v3.25.2
VARIABLE INTEREST ENTITIES (“VIE”) ARRANGEMENTS (Tables)
9 Months Ended
Jun. 30, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
SCHEDULE OF VIE OF BALANCE SHEET

 

   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  $-   $772   $272   $58,870   $-   $59,914 
Intercompany receivables-current   -    625,050    -    2,615,553    (3,240,603)   - 
Total current assets   -    633,314    272    2,918,276    (3,240,603)   311,259 
Intercompany receivables-noncurrent   -    4    -    -    (4)   - 
Total noncurrent assets   34,160    26,186    -    357,429    (34,164)   383,611 
Total assets   34,160    659,500    272    3,275,705    (3,274,767)   694,870 
Intercompany payables   1,199,948    1,923,094    949    156,477    (3,280,468)   - 
Total current liabilities   1,205,148    2,029,854    1,221    8,740,491    (3,280,468)   8,696,246 
Total noncurrent liabilities   -    -    -    -    -    - 
Total liabilities   1,205,148    2,029,854    1,221    8,740,491    (3,280,468)   8,696,246 
Total shareholders’ equity   (1,170,988)   (1,370,354)   (949)   (5,464,786)   5,701    (8,001,376)
Non-controlling interests   -    -    -    -    -    - 
Total equity   (1,170,988)   (1,370,354)   (949)   (5,464,786)   5,701    (8,001,376)
Total liabilities and equity  $34,160   $659,500   $272   $3,275,705   $(3,274,767)  $694,870 

 

 

As of September 30, 2024

 

   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  $-   $981   $71   $81,132   $-   $82,184 
Intercompany receivables-current   -    531,169    -    2,316,724    (2,847,893)   - 
Total current assets   -    564,532    71    2,831,808    (2,847,893)   548,518 
Intercompany receivables-noncurrent   -    4    -    -    (4)   - 
Total noncurrent assets   34,160    145,641    -    785,031    (34,164)   930,668 
Total assets   34,160    710,173    71    3,616,839    (2,882,057)   1,479,186 
Intercompany payables   970,159    1,846,491    969    51,757    (2,869,376)   - 
Total current liabilities   994,159    2,071,841    1,033    8,344,402    (2,865,015)   8,546,420 
Total noncurrent liabilities   -    -    -    121,484    -    121,484 
Total liabilities   994,159    2,071,841    1,033    8,465,886    (2,865,015)   8,667,904 
Total shareholders’ equity   (959,999)   (1,239,530)   (962)   (4,967,444)   (16,941)   (7,184,876)
Non-controlling interests   -    (122,138)   -    118,397    (101)   (3,842)
Total equity   (959,999)   (1,361,668)   (962)   (4,849,047)   (17,042)   (7,188,718)
Total liabilities and equity  $34,160   $710,173   $71   $3,616,839   $(2,882,057)  $1,479,186 
SCHEDULE OF VIE DATA OF OPERATION

Condensed Consolidated Statements of Operations Data

 

   Parent
Only
  

Non-VIE

and
Non-WFOE
Subsidiaries
Consolidated

   WFOE   VIE and
VIE’s
Subsidiaries
Consolidated
   Eliminating
Adjustments
   Consolidated
Totals
 
   Nine Months Ended June 30, 2025 
   Parent
Only
  

Non-VIE

and
Non-WFOE
Subsidiaries
Consolidated

   WFOE   VIE and
VIE’s
Subsidiaries
Consolidated
   Eliminating
Adjustments
   Consolidated
Totals
 
                         
Revenue  $-   $-   $-   $1,073,606   $-   $1,073,606 
Intercompany revenue   -    365,274    -    -    (365,274)   - 
Cost of revenue and related tax   -    627    -    331,449    -    332,076 
Gross profit   -    364,647    -    742,157    (365,274)   741,530 
Total operating expenses   210,989    394,507    7    1,584,689    -    2,190,192 
Intercompany operating expenses   -    -    -    365,274    (365,274)   - 
Loss from operations   (210,989)   (29,860)   (7)   (1,207,806)   -    (1,448,662)
Other (income) expense   -    (7,431)   -    565,310    2,034    559,913 
Loss before income taxes   (210,989)   (37,291)   (7)   (642,496)   2,034    (888,749)
Income tax expense   -    -    -    -    -    - 
Net loss  $(210,989)  $(37,291)  $(7)  $(642,496)  $2,034   $(888,749)

 

   Parent
Only
  

Non-VIE

and
Non-WFOE
Subsidiaries
Consolidated

   WFOE   VIE and
VIE’s
Subsidiaries
Consolidated
   Eliminating
Adjustments
   Consolidated
Totals
 
