Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Jul. 31, 2015 | Oct. 29, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | Summit Networks Inc. | |
Entity Central Index Key | 1,619,096 | |
Document Type | 10-K | |
Document Period End Date | Jul. 31, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --07-31 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Public Float | $ 0 | |
Entity Common Stock, Shares Outstanding | 5,000,000 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2,015 |
Balance Sheets
Balance Sheets - USD ($) | Jul. 31, 2015 | Jul. 31, 2014 |
Current Assets | ||
Cash | $ 8,711 | $ 110 |
Total Current Assets | 8,711 | 110 |
Other Assets | 1,000 | 1,000 |
Property & Office Equipment, net | 15,957 | 8,000 |
Deferred Tax Asset | 1,478 | |
TOTAL ASSETS | 27,146 | 9,110 |
Current Liabilities | ||
Due to related party | $ 458 | $ 20 |
Accounts payable | ||
Accrued expenses | $ 500 | |
Total Liabilities | 958 | $ 20 |
Stockholders' Equity | ||
Common stock, ($0.001 par value, 75,000,000 shares authorized; 5,000,000 and 4,000,000 shares issued and outstanding as of July 31, 2015 and July 31, 2014 | 5,000 | $ 4,000 |
Additional Paid in Capital | 39,000 | |
Income (deficit) accumulated during development stage | (17,812) | $ 5,090 |
Total Stockholders' Equity | 26,188 | 9,090 |
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ 27,146 | $ 9,110 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Jul. 31, 2015 | Jul. 31, 2014 |
Stockholders' Equity | ||
Common Stock Par Value | $ 0.001 | $ 0.001 |
Common Stock Shares Authorized | 75,000,000 | 75,000,000 |
Common Stock Shares Issued | 5,000,000 | 4,000,000 |
Common Stock Shares Outstanding | 5,000,000 | 4,000,000 |
Statement of Operations
Statement of Operations - USD ($) | 12 Months Ended | 13 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | |
Statement Of Operations | |||
Sales | $ 119,076 | $ 30,100 | $ 149,176 |
Cost of Goods | 88,688 | 23,000 | 111,687 |
Gross Profit | 30,388 | 7,100 | 37,489 |
Selling, General & Administrative Expenses | 54,769 | 2,010 | 56,779 |
Income from operations | $ (24,381) | $ 5,090 | $ (19,290) |
Other income (expenses) | |||
Income before income taxes | $ (24,381) | $ 5,090 | $ (19,290) |
Income tax benefit | (1,478) | (1,478) | |
Net Income (Loss) | $ (22,902) | $ 5,090 | $ (17,812) |
Basic and diluted earnings per share | $ 0 | $ 0 | |
Weighted average number of common shares outstanding | 5,000,000 | 4,336,996 |
Statement of Stockholders' Equi
Statement of Stockholders' Equity - USD ($) | Common Stock | Additional Paid-In Capital | Income (loss) Accumulated During Development Stage | Subscription Receeivable | Total |
Beginning Balance, Shares at Jul. 08, 2014 | |||||
Beginning Balance, Amount at Jul. 08, 2014 | |||||
Stock issued for cash on July 23, 2014 @ $0.001 per share, Amount | $ 4,000 | $ 4,000 | |||
Stock issued for cash on July 23, 2014 @ $0.001 per share, Shares | 4,000,000 | ||||
Net loss | $ 5,090 | 5,090 | |||
Ending Balance, Shares at Jul. 31, 2014 | 4,000,000 | ||||
Ending Balance, Amount at Jul. 31, 2014 | $ 4,000 | $ 5,090 | $ 9,090 | ||
Beginning Balance, Shares at Jul. 08, 2014 | |||||
Beginning Balance, Amount at Jul. 08, 2014 | |||||
Net loss | $ (17,812) | ||||
Ending Balance, Shares at Jul. 31, 2015 | 5,000,000 | ||||
Ending Balance, Amount at Jul. 31, 2015 | $ 5,000 | $ 39,000 | $ (17,812) | 26,188 | |
Beginning Balance, Shares at Jul. 31, 2014 | 4,000,000 | ||||
Beginning Balance, Amount at Jul. 31, 2014 | $ 4,000 | $ 5,090 | 9,090 | ||
Stock issued for cash on January 29, 2015 @ $0.04 per share, Amount | $ 1,000 | $ 39,000 | 40,000 | ||
Stock issued for cash on January 29, 2015 @ $0.04 per share, Shares | 1,000,000 | ||||
Net loss | $ (22,902) | (22,902) | |||
Ending Balance, Shares at Jul. 31, 2015 | 5,000,000 | ||||
Ending Balance, Amount at Jul. 31, 2015 | $ 5,000 | $ 39,000 | $ (17,812) | $ 26,188 |
Statement of Cash Flows
Statement of Cash Flows - USD ($) | 12 Months Ended | 13 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income (loss) | $ (22,902) | $ 5,090 | $ (17,812) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation Expense | 1,793 | 1,793 | |
Provision (benefit) for deferred taxes | $ (1,478) | (1,478) | |
Changes in operating assets and liabilities: | |||
Other assets | $ (1,000) | $ (1,000) | |
Accounts payable | |||
Accrued expenses | $ 500 | $ 500 | |
Net cash provided by (used in) operating activities | (22,087) | $ 4,090 | (17,997) |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Acquistion of Property & Equipment | (9,750) | (8,000) | (17,750) |
