10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED APRIL 30, 2018

Commission file number 333-199108

SUMMIT NETWORKS INC.
(Exact name of registrant as specified in its charter)

Nevada
(State or other jurisdiction of incorporation or organization)

Room 710A, 7/F., Ho King Commercial Centre,

2-16 Fa Yuen Street, Mong Kok, Kowloon,

Hong Kong

 (Address of principal executive offices, including zip code.)

 (852) 6997-0034
(Telephone number, including area code)

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the last 90 days. YES [ X ] 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). YES [ X ] 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," "non-accelerated filer," and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

          Large accelerated filer   [   ]         Accelerated filer   [   ]

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

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

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: 5,649,999 shares as of June 18, 2018.

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SUMMIT NETWORKS INC.

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION	3
Item 1.  Financial Statement (Unaudited)	3
Unaudited Balance Sheets as of April 30, 2018,  and July 31, 2017	3
Unaudited Statements of Operations for the Three and Nine Months Ended April 30, 2018 and 2017	4
Unaudited Statements of Cash Flows for the Nine Months Ended April 30, 2018 and 2017	6
Notes to Unaudited Financial Statements	7
Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations	15
Item 3. Quantitative and Qualitative Disclosures About Market Risks	17
Item 4. Controls and Procedures	17
PART II – OTHER INFORMATION	18
Item 1. Legal Proceedings	18
Item 1A. Risk Factors	18
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	18
Item 3. Default upon Senior Securities	18
Item 4. Mine Safety Disclosures	18
Item 5. Other Information	18
Item 6. Exhibits	18
SIGNATURES	19

Special Note Regarding Forward-Looking Statements

Information included in this Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (“Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (“Exchange Act”). This information may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Summit Networks Inc. (the “Company”), to be materially different from future results, performance or achievements expressed or implied by any forward-looking statements. Forward-looking statements, which involve assumptions and describe future plans, strategies and expectations of the Company, are generally identifiable by use of the words “may,” “will,” “should,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” or “project” or the negative of these words or other variations on these words or comparable terminology. These forward-looking statements are based on assumptions that may be incorrect, and there can be no assurance that these projections included in these forward-looking statements will come to pass. Actual results of the Company could differ materially from those expressed or implied by the forward-looking statements as a result of various factors. Except as required by applicable laws, the Company has no obligation to update publicly any forward-looking statements for any reason.  This Quarterly Report, and unless otherwise noted, the words "we," "our," "us," the "Company," "SNTW" or “Icon” refers to Summit Networks Inc.                            

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PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENT 

SUMMIT NETWORKS INC.

(A Development Stage Company)

BALANCE SHEETS

	Notes	April 30, 2018		July 31, 2017
ASSETS			(Unaudited)		(Audited)
Current assets:
Cash and cash equivalents		$	-	$	-
Receivable- Escrow account			4,556		-
Total current assets			4,556		-
Non-current assets
Other Assets		$	1,000	$	1,000
Property & Office Equipment, net			11,571		12,768
Deferred Tax Asset			-		-
Total non-current assets			12,571		13,768
TOTAL ASSETS		$	17,127	$	13,768
LIABILITIES
Current liabilities:
Accounts payable		$	-	$	-
Amount due to related party			58,422		11,217
Accrued expenses			16,732		-
Total current liabilities			75,153		11,217
TOTAL LIABILITIES		$	75,153	$	11,217
Stockholders’ equity
Common stock, $0.001 par value, 75,000,000 shares authorized; none issued and outstanding		$	5,650	$	5,000
authorized; 5,649,999 and 5,000,000 shares issued and    outstanding, as at April 30, 2018 and July 31, 2017 respectively
Additional paid-in capital			57,850		39,000
(Accumulated deficit) during development stage			(121,526)		(41,449)
TOTAL STOCKHOLDERS’ EQUITY			(58,026)		2,551
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	17,127	$	13,768

See accompanying notes to unaudited financial statements

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SUMMIT NETWORKS INC.

(A Development Stage Company)

STATEMENT OF OPERATIONS 

(Unaudited)

	Three Months Ended 4/30/2018	Three Months Ended 4/30/2017	Nine  Months Ended 4/30/2018	Nine  Months Ended 4/30/2017	From Inception 7/18/2004 to 4/30/2018
	$	$	$	$	$
Sales	-	8,010	-	28,193	223,910
Cost of sales	-	6,349	-	21,266	163,257
Gross profit	-	1,661	-	6,927	60,653
Selling, General & Administrative Expenses	15,720	1,320	80,077	9,559	183,658
(Loss)/Income from operations	(15,720)	341	(80,077)	(2, 632)	(123,004)
Other income/ (expenses)	-	-	-	-	-
(Loss)/Income before income taxes	(15,720)	341	(80,077)	(2, 632)	(123,004)
Income tax benefit	-	-	-	-	1,478
Net (Loss)/Income	(15,720)	341	(80,077)	(2,632)	(121,526)
Earnings (loss) per share of common stock
- Basic	(0.29 cents)	0.01 cents	(1.54 cents)	(0.05 cents)
- Diluted	(0.29 cents)	0.01 cents	(1.54 cents)	(0.05 cents)
Weighted average number of common stock
- Basic	5,461,235	5,000,000	5,209,890	5,000,000
- Diluted	5,461,235	5,000,000	5,209,890	5,000,000

See accompanying notes to unaudited financial statements

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SUMMIT NETWORKS INC.

(A Development Stage Company)

STATEMENT OF STOCKHOLDERS’ EQUITY 

(Unaudited)

							Accumulated
	Common stock				Additional		Deficit during				Total
	Shares		Amount		paid-in		Development		Subscription		stockholders'
	outstanding				capital		Stage		Receivable		equity/(deficit)
Balance, July 8, 2014	-	$	-	$	-	$	-	$	-	$	-
Stock issued on July 23, 2014
@$0.001 per share	4,000,000		4,000		-		-		-		4,000
Net profit, July 31, 2014							5,090		-		5,090
Balance, July 31, 2014	4,000,000	$	4,000	$	-	$	5,090	$	-	$	9,090
Stock issued on Jan 29, 2015
@$0.04 per share	1,000,000		1,000		39,000		-		-		40,000
Net (loss), July 31, 2015							(22,902)				(22,902)
Balance, July 31, 2015	5,000,000	$	5,000	$	39,000	$	(17,812)	$	-	$	26,188
Net (loss), July 31, 2016							(9,447)		-		(9,447)
Balance, July 31, 2016	5,000,000	$	5,000	$	39,000	$	(27,259)	$	-	$	16,741
Net (loss), July 31, 2017							(14,190)				(14,190)
Balance, July 31, 2017	5,000,000	$	5,000	$	39,000	$	(41,449)	$	-	$	2,551
Stock issued on Nov 28, 2017
@$0.001 per share	250,000		250		7,250				-		7,500
Stock issued on March 15, 2018
@$0.001 per share	399,999		400		11,600				-		12,000
Net (loss), April 30, 2018							(80,077)		-		(80,077)
Balance, April 30, 2018	5,649,999	$	5,650	$	57,850	$	(121,526)	$	-	$	(58,026)

See accompanying notes to unaudited financial statements

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SUMMIT NETWORKS INC.

