Company: KPEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010699
Chunk: 101

Company: Kun Peng International Ltd.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 101
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,235,253 offset by a decrease in inventory of $67,134 and the receipt of an advance from a related
party of $1,535,989.

Net cash used in investing activities
totaled $58,596 and was related to the acquisition of service equipment and leasehold improvement during the six months ended March 31,
2024.

There was no financial activity
during the six months ended March 31, 2024.

The effect of exchange rate change
on cash totaled $12,564. The resulting change in cash for the period was a decrease of $436,040.

 46 

The following table sets forth
a summary of changes in our working capital as of March 31, 2025 and September 30, 2024:

    March 31,  
    September 30, 

    2025  
    2024 

    Current Assets 
    $328,209  
    $548,518 
  
    Current Liabilities 
     8,657,745  
     8,546,420 

    $(8,329,536) 
    $(7,997,902)

We require cash of approximately
$7.7 million within the next twelve months, primarily related to third-party vendor payables and related-party payables. As of March 31,
2025 and September 30, 2024, we had received customer advances in the amount of approximately $0.5 million and $0.6 million, respectively.
We anticipate that the majority of the revenue will be recognized in fiscal year 2025. Management has agreed that the amount received
is non-refundable. However, this term is not bound by any agreement. Therefore, the customers may have the right to challenge and demand
the advances be refunded under relevant commercial laws or regulations.

In an effort to support and maintain
our financial position and operations, to fulfill our contractual commitments, and to meet the demands from our customers for refund of
their advance payments, the Company focused on increasing its revenue through its online platform. In November 2023, we launched Kun Zhi
Jian Mini Program and explored four additional revenue streams. Simultaneously, our directors and stakeholders continue to support our
operation financially. We believe that such measures will improve our liquidity in the next twelve months. If we are not able to increase
revenue or obtain any financing, we may be unable to continue as a going concern.

Going Concern