Company: KPEA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023821
Chunk: 102

Company: Kun Peng International Ltd.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 2
Chunk 102
---

  
    Contractual Obligations: 

    Operating lease obligations 
    $-  
    $    -  
    $         -  
    $   -  
    $- 
  
    Finance lease obligations 
     116,377  
     -  
     -  
     -  
     116,377 
  
    Short-term borrowing 
     99,391  
     -  
     -  
     -  
     99,391 
  
    Purchase and service agreements 
     75,072  
     -  
     -  
     -  
     75,072 

    Total contractual obligations 
    $290,840  
    $-  
    $-  
    $-  
    $290,840 

Future
Financings

We
will continue to rely on loans from our directors and major shareholders in order to continue
to fund our business operations. Issuances of additional shares will result in dilution to existing stockholders. There is no assurance
that we will achieve any additional sales of equity securities or arrange for debt or other financing to fund our operations and other
activities, and if we do succeed in selling additional securities, there is no guarantee that existing shareholders will not be substantially diluted.

Critical
Accounting Policies

We
regularly evaluate the accounting policies and estimates that we use to make budgetary and financial statement assumptions. A complete
summary of these policies is included in the notes to our financial statements. In general, management’s estimates are based on
historical experience, on information from third party professionals, and on various other assumptions that are believed to be reasonable
under the facts and circumstances. Actual results could differ from those estimates made by management.

See
Note 2 to the financial statements included herewith and Note 2 to the financial statements in the Company’s Form 10-K for the
fiscal year ended September 30, 2024 previously filed with the SEC.

Recent
Accounting Pronouncements

See
Note 2 to the financial statements included herewith and Note 2 to the financial statements in the Company’s Form 10-K for the
fiscal year ended September 30, 2024 previously filed with the SEC.

ITEM
3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As
a smaller reporting company, we