows from financing activities
Proceeds from loan payable	150,000	109,500
Repayments of note payable	(31,274)	(49,076)
Cash advance from officer	54,400	64,100
Repayments of advances by officer	(60,437)
Net cash (used in) provided by financing activities	112,689	124,524
Net increase in cash and cash equivalents	13,611
Cash and cash equivalents at the beginning of year
Cash and cash equivalents at the end of year	13,611
Supplemental disclosures of cash flows information:
Cash paid for income taxes	1,890	6,612
Cash paid for interest	29,664	14,392
Covertions of notes payable	133,000
Supplemental disclosures of subsidiary spin-off:
Accounts receivable, net	284,115
Property and equipment	4,411
Security deposit	10,756
Bank overdraft	(3,925)
Accounts payable	(232,793)
Accrued expenses	(20,848)
Accrued interest	(1,569)
Refundable deposits	(35,145)
Payable to officer	(58,563)
Purchase commitments	(361,645)
Notes payable, net	(35,524)
Common stock	(250)
Accumulated deficit	$ 450,980

Nature of Operations and Going

Nature of Operations and Going Concern	12 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
NOTE 1 - Nature of Operations and Going Concern	The Company was incorporated in the State of Florida on September 3, 2010 under the name of “mLight Tech, Inc.” (“ MLGT CX Name Change Merger Agreement 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 CX (the “ Domicile Change Reverse Stock Split In connection with the Name Change, Domicile Change, and Reverse Stock Split, the Financial Industry Regulatory Authority has assigned the Company a new stock symbol, CXKJ. The Name Change, Reverse Stock Split and Domicile Change took effect at the open of business on July 12, 2017. The new CUSIP number is 12672T 108. As used herein and except as otherwise noted, the term "Company", "it(s)", "our", "us", "we" and "mLight" shall mean CX Network Group, Inc, a Nevada corporation (previously known as mLight Tech, Inc., a Florida corporation), and Ding King Training Institute, Inc., a California corporation("DKTI"), its wholly-owned subsidiary until March 31, 2017. mLight Tech, Inc. was incorporated in the State of Florida on September 3, 2010, to provide software solutions that simplify the management of networked personal computers. On October 31, 2013, the Company acquired 100% of the issued and outstanding capital stock of DKTI, a California corporation, in exchange for 166,667 shares (2,500,000 pre-split shares) of its common stock, par value $0.0001 per share (the “ Common Stock On March 31, 2017, the Company entered into a spin-off agreement (the “ Spin-Off Agreement Mr. Sudeck Shares Spin-off Before the Spin-off, the Company, through DKTI, was in the business of training individuals for a career as a technician in the Automotive Appearance Industry, which includes paint less dent repair, interior restoration, windshield repair, window detailing, odor removal, detailing and alloy wheel repair. The potential students are employees of auto body shops, car rental companies and car dealers as well as entrepreneurs looking to start their own businesses. DKTI is a California State licensed vocational school with the Bureau for Private Post-Secondary Education (BPPE #301591) and authorized to sell business opportunities in the automotive appearance training industry. As shown in the accompanying consolidated financial statements, the Company has faced significant liquidity shortages. As of September 30, 2017, the Company's total liabilities exceeded its total assets by $148,348. The Company has a net loss of $15,816 for the year ended September 30, 2017 and has recorded an accumulated deficit of $301,998 as of September 30, 2017. The Company has had difficulty in raising capital. On September 30, 2017 and as of the date of this report, due to the Spin-Off Agreement, the Company does not have substantial operations. These factors raise a substantial doubt about the Company's ability to continue as a going concern. If the Company is unable to obtain adequate capital through borrowings or sale of its common stock, it could be forced to cease to exist. The Company cannot provide any assurance that new financing will be available to us on commercially. The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
NOTE 2 - Summary of Significant Accounting Policies	The following summary of significant accounting policies is presented to assist in the understanding of the Company's consolidated financial statements. The consolidated financial statements and notes are the representation of the Company's management who is responsible for their fair presentation. The consolidated financial statements of the Company conform to generally accepted accounting principles in the United States of America (U.S. GAAP). Principles of Consolidation The accompanying consolidated financial statements include the accounts of CX and its wholly-owned subsidiary Ding King Training Institute, Inc. through March 31, 2017, at which date the DKTI subsidiary was spun-off. All intercompany balances and transactions are eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company's estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. Cash and Cash Equivalents The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. Accounts Receivable Accounts receivable represent income earned from training provided to students for which the Company has not yet received payment. Payment plans are offered to students to pay off remaining tuition on an installment basis over periods not to exceed one year. Accounts receivable are recorded at the invoiced amount and stated at the amount management expect to collect from balances outstanding at period-end. The