Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 19

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 3
Chunk 19
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 had negative working capital of $7,997,902.
These conditions raise substantial doubt about the ability of the Company to continue as a going concern.

The
Company continues to monitor its operations to help refine its financial liquidity. Options under consideration in the review process
include, but are not limited to, increase of sales through the Company’s online business, reduction of overhead costs, fund advance
from the Company’s stockholders and directors, or financing through the issuance of shares. The Company has been focusing on increasing
its revenue through its online platform and trimming its overhead costs. For example, it reduced lease payments and decreased office
supplies expense. In order to continue as a going concern for the next 12 months, the Company is focusing on promoting and
selling its own brand of preventive health care products to wholesalers through Kun Zhi Jian, an online platform launched in October
2022, streamlining its overhead costs, or obtaining financing or capital funding from its stockholders or directors. In November 2023,
the Company launched Kun Zhi Jian Mini Program. The Company leveraged the health care expertise and technology with local health care
service providers, offered health screening and monitoring at the Kun Zhi Jian customer service center, and promoted health care supplements
and products to its customers and members. However, the Company cannot provide any assurance that it will be able to increase revenue,
or that it will be able to successfully implement its business plan, or that financing will be available to it on commercially acceptable
terms, if at all. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability
and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue
as a going concern. The directors will continue to support the group by providing adequate financial assistance to enable the group to
continue its business operations for the foreseeable future.

Contractual
Obligations and Other Commitments

We
had the following contractual obligations and commercial commitments as of September 30, 2024:

    Payments Due by Period 

    Less Than 1 Year  
    1 to 3 Years  
    3 to 5 Years  
    More Than 5 Years  
    Total 
  
    Contractual Obligations: 

    Operating lease obligations 
    $244,243  
    $44,887  
    $-  
    $-  
    $289,130 
  
    Finance lease obligations