Company: KPEA
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006580
Chunk: 6

Company: Kun Peng International Ltd.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 2
Chunk 6
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 31, 2024, we made our retail product sales through our King Eagle Mall and Kun Zhi Jian Mini Program. We also
offered equipment service through the Kun Zhi Jian Mini Program. We pay an equipment service fee that includes a prepaid card activation
fee and a technical support fee. Our costs of training revenue consist of training fees, accommodations, and transportation of the third-party
trainers.

41

We
incurred a higher cost of revenue related to our equipment service revenue for the three months ended December 31, 2024 compared to the
same period in 2023 because we generated significantly equipment service revenue from selling prepaid cards during the three months ended
December 31, 2024 as discussed above.

We
disaggregated our cost of revenue for the three months ended December 31, 2024 and 2023 as follows:

    Three Months Ended December 31, 

    2024  
    2023 

    Retail 
    $12,087  
    $123,135 
  
    Wholesale 
     -  
     919 
  
    Equipment service fee 
     43,596  
     4,987 
  
    Training fee 
     -  
     20,306 
  
    Total 
    $55,683  
    $149,347 

Gross
profit

    Three Months Ended December 31, 

    2024  
    2023 

    Retail product sales 
    $66,370  
     84.6% 
     383,198  
     75.7%
  
    Wholesale product sales 
     -  
     -  
     886  
     49.1 
  
    Commissions 
     -  
     -  
     11,046  
     100.0 
  
    Equipment service 
     234,466  
     84.3  
     3,681  
     42.5 
  
    Training 
     -  
     -  
     14,000  
     40.8 
  
    Total 
    $300,836  
     84.4% 
     412,811  
     73.4%

For
the three months ended December 31, 2024 and 2023, our overall gross profit and margin was