Company estimates the allowance for doubtful accounts based on an analysis of specific accounts and an assessment of the customer's ability to pay. The Company recorded bad debt expense of $20,955 for the year ended September 30, 2017, as compared to bad debt expense of $121,832 for the year ended September 30, 2016, respectively. Property and Equipment Property and equipment are stated at cost. Depreciation of property and equipment is calculated based on the straight-line method over the estimated useful lives of the related assets as summarized below. Major renewals and betterments are capitalized while maintenance costs are expensed as incurred. On March 31, 2017, immediately after the closing of the Spin-Off, all property and equipment were spun off to DKTI. As the result of the Spin-off, the Company does not have any property and equipment at September 30, 2017. Depreciation and amortization expense for the year ended September 30, 2017 and 2016 were $1,390 and $3,007, respectively. Machinery and equipment 3-5 years Furniture and office equipment 5 years Fair value of Financial Instruments and Fair Value Measurements ASC 820, "Fair Value Measurements and Disclosures", requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value: Level 1 Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The Company's financial instruments consist principally of cash, accounts payable, accrued liabilities, and short term loans. Pursuant to ASC 820 and ASC 825, "Financial Instruments", the fair value of our cash equivalents is determined based on "Level 1" inputs, which consist of quoted prices in active markets for identical assets. The Company believes that the recorded values of all of the other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations. The Company had no financial assets or liabilities carried and measured on a non-recurring basis during the reporting periods. Financial assets and liabilities measured on a recurring basis are those that are adjusted to fair value each time a financial statement is prepared. Revenue Recognition Through March 31, 2017, the Company's tuition packages vary in price according to the different types of training programs purchased by the students. Upon commencement of the courses, the Company recognizes as revenue any deposits previously received, as they are non-refundable upon commencement of the courses. The remaining tuition from the student or the student's employer, which is received upon the commencement of the course or extended credit over a period of one to three months or as agreed upon, is recognized as revenue upon the completion of the training courses. The training course duration is from one to two weeks. The Company's revenue recognition policy is based on the revenue recognition criteria established under the SEC's Staff Accounting Bulletin No. 104. The criteria and how the Company satisfies each element are as follows: (1) persuasive evidence of an arrangement - the Company and the student or the student's employer (the customer) enters into a signed contract with the Company; (2) delivery has occurred - as noted above, upon the commencement of the course, the deposit is non-refundable per the terms of the signed contract and upon completion of the course, the Company has provided all services to be delivered to the student under the contract; (3) the price is fixed and determinable - the signed contract indicates a fixed dollar amount for the tuition for the courses enrolled by the student; (4) collectability is reasonable assured - the Company receives as payment a deposit and the balance of the tuition before the course is completed, or credit is extended for installment payments, as evidenced by promissory note not to exceed one year. The Company records licensing revenue by granting an annual exclusive license to sell Dent Tools Direct, USA Inc. ("Dent Tools") merchandise online under the Ding King name and logo on the DKTI website. The Company recognizes licensing revenue ratably monthly as the Company earns revenue and satisfies conditions for recognition of revenues. Income Taxes The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, Income Taxes Accounting for Uncertain Income Tax Positions Earnings (Loss) Per Common Share The Company computes net earnings (loss) per share in accordance with ASC 260, " Earnings per Share Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers: Topic 606 In January 2016, the FASB issued ASU 2016-01, “ Financial Instruments - Overall Recognition and Measurement of Financial Assets and Financial Liabilities. Management does not believe that any recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company’s financial statements.

Payroll Taxes

Payroll Taxes	12 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
NOTE 3 - Payroll Taxes	On January 21, 2016, the Company negotiated a settlement with the Internal Revenue Service ("IRS") taxing authority and agreed to a monthly payment of $756 starting March 15, 2016, to pay previously unpaid payroll tax obligations of $18,130 over a period of 24 months. The Company had accrued a total obligation of $44,442 which included an estimate for penalties and interest. The IRS has agreed to waive the charge for penalties and interest, provided the Company submits a written request to the IRS for waiver of penalties and interest. The monthly payment of $756 had been deferred by the IRS pending resolution of the Company's waiver request. Management has reduced the payroll tax liability by $26,312 as a change in estimate in the prior fiscal year. On October 19, 2016, the Company paid IRS $18,806 in full settlement of its unpaid payroll tax obligations.

