Company: KPEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010699
Chunk: 56

Company: Kun Peng International Ltd.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 56
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idiaries and VIE included in the Company’s consolidated net assets are also non-distributable for dividend purposes. The results
of operations reflected in the accompanying consolidated financial statements prepared in accordance with U.S. GAAP differ from those
reflected in the statutory financial statements of KP Tian Yu, the foreign-invested enterprise, King Eagle (China), King Eagle (Tianjin),
the VIE, and its subsidiaries. The Company is required to set aside at least 10% of its after-tax profits each year, if any, to fund certain
statutory reserve funds until such reserve funds reach 50% of its registered capital. In addition, the Company may allocate a portion
of its after-tax profits based on PRC accounting standards to an enterprise expansion fund and a staff bonus and welfare fund at its discretion.
The statutory reserve funds and the discretionary funds are not distributable as cash dividends.

As a result of the foregoing restrictions,
King Eagle (China), King Eagle (Tianjin), and KP Tian Yu are restricted in their ability to transfer their net assets to the Company.
Foreign exchange and other regulations in the PRC may further restrict these entities from transferring funds to the Company in the form
of dividends, loans, and advances. As of March 31, 2025, King Eagle (China), King Eagle (Tianjin), and KP Tian Yu incurred negative assets
in the amount of $ , $ and $ , respectively. As of September 30, 2024, King Eagle (China), King
Eagle (Tianjin) and KP Tian Yu incurred negative assets in the amount of $1,327,000, $2,539,081 and $962, respectively. Accordingly, the
Company did not accrue statutory reserve funds as of March 31, 2025 and September 30, 2024.

NOTE 12- REVENUE

Revenue:

The following table presents revenues
and the related cost of goods sold disaggregated by customer type for the three and six months ended March 31, 2025 and 2024:

 SCHEDULE
OF DISAGGREGATED REVENUES AND COST OF GOODS SOLD

    2025  
    2024  
    2025  
    2024 

    Three Months Ended March 31,  
    Six Months Ended March 31, 

    2025  
    2024  
    2025  
    2024