Annual Report for Fiscal Year Ending December 31, 2025 (Form 10-K)

MANAGEMENT'S DISCUSSION AND ANALYSIS OR RESULTS OF OPERATIONS

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, Inc. 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.

Background

Summit Networks Inc. (together with its subsidiary, the "Company") was incorporated under the laws of the State of Nevada on July 8, 2014. The Company was historically a development-stage issuer that explored various business opportunities prior to its current strategic transition.

1. Overview and Transitional Status

Summit Networks Inc. (the "Company") historically operated as a development-stage issuer. During the year ended December 31, 2025, the Company did not generate significant operating revenues and continued to focus on internal organization, governance strengthening, and structured evaluation of future operational direction.

Management's primary objective during fiscal 2025 was to preserve corporate continuity, maintain liquidity, complete defined internal development initiatives, and prepare the Company for a disciplined strategic transition.

2. Completion of Phase-One Internal Development Activities

During the year ended December 31, 2025, the Company completed a defined, time-limited phase of internal development activities. This phase consisted of research and evaluation work related to internal systems, digital workflows, and technical feasibility under fixed-term arrangements.

All planned tasks for this phase were completed as scheduled, and the related project activities concluded on December 31, 2025.

These activities were designed as a preparatory capability-building stage and were not intended as standalone commercial operations. The associated project contracts ended upon completion, and no continuing obligations remain under this initiative.

Management considers this phase to have achieved its intended internal objectives.

3. Strategic Transition and Board Adoption of 2026 Execution Plan

On December 31, 2025, the Board of Directors formally adopted a 2026 strategic execution plan centered on pursuing controlling acquisitions of cash-flow stable logistics enterprises.

The Company views fiscal 2025 as a capability-building year and fiscal 2026 as the operational implementation phase of a structured acquisition-driven strategy.

The digital and operational frameworks developed during 2025 are expected to serve as foundational tools for post-acquisition integration, governance standardization, and operational efficiency enhancement.

Following the revocation of regulatory restrictions in early February 2026, the Company initiated a governance upgrade and acquisition preparation phase consistent with Board authorization.

There can be no assurance that acquisition transactions will be completed.

4. Financial Condition and Liquidity

As of December 31, 2025, the Company had cash of $94,559 and total current liabilities of $1,009,316. Stockholders' deficit totalled $892,467.

The Company continues to rely primarily on shareholder support for working capital. Management has adopted a conservative financial approach emphasizing cost control and liquidity preservation.

Consistent with the Board-approved acquisition strategy, management intends to evaluate financing alternatives in connection with specific acquisition opportunities rather than for general operating purposes.

No committed financing arrangements, acquisition agreements, or material business combinations had been executed as of December 31, 2025.

The Company's financial statements have been prepared on a going-concern basis.

For the year ended December 31, 2025, period ended December 31, 2024 and year ended September 30, 2024, the Company had positive cash flow of $55,329 negative cash flow of $7,096 and $103,228, respectively. The Company's principal sources and uses of funds were as follows:

For the year ended December 31, 2025, the Company used $265,848 in the operating activities, compared to $57,096 for the period ended December 31, 2024 and $203,288 for the year ended September 30, 2024. This increase was primarily attributable to higher general and administrative expenses, including professional fees and compensation related to governance and compliance functions. The Company used $6,879 in investing activities during fiscal year ended December 31, 2025 for the purchase of property, plant and equipment.

The Company's financial statements have been prepared on a going-concern basis which contemplates the realization of assets 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. As of December 31, 2025, the Company had $94,559 in cash and the outstanding liabilities were $1,009,316 compared to cash of $39,230 and outstanding liabilities of $665,103 as of December 31, 2024. Stockholders' deficit as of December 31, 2025 was $892,467.

These factors raise significant doubt about our ability to continue as a going concern, as discussed in the footnotes to our financial statements. Management has implemented cost control measures and continues to receive financial support from shareholders and affiliated parties to maintain operations during the Company's strategic transition phase.

