Company: KPEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010699
Chunk: 71

Company: Kun Peng International Ltd.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 71
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 Office supplies and meetings 
     30,984  
     53,882 
  
    Travel, transportation, and gasoline 
     8,640  
     4,965 
  
    Meals and entertainment 
     658  
     1,861 
  
    Depreciation and amortization 
     16,963  
     236 
  
    Advertising 
     3,893  
     4,529 
  
    Total 
    $512,908  
    $320,226 

Other income (expense)

Other income
(expense) primarily consisted of bank interest income and expense, share of profit from investment in associate, loss from
investment, and foreign exchange gain or loss. Our other income for the three months ended March 31, 2025 was $121,965 and other
expenses for the three months ended March 31, 2024 was $440. We recognized a $147,579 gain on the disposal of a subsidiary and a
$21,444 loss from share of profit from investment in associate for the three months ended March 31, 2025.

Income tax expense

For the three months ended March
31, 2025 and 2024, our income tax expense was nil and $13,364, respectively. Due to the net loss before income tax, the Company recognized
a full valuation recognition against its deferred tax assets, which mainly included net operating loss carryforwards, as management believes
it is more likely than not that the Company will not realize its net operating loss carryforwards in the near future or before they expire.

	During the three months ended
March 31, 2024, Kun Zhi Jian (Huai’an) realized income of $50,293 and we recognized an income tax expense in accordance with the
PRC’s statutory income tax rate 25%.

 41 

Net loss

As a result of the factors discussed
above, we posted a net loss in the amount of $192,877 for the three months ended March 31, 2025 compared to a net loss in the amount of
$597,435 for the three months ended March 31, 2024.

Foreign currency translation
adjustment

The functional currency for our
operations in the PRC is the Chinese Yuan or Renminbi (“RMB”); the functional currency for our operations in Hong Kong is
the Hong Kong Dollar (“HKD”). The financial statements are translated