Company: KPEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010699
Chunk: 52

Company: Kun Peng International Ltd.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 52
---
493,589  
    $584,116 

Deferred revenue results from
transactions where the Company has received the payments from the customers but revenue recognition criteria under the five-step model
have yet to be met. As of March 31, 2025 and September 30, 2024, the Company had total deferred revenue of $493,589 and $584,116, respectively.
Once the five-step model criteria have been satisfied, revenues will be recognized upon the transfer
of risk and rewards to the customers. Management has agreed that the amount received is non-refundable. However, this term is not bound
by any written agreement. Thus, the customers may have the right to challenge and demand that the advances be refunded under relevant
commercial laws and regulations.

NOTE 10 - RELATED PARTY TRANSACTIONS

Acquisition of Kun
Pin Hui (Shandong) Trading Co. Ltd.

On April 3, 2024, King Eagle (Tianjin)
entered into a Share Transfer Agreement (the “Share Purchase Agreement”) with Zhandong Fan and Yuanyuan Zhang for the acquisition
of all the subscribed shares of Kun Pin Hui (Shandong) Trading Co. Ltd.

Pursuant to the Share Purchase
Agreement, King Eagle (Tianjin) agreed to acquire all of the subscribed capital of Kun Pin Hui (Shandong), amounting to $0.4 million (RMB
3 million), for an aggregate consideration of $0.28 (RMB 2). Zhandong Fan (the holder of 95% of the shares of Kun Pin Hui (Shandong))
and Yuanyuan Zhang (the holder of 5% of the shares of Kun Pin Hui (Shandong)), both of whom are shareholders of King Eagle (Tianjin),
transferred their shares for consideration of $0.14 (RMB 1)

     30 

The
acquisition closed on April 7, 2024. As of March 31, 2025, King Eagle (Tianjin) had paid $3,698 (RMB27,000) of the registered capital.

Amounts
due from related parties

Amounts
due from related parties mainly represent monies advanced to officers or employees for daily operating expenses that are anticipated to
be incurred by our officers and employees on behalf of the Company. The advances are required to be repaid in cash within a year.

Amounts
due