   Nine Months Ended June 30, 2024 
   Parent
Only
   Non-VIE and
Non-WFOE
Subsidiaries
Consolidated
   WFOE   VIE and
VIE’s
Subsidiaries
Consolidated
   Eliminating
Adjustments
   Consolidated
Totals
 
                         
Revenue  $-   $-   $-   $1,598,728   $-   $1,598,728 
Intercompany revenue        601,210    -         (601,210)   - 
Cost of revenue and related tax   -    748    -    427,899    -    428,647 
Gross profit   -    600,462    -    1,170,829    (601,210)   1,170,081 
Total operating expenses   171,056    604,712    7    995,516    -    2,604,771 
Intercompany operating expenses   -    -    -    392,094    (392,094)   - 
Loss from operations   (171,056)   (4,250)   (7)   (1,259,377)   -    (1,434,690)
Other income   -    37    -    30,626    -    30,663 
Loss before income taxes   (171,056)   (4,213)   (7)   (1,228,756)   -    (1,404,027)
Income tax expense   -    -    -    16,029    -    16,029 
Net loss  $(171,056)  $(4,213)  $(7)  $(1,244,780)  $-   $(1,420,056)
SCHEDULE OF VIE DATA OF CASH FLOWS

Condensed Consolidated Schedules of Cash Flows

   Parent
Only
   Non-VIE and
Non-WFOE
Subsidiaries
Consolidated
   WFOE   VIE and
VIE’s
Subsidiary
Consolidated
   Eliminating
Adjustments
   Consolidated 
   Nine Months Ended June 30, 2025 
   Parent
Only
   Non-VIE and
Non-WFOE
Subsidiaries
Consolidated
   WFOE   VIE and
VIE’s
Subsidiary
Consolidated
   Eliminating
Adjustments
   Consolidated 
                         
Net loss  $(210,989)  $(37,291)  $(7)  $(642,496)  $2,034   $(888,749)
Intercompany receivables   -    (103,723)   -    88,223    15,500    - 
Intercompany payables   229,789    116,402    -    (327,298)   (18,893)   - 
Net cash provided by operating activities   -    1,385    200    69,245    (1,359)   69,471 
                               
Net cash used in investing activities   -    -    -    (30,412)   -    (30,412)
                               
Net cash used in financing activities   -    -    -    (58,730)   -    (58,730)
                               
Effect of exchange rate fluctuation on cash  $-   $(1,594)  $1   $(2,365)  $1,359   $(2,599)

 

   Parent
Only
   Non-VIE and
Non-WFOE
Subsidiaries
Consolidated
   WFOE   VIE and
VIE’s
Subsidiary
Consolidated
   Eliminating
Adjustments
   Consolidated 
   Nine Months Ended June 30, 2024 
   Parent
Only
   Non-VIE and
Non-WFOE
Subsidiaries
Consolidated
   WFOE   VIE and
VIE’s
Subsidiary
Consolidated
   Eliminating
Adjustments
   Consolidated 
                         
Net loss  $(171,056)  $(4,214)  $(7)  $(1,012,630)  $-   $(1,187,907)
Intercompany receivables   -    (148,614)   -    (641,868)   790,482    - 
Intercompany payables   221,056    (38,430)   69    663,147    (845,842)   - 
Net cash (used in) provided by operating activities   -    (11,594)   62    (474,637)   (55,360)   (518,341)
                               
Net cash used in investing activities   -    -    -    -    -    - 
                               
Effect of exchange rate fluctuation on cash  $-   $(29,378)  $1   $9,227   $55,360   $43,556 
SCHEDULE OF VIE CONSOLIDATED BALANCE SHEETS, OPERATING RESULTS AND CASH FLOWS

The Company consolidated its VIE as of June 30, 2025 and September 30, 2024. The carrying amounts and classification of the VIE’s assets and liabilities included in the consolidated balance sheets are as follows:

   June 30,
2025
   September 30,
2024
 
Assets          
Current assets          
Cash and cash equivalents  $58,870   $81,132 
Trade receivable – intercompany   2,615,553    2,316,724 
Advance and prepayments   19,964    147,091 
Other receivables – third parties   132,100    251,069 
Inventory   8,032    15,700 
Amount due from a related party   83,757    20,092 
Total current assets   2,918,276    2,831,808 
           
Noncurrent assets          
Property and equipment, net   159,984    265,141 
Investment in associate held for sale   32,111    15,743 
Operating lease right-of-use assets   5,269    504,147 
Finance lease right-of-use assets   160,065    - 
Total noncurrent assets   357,429    785,031 
Total assets  $3,275,705   $3,616,839 
           
