Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 560

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 560
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, Financial Statements and Supplementary Data. In meeting its liquidity
requirements, the Company focus on increasing its revenue through the sale of health care products and equipment service from
card-operated health screening equipments on its new online platform, Kun Zhi Jian and Kun Zhi Jian Mini Program, and promoting its own brand of preventive
health care related products to reduce its costs of goods sold, streamlining its overhead costs, or
obtaining financing from its stockholders or directors.

Concentration
of customers and vendors

There
was no revenue from customers that individually represent greater than 10% of the total revenues for the years ended September 30, 2024,
and 2023.

For
the year ended September 30, 2024, four vendors accounted for 34%, 14%, 14% and 10% of the Company’s total cost of sales.

For
the year ended September 30, 2023, three vendors accounted for 35%, 25%, and 12% of the Company’s total cost of sales.

Income
Taxes

We
account for income taxes using the liability method. Under this method, deferred tax assets and liabilities are determined based on the
difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in
the period in which the differences are expected to reverse. The Company records a valuation allowance against deferred tax assets if,
based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not
be realized. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment
date.

We
apply ASC 740, Accounting for Income Taxes, to account for uncertainty in income taxes and the evaluation of a tax position is
a two-step process. The first step is to determine whether it is more likely than not that a tax position will be sustained upon examination,
including the resolution of any related appeals or litigation based on the technical merits of that position. The second step is to measure
a tax position that meets the more-likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements.
A tax position is measured at the largest amount of benefit that has a greater than 50% likelihood of being realized upon ultimate settlement.
Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent
period in which the threshold