Kun Peng International Ltd 10-Q for FY2024 Q3

Kun Peng International Ltd. (KPEA)

10-Q 2024-08-19 For: 2024-06-30

Added on April 06, 2026

About this 10-Q

Kun Peng International Ltd filed this 10-Q on August 19, 2024, covering the quarter ended June 30, 2024 (FY2024 Q3).

Headline figures

Quarter ended June 30, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $672.06K; up 45.9% from $460.64K a year earlier
Net loss: $292.53K; compared with a net loss of $1.27M a year earlier
Diluted EPS: -$0.00; compared with -$0.00 a year earlier

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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
INTRODUCTION

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	39

	Item 3. Quantitative and Qualitative Disclosures About Market Risk	49

	Item 4. Controls and Procedures	49

PART II.	Other Information	51

	Item 5. Other Information	51

	Item 6. Exhibits	51

	Signatures	52

	Note	June 30, 2024			September 30, 2023
		Unaudited			Audited
Assets
Current assets
Cash and cash equivalents		$	294,675		$	457,580
Trade receivable, net	4		-			-
Advance and prepayments	5		130,015			74,044
Other receivables	6		309,370			23,060
Amount due from related parties			13,760			-
Inventory	7		17,644			107,263
Total current assets			765,464			661,947

Noncurrent assets
Property and equipment, net	8		578,972			72,552
Intangible assets, net	9		2,550			2,806
Security deposits			40,790			41,999
Right-of-use assets	15		240,743			479,427
Others			69,694			3,245
Total noncurrent assets			932,749			600,029

Total assets		$	1,698,213		$	1,261,976

Liabilities
Current liabilities
Trade and other payables			3,131,150			2,151,900
Deferred revenue	10		1,242,358			2,149,238
Payroll payable			90,470			63,653
Tax payable			195,897			184,357
Amounts due to related parties	11		2,844,011			1,318,120
Operating lease obligations, current portion	15		248,405			318,422
Total current liabilities			7,752,291			6,185,690

Noncurrent liabilities
Operating lease obligations, net of current portion	15		410,846			95,907
Total noncurrent liabilities			410,846			95,907

Total liabilities			8,163,137			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 June 30, 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 June 30, 2024 and September 30, 2023	12		40,000			40,000
Additional paid-in capital	12		597,801			597,801
Accumulated deficits			(7,193,211	)		(5,803,162	)
Accumulated other comprehensive income			401,292			426,741
Total stockholders’ equity			(6,154,118	)		(4,738,620	)
Non-controlling interests			(310,806	)		(281,001	)
Total equity			(6,464,924	)		(5,019,621	)

Total liabilities and equity		$	1,698,213		$	1,261,976

	Note	2024			2023			2024			2023
		For the three months ended June 30,						For the nine months ended June 30,
	Note	2024			2023			2024			2023

Revenue, net		$	672,062		$	460,643		$	1,598,728		$	1,231,712
Cost of revenue			(180,265	)		(64,878	)		(428,648	)		(246,102	)
Gross profit			491,797			395,765			1,170,080			985,610

Operating expenses
General and administrative expenses			353,669			423,757			1,429,945			1,383,119
Selling expense			422,612			1,231,189			1,174,826			2,323,347
Total operating expenses			776,281			1,654,946			2,604,771			3,706,466

Loss from operations			(284,484	)		(1,259,181	)		(1,434,690	)		(2,720,856	)

Other (expenses) income:
Interest income			23			122			402			218
Other income			(1,110	)		(10,352	)		30,261			98,893
Total other (expenses) income, net			(1,087	)		(10,230	)		30,663			99,111

Loss before income taxes			(285,571	)		(1,269,411	)		(1,404,027	)		(2,621,745	)