Management believes that continued shareholder support, combined with disciplined execution of the Board-approved 2026 strategic framework, may provide a structured pathway toward improved liquidity. There can be no assurance that such plans will be successfully implemented.

5. Results of Operations

For the year ended December 31, 2025, the Company reported a net loss, reflecting general and administrative expenses associated with maintaining public company status, professional services, and the completion of internal development activities.

The Company generated total revenues of $11,797 during the year ended December 31, 2025. General and administrative expenses were $320,220 during the year ended December 31, 2025, compared to $328,984 for the fifteen-month period ended December 31, 2024. The increase in general and administrative expenses was primarily due to higher professional fees and salaries and wages paid to additional consultants.

The gain on debt forgiveness related to the write-off of certain liabilities for which the Company is no longer liable. As of December 31, 2025, the gain on debt forgiveness was $nil, compared to $12,500 for the fifteen-month period ended December 31, 2024.

The net loss was $331,073 for the year ended December 31, 2025, compared to $314,584 for the fifteen-month period ended December 31, 2024.

Total assets were $116,849 as of December 31, 2025, compared to $103,709 as of December 31, 2024.

As of December 31, 2025, the Company had 68,911,657 shares of common stock issued and outstanding.

6. Governance and Organizational Restructuring

Following the revocation of regulatory restrictions in February 2026, the Company implemented governance and organizational enhancements designed to support disciplined strategic execution.

Board oversight has been strengthened to emphasize:

• Independent supervision
• Financial compliance
• Strategic acquisition review
• Capital allocation discipline

Executive responsibilities have been clarified and centralized under a streamlined management structure.

The Company currently reports as a single operating segment.

7. Amounts Due to Related Parties

As of December 31, 2025, and December 31, 2024, amounts due to related parties consisted of the following (all advances are unsecured, non-interest bearing, and payable on demand). Any interest expense incurred by the Company arises from third-party financing arrangements and is borne by the Company. The related parties do not charge, receive, or benefit from any interest or spread in connection with these advances.

Related Party		Currency		Amount
Liu Shuhua		USD		$	459,000
Wong Chiu Kin		USD		$	120,000
Zenox Enterprises Inc.		USD		$	70,000
Chao Long Huang		CAD		$	140,000
Chao Long Huang		CAD		$	282,846

Total balance as of December 31, 2025:

USD$649,000

CAD$422,846

Total balance as of December 31, 2025 was USD$957,056, which includes USD$649,000 and CAD$422,846 (equivalent to approximately USD$308,056 based on the year-end exchange rate.)

These advances represent short-term financial support provided to fund ongoing administrative, compliance, audit, and governance related expenditures.

There are no formal repayment schedules in place. Repayment, if any, will depend on the Company's future liquidity position and capital availability.

8. Subsequent Repayment (January 2026)

In January 2026, the company repaid USD $20,000 to Zenox Enterprises Inc. This repayment did not affect the balances reported as of December 31,2025.

After this repayment, the outstanding balances due to the related parties were as follows:

USD$629,000

CAD$422,846

9. Management Commentary

Management maintains a conservative liquidity posture and continues to prioritize:

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Preservation of working capital

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Regulatory compliance

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Governance stability

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Controlled strategic transition

The Company does not currently have committed external financing arrangements and will evaluate capital alternatives only in connection with specific strategic initiatives, subject to Board authorization and regulatory compliance.

10. Outlook and Strategic Readiness

The Company is transitioning from a development-stage exploratory model toward an acquisition preparation phase.

Management anticipates evaluating potential acquisition opportunities during fiscal 2026. Any such transaction would remain subject to:

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Board approval

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Regulatory compliance

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Availability of capital

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Completion of due diligence

There can be no assurance that any acquisition or financing transaction will occur.

11. 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.