Notes Payable

Notes Payable	12 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
NOTE 4 - Notes Payable	Notes payable consists of: September 30, 2017 September 30, 2016 Note payable to individual, unsecured, 10% interest, due June 30, 2017 $ - $ 50,000 Note payable to individual, unsecured, 10% interest, due June 30, 2017 - 68,000 Note payable to individual, unsecured, 10% interest, due June 30, 2017 - 7,500 Note payable to bank, secured, week day payment of $481.14 for 330 weekdays (“Loan”) 109,699 Note payable to individual, unsecured, 8% interest, due April 18, 2018 150,000 - Total $ 150,000 $ 235,199 Less Debt discount - (34,343 ) Total Note payable $ 150,000 $ 200,856 On January 9, 2015, the Company and the individual debt holder of the three promissory notes collectively referred to as (“ Notes Conversion Agreement Converters Conversion Shares Note Conversion On May 9, 2016, DKTI entered a Business Loan Agreement (the “ Loan OID On April 19, 2017, the Company entered into a securities purchase agreement (the “ Debenture Purchase Agreement Debenture

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
NOTE 5 - Commitments and Contingencies	Operating Lease The Company’s previous lease commitments were all signed under DKTI. In connection with the Spin-off Agreement, the Company no longer has ownership of DKTI as of March 31, 2017. The Company currently does not have any outstanding lease agreements or commitments. The total rent expense including common area maintenance charges $41,285 and $65,060 for the years ended September 30, 2017 and 2016, respectively. Legal Matters From time to time the Company may become a party to litigation matters involving claims against the Company. Management believes that there are no current matters that would have a material effect on the Company's financial position or results of operations.

Purchase Commitments

Purchase Commitments	12 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
NOTE 6 - Purchase Commitments	DKTI received $430,000 in advances from a manufacturer and a distributor for anticipated rebates from purchases of paint and related products. In exchange for the advanced funds, DKTI agreed to exclusively purchase paint and related products from the manufacturer and the distributor over a five and seven year period commencing in 2007 up to a certain dollar volume amount (the "Rebate Agreement(s)"). DKTI initially recorded the amount of the advances as a liability on the balance sheet under "Purchase commitments". Based on the volume of products purchased by the Company, this liability is reduced on a pro-rata basis. DKTI has not purchased the volume of products at the rate anticipated in the Rebate Agreements. The Company’s remaining amount of the rebates advanced is $0 and $365,538 as of September 30, 2017 and 2016, respectively. The total dollar amount of products DKTI is required to buy under the Rebate Agreement from the distributor was $4,200,000. The Company's original distributor ceased operations and sold its business to the Company's current distributor, and management believes the Rebate Agreement was assigned to the current distributor. The Rebate Agreement with the distributor expired in November 2012. Management is still operating under the same contractual terms of the agreement as if it is still effective. DKTI has previously made an effort to contact the current distributor regarding its purchase commitments. Management anticipates they will be able to successfully negotiate a revised agreement to fulfill the purchase commitment or obtain a concession from the distributor as DKTI is currently purchasing products in the ordinary course of business. In the event DKTI cannot negotiate a satisfactory agreement, other vendors exist in the market to purchase these products and management believes there would be no significant impact on the Company's operations. The total dollar amount of products DKTI is required to buy under the Rebate Agreement from the manufacturer was $1,780,000. The contract with the manufacturer expired in November 2014. Management is still operating under the same contractual terms of the agreement as if it is still effective. DKTI has previously made an effort to contact the current manufacturer regarding its purchase commitments. If DKTI cannot fulfill the purchase obligation, management anticipates they will be able to negotiate a time extension to fulfill the purchase commitment. In connection with the Spin-Off Agreement, the Company is no longer liable for the Rebate Agreements.