(A Development Stage Company)

STATEMENT OF CASH FLOWS 

(Unaudited)

					From Inception
		For the Nine Months Ended			July 08, 2014 to (inception) Through
		April 30, 2018		April 30, 2017	April 30, 2018
Cash flows from operating activities:
Net (loss) income	$	(80,077)	$	(2,632)	$	(121,526)
Adjustments to reconcile net loss to net cash used in operating activities:		-
Depreciation expenses		1,197		1,197		6,179
Provision (benefit) for deferred taxes		-		1,478		(1,478)
Changes in operating assets and liabilities:
Receivable – Escrow account		(4,556)		-		(4,556)
Other assets		-		-		(1,000)
Accounts payable		-		-		12,238
Accured expenses		16,732		-		16,732
Net cash (used in) provided by operating activities		(66,705)		43		(93,412)
Cash flows from investing activities:
Acquisition of Property & Equipment		-		-		(17,750)
Net cash (used in) investing activities		-		-		(17,750
Cash flows from financing activities:
Issuance of common stock		19,500		-		63,500
Amounts due from related party		47,205		-		47,662
Net cash (used in) provided by financing activities		66,705		-		111,162
Net increase (decrease) in cash		-		43		-
Cash – beginning of period		-		859		-
Cash – end of period	$	-	$	902	$	-
Supplemental disclosures of cash flow information:
Interest paid	$	-	$	-	$	-
Income taxes	$	-	$	-	$	-

See accompanying notes to unaudited financial statements

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SUMMIT NETWORKS INC.

(A Development Stage Company)

NOTES TO UNAUDITED 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. As such, the Company is subject to all risks inherent to the establishment of a start-up business enterprise.

NOTE 2.

BASIS OF PRESENTATION

The accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”).

The Company has a July 31, year-end.

NOTE 3.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a.

Use of estimates

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. There were no significant estimates in the current reporting period.

Due to the limited level of operations, the Company has not had to make material assumptions or estimates other than the assumption that the Company is a going concern.

b.

Fair value of financial instruments

ASC 825, “Disclosures about Fair Value of Financial Instruments”, requires disclosure of fair value information about financial instruments. ASC 820, “Fair Value Measurements” defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of April 30, 2018.

Fair values were assumed to approximate carrying values of on-balance-sheet financial instruments since they are short term in nature. These financial instruments include cash and related party loan payable.

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SUMMIT NETWORKS INC.

(A Development Stage Company)

NOTES TO UNAUDITED FINANCIAL STATEMENTS

NOTE 3.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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 cash equivalents

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.

e.

 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 carry forwards. 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.

f.

Revenue Recognition

The Company will recognize revenue in accordance with ASC topic 605 “Revenue Recognition” - when all goods and services have been performed and delivered, the amounts are readily determinable, and collection is reasonably assured.  The Company has generated $223,910 in revenue since its inception.

g.

Cost of Sales

Amounts that will be recorded as cost of sales relate to direct expenses incurred in order to fulfill orders of our customers. Such costs are recorded and allocated as incurred. Our cost of sales will consist primarily of the cost of product and shipping expenses.

h.

Advertising

The Company expenses its advertising when incurred. There has been $12,498 in advertising expense since inception.

i.

Fixed Assets

Fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, (if any). The Company utilizes straight-line depreciation over the estimated useful life of the asset.

Property – 40 years

Office Equipment – 7 years

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SUMMIT NETWORKS INC.

(A Development Stage Company)

NOTES TO UNAUDITED FINANCIAL STATEMENTS

NOTE 3.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

j.

Recently Issued Accounting Guidance

FASB Simplifies Adoption of New Leases Standard for Certain Land Easements. The FASB has issued Accounting Standards Update (ASU) No. 2018-01, Leases (Topic 842):Land Easement Practical Expedient for Transition to Topic 842, which clarifies the application of the new leases guidance to land easements and eases adoption efforts for some land easements.

ASU 2018-01 is expected to reduce the cost of adopting the new leases standard for certain land easements. It is also an attempt to help ensure that companies can make a successful transition to the standard without compromising the quality of information provided to investors about these transactions.

Land easements (also commonly referred to as rights of way) represent the right to use, access, or cross another entity’s land for a specified purpose. Land easements are used by utility and telecommunications companies, for example, when they need to take a small strip of land, or easement, to bury wires. Not all companies have historically accounted for them as leases.

Stakeholders pointed out that the requirement to evaluate all old and existing land easements, sometimes numbering in the tens of thousands, to determine if they meet the definition of a lease under the new standard could be very costly. They also noted there would be limited benefit to applying this requirement, as many of their land easements would not meet the definition of a lease, or even if they met that definition, many of their easements are prepaid and, therefore, already are recognized on the balance sheet.

The land easements ASU addresses this by:

·

Providing an optional transition practical expedient that, if elected, would not require an organization to reconsider their accounting for existing land easements that are not currently accounted for under the old leases standard; and

·

Clarifying that new or modified land easements should be evaluated under the new leases standard, once an entity has adopted the new standard.

The FASB issued an Accounting Standards Update (ASU) that helps organizations address certain stranded income tax effects in accumulated other comprehensive income (AOCI) resulting from the Tax Cuts and Jobs Act.

ASU No. 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, provides financial statement preparers with an option to reclassify stranded tax effects within AOCI to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act (or portion thereof) is recorded.

The ASU requires financial statement preparers to disclose:

·

A description of the accounting policy for releasing income tax effects from AOCI;

·

Whether they elect to reclassify the stranded income tax effects from the Tax Cuts and Jobs Act; and

·

Information about the other income tax effects that are reclassified.

The amendments affect any organization that is required to apply the provisions of Topic 220, Income Statement—Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by GAAP.

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SUMMIT NETWORKS INC.

(A Development Stage Company)

NOTES TO UNAUDITED FINANCIAL STATEMENTS

NOTE 3.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

j.

Recently Issued Accounting Guidance (Continued)

The amendments are effective for all organizations for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. Organizations should apply the proposed amendments either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized.

FASB Issues Corrections and Improvements to Financial Instruments. The FASB has issued Accounting Standards Update (ASU) No. 2018-03, Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, that clarifies the guidance in ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10), as follows:

·

Issue 1: Equity Securities without a Readily Determinable Fair Value— Discontinuation. The amendment clarifies that an entity measuring an equity security using the measurement alternative may change its measurement approach to a fair value method in accordance with Topic 820,Fair Value Measurement, through an irrevocable election that would apply to that security and all identical or similar investments of the same issuer. Once an entity makes this election, the entity should measure all future purchases of identical or similar investments of the same issuer using a fair value method in accordance with Topic 820.

·

Issue 2: Equity Securities without a Readily Determinable Fair Value— Adjustments. The amendment clarifies that the adjustments made under the measurement alternative are intended to reflect the fair value of the security as of the date that the observable transaction for a similar security took place.

·

Issue 3: Forward Contracts and Purchased Options. The amendment clarifies that remeasuring the entire value of forward contracts and purchased options is required when observable transactions occur on the underlying equity securities.

·

Issue 4: Presentation Requirements for Certain Fair Value Option Liabilities. The amendment clarifies that when the fair value option is elected for a financial liability, the guidance in paragraph 825-10- 45-5 should be applied, regardless of whether the fair value option was elected under either Subtopic 815-15,Derivatives and Hedging— Embedded Derivatives, or 825-10,Financial Instruments— Overall.

·

Issue 5: Fair Value Option Liabilities Denominated in a Foreign Currency. The amendments clarify that for financial liabilities for which the fair value option is elected, the amount of change in fair value that relates to the instrument-specific credit risk should first be measured in the currency of denomination when presented separately from the total change in fair value of the financial liability. Then, both components of the change in the fair value of the liability should be remeasured into the functional currency of the reporting entity using end-of-period spot rates.

·

Issue 6: Transition Guidance for Equity Securities without a Readily Determinable Fair Value. The amendment clarifies that the prospective transition approach for equity securities without a readily determinable fair value in the amendments in ASU No. 2016-01 is meant only for instances in which the measurement alternative is applied. An insurance entity subject to the guidance in Topic 944,Financial Services— Insurance, should apply a prospective transition method when applying the amendments related to equity securities without readily determinable fair values. An insurance entity should apply the selected prospective transition method consistently to the entity’s entire population of equity securities for which the measurement alternative is elected.

