Company: KPEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010699
Chunk: 18

Company: Kun Peng International Ltd.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 18
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 under the laws of the People’s Republic
of China with a registered capital of approximately $0.14 million (RMB 1 million). The entity is located in Sichuan province, PRC. It
is a wholly-owned subsidiary of King Eagle VIE. Chengdu Wenjiang has not commenced operations as of the date of this report and is applying
to the relevant authorities for the necessary permits to sell health care and medical services. There can be no assurance that such permits
will be obtained.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The condensed consolidated financial
statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) applicable to quarterly
financial information and the requirements of Form 10-Q and Rule 8-03 of Regulation S-X of the Securities and Exchange Commission. Accordingly,
they do not include all of the information and disclosure required by accounting principles generally accepted in the United States of
America for complete financial statements. Quarterly results are not necessarily indicative of results for a full year. In the opinion
of management, all adjustments considered necessary for a fair presentation of the financial position and the results of operations and
cash flows for the quarterly periods have been included.

These condensed consolidated financial
statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the
year ended September 30, 2024 included in the Form 10-K filed with the SEC on January 14, 2025.

The condensed consolidated financial
statements have been prepared in accordance with generally accepted accounting principles in the United States of America. This basis
of accounting involves the application of accrual accounting and, consequently, revenues and gains are recognized when earned and expenses
and losses are recognized when incurred. The condensed consolidated financial statements are expressed in U.S. dollars.

Principles of Consolidation

The condensed consolidated financial
statements include the financial statements of the Company, its subsidiaries and its variable interest entity (“VIE”). All
significant intercompany transactions and balances within the Company have been eliminated upon consolidation.

Use of Estimates and Assumptions

The preparation of condensed consolidated
financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions
that impact the presented amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the presented amounts of revenues and expenses during the period. Actual results may differ from those estimates. Significant
estimates during the quarters ended March