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 main business is commodity procurement, with supply chain system and cloud warehouse. There are high-quality manufacturers in the upstream and more than 400 physical stores in the downstream as business partners.
In 2021, due to the impact of the Covid-19 pandemic, the concept of mass consumption changed, resulting in the loss of business, which directly affected the daily operations of the Company.
3 Covid-19 Pandemic OnMarch 11, 2020 , theWorld Health Organization declared the Covid-19 outbreak to be a global pandemic. In addition to the devastating effects on human life, the pandemic is having a negative ripple effect on the global economy, leading to disruptions and volatility in the global financial markets. Most US states and many countries have issued policies intended to stop or slow the further spread of the disease.
Covid-19 and theU.S's response to the pandemic are significantly affecting the economy. There are no comparable events that provide guidance as to the effect the Covid-19 pandemic may have, and, as a result, the ultimate effect of the pandemic is highly uncertain and subject to change. We do not yet know the full extent of the effects on the economy, the markets we serve, our business, or our operations. Results of Operations
Comparison of Results of Operations for the Three Months Ended
The following table summarizes the results of our operations during the three months endedDecember 31, 2021 and 2020, respectively, and provides information regarding the dollar and percentage increase or (decrease) from the period endedDecember 31, 2021 to the corresponding three-month period endingDecember 31, 2020 : Percentage Increase Increase 12/31/21 12/31/20 (Decrease) (Decrease) Revenues$ 603,294 $ 2,590,394 $ (1,987,100 ) (76.71 ) Operating expenses 64,367 52,393 11,974 22.85 Net income 12,097 20,034 7,937 (39.62 ) Income (Loss) per share of common stock 0.00 0.00 - -
Revenue and Cost of Sales
Total revenues for the three months ended
Operating expenses
Operating expenses were
4 Net Income
As a result of the forgoing, the net income for the three-month period ended
Comparison of Results of Operations for the six months ended
Revenue
Total revenues for the six months ended
Operating expenses
Operating expenses were
Net Income
As a result of the forgoing, the net income for the period ended
Liquidity and Capital Resources
On
As ofDecember 31, 2021 , we had total assets of$8,996,272 , working capital of$8,547,460 and an accumulated stockholders' equity of$8,610,160 . 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 . 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.
At
Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements.
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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