For public business entities, ASU 2018-03 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years beginning after June 15, 2018. Public business entities with fiscal years beginning between December 15, 2017, and June 15, 2018, are not required to adopt ASU 2018-03 until the interim period beginning after June 15, 2018, and public business entities with fiscal years beginning between June 15, 2018, and December 15, 2018, are not required to adopt these amendments before adopting the amendments in ASU 2016-01. For all other entities, the effective date is the same as the effective date in ASU 2016-01.

All entities may early adopt ASU 2018-03 for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, as long as they have adopted ASU 2016-01.

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SUMMIT NETWORKS INC.

(A Development Stage Company)

NOTES TO UNAUDITED FINANCIAL STATEMENTS

NOTE 3.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

j.

Recently Issued Accounting Guidance (Continued)

FASB Adds SEC Guidance to the Codification on the Tax Cuts and Jobs Act. The FASB has issued Accounting Standards Update (ASU) No. 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. ASU 2018-05 amends certain SEC material in Topic 740 for the income tax accounting implications of the recently issued Tax Cuts and Jobs Act (Act).

ASU 2018-05 adds the following guidance, among other things, to the FASB Accounting Standards Codification™ regarding the Act:

·

Question 1:If the accounting for certain income tax effects of the Act is not completed by the time a company issues its financial statements that include the reporting period in which the Act was enacted, what amounts should a company include in its financial statements for those income tax effects for which the accounting under Topic 740 is incomplete?

·

Answer 1:In a company’s financial statements that include the reporting period in which the Act was enacted, a company must first reflect the income tax effects of the Act in which the accounting under Topic 740 is complete. These completed amounts would not be provisional amounts. The company would then also report provisional amounts for those specific income tax effects of the Act for which the accounting under Topic 740 will be incomplete but a reasonable estimate can be determined. For any specific income tax effects of the Act for which a reasonable estimate cannot be determined, the company would not report provisional amounts and would continue to apply Topic 740 based on the provisions of the tax laws that were in effect immediately prior to the Act being enacted. For those income tax effects for which a company was not able to determine a reasonable estimate (such that no related provisional amount was reported for the reporting period in which the Act was enacted), the company would report provisional amounts in the first reporting period in which a reasonable estimate can be determined.

·

Question 2: If an entity accounts for certain income tax effects of the Act under a measurement period approach, what disclosures should be provided?

·

Answer 2:The staff believes an entity should include financial statement disclosures to provide information about the material financial reporting impacts of the Act for which the accounting under Topic 740 is incomplete, including:

a)

Qualitative disclosures of the income tax effects of the Act for which the accounting is incomplete;

b)

Disclosures of items reported as provisional amounts;

c)

Disclosures of existing current or deferred tax amounts for which the income tax effects of the Act have not been completed;

d)

The reason why the initial accounting is incomplete;

e)

The additional information that is needed to be obtained, prepared, or analyzed in order to complete the accounting requirements under Topic 740;

f)

The nature and amount of any measurement period adjustments recognized during the reporting period;

g)

The effect of measurement period adjustments on the effective tax rate; and

h)

When the accounting for the income tax effects of the Act has been completed.

ASU 2018-05 is effective upon inclusion in the FASB Codification.

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SUMMIT NETWORKS INC.

(A Development Stage Company)

NOTES TO UNAUDITED FINANCIAL STATEMENTS

NOTE 4.

CONCENTRATIONS

Initial sales are concentrated with limited client. Sales are made without collateral and the credit-related losses are insignificant or non-existent. Accordingly, there is no provision made to include an allowance for doubtful accounts.

NOTE 5.

GOING CONCERN

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

The Company had limited operations during the period from July 8, 2014 (date of inception) to April 30, 2018 resulting in net loss of $121,526.  There is no guarantee that Company will continue to generate revenues. At April 30, 2018, Company had $Nil in cash and there were outstanding liabilities of $75,153. This condition raises substantial doubt about the Company’s 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 company’s current cash of $0 is sufficient to cover the expenses they will incur during the next twelve months.

NOTE 6.

WARRANTS AND OPTIONS

There are no warrants or options outstanding to acquire any additional shares of common.

NOTE 7.

RELATED PARTY TRANSACTIONS

The director of the Company, Mr. Riggs Cheung, 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 April 30, 2018, the amount due to related parties of the Company is $58,422 which is unsecured, non-interest bearing with no specific repayment terms.

During the period ended April 30, 2018, payroll expense of $4,000 was charged with respect to director fee.

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SUMMIT NETWORKS INC.

(A Development Stage Company)

NOTES TO UNAUDITED FINANCIAL STATEMENTS

NOTE 8.

INCOME TAXES

We use the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. 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. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized.

ASC Topic 740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented.

There was no income tax expense for the nine months period ended April 30, 2018 and 2017. The rate was as follow;

	April 30, 2018	April 30, 2017
US Federal Statutory Tax Rate *	34.0%	15.0%
Nevada State & Local Tax Rate	0.0%	0.0%
Net Operating Loss Carryforward	(0.0)%	(0.0)%
Effective Tax Rate	15.0%	15.0%

*for the Financial year 2018 and onward will reduce to 25%

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SUMMIT NETWORKS INC.

(A Development Stage Company)

NOTES TO UNAUDITED FINANCIAL STATEMENTS

NOTE 9.

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.  

As of April 30, 2018, the stockholders’ equity section of the Company contains Common stock, $ 0.001 par value: 75,000,000 shares authorized; 5,649,999 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.

On November 28, 2017 and on March 14, 2018, the Company issued a total of 649,999 shares of common stock to one independent investor and two shareholders for cash consideration totally of $19,500.  The purchase price for the common stocks was $0.03 per common share.

As of April 30, 2018, the Company had 5,649,999 shares of common stock issued and outstanding.

NOTE 10.

PROPERTY AND EQUIPMENT

The Company currently has property consisting of an office and shop for $8,000 located at Jaunciema gatve 40, Ziemeļu rajons, Rīga, LV-1023, Latvia. and office equipment for $9,750.  Depreciation expense for Latvia property and office equipment was $50 and $349 respectively for the three months period ended April 30, 2018.  

NOTE 11.

COMMITMENTS AND CONTINGENCIES

On July 30, 2014, the Company entered into Commercial Lease Agreement for three years that expires on July 31, 2017 for $1,000 a month as the Company’s office space. The rent expense for the years ended July 31, 2017, 2016 and 2015 was $0 due to a free rent promotion offered by the property manager based upon the Company committing to a new lease beginning in August 2018, which has not been signed or agreed upon yet.

NOTE 12.

LEGAL MATTERS

The Company has no known legal issues pending.

NOTE 13.

SUBSEQUENT EVENTS

On May 8, 2018, the Company entered into a Share Purchase agreement with Mr. Yum Yin Wong and Dennis Hang Cheung on acquisition of all the shares of Real Capital Limited, a Hong Kong registered company.  The purchase consideration in cash for all the outstanding shares of Real Capital Limited is total of US$1,910 (HK$15,000).  

The Company has evaluated events subsequent through the date these financial statements have been issued to assess the need for potential recognition or disclosure in this report. Such events were evaluated through the date these financial statements were available to be issued. Based upon this evaluation, except the issued disclosed above, it was determined that no other subsequent events occurred that require recognition or disclosure in the financial statements.  

-14-

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

The information contained in this report, including in the documents incorporated by reference into this report, includes some statements that are not purely historical and that are “forward-looking statements.” Such forward-looking statements include, but are not limited to, statements regarding our Company and management’s expectations, hopes, beliefs, intentions or strategies regarding the future, including our financial condition, results of operations, and financial performance. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipates,” “believes,” “continue,” “could,” “estimates,” “expects,” “intends,” “may,” “might,” “plans,” “possible,” “potential,” “predicts,” “projects,” “seeks,” “should,” “will,” “would” and similar expressions, or the negatives of such terms, may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

The forward-looking statements contained in this report are based on current expectations and beliefs concerning future developments and the potential effects on the parties and the transaction. There can be no assurance that future developments actually affecting us will be those anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the parties’ control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements.

