10-Q - Summit Networks Inc. (0001619096) (Filer)

Mon, Aug 19, 9:00 PM (148 days ago)

Summit Networks Inc. reported significant changes in its financial health for the quarter ending June 30, 2024. The company generated revenues of $73,851, marking its first revenue since inception, while total assets surged to $2,802,378, primarily due to the acquisition of a subsidiary. However, the company faced a net loss of $90,837, increasing from $46,520 in the previous year, driven by rising operating expenses, particularly in general and administrative costs, which totaled $119,108. Cash flow from operations was negative at $45,283, contrasting with a positive cash flow of $96,285 in the prior year. The working capital deficiency rose to $589,707, raising concerns about the company's ability to continue as a going concern. The company relies heavily on shareholder loans for liquidity and is actively seeking additional financing. Management acknowledged material weaknesses in internal controls, including inadequate segregation of duties and lack of U.S. GAAP expertise, which could impact financial reporting reliability. Future operations may be influenced by the need for enhanced capital and effective management strategies to mitigate these risks.