Liabilities          
Current liabilities          
Short-term borrowing  $99,391   $- 
Trade payables   2,123,025    1,952,026 
Other payables and accrual   1,371,840    1,194,683 
Deferred revenue   504,385    584,116 
Intercompany payables   156,477    51,757 
Payroll payable   136,073    93,391 
Tax payable   107,541    119,291 
Amounts due to related parties   4,120,871    3,998,164 
Operating lease obligations-current portion   4,511    154,095 
Finance lease obligations-current portion   116,377    196,879 
Total current liabilities   8,740,491    8,344,402 
           
Noncurrent liabilities          
Operating lease obligations-noncurrent portion   -    44,622 
Finance lease obligations-noncurrent portion   -    76,862 
Total noncurrent liabilities   -    121,484 
           
Total liabilities   8,740,491    8,465,886 
           
Commitment and contingencies        - 
           
Equity          
Additional paid-in capital   621,184    389,356 
Accumulated deficits   (6,103,174)   (5,466,201)
Accumulated other comprehensive income   17,204    109,401 
Total stockholders’ equity   (5,464,786)   (4,967,444)
Non-controlling interests   -    118,397 
           
Total equity   (5,464,786)   (4,849,047)
           
Total liabilities and equity  $3,275,705   $3,616,839 

 

 

The operating results of the VIE were as follows:

 

                           
  

Three Months Ended

June 30,

  

Nine Months Ended

June 30,

 
   2025   2024   2025   2024 
                 
Revenue, net  $107,802   $672,062   $1,073,606   $1,598,728 
Cost of revenue   (83,824)   (181,014)   (331,449)   (428,647)
Gross profit   23,978    491,048    742,157    1,170,081 
                     
Operating expenses                    
General and administrative expenses   122,897    665,195    625,438    1,258,890 
Selling expense   333,880    62,521    1,324,525    1,174,826 
Total operating expenses   456,777    727,716    1,949,963    2,433,716 
                     
Loss from operations   (432,799)   (236,668)   (1,207,806)   (1,263,635)
                     
Other income (expenses):                    
Interest income   -    27    21    402 
Other income (expenses)   400,044    (1,081)   441,214    30,261 
Share of profit from investment in associate   (2,060)   -    (23,504)   - 
Gain from investment   -    -    147,579    - 
Total other income (expenses), net   397,984    (1,054)   565,310    30,663 
                     
Loss before income taxes   (34,815)   (237,722)   (642,496)   (1,232,972)
                     
Income tax expense   -    2,665    -    16,029 
                     
Net loss   (34,815)   (235,057)   (642,496)   (1,216,943)
Less: Net loss attributable to non-controlling interest   -    -    (5,529)   (47)
Net loss attributable to Kun Peng International Ltd  $(34,815)  $(235,057)  $(636,967)  $(1,216,990)

 

 

The cash flows of the VIE were as follows:

 

   2025   2024 
  

Nine Months Ended

June 30,

 
   2025   2024 
         
Cash flows from operating activities          
Net loss  $(642,496)  $(1,254,553)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities          
Depreciation and amortization   88,867    35,932 
Amortization of right-of-use assets   206,078    66,631 
Share of profit from investment in associate   23,504    - 
Gain on investment of a subsidiary   (147,579)   - 
           
Changes in operating assets and liabilities          
Advance and prepayments   122,961    (52,252)
Trade receivable- third parties   -    (13,854)
Trade receivable- intercompany   893,094    (113,820)
Other receivables- third parties   84,011    (226,082)
Other receivables- intercompany   (804,871)   (528,048)
Inventory   7,280    93,253 
Amount due from a related party   40,340    - 
Trade payable- third parties   1,845,872    - 
Trade payable- intercompany   173,183    149,953 
Other payables and accrual- third parties   1,167,667    518,345 
Other payables and accrual- intercompany   (500,481)   513,194 
Deferred revenue   (63,277)   (955,853)
Payroll payable   71,558    24,772 
Amounts due to related parties   (2,438,891)   1,531,003 
Tax payable   (5,599)   (20,923)
Lease liabilities   (51,976)   (52,623)
Net cash provided by (used in) operating activities   69,245    (162,756)
           
Cash flows from investing activities          
Purchase of property, plant and equipment   (30,412)   - 
Net cash used in investing activities   (30,412)   - 
           
Cash flows from financing activities          
Proceeds from bank borrowings   98,457    - 
Payment of finance lease liabilities   (157,187)   - 
Net cash used in financing activities   (58,730)   - 
           
Effect of exchange rate changes on cash   (2,365)   9,227 
           
Net change in cash and cash equivalents   (22,262)   (153,529)
           
Cash and cash equivalents, beginning balance   81,132    447,117 
           
Cash and cash equivalents, ending balance  $58,870   $20,054