Results of Operations

We have generated $223,910 in revenues since our inception on July 8, 2014.  Our cost of goods sold was $163,257 resulting in a gross profit of $60,653.  During the period from inception to April 30, 2018, our operating expenses were comprised of selling, general and administrative expenses of $183,658. With the provision for income tax benefits of $1,478, resulted to a net loss of $121,526. Our selling, general and administrative expenses consist of mainly professional fees and depreciation expenses.

During the three months ended April 30, 2018 and 2017, we generated revenues of $Nil and $8,010, with cost of goods sold being $Nil and $6,349, resulting in gross profits of $Nil and $1,661, respectively.  Our operating expenses for the same three month periods were comprised of selling, general and administrative expenses of $15,720 and $1,320, respectively, resulting in net loss of $15,720 and a net profit of $341. Our selling, general and administrative expenses for the period consisted of mainly professional fees and depreciation expenses.

During the nine months ended April 30, 2018 and 2017, we generated revenues of $Nil and $28,193, with cost of goods sold being $Nil and $21,266, resulting in gross profits of $Nil and $6,927, respectively.  Our operating expenses for the same nine month periods were comprised of selling, general and administrative expenses of $80,077 and $9,559, respectively, resulting in net loss of $80,077 and $2,632. Our selling, general and administrative expenses for the period consisted of mainly professional fees and depreciation expenses.

Our total assets April 30, 2018 were $17,127, which was $Nil in cash, $4,556 in receivable of escrow account, $1,000 in other assets and $11,571 in property and equipment.  We currently anticipate that our legal and accounting fees over the next 12 months, as result of being a reporting company with the SEC and more capital financing activities occurred, will be approximately $40,000.

We received the initial equity funding of $4,000 from our director and previous officer who purchased 4,000,000 shares of our common stock at $0.001 per share.  

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.

-15-

On November 28, 2017 and on March 14, 2018, the Company issued a total of 649,999 shares of common stock to one independent investor and two shareholders for cash consideration totally of $19,500.  The purchase price for the Securities was $0.03 per common share.

As of April 30, 2018 the Company had 5,649,999 shares of common stock issued and outstanding.

As of April 30, 2018, there is a total of $58,422 in amount due to related parties owed by the company to directors for expenses that had paid on behalf of the company.  The amount is interest free and payable on demand.

Plan of Operation for the next 12 months

Because we were not able to raise sufficient capital to execute our full business plan, we are now engaged in discussions with third parties regarding alternative directions for the Company that could enhance shareholder value. As of the date of filing this Report on Form 10Q, we have not entered into any definitive agreement to change our direction. The business plan of our company assumes that we will continue with our business as originally planned. However, as mentioned above, we are in discussions that could lead to another direction for the Company.

Even if we are able to obtain sufficient number of service agreements at the end of the twelve months’ period, there is no guarantee that we will be able to attract and more importantly retain enough customers to justify our expenditures.  If we are unable to generate a significant amount of revenue and to successfully protect ourselves against those risks, then it would materially affect our financial condition.

Based on our current operating plan, we believe that we cannot guarantee for any increase in our revenue from selling our glass craft products in the next quarter and coming twelve months.   We may need to obtain additional financing to operate our business for the next twelve months.  Additional financing, whether through public or private equity or debt financing, arrangements  with the security holder or other sources to fund operations, may not be available, or if available, may be on terms unacceptable to us.

Liquidity and Capital Resources

At April 30, 2018 we had $Nil in cash and there were outstanding liabilities of $75,153. As at July 31, 2017, we had $Nil in cash and the outstanding liabilities were $11,217. The working capital deficits were $70,597 and $11,217, for April 30, 2018 and July 31, 2017, respectively. Our director has verbally agreed to continue to loan the company funds for operating expenses in a limited scenario, but he has no legal obligation to do so.  

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

-16-

ITEM 3. QUANTITATIVE AND QUALITAIVE DISCLOSURE ABOUT MARKET RISK

Pursuant to Item 305(e) of Regulation S-K (§ 229.305(e)), the Company is not required to provide the information required by this Item as it is a “smaller reporting company,” as defined by Rule 229.10(f)(1).

ITEM 4.     CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

Management maintains “disclosure controls and procedures,” as such term is defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”), that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

In connection with the preparation of this quarterly report on Form 10-Q, an evaluation was carried out by management, with the participation of the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of April 30, 2018.

Based on that evaluation, management concluded, as of the end of the period covered by this report, that our disclosure controls and procedures were effective in recording, processing, summarizing, and reporting information required to be disclosed, within the time periods specified in the Securities and Exchange Commission’s rules and forms.

Changes in Internal Controls over Financial Reporting

As of the end of the period covered by this report, there have been no changes in the internal controls over financial reporting during the quarter ended April 30, 2018, that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting subsequent to the date of management’s last evaluation.

-17-

PART II. OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

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

ITEM 1A:  RISK FACTORS

Not applicable as a smaller reporting company.

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

None

ITEM 3:  DEFAULTS UPON SENIOR SECURITIES.

None

ITEM 4:  MINE SAFETY DISCLOSURES

Not applicable

ITEM 5.  OTHER INFORMATION

None

ITEM 6.     EXHIBITS.

The following exhibits are included with this quarterly filing:

Exhibit No.

Description

31.1

Sec. 302 Certification of Chief Executive Officer and Chief Financial Officer

32.1

Sec. 906 Certification of Chief Executive Officer and Chief Financial Officer

101      

Interactive data files pursuant to Rule 405 of Regulation S-T

-18-

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Summit Networks Inc.

Registrant

Date:  June 18, 2018

By /s/ Riggs Cheung

__________________________

Riggs Cheung

Chief Executive Officer and

Chief Financial Officer

-19-

EX-31

Exhibit 31.1

CERTIFICATION

I, Riggs Cheung, certify that:

1. I have reviewed this report on Form 10-Q.

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 an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(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 registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: June 18, 2018

/s/ Riggs Cheung
Riggs Cheung
Chief Executive Officer &

Chief Financial Officer

XML

Document and Entity Information - shares	9 Months Ended
	Apr. 30, 2018	Jun. 18, 2018
Document And Entity Information
Entity Registrant Name	Summit Networks Inc.
Entity Central Index Key	0001619096
Document Type	10-Q
Document Period End Date	Apr. 30, 2018
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 Common Stock, Shares Outstanding		5,649,999
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2018

XML

BALANCE SHEETS - USD ($)	Apr. 30, 2018	Jul. 31, 2017
Current assets:
Cash and cash equivalents
Receivable- Escrow account	4,556
Total current assets	4,556
Non-current assets
Other Assets	1,000	1,000
Property & Office Equipment, net	11,571	12,768
Deferred Tax Asset
Total non-current assets	12,571	13,768
TOTAL ASSETS	17,127	13,768
Current liabilities:
Accounts payable
Amount due to related party	58,422	11,217
Accrued expenses	16,732
Total current liabilities	75,153	11,217
TOTAL LIABILITIES	75,153	11,217
Stockholders' equity
Common stock, $0.001 par value, 75,000,000 shares authorized; none issued and outstanding authorized; 5,649,999 and 5,000,000 shares issued and outstanding, as at April 30, 2018 and July 31, 2017 respectively	5,650	5,000
Additional paid-in capital	57,850	39,000
(Accumulated deficit) during development stage	(121,526)	(41,449)
TOTAL STOCKHOLDERS' EQUITY	(58,026)	2,551
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 17,127	$ 13,768

XML

BALANCE SHEETS (Parenthetical) - $ / shares	Apr. 30, 2018	Jul. 31, 2017
Stockholders' equity
Common Stock Par Value	$ 0.001	$ 0.001
Common Stock Shares Authorized	75,000,000	75,000,000
Common Stock Shares Issued	5,649,999	5,000,000
Common Stock Shares Outstanding	5,649,999	5,000,000

