Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 825

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1B
Chunk 825
---

entity, which will affect our ability to declare any dividends.

Stock
Option and Warrant Grants

We
have no stock options or warrants granted to our executives, employees, vendors, consultants, or any other parties as of the reporting
date.

Registration
Rights

We
have not granted anyone any registration rights.

Securities
Authorized for Issuance under Equity Compensation Plans

As
of September 30, 2024, the Company has not adopted any equity compensation plan.

Penny
Stock Regulations

Our
shares of common stock are subject to the “penny stock” rules of the Securities Exchange Act of 1934 and various rules under
that Act. In general terms, “penny stock” is defined as any equity security that has a market price less than $5.00 per share,
subject to certain exceptions. The rules provide that any equity security is considered to be a penny stock unless that security is registered
and traded on a national securities exchange meeting specified criteria set by the SEC, issued by a registered investment company, and
excluded from the definition on the basis of price (at least $5.00 per share), or based on the issuer’s net tangible assets or
revenues. In the last case, the issuer’s net tangible assets must exceed $3,000,000 if in continuous operation for at least three
years or $5,000,000 if in operation for less than three years, or if the issuer’s average revenues for each of the past three years
exceeds $6,000,000.

77

Trading
in shares of penny stock is subject to additional sales practice requirements for broker-dealers who sell penny stocks to persons other
than established customers and accredited investors. Accredited investors, in general, include individuals with assets in excess of $1,000,000
or annual income exceeding $200,000 (or $300,000 together with their spouse), and certain institutional investors. For transactions covered
by these rules, broker-dealers must make a special suitability determination for the purchase of the security and must have received
the purchaser’s written consent to the transaction prior to the purchase. Additionally, for any transaction involving a penny stock,
the rules require the delivery, prior to the first transaction, of a risk disclosure document relating to the penny stock. A broker-dealer
also must disclose the commissions payable to both the broker-dealer and the registered representative, and current quotations for the
security. Finally, monthly statements must be sent disclosing