Company: KPEA
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006580
Chunk: 3

Company: Kun Peng International Ltd.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 2
Chunk 3
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 reimbursements, or intercompany borrowings between the Company or one of its subsidiaries and the consolidated VIE. Any
such loans will be interest-free, unsecured and payable on demand. For more information regarding these contractual arrangements, see
Note 3 - Variable Interest Entities - “VIE” Agreements. The enforceability and treatment of the intercompany agreements within
our organization, including intercompany borrowings and the contractual arrangements with our VIE, have not been tested in court. To
the extent cash and/or assets in the business are in the PRC and/or Hong Kong or our PRC and/or Hong Kong entities, such funds and/or
assets may not be available to fund operations or for other use outside of the PRC and/or Hong Kong due to interventions in or the imposition
of restrictions and limitations imposed by the PRC government on the ability of the Company or its subsidiaries to transfer cash and/or
assets. There are no tax consequences for intercompany borrowings or the payment for intercompany services, except for the standard value
added taxes and/or income taxes for the revenues and/or profits generated from such services.

The
proceeds of any transactions within our organization, including with the VIE and its subsidiaries, are eliminated in our condensed consolidated
financial statements. For more details, please refer to the principles of consolidation set forth in the notes to our Condensed Consolidated
Financial Statements for the three months ended December 31, 2024 included in this report.

Financial
Operations Overview

Results
of operations for the three months ended December 31, 2024 and 2023

    Three Months Ended December 31, 

    2024  
    2023 

    Amount  
    % of revenue  
    Amount  
    % of revenue 

    Revenues 
    $356,519  
     100.0% 
     562,158  
     100.0%
  
    Cost of revenues 
     55,683  
     15.6  
     149,347  
     26.6 
  
    Gross profit 
     300,836  
     84.4  
     412,811  
     73.4 
  
    Operating expenses: 

    General and administrative expenses 
     652,433  
     183.0  
     547,819  
     97.4 
  
    Selling expense