Kun Peng International Ltd 10-Q for FY2024 Q2

Kun Peng International Ltd. (KPEA)

10-Q 2024-05-15 For: 2024-03-31

Added on April 06, 2026

About this 10-Q

Kun Peng International Ltd filed this 10-Q on May 15, 2024, covering the quarter ended March 31, 2024 (FY2024 Q2).

Headline figures

Quarter ended March 31, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $364.51K; up 14.3% from $318.95K a year earlier
Net loss: $577K; compared with a net loss of $592.02K a year earlier
Diluted EPS: -$0.00; compared with -$0.00 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →

Nevada		EIN 32-0538640
(State or Other Jurisdiction of		(IRS Employer
Incorporation or Organization)		Identification Number)

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☒	Smaller reporting company ☒
	Emerging growth company ☒

		Page
PART I.	Financial Information	2

	Item 1. Condensed Consolidated Financial Statements (Unaudited)	2

	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operation.	41

	Item 3. Quantitative and Qualitative Disclosures About Market Risk.	54

	Item 4. Controls and Procedures.	54

PART II.	Other Information	55

	Item 6. Exhibits.	55

	Signatures	56

	Note	March 31, 2024			September 30, 2023
		Unaudited			Audited
Assets
Current assets
Cash and cash equivalents		$	21,540		$	457,580
Trade receivable, net	4		12,492			-
Advance and prepayments	5		170,127			74,044
Other receivables	6		245,017			23,060
Amount due from related parties			13,850			-
Inventory	7		41,383			107,263
Total current assets			504,409			661,947

Noncurrent assets
Property and equipment, net	8		98,053			72,552
Intangible assets, net	9		2,656			2,806
Security deposits			42,440			41,999
Right-of-use assets	15		320,405			479,427
Others			10,630			3,245
Total noncurrent assets			474,184			600,029

Total assets		$	978,593		$	1,261,976

Liabilities
Current liabilities
Trade and other payables			2,822,300			2,151,900
Deferred revenue	10		938,891			2,149,238
Payroll payable			97,879			63,653
Tax payable			125,167			184,357
Amounts due to related parties	11		2,864,978			1,318,120
Operating lease obligations, current portion	15		328,813			318,422
Total current liabilities			7,178,028			6,185,690

Noncurrent liabilities
Operating lease obligations, net of current portion	15		-			95,907
Total noncurrent liabilities			-			95,907

Total liabilities			7,178,028			6,281,597

Commitment and contingencies			-			-

Equity
Preferred stock, $0.0001 par value, 10,000,000 shares authorized; no shares issued and outstanding as of March 31, 2024 and September 30, 2023	12		-			-
Common stock, $0.0001 par value, 1,000,000,000 shares authorized; 400,000,000 shares issued and outstanding as of March 31, 2024 and September 30, 2023	12		40,000			40,000
Additional paid-in capital	12		597,801			597,801
Accumulated deficits			(6,900,677	)		(5,803,162	)
Accumulated other comprehensive income			378,684			426,741
Total stockholders’ equity			(5,884,192	)		(4,738,620	)
Non-controlling interests			(315,243	)		(281,001	)
Total equity			(6,199,435	)		(5,019,621	)

Total liabilities and equity		$	978,593		$	1,261,976

	Note	2024			2023			2024			2023
		For the three months ended March 31,						For the six months ended March 31,
	Note	2024			2023			2024			2023

Revenue, net		$	364,508		$	318,951		$	926,666		$	771,069
Cost of revenue			(99,456	)		(72,036	)		(248,383	)		(181,224	)
Gross profit			265,052			246,915			678,283			589,845

Operating expenses
General and administrative expenses			528,457			584,538			1,076,276			959,362
Selling expense			320,226			363,366			752,214			1,092,158
Total operating expenses			848,683			947,904			1,828,490			2,051,520

Loss from operations			(583,631	)		(700,989	)		(1,150,207	)		(1,461,675	)

Other (expenses) income:
Interest income			22			47			379			96
Other income			(462	)		108,921			31,371			109,245
Total other (expenses) income, net			(440	)		108,968			31,750			109,341

Loss before income taxes			(584,071	)		(592,021	)		(1,118,457	)		(1,352,334	)