Related Party Transactions with

Related Party Transactions with the Shareholder	12 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
NOTE 7 - Related Party Transactions with the Shareholder	Cash received by a Company’s former principal shareholder/officer has been recorded as compensation to officer. The Company has recorded $141,925 and $283,881 as compensation expense for years ended September 30, 2017 and 2016, respectively. The Company’s loan payable to the same officer amounted to $0 and $64,600 as of September 30, 2017 and 2016, respectively. For time to time, the Company’s former shareholder/officer provided advances to the Company for working capital purposes. These advances are non-interest bearing and unsecured. For year ended September 30, 2017, a current officer of the Company advanced the approximately $54,000 for expenses. These advances were repaid as of September 30, 2017.

Income Taxes

Income Taxes	12 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
NOTE 8 - Income Taxes	Income tax expense for the years ended September 30, 2017 and 2016 is summarized as follows: September 30, 2017 September 30, 2016 Current: Federal $ - $ - State 1,890 800 Income tax expense (benefit) $ 1,890 $ 800 The following is a reconciliation of the provision for income taxes at the U.S. federal income tax rate of 34% to the income taxes reflected in the Statements of Operations: September 30, 2017 September 30, 2016 Tax expense at statutory rate – federal 34 % 34 % State tax expense, net of federal benefit - % - % Valuation allowance (34 )% (34 )% Tax expense at actual rate - % - % The tax effects of temporary differences that gave rise to significant portions of deferred tax assets and liabilities at September 30, 2017 and 2016 are as follows: September 30, 2017 September 30, 2016 Deferred tax assets: Net operating loss carry forward $ 266,366 $ 250,550 Less - valuation allowance (266,366 ) (250,550 ) Net deferred tax assets $ - $ - Deferred income taxes are provided for the tax effects of transactions reported in the consolidated financial statements and consist of deferred taxes related primarily to differences between the bases of certain assets and liabilities for financial and tax reporting. The deferred taxes represent the future tax return consequences of those differences, which will either be deductible or taxable when the assets and liabilities are recovered or settled. The Company's provision for income taxes differs from applying the statutory U.S. Federal income tax rate to income before income taxes. The primary differences result from deducting certain expenses for financial statement purposes but not for federal income tax purposes. At September 30, 2017, the Company had an accumulated deficit of $301,998 for U.S. federal income tax purposes available to offset future taxable income expiring on various dates through 2035. The Company has recorded a 100% valuation allowance on the deferred tax assets due to the uncertainty of its realization. The net change in the valuation allowance for the year ended September 30, 2017 was an increase of $15,816, and an increase of $84,075 for the year ended September 30, 2016. In the normal course of business, the Company's income tax returns are subject to examination by various taxing authorities. Such examinations may result in future tax and interest assessment by these taxing authorities. Accordingly, the Company believes that it is more likely than not that it will realize the benefits of tax positions it has taken in its tax returns or for the amount of any tax benefit that exceeds the cumulative probability threshold in accordance with FASB ASC 740-10-15. Differences between the estimated and actual amounts determined upon ultimate resolution, individually or in the aggregate, are not expected to have a material adverse effect on the company's financial position. The Company believes its tax positions are all highly certain of being upheld upon examination. As such, the Company has not recorded a liability for unrecognized tax benefits. The Company's wholly-owned subsidiary filed its income tax returns on a stand-alone basis. As of September 30, 2017, the Company does not have any subsidiary.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
