Company: KPEA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023821
Chunk: 77

Company: Kun Peng International Ltd.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 77
---
 currency are included in the results of operations
as incurred. As a result of foreign currency translation, which is a noncash adjustment, we reported a foreign currency translation
loss of $137,303 for the nine months ended June 30, 2025 and foreign currency translation income of $25,449 for the same period in 2024.

Comprehensive
loss

The
Company recognized comprehensive losses in the amounts of $751,446 and $1,445,505 for the nine months ended June 30, 2025 and 2024, respectively.

Liquidity
and capital resources

As
of June 30, 2025 and September 30, 2024, we had cash and cash equivalents balances of $59,914 and $82,184, respectively.

For
the nine months ended June 30, 2025, net cash provided by operating activities totaled $69,471. Operating cash inflow was mainly attributable
to our net loss of $888,749 and a decline in amounts due to related parties of $2,438,891, offset by an increase in trade payables of
$1,822,702 and an increase in other payables and accrual of $1,152,448.

For
the nine months ended June 30, 2024, net cash used in operating activities totaled $206,462. Operating cash outflow was mainly attributable
to our net loss of $1,420,056 and a decline in customer advances of $955,853, offset by a decrease in inventory of $93,253.

Net
cash used in investing activities totaled $30,412 and was related to the purchase of property, plant, and equipment during the nine months
ended June 30, 2025. There was no investing and financial activity during the nine months ended June 30, 2024.

Net
cash used in financing activities totaled $58,730 and was related to the payment of finance lease liabilities of $157,187, offset by proceeds
from bank borrowings of $98,457 during the nine months ended June 30, 2025. There was no financial activity during the nine months ended
June 30, 2024.

For
the nine months ended June 30, 2025, the effect of exchange rate change on cash totaled $2,599. The resulting change in cash for the
period was a decrease of $22,270,

For
the nine months ended June