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 |
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
SCHEDULE
OF VIE DATA OF OPERATION
| |
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 | |
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 | |
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
SCHEDULE
OF VIE DATA 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:
SCHEDULE
OF VIE CONSOLIDATED BALANCE SHEETS, OPERATING RESULTS AND CASH FLOWS
| |
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 | |
Other Receivables | |
| 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 | |
| |
| | | |
| | | |
| | | |
| | |
| |
| | | |
| | | |
| | | |
| | |
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 | |
|