Income tax expense	11		13,364			-			13,364			-

Net loss			(597,435	)		(592,021	)		(1,131,821	)		(1,352,334	)
Less: Net loss attributable to non-controlling interest			(20,434	)		-			(34,306	)		-
Net loss attributable to Kun Peng International Ltd			(577,001	)		(592,021	)		(1,097,515	)		(1,352,334	)
Foreign currency translation adjustment			97,909			51,291			(48,057	)		(87,318	)
Comprehensive loss			(499,526	)		(540,730	)		(1,179,878	)		(1,439,652	)
Less: Comprehensive loss attributable to non-controlling interest			(20,434	)		-			(34,306	)		-
Comprehensive loss attributable to Kun Peng International Ltd		$	(479,092	)	$	(540,730	)	$	(1,145,572	)	$	(1,439,652	)

Net loss per share attributable to common stockholders
Basic and diluted		$	(0.001	)	$	(0.001	)	$	(0.003	)	$	(0.003	)

Weighted average shares used to compute net loss per share attributable to common stockholders			400,000,000			400,000,000			400,000,000			400,000,000

	Shares		Amount		capital		deficits			income			equity			interest			equity
	Common stock				Additional paid-in		Accumulated			Accumulated other comprehensive			Total stockholders’			Non- controlling			Total
	Shares		Amount		capital		deficits			income			equity			interest			equity
Balance, September 30, 2023		400,000,000	$	40,000	$	597,801	$	(5,803,162	)	$	426,741		$	(4,738,620	)	$	(281,001	)	$	(5,019,621	)
Capital contribution		-		-		-		-			-			-			-			-
Net loss attributable to common stockholders		-		-		-		(1,097,515	)		-			(1,097,515	)		-			(1,097,515	)
Net loss attributable to noncontrolling interest		-		-		-		-			-			-			(34,306	)		(34,306	)
Foreign currency translation adjustment		-		-		-		-			(48,057	)		(48,057	)		64			(47,993	)
Balance, March 31,2024		400,000,000	$	40,000	$	597,801	$	(6,900,677	)	$	378,684		$	(5,844,192	)	$	315,243		$	(6,199,435	)

	Common Stock				Additional Paid-In			Accumulated			Accumulated Other Comprehensive			Total Stockholders’			Non- Controlling			Total
	Shares		Amount		Capital			Deficits			Loss			Equity			Interest			Equity
Balance, September 30, 2022*		400,000,000	$	40,000	$	(40,000	)	$	(3,653,996	)	$	279,367		$	(3,374,629	)	$	(280,954	)	$	(3,655,583	)
Balance		400,000,000	$	40,000	$	(40,000	)	$	(3,653,996	)	$	279,367		$	(3,374,629	)	$	(280,954	)	$	(3,655,583	)
Net loss attributable to common stockholders		-		-		-			(1,352,334	)		-			(1,352,334	)		-			(1,352,334	)
Capital contribution		-		-		189,295			-			-			189,295			-			189,295
Foreign currency translation adjustment		-		-		-			-			(87,318	)		(87,318	)		-			(87,318	)
Balance, March 31, 2023		400,000,000	$	40,000	$	149,295	)	$	(5,006,330	)	$	192,049		$	(4,624,986	)	$	(280,954	)	$	(4,905,940	)
Balance		400,000,000	$	40,000	$	149,295	)	$	(5,006,330	)	$	192,049		$	(4,624,986	)	$	(280,954	)	$	(4,905,940	)

	2024			2023
	Six Months Ended March 31,
	2024			2023

Cash flows from operating activities
Net loss	$	(1,131,821	)	$	(1,352,334	)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization		33,989			31,071
Amortization of right-of-use assets		164,365			189,510

Changes in operating assets and liabilities
Advance and prepayments		(102,855	)		20,015
Trade receivables		(12,516	)		-
Other receivables		(236,019	)		(10,962	)
Inventory		67,134			-
Trade payables		195,018			631,642
Other payables and accrual		454,872			192,575
Deferred revenue		(1,235,253	)		(79,706	)
Payroll payable		33,623			6,325
Amounts due to related parties		1,535,989			2,294
Tax payable		(59,276	)		103,818
Lease liabilities		(97,258	)		(197,570	)
Net cash used in operating activities		(390,008	)		(463,322	)

