Company: KPEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010699
Chunk: 99

Company: Kun Peng International Ltd.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 99
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136,480 
  
    Rental for equipment 
     101,387  
     - 
  
    Office supplies and meetings 
     54,109  
     89,840 
  
    Travel, transportation, and gasoline 
     14,183  
     20,230 
  
    Meals and entertainment 
     2,163  
     5,151 
  
    Depreciation and amortization 
     34,218  
     535 
  
    Advertising 
     11,870  
     5,626 
  
    Total 
    $859,397  
    $752,214 

Other income

Other income
primarily consisted of bank interest income, share of profit from investment in associate, loss from investment, and foreign
exchange gain or loss. Our other income for the six months ended March 31, 2025 and 2024 was $169,044 and $31,750 respectively. We
recognized a $147,579 gain on the disposal of a subsidiary and a $21,444 loss from share of profit from investment in associate for
the six months ended March 31, 2025.

Income tax expense

For the six months ended March
31, 2025, the income tax expense of the Company was nil. Due to the net loss before income tax, the Company recognized a full valuation
recognition against its deferred tax assets, which mainly included net operating loss carryforwards, as management believes it is more
likely than not that the Company will not realize its net operating loss carryforwards in the near future or before they expire.

For the six months ended March
31, 2024, the income tax expense of the Company was $13,364 as Kun Zhi Jian (Huai’an) incurred book income of $50,293 during that
period and we recognized an income tax expense in accordance with PRC’s statutory income tax rate of 25%.

 45 

Net loss

As a result of the factors discussed above, the Company posted net losses
in the amounts of $843,884 and $1,131,821 for the six months ended March 31, 2025 and 2024, respectively.

Foreign currency translation adjustment

The functional
currency of our operations in the PRC is Chinese Yuan or Renminbi (“RMB”), while the functional currency of our
operation in Hong Kong is Hong Kong Dollars (“HKD”). The financial statements