NOTE 9 - Stockholders' Equity	On July 11, 2017, the Company’s board of directors authorized a 1 for 15 Reverse Stock Split (defined hereinafter). The record date of the split was July 11, 2017 and the effective date was July 12, 2017. All prior period shares and per share calculations in these financial statements and elsewhere in this report have been retroactively adjusted to reflect this stock split. On August 1, 2013, in a private transaction, Todd Sudeck, the sole director and officer of the Company, acquired a total of 12,000,000 shares of the Company's Common stock from Edward Sanders, the Company's former director and officer and principal shareholder. On October 31, 2013, the Company acquired all 100% of the issued and outstanding capital stock of DKTI by issuing 166,667 shares of its Common Stock valued at $250. The acquisition is being accounted as recapitalization. At the closing of the acquisition, the Company recorded an increase in common stock of $15,400 as a result of recapitalization. In connection with the Spin-Off Agreement, the Company received 166,667 shares of common stock from Mr. Sudeck and the Company returned those shares into treasury shares. The Company recorded a decrease in common stock of $250 as a result of the Spin-Off. On April 17, 2017, the Company entered into the Conversion Agreement with three Converters to convert the promissory notes issued pursuant to them pursuant to the Spin-Off Agreement into shares of Common Stock. Pursuant to the Conversion Agreement, the entire principal amount of the Notes was converted into shares of Common Stock at a conversion price of $.15 per share, for an aggregate number of 886,667 shares. Pursuant to the Conversion Agreement, all the Converters agree to waive their rights to receive the payment of accrued and outstanding interest under these promissory notes as of the date of the Conversion Agreement. As a result of all prior stock issuances and the execution of Spin-Off Agreement, the Company has 14,486,670 and 13,766,667 shares of common stock issued and outstanding at March 31, 2017 and September 30, 2016, respectively. On July 11, 2017, the Company merged with and into CX with CX as the surviving corporation that operates under the name “CX Network Group, Inc.”, pursuant to the Merger Agreement. Immediately after the effectiveness 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 CX, 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 CX, par value $0.0001 per share at a one-for-fifteen reverse split ratio. 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 have 14,486,670 shares of common stock of CXKJ issued and outstanding. In connection with the Name Change, Domicile Change, and Reverse Stock Split, the Financial Industry Regulatory Authority has assigned the Company a new stock symbol, MLGTD. The Name Change, Reverse Stock Split and Domicile Change were to take effect at the open of business on July 12, 2017. The new symbol was MLGTD. The “D” was removed in 20 business days. On August 11, 2017, the Company received a notice from FINRA that they did not process the Reverse Stock Split because they believed that the documentation provided by the Company did not support the Company’s request to process a reverse split to the extent that the documentation indicated “that shares of mLight (entity before the merger) were being converted into shares of CX Network (the surviving entity) by a set multiple”. In the same letter, FINRA notified the Company that they processed the Company’s request of the merger, the mechanism the Company used to consummate the corporate actions mentioned above. Also in that letter, FINRA mentioned that it announced the Reverse Stock Split on July 11, 2017 but subsequently revised the announcement on July 28, 2017. On August 14, 2017, the Company received a notice from FINRA that they did not process the symbol change because “there is currently no symbol assigned to the Company”. FINRA did not provide specific factor(s) that caused them to remove our trading symbol in either notice. The Company believes that the previous approval issued by FINRA on July 11, 2017 was proper. On August 16, 2017, the Company appealed the decision made by the FINRA Department of Market Operations (the “Department”) in connection with certain corporate actions taken by the Company (for more information about the corporate actions, refer to the current report on Form 8-K the Company filed on July 12, 2017).

