Company: KPEA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023821
Chunk: 90

Company: Kun Peng International Ltd.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 2
Chunk 90
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 months ended June 30, 2025 and 2024, the gross profit and gross profit margin for our retail business amounted to $14,380,
or 67.7%, and $323,520, or 73.5%, respectively, and the gross profit and gross profit margin for our equipment-based services
business amounted to $9,415, or 10.9%, and $168,277, or 72.6%, respectively. The decrease in our gross profit and margin was due to
the termination of two subsidiaries’ businesses.

39

Operating
expenses

Our
operating expenses consist of general and administrative expenses and selling expenses. For the three months ended June 30, 2025 and
2024, total operating expenses were $459,529 and $776,281, respectively. The decrease in operating expenses for the three months ended
June 30, 2025 compared to the same period in 2024 was primarily due to a decrease of $122,266 in general and administrative expenses
and a decrease of $194,486 in selling expenses.

General
and administrative expenses

General
and administrative expenses for the three months ended June 30, 2025 and 2024 were $231,403 and $353,669, respectively. The decrease
in general and administrative expenses of $122,266 between the two periods was chiefly due to a decrease in office rent and building
management of $68,028, a decrease in professional service fees of $21,678 and a decrease in depreciation and amortization of
$14,278. These expenses declined as a result of shutting down two subsidiaries during the three months ended June
30, 2025.

Our
general and administrative expenses for the three months ended June 30, 2025 and 2024 were comprised of the following:

    For
the three months
                                                                               ended June 30,  

    2025  
    2024 
  
    Employee compensation and benefits 
    $130,402  
    $136,450 
  
    Office rent and building management 
     10,557  
     78,585 
  
    Office supplies and meetings 
     1,768  
     4,898 
  
    Professional service fees 
     55,668  
     77,346 
  
    Travel, transportation, and gasoline 
     20,977  
     24,046 
  
    Meals and entertainment