Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 638

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 638
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 Advance payments from customers 
    $584,116  
    $2,149,238 
  
    Total deferred revenue 
    $584,116  
    $2,149,238 

Deferred
revenue resulted from transactions where the Company has received the payments from the customers but revenue recognition criteria
under the five-step model have yet to be met. As at September 30, 2024 and 2023, the Company had a total deferred revenue of
$584,116 and
$2,149,238
respectively. As of September 30, 2024, the ending balance of $584,116, $583,491 was the advance payment from our customers for our
retail products to be delivered in the subsequent period. Once the five-step model criteria have been satisfied, revenues will be
recognized upon the transfer of risk and rewards to the customers. Management has agreed that the amount received is non-refundable.
However, this term is not bound by any written agreement. Thus, the customers may have the right to challenge and demand that the
advances be refunded under relevant commercial laws and regulations.

NOTE
10 - RELATED PARTY TRANSACTIONS

Acquisition of Kun
Pin Hui (Shandong) Trading Co. Ltd.

On April 3, 2024, KP (Tianjin) entered
into a Share Transfer Agreement (the “Share Purchase Agreement”) with Zhandong Fan and Yuanyuan Zhang for the acquisition
of all the subscribed shares of Kun Pin Hui (Shandong) Trading Co. Ltd.

Pursuant to the Share Purchase Agreement, KP (Tianjin) has agreed to acquire all
the entire subscribed capital of $0.4 million (RMB 3 million) for an aggregate consideration of $0.28 (RMB 2Yuan). Zhandong Fan (previously
holding 95% shares of Kun Pin Hui (shandong)) and Yuanyuan Zhang (previously holding 5% shares of Kun pin Hui (Shandong)) , both the shareholders
of KP (Tianjin), transferred their shares at the consideration of $0.14 (RMB 1Yuan)

The acquisition closed on April 7, 2024.
As of the year ended September 30, 2024, KP (Tianjin) has paid $3,698 (RMB27,000) of the registered capital.

Amount
due from