Subsequent Events

Subsequent Events	12 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
NOTE 10 - Subsequent Events	On October 3, 2017, a Subcommitee of FINRA’s Uniform Practice Code Committee decided to remand the case to the Department for further review. Subsequently, the Department granted the Company’s application for a symbol change. On November 3, 2017, the trading symbol for the Company was changed to “CXKJ,” effective immediately. The new CUSIP number is 12672T 108.

Summary of Significant Accoun17

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Sep. 30, 2017
Summary Of Significant Accounting Policies Policies
Principles of Consolidation	The accompanying consolidated financial statements include the accounts of CX and its wholly-owned subsidiary Ding King Training Institute, Inc. through March 31, 2017, at which date the DKTI subsidiary was spun-off. All intercompany balances and transactions are eliminated in consolidation.
Use of Estimates	The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company's estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.
Cash and Cash Equivalents	The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents.
Accounts Receivable	Accounts receivable represent income earned from training provided to students for which the Company has not yet received payment. Payment plans are offered to students to pay off remaining tuition on an installment basis over periods not to exceed one year. Accounts receivable are recorded at the invoiced amount and stated at the amount management expect to collect from balances outstanding at period-end. The Company estimates the allowance for doubtful accounts based on an analysis of specific accounts and an assessment of the customer's ability to pay. The Company recorded bad debt expense of $20,955 for the year ended September 30, 2017, as compared to bad debt expense of $121,832 for the year ended September 30, 2016, respectively.
Property and Equipment	Property and equipment are stated at cost. Depreciation of property and equipment is calculated based on the straight-line method over the estimated useful lives of the related assets as summarized below. Major renewals and betterments are capitalized while maintenance costs are expensed as incurred. On March 31, 2017, immediately after the closing of the Spin-Off, all property and equipment were spun off to DKTI. As the result of the Spin-off, the Company does not have any property and equipment at September 30, 2017. Depreciation and amortization expense for the year ended September 30, 2017 and 2016 were $1,390 and $3,007, respectively. Machinery and equipment 3-5 years Furniture and office equipment 5 years
Fair value of Financial Instruments and Fair Value Measurements	ASC 820, "Fair Value Measurements and Disclosures", requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value: Level 1 Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The Company's financial instruments consist principally of cash, accounts payable, accrued liabilities, and short term loans. Pursuant to ASC 820 and ASC 825, "Financial Instruments", the fair value of our cash equivalents is determined based on "Level 1" inputs, which consist of quoted prices in active markets for identical assets. The Company believes that the recorded values of all of the other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations. The Company had no financial assets or liabilities carried and measured on a non-recurring basis during the reporting periods. Financial assets and liabilities measured on a recurring basis are those that are adjusted to fair value each time a financial statement is prepared.
Revenue Recognition	Through March 31, 2017, the Company's tuition packages vary in price according to the different types of training programs purchased by the students. Upon commencement of the courses, the Company recognizes as revenue any deposits previously received, as they are non-refundable upon commencement of the courses. The remaining tuition from the student or the student's employer, which is received upon the commencement of the course or extended credit over a period of one to three months or as agreed upon, is recognized as revenue upon the completion of the training courses. The training course duration is from one to two weeks. The Company's revenue recognition policy is based on the revenue recognition criteria established under the SEC's Staff Accounting Bulletin No. 104. The criteria and how the Company satisfies each element are as follows: (1) persuasive evidence of an arrangement - the Company and the student or the student's employer (the customer) enters into a signed contract with the Company; (2) delivery has occurred - as noted above, upon the commencement of the course, the deposit is non-refundable per the terms of the signed contract and upon completion of the course, the Company has provided all services to be delivered to the student under the contract; (3) the price is fixed and determinable - the signed contract indicates a fixed dollar amount for the tuition for the courses enrolled by the student; (4) collectability is reasonable assured - the Company receives as payment a deposit and the balance of the tuition before the course is completed, or credit is extended for installment payments, as evidenced by promissory note not to exceed one year. The Company records licensing revenue by granting an annual exclusive license to sell Dent Tools Direct, USA Inc. ("Dent Tools") merchandise online under the Ding King name and logo on the DKTI website. The Company recognizes licensing revenue ratably monthly as the Company earns revenue and satisfies conditions for recognition of revenues.
Income Taxes	The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, Income Taxes Accounting for Uncertain Income Tax Positions
Earnings (Loss) Per Common Share	The Company computes net earnings (loss) per share in accordance with ASC 260, " Earnings per Share
Recent Accounting Pronouncements	In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers: Topic 606 In January 2016, the FASB issued ASU 2016-01, “ Financial Instruments - Overall Recognition and Measurement of Financial Assets and Financial Liabilities. Management does not believe that any recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company’s financial statements.

Summary of Significant Accoun18

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Sep. 30, 2017
Summary Of Significant Accounting Policies Tables
Property and Equipment	Machinery and equipment 3-5 years Furniture and office equipment 5 years

Notes Payable (Tables)

Notes Payable (Tables)	12 Months Ended
	Sep. 30, 2017
Notes Payable Tables
Notes Payable	September 30, 2017 September 30, 2016 Note payable to individual, unsecured, 10% interest, due June 30, 2017 $ - $ 50,000 Note payable to individual, unsecured, 10% interest, due June 30, 2017 - 68,000 Note payable to individual, unsecured, 10% interest, due June 30, 2017 - 7,500 Note payable to bank, secured, week day payment of $481.14 for 330 weekdays (“Loan”) 109,699 Note payable to individual, unsecured, 8% interest, due April 18, 2018 150,000 - Total $ 150,000 $ 235,199 Less Debt discount - (34,343 ) Total Note payable $ 150,000 $ 200,856

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Sep. 30, 2017
Income Taxes Tables
Income tax provisions	September 30, 2017 September 30, 2016 Current: Federal $ - $ - State 1,890 800 Income tax expense (benefit) $ 1,890 $ 800
U.S. Federal income tax	September 30, 2017 September 30, 2016 Tax expense at statutory rate – federal 34 % 34 % State tax expense, net of federal benefit - % - % Valuation allowance (34 )% (34 )% Tax expense at actual rate - % - %
Deferred taxes assets and liabilities	September 30, 2017 September 30, 2016 Deferred tax assets: Net operating loss carry forward $ 266,366 $ 250,550 Less - valuation allowance (266,366 ) (250,550 ) Net deferred tax assets $ - $ -

