10-Q

UNITED STATES

  SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

x       QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE 
ACT OF 1934 

For the Quarterly Period Ended March 31, 2016

o         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE 
ACT OF 1934 

Commission File No. 333-153575

Highlight Networks,  Inc.

(Exact name of registrant as specified in its charter)

Nevada	26-1507527
(State of incorporation)	(IRS Employer Identification Number)
2371 Fenton Street, Chula Vista, CA	91914

(Address of principal executive offices) (Zip Code)

(619) 726 7603

(Registrant’s telephone number, including area code)

 7325 Oswego Road, Liverpool, NY 13090

(Former name or former address, if changed since last report)

Check whether the issuer (1) 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 issuer was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days [X] Yes     [ ] No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  [X ] Yes [ ] No

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

[ ] Large accelerated filer Accelerated filer [ ]  Non-accelerated filer [X]  Smaller reporting company

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

There are 58,167,600 shares of Highlight Networks, Inc. $0.001 par value common stock outstanding as of March 31, 2016 and 58,167,600 shares of $0.001 par value common stock outstanding as of the date of this filing March 7, 2017.

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HIGHLIGHT NETWORKS, INC.
MARCH 31, 2016
	PART I – FINANCIAL INFORMATION	Page
Item 1.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis or Plan of Operation	10
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	11
Item 4.	Controls and Procedures	12
	PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	12
Item 2.	Unregistered Sale of Equity Securities and Use of Proceeds	12
Item 3.	Defaults Upon Senior Securities	12
Item 4.	Mine Safety Disclosure	13
Item 5.	Other Information	13
Item 6.	Exhibits	13
	SIGNATURES	13

Forward-Looking Statements

Certain statements, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.   These forward-looking statements generally are identified by the words "believes," "project," "expects," "anticipates," "estimates," "intends," "strategy," "plan," "may," "will," "would," "will be," "will continue," "will likely result, "and similar expressions.  We intend such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and are including this statement for purposes of complying with those safe-harbor   provisions.  Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain.  Factors which could have a material adverse affect on our operations and future prospects on a consolidated basis include, but are not limited to: changes in economic conditions, legislative/regulatory changes, availability of capital, interest rates, competition, and generally accepted accounting principles. These risks and uncertainties should also be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.  We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.  Further information concerning our business, including additional factors that could materially affect our financial results, is included herein and in our other filings with the SEC.

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PART I.   FINANCIAL INFORMATION

Item 1. Financial Statements

Highlight Networks, Inc.

Table of Contents

Condensed Balance Sheets as of March 31, 2016 (unaudited) and June 30, 2015 (unaudited)	4
Condensed Statements of Operations for the Three and Nine Months Ended March 31, 2016 and 2015 (unaudited)	5
Condensed Statements of Cash Flows for the Nine Months Ended March 31, 2016 and 2015 (unaudited)	6
Notes to the Condensed Financial Statements (unaudited)	7

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Highlight Networks, Inc. Condensed Balance Sheets Unaudited
	March 31,		June 30,
	2016		2015
ASSETS
Current Assets:
Cash	$	-	$	-
Total Current Assets		-		-
Total Assets	$	-	$	-
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Accrued expenses	$	21,123	$	1,825
Notes payable to related parties		256,132		256,132
Total Liabilities		277,255		257,957
Stockholders' Equity (Deficit):
Preferred stock, $0.001 par value; 20,000,000 shares authorized;
no shares outstanding and outstanding		-		-
Common stock, $0.001 par value; 150,000,000 shares authorized;
58,167,600 and 58,167,600 shares issued and outstanding, respectively		58,168		58,168
Additional paid-in capital		8,542,963		8,542,963
Accumulated deficit		(8,878,386)		(8,859,088)
Total Stockholders’ Deficit		(277,255)		(257,957)
Total Liabilities and Stockholders' Equity	$	-	$	-

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

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Highlight Networks, Inc. Condensed Statement of Operations (Unaudited)
	For the Three Months Ended				For the Nine Months Ended
	March 31,				March 31,
	2016		2015		2016		2015
Revenue:
Income	$	-	$	-	$	-	$
Cost of goods sold		-		-		-		(6,084)
Gross margin		-		-		-		(6,084)
Operating Expenses:
General & administrative expenses		-		30,035		-		(565,401)
Rent expense		-		24,000		-		72,000
Total operating income (expenses)		-		54,035		-		(493,401)
Income (loss) from operations		-		(54,035)		-		487,317
Other expense:
Interest expense		(6,386)		(9,671)		(19,298)		(27,641)
Total other expense		(6,386)		(9,671)		(19,298)		(27,641)
Income (loss) before income taxes		(6,386)		(63,706)		(19,298)		459,676
Provision for income taxes		-		-		-		-
Net income (loss)	$	(6,386)	$	(63,706)	$	(19,298)	$	459,676
Basic income (loss) per share	$	(0.00)	$	(0.02)	$	(0.00)	$	0.05
Basic weighted average shares		58,167,600		3,167,600		58,167,600		8,645,702

