The following discussion should be read in conjunction with our financial
statements, including the notes thereto, appearing elsewhere in this Report. The
following discussion contains forward-looking statements that reflect our plans,
estimates and beliefs. Our actual results could differ materially from those
discussed in the forward- looking statements. Factors that could cause or
contribute to such differences include but are not limited to those discussed
below and elsewhere in this Report. Our audited financial statements are stated
in United States Dollars and are prepared in accordance with United States
Generally Accepted Accounting Principles.

This section provides management’s discussion of the financial condition,
changes in financial condition and results of operations of Summit Networks,
with specific information on results of operations and liquidity and
capital resources. It includes management’s interpretation of our financial
results, the factors affecting these results, the major factors expected to
affect future operating results and future investment and financing plans. This
discussion should be read in conjunction with our consolidated financial
statements and notes thereto.

Several factors exist that could influence our future financial performance and
some of those are discussed below and elsewhere in this report. They should be
considered in connection with evaluating forward-looking statements contained in
this report or otherwise made by us or on our behalf since these factors could
cause actual results and conditions to differ materially from those set out in
such forward-looking statements.


Summit Networks Inc. (together with its subsidiary, the “Company”) was
incorporated under the laws of the State of Nevada on July 8, 2014. Originally,
the Company was formed to engage in the distribution of glass craft products
produced in China. On May 8, 2018, we acquired Real Capital Limited, a Hong Kong
company (“Real Capital“), to seek opportunities in the food and beverage
industry. On March 31, 2019, the Company entered into a Share Purchase Agreement
(the “Real Capital SPA”) pursuant to which it sold its interests in Real
. The closing of the Real Capital SPA occurred on April 10, 2019.

Results of Operations

During the year ended December 31, 2022 and 2021, we generated revenues. Our
operating expenses for the same periods were comprised of general and
administrative expenses of $28,185 and $76,204, respectively. Our general and
administrative expenses consisted of mainly professional fees for the year ended
September 30, 2022, and consisted of mainly management fees and chief executive
fees for the year ended December 31, 2022. The decrease of general and
administrative expenses was mainly due to the decrease of management fees and
chief executive fees.

Our total assets as of December 31, 2022 were $205,530.

As of December 31, 2022, the Company had 67,049,990 shares of common stock
issued and outstanding.

As of December 31, 2022 and September 30, 2022, there are a total of $579,000
and $579,000 in amounts respectively, due to related parties and shareholders
were interest free, unsecured and payable on demand.

Based on our current operating plan, we may need to obtain additional financing
to operate our business. Additional financing, whether through public or private
equity or debt financing, or if available.

Liquidity and Capital Resources

The Company had a negative operating cash flow of $3,299 for the three months
ended December 31, 2022, and a negative operating cash flow of $19,267 for the
three months ended December 31, 2021. Such decrease was primarily due to lower
net loss in year ended December 31, 2022.

The net cash generated from financing activity resulted from the proceeds from
capital raising amounting to $200,000.


The Company’s financial statements have been prepared on a going-concern basis
which contemplates the realization of an asset and the settlement of liabilities
and commitments in the normal course of business. The Company’s liquidity and
capital needs relate primarily to working capital and other general corporate
requirements. The Company’s operations currently provide cash flow. The business
will require significant amounts of capital in the near term to sustain
operations and make the investments it needs to continue operations and execute
its longer-term business plan. As of December 31, 2022, we had $205,530 in cash
and a deposit of $3,285. The working capital deficits were $590,523 and $762,338
for the three months ended December 31, 2022, and September 30, 2022,
respectively. These factors raise confidence about our ability to continue as a
going concern as discussed in the footnotes to our financial statements. The
Company will be able to conduct its planned operations as we plan to obtain
financing in the near term to meet the needs of our on-going operations,
generate future revenue from operations and/or obtain the necessary financing to
meet our obligations and repay our liabilities arising from normal business
operations when they come due. In order to implement its business plan,
management’s plan includes raising capital by equity and/or debt financing.
However, management cannot provide any assurances that the Company will be
successful in accomplishing any of its plans. If we issue equity or equity
equivalents to raise additional funds, our existing stockholders will experience
substantial dilution and the new holders of securities may have rights,
preferences and privileges senior to those of our existing stockholders.
Management also cannot provide any assurance that unforeseen circumstances will
not increase the need for the Company to raise additional capital on an
immediate basis. There can be no assurance that we will be able to continue to
raise funds if at all, or on terms acceptable to the Company in which case the
Company may be unable to continue its operations or to meet its obligations. If
adequate capital is not available when needed, we will be required to
significantly modify our business model or cease operations.

On March 11, 2020 the World Health Organization declared the novel strain of
coronavirus (COVID-19) a global pandemic and recommended containments and
mitigation measures worldwide. The Company is monitoring this closely, and
although operations have no t been materially affected by the coronavirus
outbreak to date, the ultimate severity of the outbreak is uncertain. Operations
of the Company are ongoing. Further the uncertain nature of the spread of
COVID-19 globally may impact our business operations due to the quarantine of
employees, customers, and third-party service providers.

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.

© Edgar Online, source Glimpses


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