Company: KPEA
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006580
Chunk: 96

Company: Kun Peng International Ltd.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 1
Chunk 96
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    2024  
    2023 
  
    Service agents 
    $161,184  
     308,607 
  
    Employee compensation and benefit 
     74,949  
     67,472 
  
    Rental for equipment 
     54,950  
     - 
  
    Office supplies and meeting 
     23,125  
     35,958 
  
    Travel, transportation and gasoline 
     5,543  
     15,265 
  
    Meals and entertainment 
     1,505  
     3,290 
  
    Depreciation and amortization 
     17,255  
     299 
  
    Advertising 
     7,978  
     1,097 
  
    Total 
    $346,489  
     431,988 

The
decrease in selling expenses for the three months ended December 31, 2024 was primarily driven by a decrease in service agent fees
of $147,423, offset by an increase in equipment rental of $54,950. To further streamline our selling costs, we no longer engaged
external customer support services; however, we rented several pieces of health care equipment for promotional activities during the
three months ended December 31, 2024.

Other
income

Other
income primarily included bank interest income, government grants, investment income from cooperative enterprise, and foreign
exchange gain or loss. Our other income for the three months ended December 31, 2024 and 2023 was $47,079 and $32,190, respectively.
During the three months ended December 31, 2023, we recognized government grants from the City of Tianjin of $31,817. We recognized
a $36,525 gain on write-offs of long-term payables and a $14,486 gain on the disposal of an associated company for the three month period
ended December 31, 2024.

Income
tax expense

For
both the three month periods ended December 31, 2024 and 2023, the income tax expense of the Company was nil. Due to the net loss before
income tax, the Company recognized a full valuation recognition against its deferred tax assets, which mainly included net operating
loss carryforwards, as management believes it is more likely than not that the Company will not realize its net operating loss carryforwards
in the near future or before they expire