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

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Highlight Networks, Inc. Condensed Statements of Cash Flows (Unaudited)
	For the Nine Months Ended
	March 31,
	2016		2015
Cash flows from operating activities:
Net income (loss)	$	(19,298)	$	459,676
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Cancellation of stock based compensation		-		(673,063)
Impairment of inventory		-		6,084
Changes in assets and liabilities:
Accounts payable and accrued expense		19,298		(26,376)
Accounts payable to related parties		-		152,914
Net cash used in operating activities		-		(80,765)
Cash flows from investing activities:		-		-
Cash flows from financing activities:
Proceeds from notes payable to related parties		-		74,780
Net cash provided by financing activities		-		74,780
Net decrease in cash		-		(5,985)
Cash, beginning of period		-		6,081
Cash, end of period	$	-	$	96

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

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Highlight Networks, Inc.

Notes to the Condensed Financial Statements

March 31, 2016

(Unaudited)

NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS

The Company was formed on June 21, 2007 as a Nevada corporation. The Company has a June 30 year end.

On March 11, 2013, EZ Recycling, Inc was formed and incorporated to serve as a wholly owned subsidiary of Highlight Networks, Inc. EZ Recycling is incorporated in the State of Nevada. EZ Recycling was spun off in conjunction with the share purchase agreement referred to in the following paragraph. All inter-company balances and transactions entered into prior to the change in ownership described in the following paragraph were eliminated in consolidation and the financial statements reflect the deconsolidation of the subsidiary as of the change in control date.

On June 5, 2015, Legacy International Holdings Group, LLC., and Allied Crown Enterprises Limited, entered into a share purchase agreement (the "SPA") to purchase 98% of the outstanding capital stock of Highlight Networks, Inc., from Infanto Holding Corp. for an aggregate purchase price of $315,000. The purchase represented 98% of Highlight Networks, Inc., or 57,000,000 shares of restricted common stock. The Company has 58,167,600 shares issued and outstanding as of the date of this filing.

Nature of Business

From the date of its change of control on June 18, 2015, the Company has conducted no business operations and has been in the developmental stage. Upon the Change of Control on June 18, 2015, the Company’s operating asset, EZ Recycling, Inc. was removed and the Company reverted to shell company status. The U.S. Securities and Exchange Commission (the “SEC”) defines those companies as “any development stage company within the meaning of Section 3 (a)(51) of the Exchange Act of 1934, as amended, (the “Exchange Act”) and that has no specific business plan or purpose, or has indicated that its business plan is to merge with an unidentified company or companies.” Under Rule 12b-2 of the Exchange Act, the Company also qualifies as a “shell company,” because it has no or nominal assets (other than cash) and no or nominal operations.

The Company’s principal executive offices are located at 2371 Fenton Street, Chula Vista, CA 91914.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The Company’s unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of 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 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. The accompanying unaudited condensed financial statements reflect all adjustments, consisting of only normal recurring items, which, in the opinion of management, are necessary for a fair statement of the results of operations for the periods shown and are not necessarily indicative of the results to be expected for the full year ending June 30, 2016. These unaudited condensed financial statements should be read in conjunction with the financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2015.

Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control, and preventing and detecting fraud. Our system of internal accounting control is designed to assure, among other items, that: (1) recorded transactions are valid; (2) valid transactions are recorded; and (3) transactions are recorded in the proper period in a timely manner to produce financial statements that present fairly our financial condition, results of operations, and cash flows for the respective periods being presented.

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Use of Estimates

The preparation of 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 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.

Recent Accounting Pronouncements

The Company has reviewed all recently issued accounting pronouncements and plans to adopt those that are applicable to it. The Company does not expect the adoption of any other pronouncements to have an impact on its results of operations or financial position. 

NOTE 3 – STOCKHOLDERS’ EQUITY

In conjunction with the change of control on June 18, 2015, total related party debt of $261, 269 was forgiven and credited to paid in capital.

In conjunction with the change of control on June 18, 2015, $300,000 of related party debt was converted into 55,000,000 shares of common stock.

