Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 733

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1A
Chunk 733
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materially and adversely affect the Company’s business, financial position, and results of operations or cash flows.

Recent
Accounting Pronouncement

Recently
Adopted Accounting Standards

Financial
Instruments. In June 2016, the FASB issued Accounting Standards Update No. 2016-13,”Financial Instruments - Credit Losses (Topic
326)” (“ASU 2016-13”). ASU 2016-13 revises the methodology for measuring credit losses on financial instruments and
the timing of when such losses are recorded. Originally, ASU 2016-13 was effective for fiscal years, and for interim periods within those
fiscal years, beginning after December 15, 2019, with early adoption permitted. In November 2019, FASB issued ASU 2019-10, “Financial
Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842).” This ASU defers the effective
date of ASU 2016-13 for public companies that are considered smaller reporting companies as defined by the SEC to fiscal years beginning
after December 15, 2022, including interim periods within those fiscal years. The Company adopted this standard in the first quarter
of fiscal 2024 and evaluated that this new guidance does not have a significant impact on its condensed consolidated financial statements.

In
the period from October 2023 through December 2023, the FASB has not issued any additional accounting standards updates that have a significant
impact on the Company.

ITEM
7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The
Company is not required to provide the information required by this Item because the Company is a smaller reporting company.

ITEM
8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Our
consolidated financial statements are included on pages F-1 through F-45, which appear at the end of this Annual Report.

95

ITEM
9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

Not
applicable. There have been no changes in or disagreements with the Company’s principal independent auditors.

ITEM
9A. CONTROLS AND PROCEDURES

(a)
Evaluation of Disclosure Controls and Procedures.

We
maintain “disclosure controls and procedures” as such term is defined in Rule