Nature of Operations and Goin21

Nature of Operations and Going Concern (Details Narrative) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015	Oct. 31, 2013
Entity Incorporation, State Country Name		State of Florida
Entity Incorporation, Date of Incorporation		Sep. 3, 2010
Common Stock, shares issued	14,486,670	14,486,670	13,766,666
Common Stock, shares outstanding	14,486,670	14,486,670	13,766,666
Capital stock, shares authorized	25,000,000	25,000,000	25,000,000
Common Stock, authorized shares	20,000,000	20,000,000	20,000,000
Common Stock, par value per share	$ 0.0001	$ 0.0001	$ 0.0001
Preferred Stock, authorized shares	5,000,000	5,000,000	5,000,000
Stockholders' equity (deficit)	$ (148,348)	$ (148,348)	$ (716,262)	$ (468,983)
Net income (loss)		(15,816)	(247,279)
Accumulated deficit	$ (301,998)	$ (301,998)	$ (736,912)
CX [Member]
Convertible common stock, par value per share	$ 0.0667	$ 0.0667
Reverse stock split	1:15
Common Stock, shares issued	14,486,670	14,486,670
Common Stock, shares outstanding	14,486,670	14,486,670
Common Stock, authorized shares	20,000,000	20,000,000
Common Stock, par value per share	$ 0.0001	$ 0.0001
Preferred Stock, authorized shares	5,000,000	5,000,000
MLGT [Member]
Convertible common stock, par value per share	$ 0.0667	$ 0.0667
Common Stock, shares issued	217,300,000	217,300,000
Common Stock, shares outstanding	217,300,000	217,300,000
Common Stock, par value per share	$ 0.0001	$ 0.0001
Ding King Training Institute, Inc. [Member]
Acquired issued and outstanding capital stock percentage					100.00%
Common Stock, par value per share					$ 0.0001
Exchange of common stock for acquisition					166,667
Ding King Training Institute, Inc. [Member] | Pre Split Shares [Member]
Exchange of common stock for acquisition					2,500,000

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Details)	12 Months Ended
	Sep. 30, 2017
Machinery and equipment [Member] | Minimum [Member]
Property, plant and equipment, useful life	3 years
Machinery and equipment [Member] | Maximum [Member]
Property, plant and equipment, useful life	5 years
Furniture and office equipment [Member]
Property, plant and equipment, useful life	5 years

Summary of Significant Accoun23

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Summary Of Significant Accounting Policies Details Narrative
Bad debt expense	$ 20,955	$ 121,832
Depreciation and amortization expense	$ 1,390	$ 3,007
Potential dilutive shares	0	0
Tution course description	The remaining tuition from the student or the student's employer, which is received upon the commencement of the course or extended credit over a period of one to three months or as agreed upon, is recognized as revenue upon the completion of the training courses.
Training course duration description	The training course duration is from one to two weeks.

Payroll Taxes (Details Narrativ

Payroll Taxes (Details Narrative) - USD ($)	1 Months Ended
	Jan. 21, 2016	Oct. 19, 2016
Payroll Taxes Details Narrative
Unpaid accrued payroll taxes	$ 18,130
Deferred payroll taxes per month	$ 756
Unpaid payroll tax payment term	24 months
Total accrued payroll including penalties and interest	$ 44,442
Decrease in Payroll tax liability	$ 26,312
Settlement of payroll tax obligation		$ 18,806

Notes Payable (Details)

Notes Payable (Details) - USD ($)	Sep. 30, 2017	Sep. 30, 2016	Jan. 09, 2015
Notes payable consist of:
Total notes payable current and noncurrent portion	$ 150,000	$ 235,199
Less: Debt discount		(34,343)
Total notes payable	150,000	200,856	$ 133,000
Notes Payable 1 [Member]
Notes payable consist of:
Total notes payable current and noncurrent portion		50,000
Notes Payable 2 [Member]
Notes payable consist of:
Total notes payable current and noncurrent portion		68,000
Notes Payable 3 [Member]
Notes payable consist of:
Total notes payable current and noncurrent portion		7,500
Notes Payable 4 [Member]
Notes payable consist of:
Total notes payable current and noncurrent portion		109,699
Notes Payable 5 [Member]
Notes payable consist of:
Total notes payable current and noncurrent portion	$ 150,000