Net cash provided by (used in) investing activities | (9,750) | (8,000) | (17,750) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Advances from related party | 438 | 20 | 458 |
Issuance of common stock | 40,000 | 4,000 | 44,000 |
Net cash provided by (used in) financing activities | 40,438 | 4,020 | 44,458 |
Net increase (decrease) in cash | 8,600 | $ 110 | $ 8,711 |
Cash at beginning of period | 110 | ||
Cash at end of year | $ 8,711 | $ 110 | $ 8,711 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||
Cash paid during year for Interest | |||
Cash paid during year for Income Taxes |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 12 Months Ended |
Jul. 31, 2015 | |
Notes to Financial Statements | |
NOTE 1. ORGANIZATION AND DESCRIPTION OF BUSINESS | Summit Networks Inc. (the Company) was incorporated under the laws of the State of Nevada on July 8, 2014. The Company was formed to engage in the development and operation of a business engaged in the distribution of glass craft products produced in China. The Company is in the development stage. Its activities to date have been limited to capital formation, organization, development of its business plan and minimal sales. The Company has commenced limited operations. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jul. 31, 2015 | |
Notes to Financial Statements | |
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | a. Basis of Presentation The accompanying financial statements have been prepared in accordance with generally accepted accounting principles (US GAAP). The Company is in the development stage as defined in Financial Accounting Standards Board Accounting Standards Codification ("ASC") Topic 915 "Development Stage Entities". The Company has a July 31, year-end. b. Reclassification Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported net income or losses. c. Earnings per Share ASC No. 260, Earnings Per Share, specifies the computation, presentation and disclosure requirements for earnings (loss) per share for entities with publicly held common stock. The Company has adopted the provisions of ASC No. 260. Basic net loss per share amounts is computed by dividing the net loss by the weighted average number of common shares outstanding. Diluted earnings per share are the same as basic earnings per share due to the lack of dilutive items in the Company. d. Cash and Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. e. Use of Estimates and Assumptions The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. f. Income Taxes Income taxes are provided in accordance with ASC No. 740, Accounting for Income Taxes. A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carryforwards. Deferred tax expense (benefit) results from the net change during the year of deferred tax assets and liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of all of the deferred tax assets will be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. g. Revenue Recognition The Company records revenue on the accrual basis when all goods and services have been performed and delivered, the amounts are readily determinable, and collection is reasonably assured. The Company has generated $149,176 in revenue since its inception. h. Advertising The Company expenses its advertising when incurred. There has been $5,813 in advertising expense since inception. i. Fixed Assets Fixed assets are stated at cost. The Company utilizes straight-line depreciation over the estimated useful life of the asset. Property 40 years Office Equipment 7 years j. New Accounting Pronouncements The Company has evaluated all the recent accounting pronouncements through the date the financial statements were issued and filed with the Securities and Exchange Commission and believe that none of them will have a material effect on the companys financial statements. |
GOING CONCERN
GOING CONCERN | 12 Months Ended |
Jul. 31, 2015 | |
Notes to Financial Statements | |
NOTE 3. GOING CONCERN | The accompanying financial statements are presented on a going concern basis. The Company had limited operations during the period from July 8, 2014 (date of inception) to July 31, 2015 resulting in net loss of $17,812. This condition raises substantial doubt about the Companys ability to continue as a going concern. Even though the Company is currently in the development stage and has minimal expenses, management does not believe that the companys current cash of $8,711 is sufficient to cover the expenses they will incur during the next twelve months. |