XML

STATEMENT OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended		46 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018
Statement Of Operations
Sales		$ 8,010		$ 28,193	$ 223,910
Cost of sales		6,349		21,266	163,257
Gross Profit		1,661		6,927	60,653
Selling, General & Administrative Expenses	15,720	1,320	80,077	9,559	183,658
(Loss) /Income from operations	(15,720)	341	(80,077)	(2,632)	(123,004)
Other income/ (expenses)
(Loss) /Income before income taxes	(15,720)	341	(80,077)	(2,632)	(123,004)
Income taxes benefit					1,478
Net (Loss)/Income	$ (15,720)	$ 341	$ (80,077)	$ (2,632)	$ (121,526)
Earnings (loss) per share of common stock - Basic	$ (0.29)	$ 0.01	$ (1.54)	$ (0.05)
Earnings (loss) per share of common stock - Diluted	$ (0.29)	$ 0.01	$ (1.54)	$ (0.05)
Weighted average number of common stock - Basic	5,461,235	5,000,000	5,209,890	5,000,000
Weighted average number of common stock - Diluted	5,461,235	5,000,000	5,209,890	5,000,000

XML

Statement of Stockholders' Equity - USD ($)	Common Stock	Additional Paid-In Capital	Accumulated Deficit during Development Stage	Subscription Receviable	Total
Beginning Balance, Shares at Jul. 07, 2014
Beginning Balance, Amount at Jul. 07, 2014
Stock issued on July 23, 2014 @$0.001 per share, Shares	4,000,000
Stock issued on July 23, 2014 @$0.001 per share, Amount	$ 4,000				4,000
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. 07, 2014
Beginning Balance, Amount at Jul. 07, 2014
Net loss					(123,004)
Ending Balance, Shares at Apr. 30, 2018	5,649,999
Ending Balance, Amount at Apr. 30, 2018	$ 5,650	57,850	(121,526)		(58,026)
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 on Jan 29, 2015 @$0.04 per share, Shares	1,000,000
Stock issued on Jan 29, 2015 @$0.04 per share, Amount	$ 1,000	39,000			40,000
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
Net loss			(9,447)		(9,447)
Ending Balance, Shares at Jul. 31, 2016	5,000,000
Ending Balance, Amount at Jul. 31, 2016	$ 5,000	39,000	(27,259)		16,741
Net loss			(14,190)		(14,190)
Ending Balance, Shares at Jul. 31, 2017	5,000,000
Ending Balance, Amount at Jul. 31, 2017	$ 5,000	39,000	(41,449)		2,551
Stock issued on Nov 28, 2017 @$0.001 per share, Shares	250,000
Stock issued on Nov 28, 2017 @$0.001 per share, Amount	$ 250	7,250			7,500
Stock issued on March 15, 2018 @$0.001 per share, Shares	399,999
Stock issued on March 15, 2018 @$0.001 per share, Amount	$ 400	11,600			12,000
Net loss			(80,077)		(80,077)
Ending Balance, Shares at Apr. 30, 2018	5,649,999
Ending Balance, Amount at Apr. 30, 2018	$ 5,650	$ 57,850	$ (121,526)		$ (58,026)

XML

Statement of Cash Flows (Unaudited) - USD ($)	9 Months Ended		46 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018
Cash flows from operating activities:
Net (loss) income	$ (80,077)	$ (2,632)	$ (121,526)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation Expense	1,197	1,197	6,179
Provision (benefit) for deferred taxes		1,478	(1,478)
Changes in operating assets and liabilities:
Receivable - Escrow account	(4,556)		(4,556)
Other assets			(1,000)
Accounts payable			12,238
Accrued expenses	16,732		16,732
Net cash (used in) provided by operating activities	(66,705)	43	(93,412)
Cash flows from investing activities:
Acquisition of Property & Equipment			(17,750)
Net cash (used in) investing activities			(17,750)
Cash flows from financing activities:
Issuance of common stock	19,500		63,500
Amounts due from related party	47,205		47,662
Net cash (used in) provided by financing activities	66,705		111,162
Net increase (decrease) in cash		43
Cash - beginning of period		859
Cash - end of period		902
Supplemental disclosures of cash flow information:
Interest paid
Income taxes

XML

ORGANIZATION AND DESCRIPTION OF BUSINESS

9 Months Ended

Apr. 30, 2018

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. As such, the Company is subject to all risks inherent to the establishment of a start-up business enterprise.

XML

BASIS OF PRESENTATION

9 Months Ended

Apr. 30, 2018

Notes to Financial Statements

NOTE 2. BASIS OF PRESENTATION

The accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”).

The Company has a July 31, year-end.

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Apr. 30, 2018

Notes to Financial Statements

NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Use of estimates

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. There were no significant estimates in the current reporting period.

Due to the limited level of operations, the Company has not had to make material assumptions or estimates other than the assumption that the Company is a going concern.

b. Fair value of financial instruments

ASC 825, “Disclosures about Fair Value of Financial Instruments”, requires disclosure of fair value information about financial instruments. ASC 820, “Fair Value Measurements” defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of April 30, 2018.

Fair values were assumed to approximate carrying values of on-balance-sheet financial instruments since they are short term in nature. These financial instruments include cash and related party loan payable.

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 cash equivalents

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.

e. 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 carry forwards. 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.

f. Revenue Recognition

The Company will recognize revenue in accordance with ASC topic 605 “Revenue Recognition” - when all goods and services have been performed and delivered, the amounts are readily determinable, and collection is reasonably assured. The Company has generated $223,910 in revenue since its inception.

g. Cost of Sales

Amounts that will be recorded as cost of sales relate to direct expenses incurred in order to fulfill orders of our customers. Such costs are recorded and allocated as incurred. Our cost of sales will consist primarily of the cost of product and shipping expenses.

h. Advertising

The Company expenses its advertising when incurred. There has been $12,498 in advertising expense since inception.

I. Fixed Assets

Fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, (if any). The Company utilizes straight-line depreciation over the estimated useful life of the asset.

Property – 40 years

Office Equipment – 7 years

j. Recently Issued Accounting Guidance

FASB Simplifies Adoption of New Leases Standard for Certain Land Easements. The FASB has issued Accounting Standards Update (ASU) No. 2018-01, Leases (Topic 842):Land Easement Practical Expedient for Transition to Topic 842, which clarifies the application of the new leases guidance to land easements and eases adoption efforts for some land easements.

ASU 2018-01 is expected to reduce the cost of adopting the new leases standard for certain land easements. It is also an attempt to help ensure that companies can make a successful transition to the standard without compromising the quality of information provided to investors about these transactions.

Land easements (also commonly referred to as rights of way) represent the right to use, access, or cross another entity’s land for a specified purpose. Land easements are used by utility and telecommunications companies, for example, when they need to take a small strip of land, or easement, to bury wires. Not all companies have historically accounted for them as leases.

Stakeholders pointed out that the requirement to evaluate all old and existing land easements, sometimes numbering in the tens of thousands, to determine if they meet the definition of a lease under the new standard could be very costly. They also noted there would be limited benefit to applying this requirement, as many of their land easements would not meet the definition of a lease, or even if they met that definition, many of their easements are prepaid and, therefore, already are recognized on the balance sheet.

The land easements ASU addresses this by:

· Providing an optional transition practical expedient that, if elected, would not require an organization to reconsider their accounting for existing land easements that are not currently accounted for under the old leases standard; and

· Clarifying that new or modified land easements should be evaluated under the new leases standard, once an entity has adopted the new standard.

The FASB issued an Accounting Standards Update (ASU) that helps organizations address certain stranded income tax effects in accumulated other comprehensive income (AOCI) resulting from the Tax Cuts and Jobs Act.

ASU No. 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, provides financial statement preparers with an option to reclassify stranded tax effects within AOCI to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act (or portion thereof) is recorded.