NOTE 4 - RELATED PARTY TRANSACTIONS

From 2013-2015, the Company incurred loans due to related parties, Friction & Heat LLC and Joseph C. Passalaqua. Joseph C. Passalaqua is the sole managing member of Friction & Heat LLC and a former officer of Highlight Networks, Inc. The outstanding related party debt was held in unsecured promissory notes, bearing interest at 10% per annum and matured between on demand and March 31, 2016. As of June 30, 2014, the Company had a total outstanding principal and accrued interest of $323,027 and $22,176, respectively. During the year ended June 30, 2015, an additional $77,735 was borrowed and $34,742 of interest accrued bringing the total related party debt to $457,680. In conjunction with the change of control on June 18, 2015, all principal and accrued interest were exchanged for common stock and a new $256,132 Promissory Note. The new note to Friction & Heat, LLC was executed on June 5, 2015, is unsecured, due on demand and accrues interest at 10% per annum. The remaining related party debt balance of $201,548 was part of the $300,000 related party debt that was converted into 55,000,000 shares of common stock. As of March 31, 2016, there was $256,132 and $21,123 of principal and interest, respectively, due on the Note to Friction & Heat LLC.

From 2013-2015, the Company incurred liabilities for unpaid rent at $8,000 monthly to Remix Ventures, LLC, according to a signed rental agreement. Joseph C. Passalaqua the sole managing member of Remix Ventures, LLC and former officer of Highlight Networks, Inc. As of June 18, 2015, the amount due for rent was $216,000. In conjunction with the change of control on June 18, 2015, the balance due of $216,000 was forgiven and was part of the $261,269 credited to paid in capital.

From 2013 -2015, the Company incurred liabilities for the reimbursement of property taxes that were paid by Remix Ventures, LLC, according to a signed rental agreement. Joseph C. Passalaqua is the sole managing member of Remix Ventures, LLC and a former officer of Highlight Networks, Inc. As of June 18, 2015, the amount due in property tax reimbursement to Remix Ventures LLC was $72,282. In conjunction with the change of control on June 18, 2015, the balance due of $72,282 was a portion of the total related party debt of $300,000 that was converted into 55,000,000 shares of common stock.

In 2015, the Company incurred liabilities for bookkeeping, internal accounting, office assistant services and secretarial services that were rendered by Lyboldt-Daly, Inc. As of January 1, 2015, Highlight Networks ceased all payroll activities and does not have employees, therefore reimbursement is owed to Lyboldt-Daly, Inc for use of their employees in rendering these outside services. Joseph C. Passalaqua is the President of Lyboldt-Daly, Inc. and a former officer of Highlight Networks, Inc. As of June 18, 2015, the amount due for outside services to Lyboldt-Daly, Inc. was $26,170. The balance due was forgiven and was part of the $300,000 total related party debt converted into 55,000,000 shares of common stock.

In conjunction with the change of control on June 18, 2015, other related party accounts payable totaling $45,269 were forgiven and credited to paid in capital.

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NOTE 5 - GOING CONCERN

The accompanying financial statements have been prepared on the basis of accounting principles applicable to a “going concern,” which assume that Highlight Networks, Inc. (hereto referred to as the “Company”) will continue in operation for at least one year and will be able to realize its assets and discharge its liabilities in the normal course of operations.

Several conditions and events raise substantial doubt as to the Company’s ability to continue as a “going concern.” The Company has an accumulated deficit of $8,878,386, a working capital deficit and has had limited revenues The Company requires additional financing in order to finance its business activities on an ongoing basis. The Company’s future capital requirements will depend on numerous factors including, but not limited to, continued progress in the pursuit of business opportunities. The Company is actively pursuing alternative financing and has had discussions with various third parties, although no firm commitments have been obtained. In the interim, shareholders of the Company have committed to meeting its minimal operating expenses. Management believes that actions presently being taken to revise the Company’s operating and financial requirements provide them with the opportunity to continue as a “going concern.”

These financial statements do not reflect adjustments that would be necessary if the Company were unable to continue as a “going concern.” While management believes that the actions already taken or planned, will mitigate the adverse conditions and events which raise doubt about the validity of the “going concern” assumption used in preparing these financial statements, there can be no assurance that these actions will be successful. If the Company were unable to continue as a “going concern,” then substantial adjustments would be necessary to the carrying values of assets, the reported amounts of its liabilities, the reported revenues and expenses, and the balance sheet classifications used.

NOTE 6 – DECONSOLIDATION

Prior to the Company’s change of control referred to in Note 1, the results of operations of the Company’s subsidiary, EZ Recycling, was included in the statement of operations, after giving effect to any necessary eliminating entries for intercompany transactions. Upon the change of control, the subsidiary was spun-off and consolidation ceased. Accordingly, at March 31, 2016 the books of the Company were only comprised of one entity, Highlights Networks, Inc.

NOTE 7 – SUBSEQUENT EVENTS

Management has evaluated subsequent events pursuant to the requirements of ASC Topic 855, from the balance sheet date through the date the financial statements were issued, and determined that no subsequent events occurred that would require adjustment to or disclosure in the financial statements.