Cash flows from investing activities
Acquisition of property and equipment		(58,596	)		-
Acquisition of trademarks		-			(606	)
Net cash used in investing activities		(58,596	)		(606	)

Cash flows from financing activities
Capital contribution		-			186,352
Net cash provided by financing activities		-			186,352

Effect of exchange rate changes on cash		12,564			69,917

Net change in cash and cash equivalents		(436,040	)		(207,659	)

Cash and cash equivalents, beginning balance		457,580			267,131

Cash and cash equivalents, ending balance	$	21,540		$	59,472

Supplementary cash flows information:
Cash paid for interest	$	-		$	-
Cash paid for income tax	$	-		$	-

Name	Background	Ownership	Registered capital / Authorized shares	Principal activities
Kun Peng International Limited	● A U.S. Company ● Incorporated on June 28, 2017		Authorized shares: ● Common stock: 1,000,000,000 with par value $0.0001 per share ● 400,000,000 shares issued and outstanding as of March 31, 2024 Preferred stock: ● 10,000,000 with par value $0.0001 per share ● no shares issued and outstanding as of March 31, 2024	Investment holding

Kun Peng International Holding Limited	● A BVI company ● Incorporated on April 20, 2021	100% owned by Kun Peng International Limited	Paid capital: 400 ordinary shares at par value of $0.01 per share	Investment holding

Kunpeng (China) Industrial Development Company Limited	● A Hong Kong company ● Incorporated on August 11, 2017 ● Deregistration from Hong Kong Inland Revenue Department and Hong Kong Company Registry approved on February 2, 2024	100% owned by Kun Peng International Holding Limited	Paid share capital: 10,000 ordinary shares at $1,292 (HKD10,000)	Investment holding

Kun Peng (Hong Kong) Industrial Development Limited	● A Hong Kong company ● Incorporated on June 21, 2021	100% owned by Kun Peng International Holding Limited	Paid share capital: 1 ordinary share at $0.13 (HK$1)	Investment holding

Kun Peng Tian Yu Health Technology (Tianjin) Co., Ltd.	● a limited liability company incorporated in the People’s Republic of China and a wholly foreign owned enterprise (“WFOE”) since March 3, 2023 ● Incorporated on August 10, 2021	100% owned by Kun Peng (Hong Kong) Industrial Development Limited	Registered capital of RMB 5 million (US$0.7 million)	Exploring future business opportunities

King Eagle (China) Co., Ltd	● a wholly foreign owned enterprise (“WFOE”) until March 3, 2023 and a limited liability company incorporated in the People’s Republic of China ● Incorporated on March 20, 2019	Wholly owned by Kun Peng (China) Industrial Development Company Limited until March 3, 2023 Starting March 3, 2023, 49% owned by Kun Peng (Hong Kong) Industrial Development Limited and 51% owned by Kun Peng Tian Yu Health Technology (Tianjin) Co., Ltd.	Registered capital: approximately $15 million (RMB100 million)	Providing technical and management support to King Eagle (Tianjin) Technology Co., Ltd.

King Eagle (Tianjin) Technology Co., Ltd.	● a limited liability company incorporated in the People’s Republic of China ● Incorporated on September 2, 2020 ● Became a variable interest entity (VIE) of King Eagle (China) Co., Ltd on May 15, 2021	Owned by multiple individuals: Chengyuan Li (approximately 45.5%), Xiujin Wang (approximately 10.5%), Yuanyuan Zhang (approximately 10%), Jinjing Zhang, Wanfeng Hu, Cuilian Liu, and Zhizhong Wang (each of whom owns approximately 6%), Zhandong Fan and Hui Teng (each of whom owns approximately 5%)	Registered capital of approximately $1.5 million (RMB 10 million) Paid-in capital approximately $0.2 million (RMB 1.4 million)	Operating King Eagle Mall

King Eagle (Beijing) Technology Co., Ltd	● a limited liability company incorporated in the People’s Republic of China ● Incorporated on December 1, 2022	100% owned by King Eagle (Tianjin) Technology Co., Ltd.	Registered capital of $0.7 million (RMB 5 million) Paid-in capital approximately $0.7 million (RMB 5 million)	Operates the new online platform, Kun Zhi Jian

