Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 135

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 6
Chunk 135
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 available to it on commercially acceptable
terms, if at all. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability
and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue
as a going concern. The directors will continue to support the group by providing adequate financial assistance to enable the group to
continue its business operations for the foreseeable future.

Contractual
Obligations and Other Commitments

We
had the following contractual obligations and commercial commitments as of September 30, 2024:

    Payments Due by Period 

    Less Than 1 Year  
    1 to 3 Years  
    3 to 5 Years  
    More Than 5 Years  
    Total 
  
    Contractual Obligations: 

    Operating lease obligations 
    $244,243  
    $44,887  
    $-  
    $-  
    $289,130 
  
    Finance lease obligations 
     205,103  
     77,848  
     -  
     -  
     282,951 
  
     Purchase and service agreements 
     4,987  
     -  
     -  
     -  
     4,987 
  
    Total contractual obligations 
    $454,333  
    $122,735  
    $-  
    $-  
    $577,068 

87

Off-Balance
Sheet Arrangements

We
have no off-balance sheet arrangements, including arrangements that would affect our liquidity, capital resources, market risk support,
and credit risk support or other benefits.

Future
Financings

We
will continue to rely on loans from our directors and major shareholders and on equity sales of our common shares 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, or if we are able, there is no guarantee that existing shareholders will not be substantially diluted.

Critical
Accounting Policies

Basis
of Presentation

The
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 accr