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Item 2.  Management's Discussion and Analysis of financial Condition and Results of Operations

The following discussion and analysis is intended as a review of significant factors affecting our financial condition and results of operations for the periods indicated. The discussion should be read in conjunction with our consolidated financial statements and the notes presented herein. In addition to historical information, the following Management's Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements that involve risks and uncertainties. Our actual results could differ significantly from those anticipated in these forward-looking statements as a result of certain factors discussed in this Form 10-Q.

Overview

We currently have no operations. We are a shell company. Upon our Change of Control on June 18, 2015, our operating asset, EZ Recycling, Inc. was removed and we reverted to shell company status. The U.S. Securities and Exchange Commission (the “SEC”) defines those companies as “any development stage company within the meaning of Section 3 (a)(51) of the Exchange Act of 1934, as amended, (the “Exchange Act”) and that has no specific business plan or purpose, or has indicated that its business plan is to merge with an unidentified company or companies.” Under Rule 12b-2 of the Exchange Act, the Company also qualifies as a “shell company,” because it has no or nominal assets (other than cash) and no or nominal operations.

Results of Operations for the three months ended March 31, 2016 compared to the exited operations for the three months ended March 31, 2015

Revenues

There was no revenue for either the three months ended March 31, 2016 or 2015.

General and Administrative expense

During the three months ended March 31, 2016, we incurred $0 of general and administrative expense compared to $30,035for the three months ended March 31, 2016. In the current period, there was no expense incurred as there has been no activity. In the prior period expenses consisted of outside services, salaries and other administrative costs.

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Rent Expense

Rent expense decreased by $24,000 to $0for the three months ended March 31, 2016 compared to $24,000 for the three months ended March 31, 2015. In the current year there was no rent expense incurred due to the change of control that took place.

Other expense

Interest expense decreased by $3,285 from $9,671 in the period ended March 31, 2015 to $6,386 in the period ended March 31, 2016. The decrease is the result of interest accruing on lower principal debt.

Net Loss

The Company had a net loss of $6,386for the three months ended March 31, 2016 as compared to a net loss of $63,706 for the three months ended March 31, 2015. In the current year net loss consists only of interest expense as there are no operations at this time.

Results of Operations for the nine months ended March 31, 2016 compared to the exited operations for the nine months ended March 31, 2015

Revenues

There was no revenue for either thenine months ended March 31, 2016 or 2015.

General and Administrative expense

During the nine months ended March 31, 2016, we incurred $0 of general and administrative expense compared to ($565,401) for the nine months ended March 31, 2015. In the current period, there was no expense incurred as there has been no activity. In the prior period, we cancelled stock for services resulting in a $673,063 reversal of the expense previously recognized. This was offset by outside services, salaries and other administrative costs.

Rent Expense

Rent expense decreased by $72,000 to $0 for the nine months ended March 31, 2016 compared to $72,000 for the nine months ended March 31, 2015. In the current year there was no rent expense incurred due to the change of control that took place.

Other expense

Interest expense decreased by $8,343 from $27,641 in the period ended March 31, 2015 to $19,298 in the period ended March 31, 2016. The decrease is the result of interest accruing on lower principal debt.

Net Loss

The Company had a net loss of $19,298for the nine months ended March 31, 2016 as compared to a net income of $459,676 for the nine months ended March 31, 2015. As discussed above the net income in the prior year can be attributed to the reversal of non-cash stock compensation expense. In the current year net loss consists only of interest expense as there are no operations at this time.

Liquidity and Capital Resources

On June 5, 2015, we executed a note payable with Friction & Heat, LLC. The note is unsecured, due on demand and accrues interest at 10% per annum. As of March 31, 2016, there was $256,132 and $21,123 of principal and interest, respectively, due on thisnote.

Commitments and Capital Expenditures

The Company had no material commitments for capital expenditures.  

Critical Accounting Policies Involving Management Estimates and Assumptions

Our discussion and analysis of our financial condition and results of operations is based on our financial statements. In preparing our financial statements in conformity with accounting principles generally accepted in the United States of America, we must make a variety of estimates that affect the reported amounts and related disclosures.

Stock Based Compensation

The Company accounts for stock-based compensation to employees in accordance with FASB ASC 718, which establishes standards for the accounting for transactions in which an entity exchanges its equity instruments for goods or services. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity’s equity instruments or that may be settled by the issuance of those equity instruments. FASB ASC 718 focuses primarily on accounting for transactions in which an entity obtains employee services in share-based payment transactions. FASB ASC 718 requires an entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide service in exchange for the award the requisite service period (usually the vesting period).