King Eagle (Huai’an) Health Management Co., Ltd.	● a limited liability company incorporated in the People’s Republic of China ● Incorporated on September 19, 2023	95% owned by King Eagle (Tianjin) Technology Co., Ltd.	Registered capital of $0.7 million (RMB 5 million) Paid-in capital approximately $10K (RMB 70,000)	Coordinates with local health care service providers to offer health screening and monitoring

Kun Zhi Jian (Huai’an) Technology Co., Ltd.	● a limited liability company incorporated in the People’s Republic of China ● Incorporated on October 26, 2023	100% owned by King Eagle (Tianjin) Technology Co., Ltd.	Registered capital of $0.1 million (RMB 1 million)	Primarily focuses on marketing and selling physiotherapy equipment products

Kun Zhi Jian (Shandong) Health Management Co., Ltd	● a limited liability company incorporated in the People’s Republic of China ● Incorporated on January 30, 2024	100% owned by King Eagle (Tianjin) Technology Co., Ltd.	Registered capital of $0.1 million (RMB 1 million)	Commenced operations in February 2024; promoting and selling health screening devices

Chengdu Wenjiang Pengrun Internet Healthcare Co., Ltd	● a limited liability company incorporated in the People’s Republic of China ● Incorporated on February 1, 2024	100% owned by King Eagle (Tianjin) Technology Co., Ltd.	Registered capital of $0.1 million (RMB 1 million)	Plans to commence operations in May 2024, assuming permits to provide online health care services are obtained

Kun Pin Hui (Shandong) Trading Co., Ltd	● a limited liability company incorporated in the People’s Republic of China ● Incorporated on November 23, 2023 ● Acquired on April 10, 2024	100% owned by King Eagle (Tianjin) Technology Co., Ltd.	Registered capital of $0.4 million (RMB 3 million)	Operates online platform

	Hong Kong Dollar (HKD)		Chinese Renminbi (RMB)
As of March 31, 2024 (Closing Rate)
United States dollar ($1)		7.8259		7.2203

For the six months ended March 31, 2024 (Average Rate)		7.8172		7.2064
United States dollar ($1)

	Hong Kong Dollar (HKD)		Chinese Renminbi (RMB)

As of September 30, 2023 (Closing Rate)
United States dollar ($1)		7.8308		7.2960

	Hong Kong Dollar (HKD)		Chinese Renminbi (RMB)

For the six month period ended March 31, 2023 (Average Rate)
United States dollar ($1)		7.8303		6.9761

Classification		Estimated useful life
Leasehold improvements		5 years
Office equipment		3 years
Computer equipment		3 years
Service equipment		3 years
Computer software		5 years

●	Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

●	Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.

●	Level 3 inputs to the valuation methodology are unobservable and significant to the fair value.

(1)	Consulting Service Agreement

(2)	Business Operation Agreement

(3)	Proxy Agreement

(4)	Equity Disposal Agreement

(5)	Equity Pledge Agreement

(1)	The power to direct the activities of King Eagle (Tianjin) that most significantly impact such entity’s economic performance, and

(2)	The obligation to absorb losses of, or the right to receive benefits from, King Eagle (Tianjin) that could potentially be significant to such entity.

●	Kun Peng International Holding Limited (“KP International Holding”)
●	Kun Peng (China) Industrial Development Company Limited (“KP (China)”)
●	Kun Peng (Hong Kong) Industrial Development Limited (“KP (Hong Kong)”)
●	Kun Peng Tian Yu Health Technology Co., Ltd. (“KP Tian Yu”) until March 3, 2023
●	King Eagle (China) Co., Ltd. (“King Eagle (China)”) commencing March 3, 2023

	Parent Only			Non-VIE and Non-WFOE Subsidiaries Consolidated			WFOE			VIE and VIE’s Subsidiaries Consolidated			Elimination Entries and Reclassification Entries			Consolidated