The ASU requires financial statement preparers to disclose:

· A description of the accounting policy for releasing income tax effects from AOCI;

· Whether they elect to reclassify the stranded income tax effects from the Tax Cuts and Jobs Act; and

· Information about the other income tax effects that are reclassified.

The amendments affect any organization that is required to apply the provisions of Topic 220, Income Statement—Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by GAAP.

The amendments are effective for all organizations for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. Organizations should apply the proposed amendments either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized.

FASB Issues Corrections and Improvements to Financial Instruments. The FASB has issued Accounting Standards Update (ASU) No. 2018-03, Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, that clarifies the guidance in ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10), as follows:

· Issue 1: Equity Securities without a Readily Determinable Fair Value— Discontinuation. The amendment clarifies that an entity measuring an equity security using the measurement alternative may change its measurement approach to a fair value method in accordance with Topic 820,Fair Value Measurement, through an irrevocable election that would apply to that security and all identical or similar investments of the same issuer. Once an entity makes this election, the entity should measure all future purchases of identical or similar investments of the same issuer using a fair value method in accordance with Topic 820.

· Issue 2: Equity Securities without a Readily Determinable Fair Value— Adjustments. The amendment clarifies that the adjustments made under the measurement alternative are intended to reflect the fair value of the security as of the date that the observable transaction for a similar security took place.

· Issue 3: Forward Contracts and Purchased Options. The amendment clarifies that remeasuring the entire value of forward contracts and purchased options is required when observable transactions occur on the underlying equity securities.

· Issue 4: Presentation Requirements for Certain Fair Value Option Liabilities. The amendment clarifies that when the fair value option is elected for a financial liability, the guidance in paragraph 825-10- 45-5 should be applied, regardless of whether the fair value option was elected under either Subtopic 815-15,Derivatives and Hedging— Embedded Derivatives, or 825-10,Financial Instruments— Overall.

· Issue 5: Fair Value Option Liabilities Denominated in a Foreign Currency. The amendments clarify that for financial liabilities for which the fair value option is elected, the amount of change in fair value that relates to the instrument-specific credit risk should first be measured in the currency of denomination when presented separately from the total change in fair value of the financial liability. Then, both components of the change in the fair value of the liability should be remeasured into the functional currency of the reporting entity using end-of-period spot rates.

· Issue 6: Transition Guidance for Equity Securities without a Readily Determinable Fair Value. The amendment clarifies that the prospective transition approach for equity securities without a readily determinable fair value in the amendments in ASU No. 2016-01 is meant only for instances in which the measurement alternative is applied. An insurance entity subject to the guidance in Topic 944,Financial Services— Insurance, should apply a prospective transition method when applying the amendments related to equity securities without readily determinable fair values. An insurance entity should apply the selected prospective transition method consistently to the entity’s entire population of equity securities for which the measurement alternative is elected.

For public business entities, ASU 2018-03 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years beginning after June 15, 2018. Public business entities with fiscal years beginning between December 15, 2017, and June 15, 2018, are not required to adopt ASU 2018-03 until the interim period beginning after June 15, 2018, and public business entities with fiscal years beginning between June 15, 2018, and December 15, 2018, are not required to adopt these amendments before adopting the amendments in ASU 2016-01. For all other entities, the effective date is the same as the effective date in ASU 2016-01.

All entities may early adopt ASU 2018-03 for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, as long as they have adopted ASU 2016-01.

FASB Adds SEC Guidance to the Codification on the Tax Cuts and Jobs Act. The FASB has issued Accounting Standards Update (ASU) No. 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. ASU 2018-05 amends certain SEC material in Topic 740 for the income tax accounting implications of the recently issued Tax Cuts and Jobs Act (Act).

ASU 2018-05 adds the following guidance, among other things, to the FASB Accounting Standards Codification™ regarding the Act:

· Question 1:If the accounting for certain income tax effects of the Act is not completed by the time a company issues its financial statements that include the reporting period in which the Act was enacted, what amounts should a company include in its financial statements for those income tax effects for which the accounting under Topic 740 is incomplete?

· Answer 1:In a company’s financial statements that include the reporting period in which the Act was enacted, a company must first reflect the income tax effects of the Act in which the accounting under Topic 740 is complete. These completed amounts would not be provisional amounts. The company would then also report provisional amounts for those specific income tax effects of the Act for which the accounting under Topic 740 will be incomplete but a reasonable estimate can be determined. For any specific income tax effects of the Act for which a reasonable estimate cannot be determined, the company would not report provisional amounts and would continue to apply Topic 740 based on the provisions of the tax laws that were in effect immediately prior to the Act being enacted. For those income tax effects for which a company was not able to determine a reasonable estimate (such that no related provisional amount was reported for the reporting period in which the Act was enacted), the company would report provisional amounts in the first reporting period in which a reasonable estimate can be determined.

· Question 2: If an entity accounts for certain income tax effects of the Act under a measurement period approach, what disclosures should be provided?

· Answer 2:The staff believes an entity should include financial statement disclosures to provide information about the material financial reporting impacts of the Act for which the accounting under Topic 740 is incomplete, including:

a)	Qualitative disclosures of the income tax effects of the Act for which the accounting is incomplete;
b)	Disclosures of items reported as provisional amounts;
c)	Disclosures of existing current or deferred tax amounts for which the income tax effects of the Act have not been completed;
d)	The reason why the initial accounting is incomplete;
e)	The additional information that is needed to be obtained, prepared, or analyzed in order to complete the accounting requirements under Topic 740;
f)	The nature and amount of any measurement period adjustments recognized during the reporting period;
g)	The effect of measurement period adjustments on the effective tax rate; and
h)	When the accounting for the income tax effects of the Act has been completed.

ASU 2018-05 is effective upon inclusion in the FASB Codification.

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CONCENTRATIONS

9 Months Ended

Apr. 30, 2018

Notes to Financial Statements

NOTE 4. CONCENTRATIONS

Initial sales are concentrated with limited client. Sales are made without collateral and the credit-related losses are insignificant or non-existent. Accordingly, there is no provision made to include an allowance for doubtful accounts.

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GOING CONCERN

9 Months Ended

Apr. 30, 2018

Notes to Financial Statements

NOTE 5. GOING CONCERN

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

The Company had limited operations during the period from July 8, 2014 (date of inception) to April 30, 2018 resulting in net loss of $121,526. There is no guarantee that Company will continue to generate revenues. At April 30, 2018, Company had $Nil in cash and there were outstanding liabilities of $75,153. This condition raises substantial doubt about the Company’s 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 company’s current cash of $0 is sufficient to cover the expenses they will incur during the next twelve months.

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WARRANTS AND OPTIONS

9 Months Ended

Apr. 30, 2018

Notes to Financial Statements

NOTE 6. WARRANTS AND OPTIONS

There are no warrants or options outstanding to acquire any additional shares of common.

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RELATED PARTY TRANSACTIONS

9 Months Ended

Apr. 30, 2018

Notes to Financial Statements

NOTE 7. RELATED PARTY TRANSACTIONS

The director of the Company, Mr. Riggs Cheung, 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 April 30, 2018, the amount due to related parties of the Company is $58,422 which is unsecured, non-interest bearing with no specific repayment terms.

During the period ended April 30, 2018, payroll expense of $4,000 was charged with respect to director fee.

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INCOME TAXES

9 Months Ended

Apr. 30, 2018

Notes to Financial Statements

NOTE 8. INCOME TAXES

We use the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. 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. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized.

ASC Topic 740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented.

There was no income tax expense for the nine months period ended April 30, 2018 and 2017. The rate was as follow;

	April 30, 2018			April 30, 2017
US Federal Statutory Tax Rate *		34.0	%		15.0	%
Nevada State & Local Tax Rate		0.0	%		0.0	%
Net Operating Loss Carryforward		(0.0	)%		(0.0	)%
Effective Tax Rate		15.0	%		15.0	%

*for the Financial year 2018 and onward will reduce to 25%

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STOCKHOLDERS' EQUITY

9 Months Ended

Apr. 30, 2018

Notes to Financial Statements

NOTE 9. 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.

