Company: KPEA
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006580
Chunk: 101

Company: Kun Peng International Ltd.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 1
Chunk 101
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 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

We
regularly evaluate the accounting policies and estimates that we use to make budgetary and financial statement assumptions. A complete
summary of these policies is included in the notes to our financial statements. In general, management’s estimates are based on
historical experience, on information from third party professionals, and on various other assumptions that are believed to be reasonable
under the facts and circumstances. Actual results could differ from those estimates made by management.

See
Note 2 to the financial statements included herewith and Note 2 to the financial statements in the Company’s Form 10-K for the
fiscal year ended September 30, 2024 previously filed with the SEC.

Recent
Accounting Pronouncements

See
Note 2 to the financial statements included herewith and Note 2 to the financial statements in the Company’s Form 10-K for the
fiscal year ended September 30, 2024 previously filed with the SEC.

ITEM
3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As
a smaller reporting company, we are not required to respond to this item.

46

ITEM
4. CONTROLS AND PROCEDURES

(a)
Evaluation of Disclosure Controls and Procedures.

We
maintain “disclosure controls and procedures” as such term is defined in Rule 13a-15I under the Securities Exchange Act of
1934, as amended. In designing and evaluating our disclosure controls and procedures, our management recognized that disclosure controls
and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of
disclosure controls and procedures are met. Additionally, in designing disclosure controls and procedures, our management necessarily
was required to apply its judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures. The design
of any disclosure controls and procedures also is based in part upon certain assumptions about the likelihood of future events, and there
can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions