Company: KPEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010699
Chunk: 89

Company: Kun Peng International Ltd.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 89
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    2024 

    Retail 
    $152,671  
    $37,118 
  
    Wholesale 
     -  
     359 
  
    Equipment-based service revenue 
     456,614  
     299,019 
  
    Technical service revenue 
     -  
     36,018 
  
    Commission revenue 
     -  
     (8,093)
  
    Training revenue 
     -  
     87 
  
    Total 
    $609,285  
    $364,508 

We recognize our revenue on a
gross basis, net of sub-charges and value-added tax (“VAT”) on gross sales.

 38 

In addition to
revenue from retail and wholesale sales, we have developed the following sources of revenue: (i) equipment-based service revenue,
generated through providing cards for online medical consultation services and selling prepaid cards to our customers for the
use of card-operated health screening equipment located at the Kun Zhi Jian Customer Service Center; (ii) technical service revenue,
generated through promoting vendors’ products or businesses on our online platform; (iii) commission revenue, generated
through the Mini Program by selling health care instruments on behalf of third parties on a commission basis; and (iv) training
revenue, generated through offering training programs provided by a local health care service team.

We recognize equipment-based service
revenue upon the completion of medical consultation services and consuming the prepaid cards. We recognize technical service revenue upon
the completion of promoting vendors’ products or businesses on our platform. We recognize commission revenue upon the completion
of delivery of the sales order to the end customer. We recognize training revenue upon the completion of training sessions by our customers.

We generated
$244,777, or 67.2%, higher revenue for the three months ended March 31, 2024 compared to the same period in 2025 due to increases in
retail and in equipment-based services. For the three months ended March 31, 2025, we focused our business on equipment-based
services as we believe that the market for health care equipment usage has potential growth in the future as more and more people
are looking for professional health care assistance after COVID-19. Meanwhile, we updated products and engaged in promotions to
increase retail revenue through our current online platform.

Cost of revenue

We disaggregated our cost of revenue
for the three months ended March 31,