The Company accounts for share based payments to nonemployees in accordance with FASB ASC 505-50. The fair value of equity instruments issued to a nonemployee is measured by using the stock price and other measurement assumptions as of the date of either: (i) a commitment for performance by the nonemployee has been reached; or (ii) the counterparty’s performance is complete. Expenses related to nonemployee awards are generally recognized in the same period and in the same period as the Company incurs the related liability for goods and services received.

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Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Deferred Tax Valuation Allowance

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Valuation allowances are established when necessary to reduce deferred tax assets to the amount more likely than not to be realized. Income tax expense is the total of tax payable for the period and the change during the period in deferred tax assets and liabilities.

Off-Balance Sheet Arrangements

Highlight Networks, Inc. does not have any relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special purpose entities, which would have been established for the purpose of facilitating off-balance sheet financial arrangements.

Item 3.  Quantitative and Qualitative Disclosures about Market Risk

The Registrant is a smaller reporting company as defined by Item 10(f)(1) and is not required to provide the information required by this Item.  

Item 4.     Controls and Procedures 

MANAGEMENT’S QUARTERLY REPORT ON INTERNAL CONTROLS OVER FINANCIAL REPORTING

Management, including our Chief Executive Officer and Chief Financial Officer, is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a – 15(f). Management conducted an assessment as of March 31, 2016 of the effectiveness of our internal control over financial reporting based on the framework in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Based on that evaluation, management concluded that our internal control over financial reporting was not effective as of March 31, 2016.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements should they occur. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the control procedure may deteriorate.

This Quarterly Report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by our registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit us to provide only management’s report in this Quarterly Report. On March 31, 2016, as required by SEC Rule 13a-15(b), our company carried out an evaluation, under the supervision and with the participation of management, including our Chief Executive Officer, of the effectiveness of its disclosure controls and procedures as of the end of the period covered by this Quarterly Report. Based on this evaluation, management concluded that our disclosure controls and procedures were not effective at the reasonable assurance level as of March 31, 2016.

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The material weaknesses identified relates to the following:

- Lack of proper segregation of duties

- Lack of a formal control process that provides for multiple levels of supervision and review

The Company believes that the material weaknesses are due to the Company’s limited resources.

CHANGES IN INTERNAL CONTROLS OVER FINANCIAL REPORTING

There were no changes in our internal control over financial reporting identified in connection with our evaluation of these controls as of the first fiscal quarter ended March 31, 2016 as covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

The Company is not a party to any pending legal proceeding and we are not aware of any pending legal proceeding in which any of our officers or directors or any beneficial holders of 5% or more of our voting securities are adverse to or have a material interest adverse to the Company.

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

There were no unregistered sales of equity securities during the reported interim period.  

Item 3. Defaults on Senior Securities 

The Company has no outstanding Senior Securities.

Item 4. Mine Safety Disclosure

Not Applicable.

Item 5.  Other Information 

None.

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Item 6.  Exhibits 

	Exhibit Description	Filed herewith	Form	Period ending	Exhibit	Filing date
31	Certification of the Chief Executive Officer and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	X
32	Certification of the Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	X
101.INS	XBRL Instance Document	X
101.SCH	XBRL Taxonomy Extension Schema Document	X
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document	X
101.LAB	XBRL Taxonomy Extension Label Linkbase Document	X
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document	X
101.DEF	XBRL Taxonomy Extension Definition Linkbase Definition	X

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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.

HIGHLIGHT NETWORKS, INC.

Dated: March 7, 2017

by: /s/ Jose R. Mayorquin

Jose R. Mayorquin

 President, Chief Executive Officer, Chief Financial Officer and Chairman of the Board of Directors

Pursuant to the requirements of the Securities Exchange Act of 1934, the following persons on behalf of the Registrant and in the capacities and on the dates indicated have signed this report below.

 
by: /s/ Jose R. Mayorquin

Jose R. Mayorquin

President, Chief Executive Officer, Chief Financial Officer and Chairman of the Board of Directors

(Principal Executive Officer) (Principal Financial Officer)

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EX-31.1

EXHIBIT 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER AS ADOPTED 
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Jose R. Mayorquin, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Highlight Networks, Inc. for the period ended March 31, 2016;

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

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

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

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

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

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

d)   Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of the annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of 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.

Dated:  March 7, 2017

By: /s/ Jose R. Mayorquin

Jose R. Mayorquin

Chief Executive Officer,

(Principal Executive Officer)

-1- 

HIGHLIGHT NETWORKS, INC.