WARRANTS AND OPTIONS
WARRANTS AND OPTIONS | 12 Months Ended |
Jul. 31, 2015 | |
Notes to Financial Statements | |
NOTE 4. WARRANTS AND OPTIONS | There are no warrants or options outstanding to acquire any additional shares of common. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Jul. 31, 2015 | |
Notes to Financial Statements | |
NOTE 5. RELATED PARTY TRANSACTIONS | The sole officer and director of the Company may, in the future, become involved in other business opportunities as they become available, he may face a conflict in selecting between the Company and his other business opportunities. The Company has not formulated a policy for the resolution of such conflicts. As of July 31, 2015, an amount due to Mr. Andris Berzins, CEO of the Company, was $458 which is non-interest bearing with no specific repayment terms. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jul. 31, 2015 | |
Notes to Financial Statements | |
NOTE 6. INCOME TAXES | July 31, 2015 US Federal Statutory Tax Rate 15.0 % Nevada State & Local Tax Rate 0.0 % Net Operating Loss Carryforward (0.0 )% Effective Tax Rate 15.0 % The Company has an income tax benefit of $1,478 for the year ended July 31, 2015. As of July 31, 2015, the Company has a deferred tax asset of $1,478 resulted from net operating loss incurred by the Company which is carryforward to offset against any future taxable income. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Jul. 31, 2015 | |
Notes to Financial Statements | |
NOTE 7. STOCKHOLDERS' EQUITY | Transactions, other than employees stock issuance, are in accordance with ASC No. 505. Thus issuances shall be accounted for based on the fair value of the consideration received. Transactions with employees stock issuance are in accordance with ASC No. 718. These issuances shall be accounted for based on the fair value of the consideration received or the fair value of the equity instruments issued, or whichever is more readily determinable. The stockholders equity section of the Company contains the following classes of capital stock as of July 31, 2015: Common stock, $ 0.001 par value: 75,000,000 shares authorized; 5,000,000 shares issued and outstanding. On July 23, 2014 the Company issued a total of 4,000,000 shares of common stock to a director for cash in the amount of $0.001 per share for a total of $4,000. On January 29, 2015 the Company issued a total of 1,000,000 shares of common stock to 30 independent investors for cash in the amount of $0.04 per share for a total of $40,000. As of July 31, 2015, the Company had 5,000,000 shares of common stock issued and outstanding. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Jul. 31, 2015 | |
Notes to Financial Statements | |
NOTE 8: PROPERTY AND EQUIPMENT | The Company currently has property consisting of an office and shop for $8,000 and office equipment for $9,750. Depreciation expense was $1,793 for the year ended July 31, 2015. |
COMMITMENT & CONTINGENCIES
COMMITMENT & CONTINGENCIES | 12 Months Ended |
Jul. 31, 2015 | |
Notes to Financial Statements | |
NOTE 9: COMMITMENT & CONTINGENCIES | On July 30, 2014, the Company entered into Commercial Lease Agreement for three years that expires July 30, 2017 for $1,000 a month as the Companys office space. The rent expense for the year ended July 31, 2015 was $0 due to a free rent promotion offered by the property manager. Future lease commitments are as follows: Y/E 2016 $ 12,000 Y/E 2017 11,000 Total $ 23,000 |
SUMMARY OF SIGNIFICANT ACCOUN16
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jul. 31, 2015 | |
Summary Of Significant Accounting Policies Policies | |
Basis of Presentation | The accompanying financial statements have been prepared in accordance with generally accepted accounting principles (US GAAP). The Company is in the development stage as defined in Financial Accounting Standards Board Accounting Standards Codification ("ASC") Topic 915 "Development Stage Entities". The Company has a July 31, year-end. |
Reclassification | Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported net income or losses. |
Earnings per Share | ASC No. 260, Earnings Per Share, specifies the computation, presentation and disclosure requirements for earnings (loss) per share for entities with publicly held common stock. The Company has adopted the provisions of ASC No. 260. Basic net loss per share amounts is computed by dividing the net loss by the weighted average number of common shares outstanding. Diluted earnings per share are the same as basic earnings per share due to the lack of dilutive items in the Company. |
