Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 140

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 6
Chunk 140
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Level 1 measurements) and the
lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value
hierarchy are as follows:

    ●
    Level
    1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

    ●
    Level
    2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that
    are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.

    ●
    Level
    3 inputs to the valuation methodology are unobservable and significant to the fair value.

The
Company’s financial assets and liabilities include cash, receivables, accounts payable, and accrued expenses.

Related
Party Transactions

The
Company follows the ASC 850-10 “Related Party Disclosures” for the identification of related parties and disclosure of related
party transactions.

Pursuant
to section 850-10-20, related parties include (i) affiliates of the Company; (ii) entities for which investments in their equity securities
would be required, absent the election of the fair value option under the Fair Value Option Subsection of section 825-10-15, to be accounted
for by the equity method by the investing entity; (iii) trusts for the benefit of employees, such as pension and income-sharing trusts
that are managed by or under the trusteeship of management; (iv) principal owners of the Company; (v) management of the Company; (vi)
other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies
of the other to the extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and
(vii) other parties that can significantly influence the management or operating policies of the transacting parties or that have an
ownership interest in one of the transacting parties and can significantly influence the other to the extent that one or more of the
transacting parties might be prevented from fully pursuing its own separate interests.

The
consolidated financial statements shall include disclosures of material related party transactions, other than compensation arrangements,
expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated
in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include:
(i) the nature of the