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 of Highlight Networks, Inc. (the Registrant) on Form 10-Q for the period ended March 31, 2016 as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Jose R. Mayorquin, Principal Executive Officer and Principal Accounting of the Company, certify, pursuant to 18 U.S.C. ss.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; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement required by Section 906 has been provided to Jose R. Mayorquin and will be retained by Highlight Networks, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

Dated: March 7, 2017	By:	/s/ Jose R. Mayorquin
		Jose R. Mayorquin
		Chief Financial Officer (Principal Financial Officer)

-2- 

EX-32.1

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 Highlight Networks, Inc. (the “Company”) for the quarter ending March 31, 2016, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Jose R. Mayorquin, Chief Executive Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

(1) The report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: March 7, 2017

By: /s/ Jose R. Mayorquin

Jose R. Mayorquin

Chief Executive Officer

(Principal Executive Officer)

This certification accompanies each Report pursuant to § 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of §18 of the Securities Exchange Act of 1934, as amended.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

-1- 

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 Highlight Networks, Inc. (the “Company”) for the quarter ending December 31, 2015, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Jose R. Mayorquin, Chief Financial Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

(1) The report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: March 7, 2017

By: /s/ Jose R. Mayorquin

Jose R. Mayorquin

Chief Financial Officer

(Principal Financial Officer)

This certification accompanies each Report pursuant to § 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of §18 of the Securities Exchange Act of 1934, as amended.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

-2- 

XML

Document and Entity Information - USD ($)	9 Months Ended
	Mar. 31, 2016	Mar. 07, 2017
Document And Entity Information
Entity Registrant Name	HighLight Networks, Inc.
Entity Central Index Key	0001445175
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	No
Entity Filer Category	Smaller Reporting Company
Entity Public Float		$ 0
Entity Common Stock, Shares Outstanding		58,167,600
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2015

XML

Condensed Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2016	Jun. 30, 2015
Current Assets:
Cash	$ 0	$ 0
Total Current Assets	0	0
Total Assets	0	0
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Accrued expenses	21,123	1,825
Notes payable to related parties	256,132	256,132
Total Current Liabilities	277,255	257,957
Total Liabilities	277,255	257,957
Stockholders' Equity (Deficit):
Preferred stock, $0.001 par value; 20,000,000 shares authorized; no shares outstanding and outstanding	0	0
Common stock, $0.001 par value; 150,000,000 shares authorized; 58,167,600 and 58,167,600 shares issued and outstanding, respectively	58,168	58,168
Additional paid-in capital	8,542,963	8,542,963
Accumulated deficit	(8,878,386)	(8,859,088)
Total Stockholders' Equity (Deficit)	(277,255)	(257,957)
Total Liabilities and Stockholders' Equity	$ 0	$ 0

XML

Condensed Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2015	Jun. 30, 2015
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ .001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ .001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	58,167,600	58,167,600
Common stock, shares outstanding	58,167,600	58,167,600

XML

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Revenue:
Income	$ 0	$ 0	$ 0	$ 0
Cost of goods sold	0	0	0	(6,084)
Gross margin	0	0	0	(6,084)
Operating Expenses:
General & administrative expenses	0	30,035	0	(565,401)
Rent expense	0	24,000	0	72,000
Total operating income	0	54,035	0	(493,401)
Income (loss) from operations	0	(54,035)	0	487,317
Other expense:
Interest expense	(6,386)	(9,671)	(19,298)	(27,641)
Total other expense	(6,386)	(9,671)	(19,298)	(27,641)
Income (loss) before income taxes	(6,386)	(63,706)	(19,298)	459,676
Provision for income taxes	0	0	0	0
Net income (loss)	$ (6,386)	$ (63,706)	$ (19,298)	$ 459,676
Basic income (loss) per share	$ (0.00)	$ (0.02)	$ (0.00)	$ .05
Basic weighted average shares	58,167,600	3,167,600	58,167,600	8,645,702

XML

Condensed Statements Of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities
Net income (loss)	$ (19,298)	$ 459,676
Adjustments to reconcile net loss to net cash used in operating expenses:
Cancellation of Stock-based compensation	0	(673,063)
Impairment of Inventory	0	6,084
Changes in assets and liabilities:
Accounts payable and accrued expenses	19,298	(26,376)
Accounts payable to related parties	0	152,914
Net cash used in operating activities	0	(80,765)
Cash flows from investing activities	0	0
Cash flows from financing activities:
Proceeds from notes payable to related parties	0	74,780
Net cash provided by financing activities	0	74,780
Net decrease in cash	0	(5,985)
Cash, beginning of year	0	6,081
Cash, end of year	$ 0	$ 96

XML

NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS

9 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS

NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS

The Company was formed on June 21, 2007 as a Nevada corporation. The Company has a June 30 year end.

