Company: KPEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010699
Chunk: 22

Company: Kun Peng International Ltd.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 22
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 basis. When evidence exists that the net realizable value of inventory
is lower than its cost, provisions shall be made to write inventory down and a loss shall be recognized in earnings in the period in which
it occurs. That loss may be required, for example, due to damage, physical deterioration, obsolescence, changes in price levels, or other
reasons. As of March 31, 2025, there was no inventory located at third-party warehouses.

Financial Instruments

The carrying amounts reported
in the balance sheet for cash, other receivables, accrued liabilities, and other payables approximate fair value because of the immediate
or short-term maturities of these financial instruments.

Property and Equipment

Property and equipment are stated
at cost less accumulated depreciation and impairment losses. Gains and losses on dispositions of property and equipment are included in
operating income (loss). Major 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 March 31, 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