Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 842

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1B
Chunk 842
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months. If we are not able to increase revenue or obtain any financing, we may be unable to continue as a going concern.

Going
Concern Consideration

The
financial statements included in this Annual Report 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. As of September 30, 2024, the
Company experienced cash inflows from operating activities of $17,880, incurred a net
loss of $1,991,747, and 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 refine 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 overhead costs, fund advance
from the Company’s stockholders and directors, or financing through the issuance of shares. The Company has been focusing on increasing
its revenue through its online platform and trimming its overhead costs. For example, it reduced lease payments and decreased office
supplies expense. In order to continue as a going concern for the next 12 months, the Company is focusing on promoting and
selling its own brand of preventive health care products to wholesalers through Kun Zhi Jian, an online platform launched in October
2022, streamlining its overhead costs, or obtaining financing or capital funding from its stockholders or directors. In November 2023,
the Company launched Kun Zhi Jian Mini Program. The Company leveraged the health care expertise and technology with local health care
service providers, offered health screening and monitoring at the Kun Zhi Jian customer service center, and promoted health care supplements
and products to its customers and members. However, the Company cannot provide any assurance that it will be able to increase revenue,
or that it will be able to successfully implement its business plan, or that financing will be 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