Company: KPEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010699
Chunk: 19

Company: Kun Peng International Ltd.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 19
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31, 2025 and 2024 include the collectability of receivables, the useful lives of long-lived
assets and intangibles, assumptions used in assessing impairment of long-lived assets, valuation of accruals for expenses, and tax due.

     12 

Going Concern

The accompanying condensed consolidated
financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America which
contemplate continuation of the Company as a going concern. The going-concern basis assumes that assets are realized and liabilities are
extinguished in the ordinary course of business at amounts disclosed on the financial statements. The Company’s ability to continue
as a going concern depends on the liquidation of its current assets and business developments. In assessing the Company’s liquidity,
the Company monitors and analyzes its cash and cash equivalents and its operating and capital expenditure commitments. The Company’s
liquidity needs are to meet its working capital requirements, operating expenses, and capital expenditure obligations. For the quarter
ended March 31, 2025, the Company incurred cash outflows from operating activities of $3,710, the Company incurred a net loss of $843,884,
and the Company had negative working capital of $8,329,536. For the fiscal year ended September 30, 2024, the Company incurred cash inflows
from operating activities of $17,880, the Company incurred a net loss of $1,991,747, and the Company had negative working capital of $7,997,902.
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 with local health care service providers, promote and sell preventive
health care dietary supplements and products, and offer health care equipment services at the Kun Zhi Jian Customer Service Center. However,
the Company cannot provide