On March 11, 2013, EZ Recycling, Inc was formed and incorporated to serve as a wholly owned subsidiary of Highlight Networks, Inc. EZ Recycling is incorporated in the State of Nevada. EZ Recycling was spun off in conjunction with the share purchase agreement referred to in the following paragraph. All inter-company balances and transactions entered into prior to the change in ownership described in the following paragraph were eliminated in consolidation and the financial statements reflect the deconsolidation of the subsidiary as of the change in control date.

On June 5, 2015, Legacy International Holdings Group, LLC, and Allied Crown Enterprises Limited, entered into a share purchase agreement (the "SPA") to purchase 98% of the outstanding capital stock of Highlight Networks, Inc., from Infanto Holding Corp. for an aggregate purchase price of $315,000. The purchase represented 98% of Highlight Networks, Inc., or 57,000,000 shares of restricted common stock. The Company has 58,167,600 shares issued and outstanding as of the date of this filing.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The Company’s unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).The preparation of 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 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.The accompanying unaudited condensed financial statements reflect all adjustments, consisting of only normal recurring items, which, in the opinion of management, are necessary for a fair statement of the results of operations for the periods shown and are not necessarily indicative of the results to be expected for the full year ending June 30, 2016. These unaudited condensed financial statements should be read in conjunction with the financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2015.

Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control, and preventing and detecting fraud. Our system of internal accounting control is designed to assure, among other items, that: (1) recorded transactions are valid; (2) valid transactions are recorded; and (3) transactions are recorded in the proper period in a timely manner to produce financial statements that present fairly our financial condition, results of operations, and cash flows for the respective periods being presented.

Use of Estimates

The preparation of 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 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.

Recent Accounting Pronouncements

The Company has reviewed all recently issued accounting pronouncements and plans to adopt those that are applicable to it. The Company does not expect the adoption of any other pronouncements to have an impact on its results of operations or financial position. 

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NOTE 3 - STOCKHOLDERS' EQUITY

9 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

NOTE 3 - STOCKHOLDERS' EQUITY

NOTE 3 – STOCKHOLDERS’ EQUITY

In conjunction with the change of control on June 18, 2015, total related party debt of $261, 269 was forgiven and credited to paid in capital.

In conjunction with the change of control on June 18, 2015, $300,000 of related party debt was converted into 55,000,000 shares of common stock.

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NOTE 4 - RELATED PARTY TRANSACTIONS

9 Months Ended

Mar. 31, 2016

Related Party Transactions [Abstract]

NOTE 4 - RELATED PARTY TRANSACTIONS

NOTE 4 - RELATED PARTY TRANSACTIONS

From 2013-2015, the Company incurred loans due to related parties, Friction & Heat LLC and Joseph C. Passalaqua. Joseph C. Passalaqua is the sole managing member of Friction & Heat LLC and a former officer of Highlight Networks, Inc. The outstanding related party debt was held in unsecured promissory notes, bearing interest at 10% per annum and matured between on demand and March 31, 2016. As of June 30, 2014, the Company had a total outstanding principal and accrued interest of $323,027 and $22,176, respectively. During the year ended June 30, 2015, an additional $77,735 was borrowed and $34,742 of interest accrued bringing the total related party debt to $457,680. In conjunction with the change of control on June 18, 2015, all principal and accrued interest were exchanged for common stock and a new $256,132 Promissory Note. The new note to Friction & Heat, LLC was executed on June 5, 2015, is unsecured, due on demand and accrues interest at 10% per annum. The remaining related party debt balance of $201,548 was part of the $300,000 related party debt that was converted into 55,000,000 shares of common stock. As of March 31, 2016, there was $256,132 and $21,123 of principal and interest, respectively, due on the Note to Friction & Heat LLC.

From 2013-2015, the Company incurred liabilities for unpaid rent at $8,000 monthly to Remix Ventures, LLC, according to a signed rental agreement. Joseph C. Passalaqua the sole managing member of Remix Ventures, LLC and former officer of Highlight Networks, Inc. As of June 18, 2015 the amount due for rent was $216,000. In conjunction with the change of control on June 18, 2015, the balance due of $216,000 was forgiven and was part of the $261,269 credited to paid in capital.

From 2013 -2015, the Company incurred liabilities for the reimbursement of property taxes that were paid by Remix Ventures, LLC, according to a signed rental agreement. Joseph C. Passalaqua is the sole managing member of Remix Ventures, LLC and a former officer of Highlight Networks, Inc. As of June 18, 2015, the amount due in property tax reimbursement to Remix Ventures LLC was $72,282. In conjunction with the change of control on June 18, 2015, the balance due of $72,282 was a portion of the total related party debt of $300,000 that was converted into 55,000,000 shares of common stock.

