Company: KPEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010699
Chunk: 102

Company: Kun Peng International Ltd.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 102
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 Consideration

The financial statements included
in this Quarterly Report have been prepared in conformity with accounting principles generally accepted in the United States of America
which contemplate continuation of the Company as a going concern. The going-concern basis assumes that assets are realized and liabilities
are extinguished in the ordinary course of business at amounts disclosed on the financial statements. The Company’s ability to continue
as a going concern depends on the liquidation of its current assets. For the six months ended March 31, 2025, the Company experienced
cash outflows from operating activities of $3,710 incurred a net loss of $843,884, and had negative working capital
of $8,329,536. 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 improve 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 operating costs, fund advance from the Company’s
stockholders and directors, or financing through the issuance of shares and bank loans. The Company has been focusing on increasing its
revenue through its online platform and trimming its operating costs. For example, it explored additional revenue streams and reduced
its service agent service fee. In order to continue as a going concern for the next 12 months, the Company continues to explore additional
revenue streams, leverage the health care expertise and technology with local health care service providers, promote and sell preventive
health care dietary supplements and products, and offer health care equipment services at the Kun Zhi Jian Customer Service Center. However,
the Company cannot provide any assurance that it will be able to increase revenue, 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 intend to continue to support
the group by providing adequate financial assistance to enable the group to continue its business operations for the foreseeable future.

 47 

Contractual Obligations and Other Commitments

We had the following contractual
obligations and commercial commitments as of March 31, 2025:

    Payments Due by Period 

    Less Than 1 Year  
    1