Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 2

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 3
Chunk 2
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 $5.00 per share,
subject to certain exceptions. The rules provide that any equity security is considered to be a penny stock unless that security is registered
and traded on a national securities exchange meeting specified criteria set by the SEC, issued by a registered investment company, and
excluded from the definition on the basis of price (at least $5.00 per share), or based on the issuer’s net tangible assets or
revenues. In the last case, the issuer’s net tangible assets must exceed $3,000,000 if in continuous operation for at least three
years or $5,000,000 if in operation for less than three years, or if the issuer’s average revenues for each of the past three years
exceeds $6,000,000.

77

Trading
in shares of penny stock is subject to additional sales practice requirements for broker-dealers who sell penny stocks to persons other
than established customers and accredited investors. Accredited investors, in general, include individuals with assets in excess of $1,000,000
or annual income exceeding $200,000 (or $300,000 together with their spouse), and certain institutional investors. For transactions covered
by these rules, broker-dealers must make a special suitability determination for the purchase of the security and must have received
the purchaser’s written consent to the transaction prior to the purchase. Additionally, for any transaction involving a penny stock,
the rules require the delivery, prior to the first transaction, of a risk disclosure document relating to the penny stock. A broker-dealer
also must disclose the commissions payable to both the broker-dealer and the registered representative, and current quotations for the
security. Finally, monthly statements must be sent disclosing recent price information for the penny stocks. These rules may restrict
the ability of broker-dealers to trade or maintain a market in our common stock to the extent that it is penny stock, and may affect
the ability of shareholders to sell their shares.

Rule
144

In
general, under Rule 144 a person, or persons whose shares are aggregated, who is not deemed to have been one of our affiliates at any
time during the 90 days preceding a sale and who has beneficially owned shares of our common stock for at least six months, including
the holding period of any prior owner except if the prior owner was one of our affiliates, would be entitled to sell all of their shares,
provided that current public information about our company is available.

Sales
under Rule 144