Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 23

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 3
Chunk 23
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 physical deterioration,
obsolescence, changes in price levels, or other reasons. As of September 30, 2024, there was no inventory located at third party warehouse.

Financial
Instrument

The
carrying amounts reported on the balance sheet for cash, other receivables, accrued liabilities, and other payables approximate fair
value because of the immediate or short-term maturities of these financial instruments.

Property
and Equipment

Property
and equipment are stated at cost less accumulated depreciation and impairment losses. Gains and losses on dispositions of property and
equipment are included in operating income (loss). Major additions, renewals, and improvements are capitalized, while maintenance and
repairs are recognized as expense as incurred.

89

Depreciation
is provided over the estimated useful life of each class of depreciable assets and is computed using the straight-line method over the
useful lives of the assets as follows:

    Classification 
    Estimated useful life
  
    Leasehold improvements 
    5 years
  
    Office equipment 
    3 years
  
    Computer equipment 
    3 years
  
    Computer software 
    5 years

Intangible
Assets

Intangible
assets represent the licensing cost for trademark registrations. For intangible assets with indefinite lives, the Company evaluates intangible
assets for impairment at least annually and more often whenever events or changes in circumstances indicate that the carrying value may
not be recoverable. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value
exceeds the fair value. Intangible assets with definite lives are amortized over estimated useful lives and are reviewed annually for
impairment. The Company has not recorded impairment of intangible assets as of September 30, 2024 and 2023.

Impairment
of Long-lived Assets

Long-lived
assets, including buildings and intangible assets with finite lives, are reviewed for impairment whenever events or changes in circumstances
(such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying
value of an asset may not be recoverable. We assess the recoverability of the assets based on the undiscounted future cash flows the
assets are expected to generate and recognize an impairment loss when estimated discounted future cash flows expected to result from
the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset.
When we identify an impairment, we