Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 16

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 3
Chunk 16
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3 our net loss amounted to $1,991,747 and $2,149,213,
respectively.

Foreign
currency translation adjustment

The
functional currency of our operations in the PRC is Chinese Yuan or Renminbi (“RMB”), while the functional currency of
our operation in Hong Kong is Hong Kong Dollars (“HKD”). The financial statements are translated to U.S. dollars using
the period end rates of exchange for assets and liabilities; equity is translated at historical exchange rates; and average rates of
exchange (for the period) are used for revenues and expenses and cash flows. Transaction gains and/or losses that arise from
exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results
of operations as incurred. As a result of foreign currency translation, which is a noncash adjustment, we reported a foreign
currency translation gain of $247,327 and loss of $147,374 for the years ended
September 30, 2024 and 2023, respectively. This non-cash gain had the effect of decreasing our reported comprehensive
loss.

Comprehensive
loss

As
a result of our net loss after income taxes, we had a comprehensive loss for the years ended September 30, 2024 and 2023 of $2,218,663
and $2,001,839, respectively.

Liquidity
and Capital Resources

As
of September 30, 2024 and 2023, we had cash and cash equivalents balances of $82,184 and
$457,580, respectively.

For
the year ended September 30, 2024, net cash provided by operating activities totaled $17,880. Operating cash inflow was mainly attributable
to an increase in trade payable from related party of $2,297,676, other payable from related party of $3,000,802, other payable and accrual of $80411 and inventory of $93,335, mostly offset
by our net loss of $1,991,747, a decrease in trade payable of $1,802,456 and advances from customers of $1,607,612.

85

Net
cash used in investing activities totaled $348,998 and was related to purchase of property, plant and equipment of $320,498 and long-term
investment in of $28,500 in cooperative enterprise during the year ended September 30, 2024.

For the year ended September 30, 2024