Notes Payable (Details Narrativ

Notes Payable (Details Narrative) - USD ($)	May 09, 2016	Jan. 09, 2015	Apr. 19, 2017	Sep. 30, 2017	Sep. 30, 2016	Apr. 17, 2017
Promissory notes		$ 133,000		$ 150,000	$ 200,856
Debenture Purchase Agreement [Member ]
Maturity date			Apr. 18, 2018
Conversion price, per share			$ 0.15
Convertible debenture			$ 150,000
Interest rate			8.00%
Interest expense				5,375
Business Loan Agreement [Member ]
Cash proceeds	$ 109,500
Daily cash payment of principal and interest	$ 481
Total business days	330 days
Payment at maturity date	$ 158,775
Original issue discount	$ 49,275
Cash payment				80,350
Amortization of original issue discount				9,556	14,932
Unamortized original issue discount				0	34,343
Principal balance due on Loan				0	109,699
Conversion Agreement [Member ]
Maturity date		Mar. 31, 2017
Amendement of maturity date		Dec. 31, 2017
Conversion price, per share			$ 0.15
Aggregate number of shares			886,667			886,667
Interest expense				$ 1,569	$ 6,275

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - USD ($)	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Commitments And Contingencies Details Narrative
Rent expense	$ 41,285	$ 65,060

Purchase Commitments (Details N

Purchase Commitments (Details Narrative) - USD ($)	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Advances from manufacturer	$ 430,000
Purchase commitment	0	$ 365,538
Rebate Agreement from Distributor [Member]
Purchase Products	4,200,000
Rebate Agreement from Manufacturer [Member]
Purchase Products	$ 1,780,000

Related Party Transactions wi29

Related Party Transactions with the Shareholder (Details Narrative) - USD ($)	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Compensation expense	$ 141,925	$ 283,881
Payable to officer		$ 64,600
Repayment of short term debt	54,000
Officer [Member]
Proceeds from issuance of debt	$ 54,000

Income Taxes (Details)

Income Taxes (Details) - USD ($)	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Current:
Federal
State	1,890	800
Income tax expense (benefit)	$ 1,890	$ 800

Income Taxes (Details 1)

Income Taxes (Details 1)	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Income Taxes Details 1
Tax expense at statutory rate - federal	34.00%	34.00%
State tax expense, net of federal benefit	0.00%	0.00%
Valuation allowance	(34.00%)	(34.00%)
Tax expense at actual rate	0.00%	0.00%

Income Taxes (Details 2)

Income Taxes (Details 2) - USD ($)	Sep. 30, 2017	Sep. 30, 2016
Deferred tax assets:
Net operating loss carry forward	$ 266,366	$ 250,550
Less - valuation allowance	(266,366)	(250,550)
Net deferred tax assets

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Income Taxes Details Narrative
Accumulated deficit	$ (301,998)	$ (736,912)
Future taxable income expiring	through 2,035
Valuation allowance on the deferred tax assets	100.00%
Change in the valuation allowance	$ 15,816	$ 84,075

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - USD ($)	Jul. 11, 2017	Oct. 31, 2013	Sep. 30, 2017	Apr. 19, 2017	Apr. 17, 2017	Sep. 30, 2016	Aug. 01, 2013
Treasury shares			166,667			0
Common Stock, shares issued			14,486,670			13,766,666
Common Stock, shares outstanding			14,486,670			13,766,666
Common stock, par value	$ 0.0001
Mr. Sudeck [Member]
Treasury shares		166,667
Treasury shares, amount		$ 250
Conversion Agreement [Member ]
Conversion price, per share					$ 0.15
Aggregate number of shares				886,667	886,667
CX [Member]
Reverse Stock Split	1:15
Conversion price, per share	$ 0.0667
Common stock, par value	$ 0.0001
DKTI [Member]
Currently issued and outstanding common stock		100.00%
Stock Issued During Period, Shares		166,667
Stock Issued During Period, Value		$ 250
Recapitalization of common stock		$ 15,400
Board of Directors [Member]
Reverse Stock Split	1:15
Director And Officer [Member]
Common Stock, shares acquired from Edward Sanders							12,000,000
MLGT [Member]
Common Stock, shares issued			217,300,000
Common Stock, shares outstanding			217,300,000
CX [Member]
Common Stock, shares issued			14,486,670
Common Stock, shares outstanding			14,486,670
Reverse Stock Split			1:15