Cash and cash equivalent	$	-		$	1,418		$	69		$	20,053		$	-		$	21,540
Advance and Prepayments		-			16,968			-			153,159			-			170,127
Accounts receivable		-						-			12,492			-			12,492
Other receivables - third party		-			24,087			-			220,930			-			245,017
Amount due from a related party		-			-			-			13,850			-			13,850
Inventory		-			-			-			41,383			-			41,383
Intercompany receivables-current		-			583,862	⁽²⁾		-			2,328,062	⁽¹⁾		(2,911,924	)		-
Total current Assets		-			626,335			69			2,789,929			(2,911,924	)		504,409
Property and equipment, net		-			49,350			-			48,703			-			98,053
Intangible Assets, net		-			2,656			-			-			-			2,656
Security deposits and prepayments, noncurrent		-			42,440			-			-			-			42,440
Prepayments, noncurrent		-			10,630			-			-			-			10,630
ROU assets		-			238,607			-			81,798			-			320,405
Intercompany receivables-noncurrent		-			4			-			-			(4	)		-
Investment in subsidiary		34,160			-			-			-			(34,160	)		-
Total non-current Assets		34,160			343,687			-			130,501			(34,164	)		474,184
Total assets		34,160			970,022			69			2,920,430			(2,946,088	)		978,593
Trade payable		-			-			-			2,284,154			-			2,284,154
Other payables and accrual		8,000			1,722			-			528,424			-			538,146
Advances from customers		-			-			-			938,891			-			938,891
Intercompany payables		897,693	⁽³⁾		1,943,710	⁽¹⁾		692	⁽¹⁾		119,217	⁽⁴⁾		(2,961,312	)		-
Salary payable		-			32,601			-			65,278			-			97,879
Provision for taxation		-			265			-			124,902			-			125,167
Operating lease obligations-current		-			242,531			-			86,282			-			328,813
Amount due to related parties		-			-			-			2,867,978			-			2,867,978
Total current liabilities		905,693			2,220,829			692			7,012,126			(2,961,312	)		7,178,028
Total noncurrent liabilities		-			-			-			-			-			-
Total liabilities		905,693			2,220,829			692			7,012,126			(2,961,312	)		7,178,028
Total shareholders’ Equity		(871,533	)		(1,128,669	)		(623	)		(3,898,591	)		15,224			(5,884,192	)
Non-controlling interests		-			(122,138	)		-			(193,105	)		-			(315,243	)
Total equity		(871,533	)		(1,250,807	)		(623	)		(4,091,696	)		15,224			(6,199,435	)
Total liabilities and equity	$	34,160		$	970,022		$	69		$	2,920,430		$	(2,946,088	)	$	978,593

(1)	Intercompany receivables from non-VIE entities, WFOE, and parent entity and intercompany payables to VIE represent loans to non-VIE entities, WFOE, and parent entity for working capital purposes.

(2)	Intercompany receivables from the parent entity represent loans from King Eagle (China) to the parent entity for working capital purposes.

(3)	Intercompany payables to King Eagle (China) and VIE represent loans from King Eagle (China) and VIE to the parent entity for working capital purposes.

(4)	Intercompany payable to King Eagle (China) represents loan to King Eagle (Tianjin) for working capital purposes.

	Parent Only			Non-VIE Subsidiaries Consolidated			VIE			Eliminating adjustments			Consolidated Totals
	For the six months ended March 31, 2023
	Parent Only			Non-VIE Subsidiaries Consolidated			VIE			Eliminating adjustments			Consolidated Totals
Revenue	$	-		$	-		$	771,069		$	-		$	771,069
Intercompany revenue		-			519,296			123,613			(642,909	)		-
Cost of revenue and related tax		-			1,006			180,218			-			181,224
Intercompany cost of revenue and related tax		-			-			123,614			(123,614	)		-
Gross profit		-			518,290			590,850			(519,295	)		589,845
Total operating expenses		203,662			604,733			1,762,420			(519,295	)		2,051,520
Intercompany operating expenses		-			-			519,295			(519,295	)		-
Loss from operations		(203,662	)		(86,443	)		(1,171,570	)		-			(1,461,675	)
Other income		-			439			108,902			-			109,341
Loss before income taxes		(203,662	)		(86,004	)		(1,062,668	)		-			(1,352,334	)
Income tax expense		-			-			-			-			-
Net loss		(203,662	)		(86,004	)		(1,062,668	)		-			(1,352,334	)

	Parent Only			Non-VIE Subsidiaries Consolidated			VIE			Eliminating adjustments			Consolidated
	For the six months ended March 31, 2023
	Parent Only			Non-VIE Subsidiaries Consolidated			VIE			Eliminating adjustments			Consolidated

