Company: KPEA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023821
Chunk: 92

Company: Kun Peng International Ltd.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 2
Chunk 92
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 of assets and liabilities during the deregistration process for two subsidiaries, King
Eagle (Huai’an) and Kun Zhi Jian (Huai’an), during the three months ended June 30, 2025.

40

Income
tax expense

For
the three months ended June 30, 2025 and 2024, our income tax expense was $nil and $2,665, respectively. During the three months ended
June 30, 2024, Kun Zhi Jian (Huai’an) realized income of $10,660 and we recognized an income tax expense in accordance with the
PRC’s statutory income tax rate of 25%.

Net
loss

As
a result of the factors discussed above, we posted a net loss in the amount of $44,865 for the three months ended June 30, 2025 compared
to net income in the amount of $288,236 for the three months ended June 30, 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”). Our financial statements are translated to U.S. dollars using the
period end rates of exchange for assets and liabilities; equity is translated at historical exchange rates; and average rates of exchange
(for the period) are used for revenues and expenses and cash flows. Transaction gains and/or losses that arise from exchange rate fluctuations
on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. As
a result of foreign currency translation, which is a noncash adjustment, we reported foreign currency translation income of $103,165
and loss of $22,608 for the three months ended June 30, 2025 and 2024, respectively.

Comprehensive
loss

We
recognized a comprehensive loss of $148,030 and $265,628 for the three months ended June 30, 2025 and 2024, respectively.

Results
of Operations for the nine months ended June 30, 2025 and 2024

    Nine
Months Ended June 30, 

    2025  
    2024 

    Amount  
    % of revenue  
    Amount  
    % of revenue 

    Revenues 
    $1,073,606  
     100.