Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 546

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 546
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 The 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 a foreign
currency translation gain of $247,327 and loss of $147,374 for the years ended
September 30, 2024 and 2023, respectively. This non-cash gain had the effect of decreasing our reported comprehensive
loss.

Comprehensive
loss

As
a result of our net loss after income taxes, we had a comprehensive loss for the years ended September 30, 2024 and 2023 of $2,218,663
and $2,001,839, respectively.

Liquidity
and Capital Resources

As
of September 30, 2024 and 2023, we had cash and cash equivalents balances of $82,184 and
$457,580, respectively.

For
the year ended September 30, 2024, net cash provided by operating activities totaled $17,880. Operating cash inflow was mainly attributable
to an increase in trade payable from related party of $2,297,676, other payable from related party of $3,000,802, other payable and accrual of $80411 and inventory of $93,335, mostly offset
by our net loss of $1,991,747, a decrease in trade payable of $1,802,456 and advances from customers of $1,607,612.

85

Net
cash used in investing activities totaled $348,998 and was related to purchase of property, plant and equipment of $320,498 and long-term
investment in of $28,500 in cooperative enterprise during the year ended September 30, 2024.

For the year ended September 30, 2024,
net cash used in financing activities totaled $54,769 and primarily related to $125,291 payment of finance lease liabilities, partially
offeset by a $70,522 capital contribution from a shareholder of King Eagle (Tianjin).

The
effect of exchange rate change on cash totaled $10,491 for the year ended September