Company: KPEA
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006580
Chunk: 98

Company: Kun Peng International Ltd.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 1
Chunk 98
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 financing activities totaled $ 112,755 and was related to a capital contribution of $71,250 and proceeds from bank
borrowings of $99,033, offset by the payment of finance lease liabilities of $57,528 during the three months ended December 31,
2024.

The
effect of exchange rate change on cash totaled $16,981. The resulting change in cash for the period was an increase of $125,207.

For
the three months ended December 31, 2023, net cash used in operating activities totaled $303,608. Operating cash outflow was mainly attributable
to our net loss of $534,806 and a decline in customer advances of $1,323,176, offset by a decrease in inventory of $56,732 and the receipt
of an advance from a related party of $1,508,580.

There
was no financial activity during the three months ended December 31, 2023.

The
effect of exchange rate change on cash totaled $10,379. The resulting change in cash for the period was a decrease of $337,237.

44

The
following table sets forth a summary of changes in our working capital as of December 31, 2024 and September 30, 2024:

    December 31,  
    September 30, 

    2024  
    2024 

    Current Assets 
    $457,105  
    $548,518 
  
    Current Liabilities 
     8,655,244  
     8,546,420 

    $(8,198,139) 
    $(7,997,902)

We
require cash of approximately $7.3 million within the next twelve months, primarily related to third-party vendor payables and related-party
payables. As of December 31, 2024 and September 30, 2024, we had received customer advances in the amount of approximately $0.6 million
and $0.6 million, respectively. We anticipate that the majority of the revenue will be recognized in fiscal year 2025. Management has
agreed that the amount received is non-refundable. However, this term is not bound by any agreement. Therefore, the customers may have
the right to challenge and demand the advances be refunded under relevant commercial laws or regulations. Additionally, we had an approximately
$0.05 million and $0.3 million commitment related to purchase and