Company: KPEA
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006580
Chunk: 76

Company: Kun Peng International Ltd.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 1
Chunk 76
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 DEFERRED REVENUE

    December 31,  
    September 30, 

    2024  
    2024 

    Advance payments from customers 
    $593,992  
    $584,116 
  
    Total deferred revenue 
    $593,992  
    $584,116 

Deferred
revenue results from transactions where the Company has received the payments from the customers but revenue recognition criteria under
the five-step model have yet to be met. As of December 31, 2024 and September 30, 2024, the Company had total deferred revenue of $593,992
and $584,116, respectively. Once the five-step model criteria have been satisfied, revenues will
be recognized upon the transfer of risk and rewards to the customers. Management has agreed that the amount received is non-refundable.
However, this term is not bound by any written agreement. Thus, the customers may have the right to challenge and demand that the advances
be refunded under relevant commercial laws and regulations.

NOTE
10 - RELATED PARTY TRANSACTIONS

Acquisition
of Kun Pin Hui (Shandong) Trading Co. Ltd.

On
April 3, 2024, King Eagle (Tianjin) entered into a Share Transfer Agreement (the “Share Purchase Agreement”) with Zhandong
Fan and Yuanyuan Zhang for the acquisition of all the subscribed shares of Kun Pin Hui (Shandong) Trading Co. Ltd.

Pursuant
to the Share Purchase Agreement, King Eagle (Tianjin) agreed to acquire all of the subscribed capital of Kun Pin Hui (Shandong), amounting
to $0.4 million (RMB 3 million), for an aggregate consideration of $0.28 (RMB 2). Zhandong Fan (the holder of 95% of the shares of Kun
Pin Hui (Shandong)) and Yuanyuan Zhang (the holder of 5% of the shares of Kun Pin Hui (Shandong)), both of whom are shareholders of King
Eagle (Tianjin), transferred their shares for consideration of $0.14 (RMB 1)

The
acquisition closed on April 7, 2024. As of December 31, 2024, King Eagle (Tianjin) had paid $3,698 (RMB27,000) of the registered capital.

Amounts
due from