Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 408

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 8
Chunk 408
---
 or portion of these allowances.

NOTE
13 - RIGHT-OF-USE ASSETS AND LEASE

The
Company has operating leases for its office facilities, automobiles and employee accommodation and finance lease for equipments for
revenue service. The Company classified the equipments for revenue service as finance lease
as the leasor will transfer the ownership of quipments for revenue service to the Comany by the end of the lease term.

Leases with an initial term of 12 months or less are not recorded on the balance sheet. The
Company recognized lease expense on a straight-line basis over the lease term for operating lease. Meanwhile, the Company recognized the finance leases ROU assets and interest on an amortized
cost basis.

    F-43

The
following table provides a summary of leases as of September 30, 2024 and 2023:

SUMMARY
OF OPERATING LEASE ASSETS AND LIABILITIES  

    Assets/liabilities 
    Classification 
    September 30, 2024  
    September 30, 2023 
  
    Assets 

    Operating lease right-of-use assets 
    Operating lease assets 
    $284,524  
    $479,427 
  
    Finance lease right-of-use assets 
    Finance lease assets 
     309,445  
     - 
  
    Total lease assets 
      
    $593,969  
    $479,427 

    Liabilities 

    Current 

    Operating lease liability - current 
    Current operating lease liabilities 
    $238,979  
    $318,422 
  
    Finance lease liability - current 
    Current finance lease liabilities 
     196,879  
     - 

     435,858  
     318,422  

    Long-term 

    Operating lease liability – net of current portion 
    Long-term finance lease liabilities 
    $44,622  
    $95,907 
  
    Finance lease liability – net of current portion 
    Long-term operating lease liabilities 
     76,862  
     - 

     121,484  
     95,907 
  
    Total lease liabilities 
      
    $557,342  
    $414,329 

The lease expense for the years ended September 30, 2023, and 2024 was as follows:

SUMMARY
OF OPERATING LEASE EXPENSE 

    Lease Cost