SUMMIT NETWORKS INC. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. (form 10-Q)
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
Generally Accepted Accounting Principles.
This section provides management’s discussion of the financial condition,
changes in financial condition and results of operations of
Inc.
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.
Background
incorporated under the laws of the
the Company was formed to engage in the distribution of glass craft products
produced in
company (“
industry. On
(the “Real Capital SPA”) pursuant to which it sold its interests in
Capital
Results of Operations
During the year ended
operating expenses for the same periods were comprised of general and
administrative expenses of
administrative expenses consisted of mainly professional fees for the year ended
fees for the year ended
administrative expenses was mainly due to the decrease of management fees and
chief executive fees.
Our total assets as of
As of
issued and outstanding.
As of
and
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
ended
three months ended
net loss in year ended
The net cash generated from financing activity resulted from the proceeds from
capital raising amounting to
-11-
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
and a deposit of
for the three months ended
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
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.
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