Company: KPEA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023821
Chunk: 100

Company: Kun Peng International Ltd.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 2
Chunk 100
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 The resulting change in cash for the
period was a decrease of $22,270,

For
the nine months ended June 30, 2024, the effect of exchange rate change on cash totaled $43,557. The resulting change in cash for the
period was a decrease of $162,905.

The
following table sets forth a summary of changes in our working capital as of June 30, 2025 and September 30, 2024:

    June 30, 2025  
    September 30, 2024 

    Current Assets 
    $311,259  
    $548,518 
  
    Current Liabilities 
     8,696,246  
     8,546,420 

    $(8,384,987) 
    $(7,997,902)

We
require cash of approximately $7.7 million within the next twelve months, primarily related to third-party vendor payables and related-party
payables. As of June 30, 2025 and September 30, 2024, we had received customer advances in the amount of approximately $0.5 million and
$0.6 million, respectively. We anticipate that the majority of the revenue will be recognized in fiscal year 2026. Management has agreed
that the amount received is non-refundable. However, this term is not bound by any agreement. Therefore, the customers may have the right
to challenge and demand the advances be refunded under relevant commercial laws or regulations.

45

In an effort to support
and maintain our financial position and operations, to fulfill our contractual commitments, and to meet the demands from our customers
for refunds of their advance payments, the Company has focused on increasing its revenue through its online platform. In November 2023,
we launched the Kun Zhi Jian Mini Program and commenced exploring additional revenue streams. In the meantime, our directors and stakeholders
continue to support our operation financially. We believe that such measures will improve our liquidity in the next twelve months. If
we are not able to increase revenue or obtain any financing, we may be unable to continue as a going concern.

Going
Concern Consideration

The
financial statements included in this Quarterly Report have been prepared in conformity with accounting principles generally accepted
in the United States of America which contemplate continuation of the Company as a going concern. The going-concern basis assumes that
assets are realized and liabilities are extinguished in the ordinary course of business at amounts