Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 697

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1A
Chunk 697
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 investors find our common
stock less attractive as a result, there may be a less active trading market for our common stock and the price of our common stock may
be more volatile.

We
do not intend to pay dividends for the foreseeable future.

For
the foreseeable future, we intend to retain any earnings to finance the development and expansion of our business, and we do not anticipate
paying any cash dividends on our common stock. Accordingly, investors must be prepared to rely on sales of their common stock after price
appreciation to earn an investment return, which may never occur. Investors seeking cash dividends should not purchase our common stock.
Any determination to pay dividends in the future will be made at the discretion of our Board of Directors and will depend on our results
of operations, financial condition, contractual restrictions, restrictions imposed by applicable law and other factors our board deems
relevant.

Fulfilling
our obligations incident to being a public company, including with respect to the requirements of and related rules under the Sarbanes-Oxley
Act of 2002, is expensive and time-consuming, and any delays or difficulties in satisfying these obligations could have a material adverse
effect on our future results of operations and our stock price.

As
a public company, the Sarbanes-Oxley Act of 2002 and the related rules and regulations of the SEC require us to implement various corporate
governance practices and adhere to a variety of reporting requirements and complex accounting rules. Compliance with these public company
obligations requires us to devote significant time and resources and places significant additional demands on our finance and accounting
staff and on our financial accounting and information systems. Other expenses associated with being a public company include increased
auditing, accounting and legal fees and expenses, investor relations expenses, increased directors’ fees and director and officer
liability insurance costs, registrar and transfer agent fees and listing fees, as well as other expenses.

73

We
are required under the Sarbanes-Oxley Act of 2002 to document and test the effectiveness of our internal control over financial reporting.
In addition, we are required under the Exchange Act to maintain disclosure controls and procedures and internal control over financial
reporting. Any failure to maintain effective controls or implement required new or improved controls, or difficulties encountered in
their implementation, could harm our operating results, or cause us to fail to meet our reporting obligations. If we are unable to conclude
that we have effective internal control over financial reporting, investors could lose confidence