Company: KPEA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023821
Chunk: 101

Company: Kun Peng International Ltd.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 2
Chunk 101
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 disclosed on the financial statements.
The Company’s ability to continue as a going concern depends on the liquidation of its current assets. For the nine months ended
June 30, 2025, the Company experienced cash inflows from operating activities of $69,471, incurred a net loss of $888,749, and had negative
working capital of $8,384,987. These conditions raise substantial doubt about the ability of the Company to continue as a going concern.

The
Company continues to monitor its operations to help improve its financial liquidity. Options under consideration in the review
process include, but are not limited to, increase of sales through the Company’s online business, reduction of operating
costs, fund advance from the Company’s stockholders and directors, or financing through the issuance of shares and bank loans.
The Company has been focusing on increasing its revenue through its online platform and trimming its operating costs. For example,
it explored additional revenue streams and reduced its service agent service fee. In order to continue as a going concern for the
next 12 months, the Company continues to explore additional revenue streams, leverage the health care expertise and technology of
local health care service providers, promote and sell preventive health care dietary supplements and products, and offer health care
equipment-based services at the Kun Zhi Jian Customer Service Center. However, the Company cannot provide any assurance that it will
be able to increase revenue, that it will be able to successfully implement its business plan, or that financing will be available
to it on commercially acceptable terms, if at all. The financial statements do not include any adjustments to reflect the possible
future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result
should the Company be unable to continue as a going concern. Our directors have indicated that they intend to continue to support
the group by providing adequate financial assistance to enable the group to continue its business operations for the foreseeable
future.

Off-Balance
Sheet Arrangements

We
have no off-balance sheet arrangements, including arrangements that would affect our liquidity, capital resources, market risk support,
credit risk support, or other benefits.

46

Contractual
Obligations and Other Commitments

We
had the following contractual obligations and commercial commitments as of June 30, 2025:

    Less Than 1 Year  
    1 to 3 Years  
    3 to 5 Years  
    More Than 5 Years  
    Total