Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 646

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 646
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 $6,442,951 and $4,607,024 gross net operating loss carryforwards as of September 30, 2024, and 2023, respectively.
Those net operating loss carryforwards can be used to offset taxable income in future periods and reduce the income taxes payable of
our PRC entities in those future periods and will expire 5 years from the date they were incurred if they are not used. If not utilized,
approximately $202,045, $1,310,952, $1,607,148, $1,669,648 and $1,653,159 will expire in the years 2025, 2026, 2027, 2028 and 2029, respectively.

At
this time, the Company considered it is more likely than not that its US, Hong Kong and PRC entities have sufficient taxable income in
the near future that will allow us to realize these DTAs. Therefore, the Company recorded a full valuation allowance against all of its
deferred tax assets as of September 30, 2024, and 2023. The Company intends to continue maintaining a full valuation allowance on its
deferred tax assets until there is sufficient evidence to support the reversal of all or portion of these allowances.

NOTE
13 - RIGHT-OF-USE ASSETS AND LEASE

The
Company has operating leases for its office facilities, automobiles and employee accommodation and finance lease for equipments for
revenue service. The Company classified the equipments for revenue service as finance lease
as the leasor will transfer the ownership of quipments for revenue service to the Comany by the end of the lease term.

Leases with an initial term of 12 months or less are not recorded on the balance sheet. The
Company recognized lease expense on a straight-line basis over the lease term for operating lease. Meanwhile, the Company recognized the finance leases ROU assets and interest on an amortized
cost basis.

    F-43

The
following table provides a summary of leases as of September 30, 2024 and 2023:

SUMMARY
OF OPERATING LEASE ASSETS AND LIABILITIES  

    Assets/liabilities 
    Classification 
    September 30, 2024  
    September 30, 2023 
  
    Assets 

    Operating lease right-of-use assets 
    Operating lease assets 
    $284,524  
    $479,427 
  
    Finance lease right-of-use