Company: KPEA
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006580
Chunk: 11

Company: Kun Peng International Ltd.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 2
Chunk 11
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 of $337,237.

44

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

    December 31,  
    September 30, 

    2024  
    2024 

    Current Assets 
    $457,105  
    $548,518 
  
    Current Liabilities 
     8,655,244  
     8,546,420 

    $(8,198,139) 
    $(7,997,902)

We
require cash of approximately $7.3 million within the next twelve months, primarily related to third-party vendor payables and related-party
payables. As of December 31, 2024 and September 30, 2024, we had received customer advances in the amount of approximately $0.6 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. Additionally, we had an approximately
$0.05 million and $0.3 million commitment related to purchase and service agreements as of December 31, 2024 and September 30, 2024,
respectively.

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 Consideration

The
financial statements included in this Quarterly Report 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 assumes that
assets are realized and liabilities are extinguished in the ordinary course of business at amounts disclosed on the financial