Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 721

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1A
Chunk 721
---
 Years  
    More Than 5 Years  
    Total 
  
    Contractual Obligations: 

    Operating lease obligations 
    $244,243  
    $44,887  
    $-  
    $-  
    $289,130 
  
    Finance lease obligations 
     205,103  
     77,848  
     -  
     -  
     282,951 
  
     Purchase and service agreements 
     4,987  
     -  
     -  
     -  
     4,987 
  
    Total contractual obligations 
    $454,333  
    $122,735  
    $-  
    $-  
    $577,068 

87

Off-Balance
Sheet Arrangements

We
have no off-balance sheet arrangements, including arrangements that would affect our liquidity, capital resources, market risk support,
and credit risk support or other benefits.

Future
Financings

We
will continue to rely on loans from our directors and major shareholders and on equity sales of our common shares in order to continue
to fund our business operations. Issuances of additional shares will result in dilution to existing stockholders. There is no assurance
that we will achieve any additional sales of equity securities or arrange for debt or other financing to fund our operations and other
activities, or if we are able, there is no guarantee that existing shareholders will not be substantially diluted.

Critical
Accounting Policies

Basis
of Presentation

The
consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States
of America. This basis of accounting involves the application of accrual accounting and, consequently, revenues and gains are recognized
when earned and expenses and losses are recognized when incurred. The consolidated financial statements are expressed in U.S. dollars.

Principles
of Consolidation

The
consolidated financial statements include the financial statements of the Company, its subsidiaries, and its variable interest entity
(“VIE”). All significant intercompany transactions and balances within the Company have been eliminated upon consolidation.

Use
of Estimates and Assumptions

The
preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make
estimate and assumptions that impact the presented amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the presented amounts of