Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 131

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 6
Chunk 131
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    Other income 
     31,925  
     99,676 

    Other income, net 
    $11,538  
    $99,676 

Income
tax expense

For the year ended September 30, 2024 and the year ended September 30, 2023, the income tax expense of the Company was $2,487 and nil
respectively. The income tax expense, incurred for the year ended September 30, 2024, was attributed to the profit made by Kun Zhi Jian
(Huai’an). Due to the
net loss before income tax, the Company recognized a full valuation recognition against its deferred tax assets, which mainly included
net operating loss carryforwards, as management believes it is more likely than not that the Company will not realize its net operating
loss carryforwards in the near future or before they expire.

Net
Loss

As
a result of the factors discussed above, for the years ended September 30, 2024 and 2023 our net loss amounted to $1,991,747 and $2,149,213,
respectively.

Foreign
currency translation adjustment

The
functional currency of our operations in the PRC is Chinese Yuan or Renminbi (“RMB”), while the functional currency of
our operation in Hong Kong is Hong Kong Dollars (“HKD”). The financial statements are translated to U.S. dollars using
the period end rates of exchange for assets and liabilities; equity is translated at historical exchange rates; and average rates of
exchange (for the period) are used for revenues and expenses and cash flows. Transaction gains and/or losses that arise from
exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results
of operations as incurred. As a result of foreign currency translation, which is a noncash adjustment, we reported a foreign
currency translation gain of $247,327 and loss of $147,374 for the years ended
September 30, 2024 and 2023, respectively. This non-cash gain had the effect of decreasing our reported comprehensive
loss.

Comprehensive
loss

As
a result of our net loss after income taxes, we had a comprehensive loss for the years ended September 30, 2024 and 2023 of $2,218,663
and $2,001,839, respectively.

Liquidity
and Capital Resources

As
of September 30,