Quarterly Report for Quarter Ending March 31, 2026 (Form 10-Q)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

The following discussion and analysis of Summit Networks, Inc.'s ("SNTW," the "Company," "we," "us," or "our") financial condition, changes in financial condition, and results of operations should be read together with the condensed consolidated financial statements (including the notes) presented elsewhere in this report. This section includes management's explanation of our performance, the key factors that affected past and expected future results, and our current investment and financing posture.

This MD&A contains forward-looking statements that reflect our current plans, estimates, and beliefs. Actual results may differ materially due to a variety of risks and uncertainties, including those discussed here and elsewhere in this report-such as project timing, customer adoption, integration dependencies, resource availability, and changes in law or its interpretation. Except as required by applicable securities laws, we undertake no obligation to update forward-looking statements.

Background and Strategic Transition

Summit Networks Inc. (together with its subsidiary, the "Company") was incorporated under the laws of the State of Nevada on July 8, 2014.

During fiscal 2025, the Company completed a defined internal development phase involving digital workflow tools, systems integration concepts, and preliminary technical capability-building activities. Certain limited customer deliverables were completed during this phase under project-based arrangements.

These activities included workflow digitization support, operational record-keeping tools, and internal evaluation of technology-enabled process management approaches. Management views these activities primarily as preparatory and capability-building initiatives rather than the establishment of large-scale standalone commercial operations.

During the three months ended March 31, 2026, the Company continued advancing the early-stage implementation of its Board-approved 2026 strategic framework. Following the adoption of this framework, management's primary focus transitioned toward evaluating potential acquisition opportunities involving cash-flow generating logistics enterprises. As of the date of this report, no definitive acquisition agreements have been executed.

Consistent with the Company's previously disclosed strategic direction, management continued conducting preliminary assessment activities in selected Asian markets in support of its acquisition evaluation process. These activities included ongoing market observation, initial industry engagement, and operational assessment efforts intended to assist management in evaluating potential acquisition targets, operational capabilities, and sector conditions within relevant regional logistics markets.

As part of this process, senior management conducted limited on-the-ground evaluation activities designed to improve management's understanding of operational execution, service reliability, and cross-border logistics workflows. Management believes that practical operational observation may provide additional insight when evaluating acquisition opportunities within fragmented logistics sectors where execution capability represents an important operational consideration.

During the quarter, management also continued evaluating how certain internally developed operational and workflow concepts from prior internal initiatives may support future business integration and organizational efficiency efforts. The Company believes that certain operational and organizational knowledge developed during these earlier initiatives may provide supplemental support for future integration planning, workflow coordination, governance standardization, and operational assessment activities associated with potential acquisition opportunities.

Management continues to maintain a disciplined approach toward liquidity management, operational evaluation, and strategic execution while preserving flexibility regarding future financing and acquisition opportunities.

Preliminary Validation Activities

During the quarter, the Company continued limited validation activities on a controlled and exploratory basis in order to observe certain logistics fulfillment and execution processes under real-world operating conditions.

These activities were intended to:

·

Support management's understanding of cross-border logistics workflows;

·

Provide preliminary insight into operational coordination and execution reliability;

·

Assist management in evaluating operational structures and cost dynamics relevant to potential acquisition targets.

Management emphasizes that these activities remain preliminary in nature, limited in scale, and are not intended to represent the establishment of material standalone logistics operations.

The Company's primary strategic objective remains the disciplined acquisition and structured integration of cash-flow generating logistics enterprises.

Results of Operations

General and administrative expenses decreased from $82,982 for the three-month period ended March 31, 2025 to $58,937 for the three-month period ended March 31, 2026. The decrease was primarily attributable to lower professional fees and consulting expenses incurred during the first quarter of 2026.

Cash used in operating activities was $60,041 for the three months ended March 31, 2026, compared to $63,988 for the three months ended March 31, 2025.

Net cash used in investing activities was $nil for the three-month ended March 31, 2026 compared to $6,879 for the three months ended March 31, 2025, which related to the purchase of computer equipment.

Cash provided by financing activities was $87,380 for the three months ended March 31, 2026, compared to $97,552 for the three months ended March 31, 2025. Financing activities during both periods primarily related to advances from related parties used to support working capital requirements and ongoing corporate operations.

Total assets were $143,290 as of March 31, 2026.

As of March 31, 2026, the Company had 68,911,657 shares of common stock issued and outstanding.

Related Party Financing

As of March 31, 2026 and December 31, 2025, the Company had total related party loans outstanding of $1,044,436 and $957,056, respectively.

		March 31, 2026				December 31, 2025
Shuhua Liu		$	459,000			$	459,000
Chiu Kin Wong		$	120,000			$	120,000
Zenox Enterprises Inc		$	50,000			$	70,000
Chao Long Huang		$	415,436			$	308,056
		$	1,044,436			$	957,056

Shuhua Liu and Chiu Kin Wong are major shareholders of the Company. Zenox Enterprises Inc. is owned and controlled by Chao Long Huang, the Chief Executive Officer of the company.

In January 2026, the Company repaid USD $20,000 to Zenox Enterprises Inc.

During the three months ended March 31, 2026, an officer advanced additional $107,612 (C$150,000) to the Company for working capital purposes. The officer obtained the funds from a third-party financial institution and subsequently advanced them to the Company. Under the terms of the arrangement, the Company is required to reimburse the officer for interest and financing fees incurred in connection with the third-party borrowing. Accordingly, the Company recorded interest expense of $5,823 for the three months ended March 31, 2026. The amounts due to the shareholders of the Company, Shuhua Liu and Chiu Kin Wong and a related party Zenox Enterprises Inc. are unsecured, non-interest bearing, and due on demand.

Included in the $415,436 advanced from Chao Long Huang, $97,552 bears interest of 5.7% per annum and is due on demand. The remaining $317,884 (C$439,141) bears interest of RBC prime plus 2.54% with a minimum of 7.49% calculated monthly, and is repayable on July 1, 2026, unless an earlier repayment date is mutually agreed upon by both parties.

Liquidity and Capital Resources

The Company continues to operate under a conservative liquidity management framework while advancing its strategic transition initiatives.

The Company had negative operating cash flow of $60,041 for the three months ended March 31, 2026. As of March 31, 2026, the Company had cash of $121,898 and a working capital deficit of $957,227.

The Company's financial statements have been prepared on a going-concern basis, which contemplates the realization of assets and settlement of liabilities in the ordinary course of business. The Company's liquidity requirements primarily relate to working capital, regulatory compliance, and ongoing corporate operating requirements.

The Company continues to rely substantially on shareholder and related-party financial support in order to maintain operations and execute its strategic initiatives. On July 1, 2025, the Chief Executive Officer entered into an agreement to provide the Company with up to CAD $500,000 in financing support. As of March 31, 2026, total advances under this arrangement were approximately $317,884 (CAD$439,141).

Management continues to evaluate financing alternatives in connection with potential acquisition opportunities and strategic development initiatives.

These conditions raise substantial doubt about the Company's ability to continue as a going concern, as discussed in the accompanying financial statements. There can be no assurance that additional financing or acquisition transactions will be successfully completed.

Outlook

Management expects to continue advancing acquisition evaluation activities during fiscal 2026 while selectively expanding preliminary operational assessment efforts intended to support future strategic decision-making.

There can be no assurance that acquisition opportunities will materialize, that definitive transactions will be completed, or that current validation activities will result in material operational outcomes.

Off-Balance Sheet Arrangements

The Company does not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future material effect on its financial condition, results of operations, liquidity, capital expenditures or capital resources.