Company: KPEA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023821
Chunk: 112

Company: Kun Peng International Ltd.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 4
Chunk 112
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 U.S. GAAP rules as more fully described below. This was due to deficiencies that
existed in the design or operation of our internal controls over financial reporting that adversely affected our internal controls and
that are considered to be material weaknesses as described above. A material weakness is a deficiency, or a combination of deficiencies,
in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company’s
annual or quarterly financial statements will not be prevented or detected on a timely basis.

Notwithstanding
the existence of these material weaknesses in our internal control over financial reporting, our management believes that the financial
statements included in its reports fairly present in all material respects the Company’s financial condition, results of operations,
and cash flows for the periods presented. We continue to evaluate the effectiveness of our internal controls and procedures on an on-going
basis. We are currently hiring additional personnel in financial reporting and accounting, and we are providing training to newly hired
personnel. In addition, once our cash position improves, we plan to hire an experienced controller and work to build an internal accounting
team with sufficient in-house expertise in U.S. GAAP reporting. However, due to the limited cash flow we are currently having, we cannot
assure you when we will be able to implement those remediation methods.

Because
we are a smaller reporting company, this report does not include an attestation report of our independent registered public accounting
firm regarding internal control over financial reporting.

(b)
Changes in internal controls over financial reporting

There
were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the
Securities Exchange Act of 1934, as amended) during the fiscal quarter ended June 30, 2025 covered by this report that has materially
affected, or are reasonably likely to materially affect, our internal control over financial reporting other than the facts disclosed
above.

48

PART
II - OTHER INFORMATION

ITEM
1. LEGAL PROCEEDINGS.

We
are currently not involved in any litigation that we believe could have a material adverse effect on our financial condition or results
of operations. There is no action, suit, proceeding, inquiry, or investigation before or by any court, public board, government agency,
self-regulatory organization, or body pending or, to the knowledge of the executive officers of our Company, threatened against or affecting
our Company or our common stock,