SHENGDA NETWORK TECHNOLOGY, INC. FORWARD LOOKING STATEMENTS
Statements made in this Form 10-Q that are not historical or current facts are "forward-looking statements" made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 (the "Act") and Section 21E of the Securities Exchange Act of 1934. These statements often can be identified by the use of terms such as "may," "will," "expect," "believe," "anticipate," "estimate," "approximate" or "continue," or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management's best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events. Overview of the Business
The Company was incorporated onMarch 14, 2018 under the laws of theState of Nevada . The Company's principal business is the development of internet and
PC security software products. Results of Operations
Three Months Ended
The following table summarizes the results of our operations during the three months endedDecember 31, 2020 and 2019, respectively, and provides information regarding the dollar and percentage increase or (decrease) from the current three-month period to the prior three-month period: Percentage Increase Increase Line Item 12/31/20 12/31/19 (Decrease) (Decrease) Revenues$ 2,590,394 $ -$ 2,590,394 n/a Operating expenses 52,393 12,985 39,408 5.12 % Net income (loss) 389,087 (12,985 ) 402,072 3,096 % Income (Loss) per share of common stock 0.00 (0.00 )
- n/a
We recorded net income of$389,087 for the three months endedDecember 31, 2020 as compared with a net loss of$12,985 for the three months endedDecember 31, 2021 due primarily to the ramp-up of operations in the relevant period. 3
Six Months Ended
The following table summarizes the results of our operations during the six
months ended
Percentage
Increase Increase
Line Item 12/31/20 12/31/19 (Decrease) (Decrease)
Revenues $ 7,734,172 $ - $ 2,590,394 n/a
Operating expenses 94,840 17,389 77,451 4.45 %
Net income (loss) 1,348,896 (17,389 ) 1,366,285 7,637 %Income (Loss) per share of common stock 0.11 (0.00 )
- Inf.
We recorded net income of$1,348,896 for the six months endedDecember 31, 2020 as compared with a net loss of$17,389 for the six months endedDecember 31, 2021 due primarily to the ramp-up of operations in the relevant period.
Liquidity and Capital Resources
As ofDecember 31, 2020 , we had total assets of$13,489,468 , working capital of$12,158,374 and an accumulated stockholders' equity of$12,233,674 . Our operating activities used$2,151,847 in cash for the six months endedDecember 31, 2020 , while our operations used$18,144 cash in the six months endedDecember 31, 2019 . We had$7,734,172 in revenues in the six months endedDecember 31, 2020 , while we had no revenues in the three months endedDecember 31, 2019 . Management believes that the Company's cash on hand will be sufficient to fund all Company obligations and commitments for the next twelve months. Historically, we have depended on loans from our principal shareholders and their affiliated companies to augment our working capital as required. There is no guarantee that such funding will be available when required and there can be no assurance that our stockholders, or any of them, will continue making loans or advances to us in the future. 4 AtDecember 31, 2020 , the Company had loans and advances from a related party shareholder in the aggregate amount of$2,000 , which represents amounts loaned to the Company to pay the Company's expenses of operation. These advances are payable on demand.
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 or capital expenditures or capital resources that is material to an investor in our securities. Seasonality
Our operating results are not affected by seasonality.
Inflation
Our business and operating results are not affected in any material way by inflation.
Critical Accounting PoliciesThe Securities and Exchange Commission issued Financial Reporting Release No. 60, "Cautionary Advice Regarding Disclosure About Critical Accounting Policies" suggesting that companies provide additional disclosure and commentary on their most critical accounting policies. In Financial Reporting Release No. 60, theSecurities and Exchange Commission has defined the most critical accounting policies as the ones that are most important to the portrayal of a company's financial condition and operating results and require management to make its most difficult and subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain. The nature of our business generally does not call for the preparation or use of estimates. Due to the fact that the Company does not have any operating business, we do not believe that we do not have any such critical accounting policies. 5
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