Summit Networks Inc. reported its financial results for the first quarter of 2025, revealing a continued lack of revenue generation, consistent with its previous fiscal periods. The company recorded no revenue for the three months ended March 31, 2025, mirroring the same period in 2024. Operating expenses surged to $130,565, up from $52,370 in the prior year, primarily due to increased salaries, rent, and professional fees. The net loss for the quarter was $130,565, compared to a loss of $51,972 in the same quarter of the previous year, reflecting the company's ongoing investment in establishing its business.
As of March 31, 2025, Summit Networks' total assets stood at $207,526, a decrease from $234,676 at the end of 2024. The company's liabilities also increased, with current liabilities rising to $749,145 from $645,730. Notably, amounts due to related parties increased to $726,552, up from $629,000, indicating a reliance on shareholder loans for operational funding. The accumulated deficit grew to $1,639,626, up from $1,509,061 at the end of 2024, highlighting the financial challenges the company faces.
In terms of strategic developments, Summit Networks is transitioning its business model to focus on platform technology development, specifically in the areas of hybrid Web2 and Web3 technologies. The company has entered into a partnership with Zenox Enterprises Inc. to develop an AI-powered healing platform, which is currently in the system architecture planning phase. This project aims to integrate immersive 3D environments and blockchain-based data management, reflecting the company's shift towards innovative digital solutions.
Operationally, the company reported a working capital deficiency of $549,498 as of March 31, 2025, compared to $411,054 at the end of 2024. The company has 68,911,657 shares of common stock outstanding, with no new equity securities sold during the quarter. Management has indicated that additional financing will be necessary to sustain operations and support the development of new business initiatives. The company is actively seeking strategic investors and technology-focused funds to facilitate this growth.
Looking ahead, Summit Networks acknowledges the significant doubt regarding its ability to continue as a going concern, primarily due to its ongoing losses and reliance on shareholder support. The management team is focused on developing a new business plan and securing financing to ensure operational viability. The company’s future performance will depend on its ability to execute its strategic initiatives and adapt to market conditions in the evolving digital landscape.
About Summit Networks Inc.
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