Company: KPEA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023821
Chunk: 49

Company: Kun Peng International Ltd.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 49
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 respectively. The prepayment will
    be recognized in cost of goods sold in its consolidated statement of operations and comprehensive loss when the corresponding deferred
    revenue is recognized.

    28

    (2)
     
    As
of September 30, 2024, the ending balance of prepaid professional services represented $104,742 of legal service fees for our PRC entities. The legal service fees will be amortized to general and administrative expenses using the straight-line method, over the service
periods of October and November 2024. 

As
    of June 30, 2025, the ending balance of prepaid professional services included $2,797 of advertising and promotion fees for our PRC
    entities. The advertising and promotion fees will be recognized in the Company’s consolidated statement of operations and comprehensive
    loss when the related services are performed.

These
amounts are expected to be recoverable within twelve (12) months.

NOTE
5 - OTHER RECEIVABLES

Other
receivables included the following:

SCHEDULE OF OTHER RECEIVABLES

    June 30,  
    September 30, 

    2025  
    2024 

    Deposits 
    $97,653  
    $136,119 
  
    Advance to employees 
     -  
     42,894 
  
    Advance to third-party company 
     18,081  
     34,912 
  
    Others 
     16,812  
     37,663 
  
    Total other receivables 
    $132,546  
    $251,588 

Advance
to employees represents funds provided to our officers and employees for business expenses, such as travel, parking, gasoline, membership,
and meals, that are anticipated to be incurred by our officers and employees on behalf of the Company. Advances to employees are required
to be repaid in cash within a year.

Advance
to third-party company represents funds provided to a third-party company for rental fee and deposit.

NOTE
6 - INVENTORY

Inventory
consisted of the following:

SCHEDULE
OF INVENTORY

    June 30,  
    September 30, 

    2025  
    2024 

    Finished goods 
    $8,032  
    $15,700 
  
    Total 
    $8,032  
    $15,700 

NOTE
7 -