Company: KPEA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023821
Chunk: 21

Company: Kun Peng International Ltd.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 21
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 additions, renewals, and improvements are capitalized, while maintenance and
repairs are recognized as expense as incurred.

    14

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:

SCHEDULE
OF PROPERTY PLANT AND EQUIPMENT USEFUL LIVES

    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 registration. 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 their estimated useful lives, and are reviewed annually
for impairment. The Company has not recorded impairment of intangible assets as of June 30, 2025 and 2024.

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 reduce the carrying amount of the asset to the estimated fair value based on a discounted cash flows
approach or, when available and appropriate, to comparable market values. As of June 30, 2025 and 2024, management determined that there
was no impairment.

Fair
Value Measurements

The
Company applies the provisions of ASC Subtopic 820-10, “Fair Value Measurements,”