Company: KPEA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023821
Chunk: 98

Company: Kun Peng International Ltd.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 2
Chunk 98
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18,332  
     30,401 
  
    Meals and entertainment 
     2,757  
     5,724 
  
    Depreciation and amortization 
     50,414  
     33,514 
  
    Advertising 
     12,691  
     5,777 
  
    Total 
    $993,742  
    $1,174,826 

Other
income

Other
income primarily consisted of bank interest income, share of profit from investment in associate, loss from investment, and foreign
exchange gain or loss. Our other income for the nine months ended June 30, 2025 and 2024 was $559,913 and $30,663, respectively. We
recognized a $147,579 gain on the disposal of a subsidiary, King Eagle (Hangzhou), a $23,504 loss from share of profit from
investment in associate, King Eagle (Hangzhou), as well as $517,865 other income and $82,049 other expense by the liquidation of assets and liabilities during the deregistration process for two subsidiaries, King Eagle (Huai’an)
and Kun Zhi Jian (Huai’an),
 for the nine months
ended June 30, 2025.

Income
tax expense

For
the nine months ended June 30, 2025 and 2024, the income tax expense of the Company was $nil and $16,029, respectively. During the nine
months ended June 30, 2024, Kun Zhi Jian (Huai’an) realized income of $64,116 and we recognized an income tax expense in accordance
with the PRC’s statutory income tax rate of 25%.

Net
loss

As
a result of the factors discussed above, the Company posted net losses in the amount of $888,749 and $1,420,056 for the nine months
ended June 30, 2025 and 2024, respectively.

44

Foreign
currency translation adjustment

The
functional currency of our operation in the PRC is the Chinese Yuan or Renminbi (“RMB”); for our operations in Hong Kong
it is the Hong Kong dollar (“HKD”). Our financial statements are translated to U.S. dollars using the period end rates
of exchange for assets and liabilities; equity is translated at historical exchange rates; and average rates of exchange (for the
period) are used for revenues and expenses and cash flows.