Company: KPEA
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006580
Chunk: 48

Company: Kun Peng International Ltd.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 1
Chunk 48
---
 value measurements for assets and liabilities required or permitted
to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers
assumptions that market participants would use when pricing the asset or liability.

    15

ASC
820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable
inputs when measuring fair value. ASC 820 establishes three levels of inputs that may be used to measure fair value. The hierarchy gives
the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the
lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value
hierarchy are as follows:

    ●
    Level 1 inputs to the valuation
    methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

    ●
    Level 2 inputs to the valuation
    methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets
    or liability, either directly or indirectly, for substantially the full term of the financial instruments.

    ●
    Level 3 inputs to the valuation
    methodology are unobservable and significant to the fair value.

The Company’s
financial assets and liabilities include cash, receivables, accounts payable, and accrued expenses.

Related
Party Transactions

The
Company follows the ASC 850-10, “Related Party Disclosures” for the identification of related parties and disclosure of related
party transactions.

Pursuant
to section 850-10-20 the related parties include a) affiliates of the Company; b) entities for which investments in their equity securities
would be required, absent the election of the fair value option under the Fair Value Option Subsection of section 825-10-15, to be accounted
for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and income-sharing trusts that
are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties
with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other
to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g) other parties
that can significantly influence the management or operating