Company: KPEA
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006580
Chunk: 84

Company: Kun Peng International Ltd.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 1
Chunk 84
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 with the PRC Tax Administration Law on the Levying and Collection of Taxes, the PRC tax authorities generally have up to five
years to assess underpaid tax plus penalties and interest for PRC entities’ tax filings. In the case of tax evasion, which is not
clearly defined in the law, there is no limitation on the tax years open for investigation. Accordingly, the PRC entities remain subject
to examination by the tax authorities based on the above.

As
of December 31, 2024 and September 30, 2024, the Company did not accrue any liability, interest, or penalties related to uncertain tax
positions in the provision for income taxes in its consolidated financial statements. The Company does not expect that its assessment
regarding unrecognized tax positions will materially change over the next 12 months.

NOTE
14 - RIGHT-OF-USE ASSETS AND LEASE

The
Company has operating leases for its office facilities, automobiles and employee accommodation and finance lease for equipment for revenue
service. The Company classified the equipment for revenue service as finance lease as the lessor will transfer the ownership of equipment
for revenue service to the Company by the end of the lease term.

Leases
with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognized lease expense on a straight-line
basis over the lease term for operating lease. Meanwhile, the Company recognized the finance leases ROU assets and interest on an amortized
cost basis.

The
following table provides a summary of leases as of December 31, 2024 and September 30, 2024:

 SUMMARY
OF OPERATING LEASE ASSETS AND LIABILITIES

    Assets/liabilities 
    Classification 
    December 31, 2024  
    September 30, 2024 
  
    Assets 

    Operating lease right-of-use assets 
    Operating lease assets 
    $194,612  
    $284,524 
  
    Finance lease right-of-use assets 
    Finance lease assets 
     250,914  
     309,445 
  
    Total lease assets 
      
    $445,526  
    $593,969 

    Liabilities 

    Current 

    Operating lease liability - current 
    Current operating lease liabilities 
    $187,659  
    $238,979 
  
    Finance lease liability - current 
    Current finance lease liabilities 
     172,202