Cash and Equivalents | The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. |
Use of Estimates and Assumptions | The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Income Taxes | Income taxes are provided in accordance with ASC No. 740, Accounting for Income Taxes. A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carryforwards. Deferred tax expense (benefit) results from the net change during the year of deferred tax assets and liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of all of the deferred tax assets will be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. |
Revenue Recognition | The Company records revenue on the accrual basis when all goods and services have been performed and delivered, the amounts are readily determinable, and collection is reasonably assured. The Company has generated $149,176 in revenue since its inception. |
Advertising | The Company expenses its advertising when incurred. There has been $5,813 in advertising expense since inception. |
Fixed Assets | Fixed assets are stated at cost. The Company utilizes straight-line depreciation over the estimated useful life of the asset. Property 40 years Office Equipment 7 years |
New Accounting Pronouncements | The Company has evaluated all the recent accounting pronouncements through the date the financial statements were issued and filed with the Securities and Exchange Commission and believe that none of them will have a material effect on the companys financial statements. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Income Taxes Tables | |
Schedule of Effective Income Tax Rate | July 31, 2015 US Federal Statutory Tax Rate 15.0 % Nevada State & Local Tax Rate 0.0 % Net Operating Loss Carryforward (0.0 )% Effective Tax Rate 15.0 % |
COMMITMENT & CONTINGENCIES (Tab
COMMITMENT & CONTINGENCIES (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Commitment Contingencies Tables | |
Future lease commitments | Future lease commitments are as follows: Y/E 2016 $ 12,000 Y/E 2017 11,000 Total $ 23,000 |
SUMMARY OF SIGNIFICANT ACCOUN19
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | 13 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | |
Revenue | $ 119,076 | $ 30,100 | $ 149,176 |
Advertising expense | $ 5,813 | ||
Property [Member] | |||
Estimated useful life | 40 years | ||
Office Equipment [Member] | |||
Estimated useful life | 7 years |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | 13 Months Ended | |
Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | |
Going Concern Details Narrative | ||||
Net income (loss) | $ 5,090 | $ (22,902) | $ 5,090 | $ (17,812) |
RELATED PARTY TRANSACTIONS (De
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | Jul. 31, 2015 | Jul. 31, 2014 |
Related Party Transactions Details Narrative | ||
Due to related party | $ 458 | $ 20 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 12 Months Ended |
Jul. 31, 2015 | |
Income Taxes Details | |
US Federal Statutory Tax Rate | 15.00% |
Nevada State & Local Tax Rate | 0.00% |
Net Operating Loss Carryforward | 0.00% |
Effective Tax Rate | 15.00% |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 12 Months Ended | 13 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | |
Income Taxes Details | |||
Income tax benefit | $ (1,478) | $ (1,478) | |
Deferred Tax Asset | $ 1,478 | $ 1,478 |
STOCKHOLDERS' EQUITY (Details N
STOCKHOLDERS' EQUITY (Details Narrative) - $ / shares | Jul. 31, 2015 | Jul. 31, 2014 |
Stockholders Equity Details Narrative | ||
Common Stock Par Value | $ 0.001 | $ 0.001 |
Common Stock Shares Authorized | 75,000,000 | 75,000,000 |
Common Stock Shares Issued | 5,000,000 | 4,000,000 |
Common Stock Shares Outstanding | 5,000,000 | 4,000,000 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 12 Months Ended | 13 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | |
Property And Equipment Details Narrative | |||
Property consisting of an office and shop | $ 8,000 | $ 8,000 | |
Office equipment | 9,750 | 9,750 | |
Depreciation expense | $ 1,793 | $ 1,793 |
COMMITMENT & CONTINGENCIES (Det
COMMITMENT & CONTINGENCIES (Details) | Jul. 31, 2015USD ($) |
Commitment Contingencies Details | |
2,016 | $ 12,000 |
2,017 | 11,000 |
Total | $ 23,000 |
COMMITMENT & CONTINGENCIES (D27
COMMITMENT & CONTINGENCIES (Details Narrative) | 12 Months Ended |
Jul. 31, 2015USD ($) | |
Commitment Contingencies Details | |
Rent expense | $ 0 |