Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 18

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 3
Chunk 18
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 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
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 Annual 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 statements. The
Company’s ability to continue as a going concern depends on the liquidation of its current assets. As of September 30, 2024, the
Company experienced cash inflows from operating activities of $17,880, incurred a net
loss of $1,991,747, and