As of April 30, 2018, the stockholders’ equity section of the Company contains Common stock, $ 0.001 par value: 75,000,000 shares authorized; 5,649,999 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.

On November 28, 2017 and on March 14, 2018, the Company issued a total of 649,999 shares of common stock to one independent investor and two shareholders for cash consideration totally of $19,500. The purchase price for the common stocks was $0.03 per common share.

As of April 30, 2018, the Company had 5,649,999 shares of common stock issued and outstanding.

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PROPERTY AND EQUIPMENT

9 Months Ended

Apr. 30, 2018

Notes to Financial Statements

NOTE 10. PROPERTY AND EQUIPMENT

The Company currently has property consisting of an office and shop for $8,000 located at Jaunciema gatve 40, Ziemeļu rajons, Rīga, LV-1023, Latvia. and office equipment for $9,750. Depreciation expense for Latvia property and office equipment was $50 and $349 respectively for the three months period ended April 30, 2018.

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COMMITMENTS AND CONTINGENCIES

9 Months Ended

Apr. 30, 2018

Notes to Financial Statements

NOTE 11. COMMITMENTS AND CONTINGENCIES

On July 30, 2014, the Company entered into Commercial Lease Agreement for three years that expires on July 31, 2017 for $1,000 a month as the Company’s office space. The rent expense for the years ended July 31, 2017, 2016 and 2015 was $0 due to a free rent promotion offered by the property manager based upon the Company committing to a new lease beginning in August 2018, which has not been signed or agreed upon yet.

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LEGAL MATTERS

9 Months Ended

Apr. 30, 2018

Notes to Financial Statements

NOTE 12. LEGAL MATTERS

The Company has no known legal issues pending.

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SUBSEQUENT EVENTS

9 Months Ended

Apr. 30, 2018

Notes to Financial Statements

NOTE 13. SUBSEQUENT EVENTS

On May 8, 2018, the Company entered into a Share Purchase agreement with Mr. Yum Yin Wong and Dennis Hang Cheung on acquisition of all the shares of Real Capital Limited, a Hong Kong registered company. The purchase consideration in cash for all the outstanding shares of Real Capital Limited is total of US$1,910 (HK$15,000).

The Company has evaluated events subsequent through the date these financial statements have been issued to assess the need for potential recognition or disclosure in this report. Such events were evaluated through the date these financial statements were available to be issued. Based upon this evaluation, except the issued disclosed above, it was determined that no other subsequent events occurred that require recognition or disclosure in the financial statements.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Apr. 30, 2018

Summary Of Significant Accounting Policies Policies

Use of Estimates

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. There were no significant estimates in the current reporting period.

Due to the limited level of operations, the Company has not had to make material assumptions or estimates other than the assumption that the Company is a going concern.

Fair Value of Financial Instruments

ASC 825, “Disclosures about Fair Value of Financial Instruments”, requires disclosure of fair value information about financial instruments. ASC 820, “Fair Value Measurements” defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of April 30, 2018.

Fair values were assumed to approximate carrying values of on-balance-sheet financial instruments since they are short term in nature. These financial instruments include cash and related party loan payable.

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.

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 carry forwards. 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 will recognize revenue in accordance with ASC topic 605 “Revenue Recognition” - when all goods and services have been performed and delivered, the amounts are readily determinable, and collection is reasonably assured. The Company has generated $223,910 in revenue since its inception.

Cost of Sales

Amounts that will be recorded as cost of sales relate to direct expenses incurred in order to fulfill orders of our customers. Such costs are recorded and allocated as incurred. Our cost of sales will consist primarily of the cost of product and shipping expenses.

Advertising

The Company expenses its advertising when incurred. There has been $12,498 in advertising expense since inception.

Fixed Assets

Fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, (if any). The Company utilizes straight-line depreciation over the estimated useful life of the asset.

Property – 40 years

Office Equipment – 7 years

New Accounting Pronouncements

FASB Simplifies Adoption of New Leases Standard for Certain Land Easements. The FASB has issued Accounting Standards Update (ASU) No. 2018-01, Leases (Topic 842):Land Easement Practical Expedient for Transition to Topic 842, which clarifies the application of the new leases guidance to land easements and eases adoption efforts for some land easements.

ASU 2018-01 is expected to reduce the cost of adopting the new leases standard for certain land easements. It is also an attempt to help ensure that companies can make a successful transition to the standard without compromising the quality of information provided to investors about these transactions.

Land easements (also commonly referred to as rights of way) represent the right to use, access, or cross another entity’s land for a specified purpose. Land easements are used by utility and telecommunications companies, for example, when they need to take a small strip of land, or easement, to bury wires. Not all companies have historically accounted for them as leases.

Stakeholders pointed out that the requirement to evaluate all old and existing land easements, sometimes numbering in the tens of thousands, to determine if they meet the definition of a lease under the new standard could be very costly. They also noted there would be limited benefit to applying this requirement, as many of their land easements would not meet the definition of a lease, or even if they met that definition, many of their easements are prepaid and, therefore, already are recognized on the balance sheet.

The land easements ASU addresses this by:

· Providing an optional transition practical expedient that, if elected, would not require an organization to reconsider their accounting for existing land easements that are not currently accounted for under the old leases standard; and

· Clarifying that new or modified land easements should be evaluated under the new leases standard, once an entity has adopted the new standard.

The FASB issued an Accounting Standards Update (ASU) that helps organizations address certain stranded income tax effects in accumulated other comprehensive income (AOCI) resulting from the Tax Cuts and Jobs Act.

ASU No. 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, provides financial statement preparers with an option to reclassify stranded tax effects within AOCI to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act (or portion thereof) is recorded.

The ASU requires financial statement preparers to disclose:

· A description of the accounting policy for releasing income tax effects from AOCI;

· Whether they elect to reclassify the stranded income tax effects from the Tax Cuts and Jobs Act; and

· Information about the other income tax effects that are reclassified.

The amendments affect any organization that is required to apply the provisions of Topic 220, Income Statement—Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by GAAP.

The amendments are effective for all organizations for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. Organizations should apply the proposed amendments either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized.

FASB Issues Corrections and Improvements to Financial Instruments. The FASB has issued Accounting Standards Update (ASU) No. 2018-03, Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, that clarifies the guidance in ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10), as follows:

· Issue 1: Equity Securities without a Readily Determinable Fair Value— Discontinuation. The amendment clarifies that an entity measuring an equity security using the measurement alternative may change its measurement approach to a fair value method in accordance with Topic 820,Fair Value Measurement, through an irrevocable election that would apply to that security and all identical or similar investments of the same issuer. Once an entity makes this election, the entity should measure all future purchases of identical or similar investments of the same issuer using a fair value method in accordance with Topic 820.

· Issue 2: Equity Securities without a Readily Determinable Fair Value— Adjustments. The amendment clarifies that the adjustments made under the measurement alternative are intended to reflect the fair value of the security as of the date that the observable transaction for a similar security took place.

· Issue 3: Forward Contracts and Purchased Options. The amendment clarifies that remeasuring the entire value of forward contracts and purchased options is required when observable transactions occur on the underlying equity securities.

· Issue 4: Presentation Requirements for Certain Fair Value Option Liabilities. The amendment clarifies that when the fair value option is elected for a financial liability, the guidance in paragraph 825-10- 45-5 should be applied, regardless of whether the fair value option was elected under either Subtopic 815-15,Derivatives and Hedging— Embedded Derivatives, or 825-10,Financial Instruments— Overall.

· Issue 5: Fair Value Option Liabilities Denominated in a Foreign Currency. The amendments clarify that for financial liabilities for which the fair value option is elected, the amount of change in fair value that relates to the instrument-specific credit risk should first be measured in the currency of denomination when presented separately from the total change in fair value of the financial liability. Then, both components of the change in the fair value of the liability should be remeasured into the functional currency of the reporting entity using end-of-period spot rates.