In 2015, the Company incurred liabilities for bookkeeping, internal accounting, office assistant services and secretarial services that were rendered by Lyboldt-Daly, Inc. As of January 1, 2015, Highlight Networks ceased all payroll activities and does not have employees, therefore reimbursement is owed to Lyboldt-Daly, Inc for use of their employees in rendering these outside services. Joseph C. Passalaqua is the President of Lyboldt-Daly, Inc. and a former officer of Highlight Networks, Inc. As of June 18, 2015, the amount due for outside services to Lyboldt-Daly, Inc. was $26,170. The balance due was forgiven and was part of the $300,000 total related party debt converted into 55,000,000 shares of common stock.

In conjunction with the change of control on June 18, 2015, other related party accounts payable totaling $45,269 were forgiven and credited to paid in capital.

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NOTE 5 - GOING CONCERN

9 Months Ended

Mar. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

NOTE 5 - GOING CONCERN

NOTE 5 - GOING CONCERN

The accompanying financial statements have been prepared on the basis of accounting principles applicable to a “going concern,” which assume that Highlight Networks, Inc. (hereto referred to as the “Company”) will continue in operation for at least one year and will be able to realize its assets and discharge its liabilities in the normal course of operations.

Several conditions and events raise substantial doubt as to the Company’s ability to continue as a “going concern.” The Company has an accumulated deficit of $8,878,386, a working capital deficit and has had limited revenues The Company requires additional financing in order to finance its business activities on an ongoing basis. The Company’s future capital requirements will depend on numerous factors including, but not limited to, continued progress in the pursuit of business opportunities. The Company is actively pursuing alternative financing and has had discussions with various third parties, although no firm commitments have been obtained. In the interim, shareholders of the Company have committed to meeting its minimal operating expenses. Management believes that actions presently being taken to revise the Company’s operating and financial requirements provide them with the opportunity to continue as a “going concern.”

These financial statements do not reflect adjustments that would be necessary if the Company were unable to continue as a “going concern.” While management believes that the actions already taken or planned, will mitigate the adverse conditions and events which raise doubt about the validity of the “going concern” assumption used in preparing these financial statements, there can be no assurance that these actions will be successful. If the Company were unable to continue as a “going concern,” then substantial adjustments would be necessary to the carrying values of assets, the reported amounts of its liabilities, the reported revenues and expenses, and the balance sheet classifications used.

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NOTE 6 - DECONSOLIDATION

9 Months Ended

Mar. 31, 2016

Notes to Financial Statements

NOTE 6 - DECONSOLIDATION

NOTE 6 – DECONSOLIDATION

Prior to the Company’s change of control referred to in Note 1, the results of operations of the Company’s subsidiary, EZ Recycling, was included in the statement of operations, after giving effect to any necessary eliminating entries for intercompany transactions. Upon the change of control, the subsidiary was spun-off and consolidation ceased. Accordingly, at March 31, 2016 the books of the Company were only comprised of one entity, Highlights Networks, Inc.

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NOTE 7 - SUBSEQUENT EVENTS

9 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

NOTE 7 - SUBSEQUENT EVENTS

NOTE 9 – SUBSEQUENT EVENTS

Management has evaluated subsequent events pursuant to the requirements of ASC Topic 855-10, from the balance sheet date, through the date the financial statements were issued and determined that no subsequent events occurred that would require adjustment to or disclosure in the financial statements.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

Basis of Presenation

Basis of Presentation

The Company’s unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).The preparation of 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 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.The accompanying unaudited condensed financial statements reflect all adjustments, consisting of only normal recurring items, which, in the opinion of management, are necessary for a fair statement of the results of operations for the periods shown and are not necessarily indicative of the results to be expected for the full year ending June 30, 2016. These unaudited condensed financial statements should be read in conjunction with the financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2015.

Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control, and preventing and detecting fraud. Our system of internal accounting control is designed to assure, among other items, that: (1) recorded transactions are valid; (2) valid transactions are recorded; and (3) transactions are recorded in the proper period in a timely manner to produce financial statements that present fairly our financial condition, results of operations, and cash flows for the respective periods being presented.

Use of Estimates

Use of Estimates

The preparation of 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 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.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

The Company has reviewed all recently issued accounting pronouncements and plans to adopt those that are applicable to it. The Company does not expect the adoption of any other pronouncements to have an impact on its results of operations or financial position. 

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NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Narrative) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 05, 2015
Accounting Policies [Abstract]
Business Acquisition, Date of Agreement	Jun. 05, 2015
Business Acquisition, Capital Stock Acquired		98.00%
Business Acquisition, Value Assigned to Equity Interest		$ 315,000
Business Acquistion, Number of Shares Issued	57,000,000
Shares Issued		58,167,600
Shares Outstanding		58,167,600