Income tax expense	11		2,665			-			16,029			-

Net loss			(288,326	)		(1,269,411	)		(1,420,056	)		(2,621,745	)
Less: Net loss attributable to non-controlling interest			4,297			-			(30,009	)		-
Net loss attributable to Kun Peng International Ltd			(292,533	)		(1,269,411	)		(1,390,047	)		(2,621,745	)
Foreign currency translation adjustment			22,608			239,743			(25,449	)		152,425
Comprehensive loss			(265,628	)		(1,029,668	)		(1,445,505	)		(2,469,320	)
Less: Comprehensive loss attributable to non-controlling interest			4,297			-			(30,009	)		-
Comprehensive loss attributable to Kun Peng International Ltd		$	(269,925	)	$	(1,029,668	)	$	(1,415,496	)	$	(2,469,320	)

Net loss per share attributable to common stockholders
Basic and diluted		$	(0.0007	)	$	(0.0032	)	$	(0.0035	)	$	(0.007	)

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		-		-		-		(1,390,047	)		-			(1,390,047	)		-			(1,390,047	)
Net loss attributable to noncontrolling interest		-		-		-		-			-			-			(30,009	)		(30,009	)
Foreign currency translation adjustment		-		-		-		-			(25,449	)		(25,449	)		204			(25,245	)
Balance, June 30,2024		400,000,000	$	40,000	$	597,801	$	(7,193,209	)	$	401,292		$	(6,154,116	)	$	(310,806	)	$	(6,464,924	)

	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		-		-		-			(2,621,745	)		-		(2,621,745	)		-			(2,621,745	)
Capital contribution		-		-		204,085			-			-		204,085			-			204,085
Foreign currency translation adjustment		-		-		-			-			152,425		152,425			-			152,425
Balance, June 30, 2023		400,000,000	$	40,000	$	164,085		$	(6,275,741	)	$	431,792	$	(5,639,865	)	$	(280,954	)	$	(5,920,818	)
Balance		400,000,000	$	40,000	$	164,085		$	(6,275,741	)	$	431,792	$	(5,639,865	)	$	(280,954	)	$	(5,920,818	)

	2024			2023
	Nine Months Ended June 30,
	2024			2023

Cash flows from operating activities
Net loss	$	(1,404,027	)	$	(2,621,745	)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization		87,880			46,525
Amortization of right-of-use assets		242,219			237,538

Changes in operating assets and liabilities
Advance and prepayments		(113,014	)		(44,048	)
Trade receivables		-			-
Other receivables		(256,820	)		4,582
Security deposits		(1,385	)		-
Inventory		93,253			-
Trade payables		175,126			1,052,509
Other payables and accrual		520,387			161,547
Deferred revenue		(955,853	)		1,370,302
Payroll payable		26,746			10,930
Amounts due to related parties		1,531,003			(12,020	)
Tax payable		(14,670	)		124,620
Lease liabilities		(111,502	)		(187,951	)
Net cash used in operating activities		(206,462	)		142,789	)

Cash flows from investing activities
Acquisition of property and equipment		-			-
Acquisition of trademarks		-			(1,177	)
Net cash used in investing activities		-			(1,177	)

Cash flows from financing activities
Capital contribution		-			200,327
Net cash provided by financing activities		-			200,327

Effect of exchange rate changes on cash		43,557			(33,281	)

Net change in cash and cash equivalents		(162,905	)		308,658

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

Cash and cash equivalents, ending balance	$	294,675		$	575,789

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 June 30, 2024 Preferred stock: ● 10,000,000 with par value $0.0001 per share ● no shares issued and outstanding as of June 30, 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

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 late 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 June 30, 2024 (Closing Rate)
United States dollar ($1)		7.8083		7.2672

For the nine months ended June 30, 2024 (Average Rate)		7.8174		7.2181
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 nine months period ended June 30, 2023 (Average Rate)
United States dollar ($1)		7.8335		6.9886

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.

	●	identify the contract with a customer;

	●	identify the performance obligations in the contract;

	●	determine the transaction price;

	●	allocate the transaction price to performance obligations in the contract; and

	●	recognize revenue as the performance obligation is satisfied.

