Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 846

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1B
Chunk 846
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 We have not experienced any losses in bank accounts or e-wallets and believe that we are not exposed to significant
risks with respect to our cash in bank accounts and low risk with respect to our cash kept in e-wallets.

Inventory

Inventory
consists of finished goods, which include wines, gel and essence for beauty, ointment for health, prepaid
cards and detection kits. Inventory is measured at the lower of cost or net realizable value on a first-in, first-out basis. When evidence
exists that the net realizable value of inventory is lower than its cost, provisions shall be made to write inventory down and a loss
shall be recognized in earnings in the period in which it occurs. That loss may be required, for example, due to damage, physical deterioration,
obsolescence, changes in price levels, or other reasons. As of September 30, 2024, there was no inventory located at third party warehouse.

Financial
Instrument

The
carrying amounts reported on the balance sheet for cash, other receivables, accrued liabilities, and other payables approximate fair
value because of the immediate or short-term maturities of these financial instruments.

Property
and Equipment

Property
and equipment are stated at cost less accumulated depreciation and impairment losses. Gains and losses on dispositions of property and
equipment are included in operating income (loss). Major additions, renewals, and improvements are capitalized, while maintenance and
repairs are recognized as expense as incurred.

89

Depreciation
is provided over the estimated useful life of each class of depreciable assets and is computed using the straight-line method over the
useful lives of the assets as follows:

    Classification 
    Estimated useful life
  
    Leasehold improvements 
    5 years
  
    Office equipment 
    3 years
  
    Computer equipment 
    3 years
  
    Computer software 
    5 years

Intangible
Assets

Intangible
assets represent the licensing cost for trademark registrations. For intangible assets with indefinite lives, the Company evaluates intangible
assets for impairment at least annually and more often whenever events or changes in circumstances indicate that the carrying value may
not be recoverable. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value
exceeds the fair value. Intangible assets with definite lives are amortized over estimated useful lives and are reviewed annually for
impairment. The Company has not recorded impairment of intangible