Company: KPEA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023821
Chunk: 18

Company: Kun Peng International Ltd.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 18
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 expenses, and capital
expenditure obligations. For the quarter ended June 30, 2025, the Company incurred cash inflows from operating activities of $69,471,
the Company incurred a net loss of $888,749, and the Company had negative working capital of $8,384,987. For the fiscal year ended September
30, 2024, the Company incurred cash inflows from operating activities of $17,880, the Company incurred a net loss of $1,991,747, and
the Company had negative working capital of $7,997,902. These conditions raise substantial doubt about the ability of the Company to
continue as a going concern.

The
Company continues to monitor its operations to help improve its financial liquidity. Options under consideration in the review process
include, but are not limited to, increase of sales through the Company’s online business, reduction of operating costs, fund advance
from the Company’s stockholders and directors, or financing through the issuance of shares and bank loans. The Company has been
focusing on increasing its revenue through its online platform and trimming its operating costs. For example, it explored additional
revenue streams and reduced its service agent service fee. In order to continue as a going concern for the next 12 months, the Company
continues to explore additional revenue streams, leverage the health care expertise and technology with local health care service providers,
promote and sell preventive health care dietary supplements and products, and offer health care equipment-based services at the Kun Zhi
Jian Customer Service Center. However, the Company cannot provide any assurance that it will be able to increase revenue, that it will
be able to successfully implement its business plan, or that financing will be available to it on commercially acceptable terms, if at
all. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification
of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern.
The directors intend to continue to support the group by providing adequate financial assistance to enable the group to continue its
business operations for the foreseeable future.

Earnings
(loss) Per Share

Basic
income (loss) per share is computed by dividing net income (loss) attributable to the holders of ordinary shares by the weighted average
number of ordinary shares outstanding during the year. Diluted income (loss) per share is calculated by dividing net income (loss) attributable
to the holders of ordinary