(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	$	-		$	1,020		$	68		$	293,587		$	-		$	294,675
Advance and Prepayments		-			25,307			-			104,708			-			130,015
Accounts receivable		-						-			-			-			-
Other receivables - third party		-			20,414			-			288,956			-			309,370
Amount due from a related party		-			-			-			13,760			-			13,760
Inventory		-			-			-			17,644			-			17,644
Intercompany receivables-current		-			666,687	⁽²⁾		-			2,316,194	⁽¹⁾		(2,982,881	)		-
Total current Assets		-			713,428			68			3,034,849			(2,982,881	)		765,464
Property and equipment, net		-			37,519			-			541,452			-			578,971
Intangible Assets, net		-			2,550			-			-			-			2,550
Security deposits and prepayments, noncurrent		-			40,790			-			-			-			40,790
Prepayments, noncurrent		-			71,153			-			(1,459	)		-			69,694
ROU assets		-			178,744			-			61,999			-			240,743
Intercompany receivables-noncurrent		-			4			-			-			(4	)		-
Investment in subsidiary		34,160			-			-			-			(34,160	)		-
Total non-current Assets		34,160			330,760			-			601,992			(34,164	)		932,748
Total assets		34,160			1,044,188			68			3,636,841			(3,017,045	)		1,698,212
Trade payable		-			52,599			-			2,413,857			-			2,466,458
Other payables and accrual		16,000			61,772			-			586,920			-			664,692
Advances from customers		-			-			-			1,242,359			-			1,242,359
Intercompany payables		945,736	⁽³⁾		1,887,361	⁽¹⁾		688	⁽¹⁾		193,525			(3,027,310	)		-
Salary payable		-			28,278			-			62,194			-			90,472
Provision for taxation		-			10,078			-			185,818			-			195,896
Operating lease obligations-current		-			181,668			-			66,736			-			248,404
Amount due to related parties		-			-			-			2,844,011			-			2,844,011
Total current liabilities		961,736			2,221,756			688			7,595,420			(3,027,310	)		7,752,290
Total noncurrent liabilities		-			61,406			-			349,440			-			410,846
Total liabilities		961,736			2,283,162			688			7,944,860			(3,027,310	)		8,163,136
Total shareholders’ Equity		(927,576	)		(1,116,836	)		(620	)		(4,119,351	)		10,265			(6,154,118	)
Non-controlling interests		-			(122,138	)		-			(188,668	)		-			(310,806	)
Total equity		(927,576	)		(1,238,974	)		(620	)		(4,308,019	)		10,265			(6,464,924	)
Total liabilities and equity	$	34,160		$	1,044,188		$	68		$	3,636,841		$	(3,017,045	)	$	1,698,212

(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 and Non-WFOE Subsidiaries Consolidated			WFOE			VIE and VIE’s Subsidiaries Consolidated			Eliminating Adjustments			Consolidated Totals
	For the nine months ended June 30, 2023
	Parent Only			Non-VIE and Non-WFOE Subsidiaries Consolidated			WFOE			VIE and VIE’s Subsidiaries Consolidated			Eliminating Adjustments			Consolidated Totals

Revenue	$	-		$	-		$	-		$	1,231,712		$	-		$	1,231,712
Intercompany revenue					248,805			519,296			-			(768,101	)		-
Cost of revenue and related tax		-			562			1,006			244,534			-			246,102
Gross profit		-			248,243			518,290			987,178			(768,101	)		985,610
Total operating expenses		175,724			239,092			604,401			2,687,249			-			3,706,466
Intercompany operating expenses		-			-			-			768,101			(768,101	)		-
Loss from operations		(175,724	)		9,151			(86,111	)		(2,468,172	)		-			(2,720,856	)
Other income		-			(1,299	)		461			99,949			-			99,111
Loss before income taxes		(175,724	)		7,852			(85,650	)		(2,368,223	)		-			(2,621,745	)
Income tax expense		-			-			-			-			-			-
Net loss	$	(175,724	)	$	7,852		$	(85,650	)	$	(2,368,223	)	$	-		$	(2,621,745	)

	June 30, 2024		September 30, 2023

Prepaid rent and building management and utilities	$	18,404	$	19,211
Prepaid supplies⁽¹⁾		36,790		32,195
Prepaid income tax		5,047		5,027
Prepaid professional services₍₂₎		62,305		9,137
Prepaid others		7,469		8,474
Total prepayments	$	130,015	$	74,044

