Company: KPEA
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006580
Chunk: 7

Company: Kun Peng International Ltd.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 2
Chunk 7
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 $300,836 or 84.4%, and $412,811 or 73.4%,
respectively. Our gross profit or margin for the equipment service for the three months ended December 31, 2024 was significantly higher
than that for the same period in 2023. When our new online platform, Kun Zhi Jian, was launched in October 2022, we refocused on selling
dietary supplements, prepaid health screening cards, and physiotherapy equipment to our retail customers which have higher profit margins.

The
gross margins for our commission, equipment service, and training for the three months ended December 31, 2024 were nil, 84.3%, and nil,
respectively. As we introduced these four additional revenue streams in or after November 2023, the gross margins for these revenue streams
were 100.0%, 42.5%, and 40.8%, respectively, for the same period in 2023.

Operating
expenses

Our
operating expenses consist of general and administrative expenses and selling expense. For the three months ended December 31, 2024
and 2023, our total operating expenses were $998,922 and $979,807, respectively. The slight increase in operating expenses for the
three months ended December 31, 2024 compared to the three months ended December 31, 2023 was primarily due to an increase of
$104,614  in general and administrative expenses offset by a decrease of $85,499 in selling expenses.

42

General
and administrative expenses

General
and administrative expenses for the three months ended December 31, 2024 and 2023 were $652,433 and $547,819, respectively. Our general
and administrative expenses for the three months ended December 31, 2024 and 2023 were comprised of the following:

    Three Months Ended December 31, 

    2024  
    2023 
  
    Employee compensation and benefits 
    $213,023  
    $163,578 
  
    Office rent and building management 
     98,607  
     91,436 
  
    Office supplies and meeting 
     4,072  
     13,773 
  
    Professional services fee 
     279,395  
     149,895 
  
    Travel, transportation, and gasoline 
     10,184  
     46,591