Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 841

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1B
Chunk 841
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    2023 

    Net cash provided by (used in) operating activities 
    $17,880  
    $(427,030)
  
    Net cash used in investing activities 
     (348,998) 
     (606)
  
    Net cash used in (provided by) financing activities 
     (54,769) 
     644,803 
  
    Effect of exchange rate change on cash 
     10,491  
     (26,718)
  
    Total net change in cash and cash equivalents 
    $(375,396) 
    $190,449 

The
following table sets forth a summary of changes in our working capital as of September 30, 2024 and 2023:

    September 30, 

    2024  
    2023 
  
    Current Assets 
    $548,518  
    $661,947 
  
    Current Liabilities 
     8,546,420  
     6,185,690 

    $(7,997,902) 
    $(5,523,743)

We
require cash of approximately $8.0 million within the next twelve months, primarily related to third-party vendor payables and related-party
payables. As of September 30, 2024, we had received customer advances in the amount of approximately $0.6
million. 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. Additionally, we had an approximately $0.3 million
commitment related to purchase and service agreements as of September 30, 2024. See “Contractual Obligations and Other Commitments”
on page 87.

86

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