	June 30, 2024		September 30, 2023

Rental and vendor deposits	$	80,859	$	14,111
Advance to employees		76,827		2,604
Others		151,684		6,345
Total other receivables, net	$	309,370	$	23,060

	June 30, 2024		September 30, 2023

Finished goods	$	17,644	$	107,263
Total	$	17,644	$	107,263

	June 30, 2024			September 30, 2023

Trademarks	$	3,565		$	3,551
Subtotal		3,565			3,551
Less: accumulated amortization		(1,015	)		(745	)
Total intangible assets, net	$	2,550		$	2,806

	June 30, 2024		September 30, 2023

Advance payments from customers	$	1,242,358	$	2,149,238
Total deferred revenue	$	1,242,358	$	2,149,238

Name of related party	Relationship	Nature of transactions	June 30, 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	$	2,593,984	$	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		2,339		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.		247,688		246,711

Total			$	2,844,011	$	1,318,120

Assets/liabilities	Classification	June 30, 2024		September 30, 2023
Assets
Operating lease right-of-use assets	Operating lease assets	$	240,743	$	479,427

Liabilities
Current
Operating lease liability - current	Current operating lease liabilities	$	248,405	$	318,422

Long-term
Operating lease liability - net of current portion	Long-term operating lease liabilities	$	410,846	$	95,907

Total lease liabilities		$	659,251	$	414,329

Lease cost	Classification	2024		2023		2024		2023
		For the three months ended June 30,				For the nine months ended June 30,
Lease cost	Classification	2024		2023		2024		2023
Operating lease cost	General and administrative	$	81,064		84,830	$	246,939	$	253,512
Total lease cost		$	81,064		84,830	$	246,939	$	253,512

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

	Three Months Ended June 30,
	2024						2023
	Amount			% of revenue			Amount			% of revenue

Revenues	$	672,062			100	%		460,643			100.0	%
Cost of revenues		180,265			26.8			64,878			14.1
Gross profit		491,797			73.2			395,765			85.9
Operating expenses:
General and administrative expenses		353,669			52.6			423,757			92.0
Selling expense		422,612			62.9			1,231,189			267.3
Total operating expenses		776,281			115.5			1,654,946			359.3
Loss from operations		(284,484	)		(42.3	)		(1,259,181	)		(273.4	)
Other (expenses) income		(1,087	)		(0.2	)		(10,230	)		(2.2	)
Loss before income taxes		(285,571	)		(42.5	)		(1,269,411	)		(275.6	)
Income tax expense		2,665			0.4			-			-
Net loss	$	(288,236	)		(42.9	)		(1,269,411	)		(275.6	)%

	Three months ended June 30,
	2024		2023

Retail	$	116,723	$	19,386
Wholesale		-		45,492
Equipment service revenue		63,542		-
Technical service revenue		-		-
Commission revenue		-		-
Training revenue		-		-
Total	$	180,265	$	64,878

	●	meals and entertainment of $198,478 as our sales and marketing team launched fewer small scale promotional and marketing activities; and

	●	office supplies and meetings of $51,112 related to the operation of our new online platform Kun Zhi Jian.

	Nine months ended June 30,
	2024						2023
	Amount			% of revenue			Amount			% of revenue

Revenues	$	1,598,728			100	%		1,231,712			100.0	%
Cost of revenues		428,648			28.1			246,102			20.0
Gross profit		1,170,081			80.0			985,610			80.0
Operating expenses:
General and administrative expenses		1,429,945			97.5			1,383,119			112.3
Selling expense		1,174,826			80.1			2,323,347			188.6
Total operating expenses		2,604,771			177.6			3,706,466			300.9
Loss from operations		(1,434,690	)		(112.9	)		(2,720,856	)		(220.9	)
Other income		30,663			2.1			99,111			8.0
Loss before income taxes		(1,404,027	)		(110.8	)		(2,621,745	)		(212.9	)
Income tax expense		16,029			1.1			-			-
Net loss	$	(1,420,056	)		(111.9	)		(2,621,745	)		(212.9	)%