· Issue 6: Transition Guidance for Equity Securities without a Readily Determinable Fair Value. The amendment clarifies that the prospective transition approach for equity securities without a readily determinable fair value in the amendments in ASU No. 2016-01 is meant only for instances in which the measurement alternative is applied. An insurance entity subject to the guidance in Topic 944,Financial Services— Insurance, should apply a prospective transition method when applying the amendments related to equity securities without readily determinable fair values. An insurance entity should apply the selected prospective transition method consistently to the entity’s entire population of equity securities for which the measurement alternative is elected.

For public business entities, ASU 2018-03 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years beginning after June 15, 2018. Public business entities with fiscal years beginning between December 15, 2017, and June 15, 2018, are not required to adopt ASU 2018-03 until the interim period beginning after June 15, 2018, and public business entities with fiscal years beginning between June 15, 2018, and December 15, 2018, are not required to adopt these amendments before adopting the amendments in ASU 2016-01. For all other entities, the effective date is the same as the effective date in ASU 2016-01.

All entities may early adopt ASU 2018-03 for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, as long as they have adopted ASU 2016-01.

FASB Adds SEC Guidance to the Codification on the Tax Cuts and Jobs Act. The FASB has issued Accounting Standards Update (ASU) No. 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. ASU 2018-05 amends certain SEC material in Topic 740 for the income tax accounting implications of the recently issued Tax Cuts and Jobs Act (Act).

ASU 2018-05 adds the following guidance, among other things, to the FASB Accounting Standards Codification™ regarding the Act:

· Question 1:If the accounting for certain income tax effects of the Act is not completed by the time a company issues its financial statements that include the reporting period in which the Act was enacted, what amounts should a company include in its financial statements for those income tax effects for which the accounting under Topic 740 is incomplete?

· Answer 1:In a company’s financial statements that include the reporting period in which the Act was enacted, a company must first reflect the income tax effects of the Act in which the accounting under Topic 740 is complete. These completed amounts would not be provisional amounts. The company would then also report provisional amounts for those specific income tax effects of the Act for which the accounting under Topic 740 will be incomplete but a reasonable estimate can be determined. For any specific income tax effects of the Act for which a reasonable estimate cannot be determined, the company would not report provisional amounts and would continue to apply Topic 740 based on the provisions of the tax laws that were in effect immediately prior to the Act being enacted. For those income tax effects for which a company was not able to determine a reasonable estimate (such that no related provisional amount was reported for the reporting period in which the Act was enacted), the company would report provisional amounts in the first reporting period in which a reasonable estimate can be determined.

· Question 2: If an entity accounts for certain income tax effects of the Act under a measurement period approach, what disclosures should be provided?

· Answer 2:The staff believes an entity should include financial statement disclosures to provide information about the material financial reporting impacts of the Act for which the accounting under Topic 740 is incomplete, including:

a)	Qualitative disclosures of the income tax effects of the Act for which the accounting is incomplete;
b)	Disclosures of items reported as provisional amounts;
c)	Disclosures of existing current or deferred tax amounts for which the income tax effects of the Act have not been completed;
d)	The reason why the initial accounting is incomplete;
e)	The additional information that is needed to be obtained, prepared, or analyzed in order to complete the accounting requirements under Topic 740;
f)	The nature and amount of any measurement period adjustments recognized during the reporting period;
g)	The effect of measurement period adjustments on the effective tax rate; and
h)	When the accounting for the income tax effects of the Act has been completed.

ASU 2018-05 is effective upon inclusion in the FASB Codification.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Apr. 30, 2018

Summary Of Significant Accounting Policies Tables

Fixed Assets

Property – 40 years

Office Equipment – 7 years

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INCOME TAXES (Tables)

9 Months Ended

Apr. 30, 2018

Income Taxes Tables

Schedule of Effective Income Tax Rate

	April 30, 2018			April 30, 2017
US Federal Statutory Tax Rate *		34.0	%		15.0	%
Nevada State & Local Tax Rate		0.0	%		0.0	%
Net Operating Loss Carryforward		(0.0	)%		(0.0	)%
Effective Tax Rate		15.0	%		15.0	%

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ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Narrative)	9 Months Ended
	Apr. 30, 2018
Organization And Description Of Business Details Narrative
State Country Name	Nevada
Date of Incorporation	Jul. 08, 2014

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	9 Months Ended
	Apr. 30, 2018
Property [Member]
Estimated useful life	40 years
Office Equipment [Member]
Estimated useful life	7 years

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended		46 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018
Summary Of Significant Accounting Policies Details Narrative
Revenue		$ 8,010		$ 28,193	$ 223,910
Advertising expense					$ 12,498

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GOING CONCERN (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended		46 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018	Jul. 31, 2017	Jul. 31, 2016	Jul. 07, 2014
Going Concern Details Narrative
Net income (loss)	$ (15,720)	$ 341	$ (80,077)	$ (2,632)	$ (121,526)
Cash		$ 902		$ 902			$ 859
Total liabilities	$ 75,153		$ 75,153		$ 75,153	$ 11,217

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RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	9 Months Ended
	Apr. 30, 2018	Jul. 31, 2017
Related Party Transactions Details Narrative
Due to related party	$ 58,422	$ 11,217
Directors fee	$ 4,000

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INCOME TAXES (Details)		9 Months Ended
		Apr. 30, 2018	Apr. 30, 2017
Income Taxes Details
US Federal Statutory Tax Rate	[1]	34.00%	15.00%
Nevada State & Local Tax Rate		0.00%	0.00%
Net Operating Loss Carryforward		0.00%	0.00%
Effective Tax Rate		15.00%	15.00%

[1] for the Financial year 2018 and onward will reduce to 25%

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STOCKHOLDERS' EQUITY (Details Narrative)	1 Months Ended		9 Months Ended
	Jan. 29, 2015 USD ($) Number $ / shares shares	Jul. 23, 2014 USD ($) $ / shares shares	Apr. 30, 2018 USD ($) $ / shares shares	Jul. 31, 2017 $ / shares shares
Common Stock Par Value | $ / shares			$ 0.001	$ 0.001
Common Stock Shares Authorized			75,000,000	75,000,000
Common Stock Shares Issued			5,649,999	5,000,000
Common Stock Shares Outstanding			5,649,999	5,000,000
Director [Member]
Common Stock Par Value | $ / shares		$ 0.001
Common Stock Shares Issued		4,000,000
Proceeds from issuance of common stock | $		$ 4,000
Investor [Member]
Common Stock Par Value | $ / shares	$ 0.04
Common Stock Shares Issued	1,000,000
Proceeds from issuance of common stock | $	$ 40,000
Number of independent investors | Number	30
November 28, 2017 and on March 14, 2018 [Member]
Common Stock Shares Issued			649,999
Proceeds from issuance of common stock | $			$ 19,500
Purchase price | $ / shares			$ 0.03

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PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	9 Months Ended		46 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018
Property	$ 8,000		$ 8,000
Depreciation expense	1,197	$ 1,197	6,179
Office equipment	9,750		$ 9,750
Latvia property [Member]
Depreciation expense	50
Office Equipment [Member]
Depreciation expense	$ 349

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COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)	1 Months Ended	12 Months Ended
	Jul. 30, 2014	Jul. 31, 2017	Jul. 31, 2016	Jul. 31, 2015
Commitments And Contingencies Details Narrative
Rent expense		$ 0	$ 0	$ 0
Lease Agreement Expiration Date	July 31, 2017
Amount of commercial lease agreement per month	$ 1,000

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SUBSEQUENT EVENTS (Details Narrative)	May 08, 2018 USD ($)
Real Capital Limited [Member] | Subsequent Event [Member]
Purchase consideration	$ 1,910