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

Company: Kun Peng International Ltd.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 2
Chunk 10
---
 the three months ended December 31, 2024 and 2023, respectively. This non-cash loss had the effect of increasing
our reported comprehensive loss.

Comprehensive
loss

We
recognized a comprehensive loss of $369,112 for the three months ended December 31, 2024 compared to a comprehensive loss of $680,772
for the same period in 2023.

Liquidity
and capital resources

As
of December 31, 2024 and September 30, 2024, we had a cash and cash equivalents balance of $207,391 and $82,184, respectively.

For
the three months ended December 31, 2024, net cash provided by operating activities totaled $40,503. Operating cash outflow was mainly
attributable to our net loss of $651,007 and a decrease in operating lease liabilities of $88,601, partially offset by an increase in
amounts due to related parties of $248,808 and other payable from third parties of $79,040.

Net
cash used in investing activities totaled $11,070 and was related to the purchase of property, plant and equipment of $38,811 and
the purchase of an intangible asset of $77, offset by the disposal of an associated company of $27,818 during the three months ended December
31, 2024.

Net
cash provided by financing activities totaled $ 112,755 and was related to a capital contribution of $71,250 and proceeds from bank
borrowings of $99,033, offset by the payment of finance lease liabilities of $57,528 during the three months ended December 31,
2024.

The
effect of exchange rate change on cash totaled $16,981. The resulting change in cash for the period was an increase of $125,207.

For
the three months ended December 31, 2023, net cash used in operating activities totaled $303,608. Operating cash outflow was mainly attributable
to our net loss of $534,806 and a decline in customer advances of $1,323,176, offset by a decrease in inventory of $56,732 and the receipt
of an advance from a related party of $1,508,580.

There
was no financial activity during the three months ended December 31, 2023.

The
effect of exchange rate change on cash totaled $10,379. The resulting change in cash for the period was a decrease