Net loss	$	(203,662	)		(86,004	)		(1,062,668	)		-			(1,352,334	)
Intercompany receivables		-			-			(393,337	)		393,337			-
Intercompany payables		249,662			191,242			-			(440,904	)		-
Net cash used in operating activities		-			(13,013	)		(402,741	)		(47,567	)		(463,322	)
											-
Net cash used in investing activities		-			(606	)		-			-			(606	)

Effect of exchange rate fluctuation on cash		-			10,568			11,781			47,567			69,917

	March 31, 2024		September 30, 2023

Trade receivable	$	12,492	$	-
Less: Allowance for credit loss		-		-
Trade receivable, net	$	12,492	$	-

	March 31, 2024		September 30, 2023

Prepaid rent and building management and utilities	$	16,696	$	19,211
Prepaid supplies⁽¹⁾		87,209		32,195
Prepaid income tax		5,079		5,027
Prepaid professional services₍₂₎		52,169		9,137
Prepaid others		8,974		8,474
Total prepayments	$	170,127	$	74,044

	March 31, 2024		September 30, 2023

Rental and vendor deposits	$	161,094	$	14,111
Advance to employees		70,121		2,604
Others		13,802		6,345
Total other receivables, net	$	245,017	$	23,060

	March 31, 2024		September 30, 2023

Finished goods	$	41,383	$	107,263
Total	$	41,383	$	107,263

	March 31, 2024			September 30, 2023

Trademarks	$	3,588		$	3,551
Subtotal		3,588			3,551
Less: accumulated amortization		(932	)		(745	)
Total intangible assets, net	$	2,656		$	2,806

	March 31, 2024		September 30, 2023

Advance payments from customers	$	938,891	$	2,149,238
Total deferred revenue	$	938,891	$	2,149,238

Name of related party	Relationship	Nature of transactions	March 31, 2024		September 30, 2023

Ms.Chengyuan Li	One of the shareholders of King Eagle (Tianjin)	Operational support to King Eagle (Tianjin) to meet its working capital requirements	$	2,613,327	$	1,069,078
Ms. Jinjing Zhang	One of the shareholders of King Eagle (Tianjin)	Operational support to King Eagle (Tianjin) to meet its working capital requirements		2,354		2,331
Ms. Xiujin Wang	One of the shareholders of King Eagle (Tianjin)	Operational support to King Eagle (Tianjin) to meet its working capital requirement.		249,297		246,711

Total			$	2,864,978	$	1,318,120

Assets/liabilities	Classification	March 31, 2024		September 30, 2023
Assets
Operating lease right-of-use assets	Operating lease assets	$	320,405	$	479,427

Liabilities
Current
Operating lease liability - current	Current operating lease liabilities	$	328,813	$	318,422

Long-term
Operating lease liability - net of current portion	Long-term operating lease liabilities	$	-	$	95,907

Total lease liabilities		$	328,813	$	414,329

Lease cost	Classification	2024		2023		2024		2023
		For the three months ended March 31,				For the six months ended March 31,
Lease cost	Classification	2024		2023		2024		2023
Operating lease cost	General and administrative	$	88,719		83,845	$	165,875	$	168,682
Total lease cost		$	88,719		83,845	$	168,875	$	168,682

Maturity of lease liabilities	Operating leases
Remaining of 2024	$	175,547
2025		159,896
2026		-
2027		-
2028		-
Thereafter		-
Total lease payments	$	335,443
Less: interest		(6,630	)
Present value of lease payments	$	328,813

	For the three months ended March 31,
	2024						2023
	Amount			% of revenue			Amount			% of revenue

Revenues	$	364,508			100	%	$	318,951			100	%
Cost of revenues		99,456			27.3			72,036			22.6
Gross profit		265,052			72.7			246,915			77.4
Operating expenses:
General and administrative expenses		528,457			145.0			584,538			183.3
Selling expense		320,226			87.9			363,366			113.9
Total operating expenses		848,683			232.8			947,904			297.2
Loss from operations		(583,631	)		(160.1	)		(700,989	)		(219.8	)
Other income		(440	)		(0.1	)		108,968			34.2
Loss before income taxes		(584,071	)		(160.2	)		(592,021	)		(185.6	)
Income tax expense		13,364			3.7			-			-
Net loss	$	(597,435	)		(163.9	)	$	(592,021	)		(185.6	)