Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 602

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 602
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 was established on November 23, 2023 under the laws of the
People’s Republic of China with a registered capital of approximately $0.4 million (RMB 3 million). The entity is located in Shandong
province, PRC. It is a wholly-owned subsidiary of King Eagle VIE since its acquisition on April 7, 2024. This entity has not commenced
its operations as of the date of this report and is applying for online trading services.

Chengdu
Wenjiang Pengrun Internet Healthcare Co., Ltd

Chengdu
Wenjiang Pengrun Internet Healthcare Co., Ltd (“Chengdu Wenjiang”) was established on February 1, 2024 under the laws of
the People’s Republic of China with a registered capital of approximately $0.14 million (RMB 1 million). The entity is located
in Sichuan province, PRC. It is a wholly-owned subsidiary of King Eagle VIE. This entity has not commenced its operations as of the date
of this report and is applying for online health care and medical services permits from the relevant authorities. There can be no assurance
that such permits will be obtained.

    F-13

NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis
of Presentation

The
consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States
of America. This basis of accounting involves the application of accrual accounting and consequently, revenues and gains are recognized
when earned, and expenses and losses are recognized when incurred. The consolidated financial statements are expressed in U.S. dollars.

Principles
of Consolidation

The
consolidated financial statements include the financial statements of the Company, its subsidiaries and variable interest entity (“VIE”).
All significant intercompany transactions and balances within the Company have been eliminated upon consolidation.

Use
of Estimates and Assumptions

The
preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make
estimate and assumptions that impact the presented amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the presented amounts of revenues and expenses during the period. Actual results may differ
from those estimates. Significant estimates during the year ended September 30, 2024 and 2023 include the collectability of receivables,
the useful lives of long-lived assets, goodwill and intangibles, assumptions used in assessing impairment of