Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 603

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 603
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 long-lived assets, valuation of accruals
for expenses and tax due.

Going
Concern

The
accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the
United States of America which contemplate continuation of the Company as a going concern. The going-concern basis assures that assets
are realized and liabilities are extinguished in the ordinary course of business at amounts disclosed on the financial statements. The
Company’s ability to continue as a going concern depends on the liquidation of its current assets and business developments. In
assessing the Company’s liquidity, the Company monitors and analyzes its cash and cash equivalents and its operating and capital
expenditure commitments. The Company’s liquidity needs are to meet its working capital requirements, operating expenses, and capital
expenditure obligations. For the year ended September 30, 2024, the Company incurred cash inflows from operating activities of $17,880, the Company incurred a net loss of $1,991,747,
and the Company had negative working capital of $7,997,902.
These conditions raise substantial doubt about the ability of the Company to continue as a going concern.

    F-14

The
Company continues to monitor its operations to help refine its financial liquidity. Options under consideration in the review process
include, but are not limited to, increase of sales through the Company’s online business, reduction of operating costs, fund advance
from the Company’s stockholders and directors, or financing through the issuance of shares. The Company has been focusing on increasing
its revenue through its online platform and trimming its operating costs. For example, it explored additional revenue streams and reduced
service agent service fee. Additionally, the Company obtained capital funding of approximately $1.5 million from our director to meet
its working capital requirements. In order to continue as a going concern for the next 12 months, through Kun Zhi Jian Mini Program,
the Company continues to explore additional revenue streams, leverage the health care expertise and technology with local health care
service providers, promote and sell preventive health care dietary supplements and products, and offer health care equipment services
at the Kun Zhi Jian Customer Service Center. However, the Company cannot provide any assurance that it will be able to increase revenue,
that it will be able to successfully implement its business plan, or that financing will be available to it on commercially acceptable
terms, if at all. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability