v3.26.1
VARIABLE INTEREST ENTITIES “VIE” ARRANGEMENTS (Tables)
9 Months Ended
Jun. 30, 2026
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  $-   $267   $78   $6,261   $-   $6,606 
Intercompany receivables-current   -    329,826    -    2,653,619    (2,983,445)   - 
Total current assets   -    376,909    78    2,987,358    (2,983,445)   380,900 
Intercompany receivables-noncurrent   -    -    -    -    -    - 
Total non-current assets   34,160    2,070    -    40,540    (34,160)   42,610 
Total assets   34,160    378,979    78    3,027,898    (3,017,605)   423,510 
Intercompany payables   1,185,045    1,775,852    1,518    -    (2,962,415)   - 
Total current liabilities   1,222,494    1,854,977    1,518    9,877,806    (2,962,415)   9,994,380 
Total non-current liabilities   -    -    -    -    -    - 
Total liabilities   1,222,494    1,854,977    1,518    9,877,806    (2,962,415)   9,994,380 
Total shareholders’ equity   (1,188,334)   (1,475,998)   (1,440)   (6,849,908)   (55,190)   (9,570,870)
Non-controlling interests   -    -    -    -    -    - 
Total equity   (1,188,334)   (1,475,998)   (1,440)   (6,849,908)   (55,190)   (9,570,870)
Total liabilities and equity  $34,160   $378,979   $78   $3,027,898   $(3,017,605)  $423,510 

 

As of September 30, 2025

 

   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  $-   $805   $88   $25,391   $-   $26,284 
Intercompany receivables-current   245,821    625,960    -    2,732,021    (3,603,802)   - 
Total current assets   245,821    633,797    552    3,223,079    (3,603,802)   499,447 
Intercompany receivables-noncurrent   -    4    -    -    (4)   - 
Total non-current assets   34,160    2,259    -    339,107    (34,164)   341,362 
Total assets   279,981    636,056    552    3,562,186    (3,637,966)   840,809 
Intercompany payables   1,223,019    2,012,945    1,236    154,451    (3,391,651)   - 
Total current liabilities   1,298,719    2,060,771    1,510    9,025,295    (3,391,651)   8,994,644 
Total non-current liabilities   -    -    -    34,006    -    34,006 
Total liabilities   1,298,719    2,060,771    1,510    9,059,301    (3,391,651)   9,028,650 
Total shareholders’ equity   (1,018,738)   (1,424,715)   (958)   (5,497,115)   (246,315)   (8,187,841)
Non-controlling interests   -    -    -    -    -    - 
Total equity   (1,018,738)   (1,424,715)   (958)   (5,497,115)   (246,315)   (8,187,841)
Total liabilities and equity  $279,981   $636,056   $552   $3,562,186   $(3,637,966)  $840,809 
SCHEDULE OF VIE DATA OF OPERATION

Condensed Consolidated Statements of Operations

 

   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, 2026 
   Parent
Only
  

Non-VIE

and
Non-WFOE
Subsidiaries
Consolidated

   WFOE   VIE and
VIE’s
Subsidiaries
Consolidated
   Eliminating
Adjustments
   Consolidated
Totals
 
                         
Revenue  $-   $-   $-   $228,714   $-   $228,714 
Intercompany revenue   -    -    -    -    -    - 
Cost of revenue and related tax   -    -    -    231,636    -    231,636 
Gross profit   -    -    -    (2,922)   -    (2,922)
Total operating expenses   169,596    35,397    403    771,143    -    976,539 
Intercompany operating expenses   -    -    -    -    -    - 
Loss from operations   (169,596)   (35,397)   (403)   (774,065)   -    (979,461)
Other (expense) income, net   -    52,073    -   (26,905)   480    25,648 
(Loss) income before income taxes   (169,596)   16,676    (403)   (800,970)   480    (953,813)
Income tax expense   -    -    -    5,430    -    5,430 
Net (loss) income  $(169,596)  $16,676   $(403)  $(806,400)  $480   $(959,243)

 

   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)
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, 2026 
   Parent Only   Non-VIE and Non-WFOE Subsidiaries Consolidated   WFOE   VIE and VIE’s Subsidiary Consolidated   Eliminating Adjustments   Consolidated 
                         
Net (loss) income  $(169,596)  $16,676   $(403)  $(806,400)  $480   $(959,243)
Intercompany receivables   -    64,736    -    (202,412)   137,676    - 
Intercompany payables   207,847    (72,016)   215    (144)   (135,902)   - 
Net cash provided by operating activities   -    (562)   7    20,134    2,254    21,833 
                               
Net cash provided by investing activities   -    -    -    -    -    - 
                               
Net cash used in financing activities   -    -    -    (40,258)   -    (40,258)
                               
Effect of exchange rate fluctuation on cash  $-   $24   $(17)  $994   $(2,254)  $(1,253)

 

   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)
SCHEDULE OF VIE CONSOLIDATED BALANCE SHEETS, OPERATING RESULTS AND CASH FLOWS

The Company consolidated its VIE as of June 30, 2026 and September 30, 2025. The carrying amounts and classification of the VIE’s assets and liabilities included in the consolidated balance sheets are as follows:

 

   June 30, 2026   September 30, 2025 
Assets          
Current assets          
Cash and cash equivalents  $6,261   $25,391 
Trade receivables – third parties   15,001    - 
Trade receivables – intercompany   2,653,619    2,732,021 
Prepaid expenses and other current assets, net   15,020    26,594 
Other receivables – third parties   39,329    101,368 
Inventory   769    6,086 
Amount due from a related party   88,532    331,619 
Assets held for sale   

168,827

    - 
Total current assets   2,987,358    3,223,079 
           
Noncurrent assets          
Property and equipment, net   35,706    118,508 
Investment in associate held for sale   -    19,595 
Operating lease right-of-use assets   4,834    89,073 
Finance lease right-of-use assets   -    111,931 
Total noncurrent assets   40,540    339,107 
Total assets  $3,027,898   $3,562,186 
           
Liabilities          
Current liabilities          
Short-term borrowing  $-   $100,014 
Trade payables   1,824,621    1,961,252 
Other payables and accrual   1,171,568    1,561,206 
Contract liabilities   477,603    294,618 
Intercompany payables   -    154,451 
Payroll payable   67,358    158,427 
Tax payable   145,366    129,631 
Amounts due to related parties   4,027,309    4,537,914 
Operating lease obligations-current portion   4,141    52,017 
Finance lease obligations-current portion   -    75,765 
Liabilities held for sale   

2,159,840

    

-

 
Total current liabilities   9,877,806    9,025,295 
           
Noncurrent liabilities          
Operating lease obligations-noncurrent portion   -    34,006 
Total noncurrent liabilities   -    34,006 
           
Total liabilities   9,877,806    9,059,301 
           
Commitment and contingencies   -    - 
           
Equity          
Additional paid-in capital   621,184    621,184 
Accumulated deficits   (7,150,810)   (6,344,410)
Accumulated other comprehensive income   (320,282)   226,111 
Total stockholders’ equity   (6,849,908)   (5,497,115)
Non-controlling interests   -    - 
           
Total equity   (6,849,908)   (5,497,115)
           
Total liabilities and equity  $3,027,898   $3,562,186 

 

 

The operating results of the VIE were as follows:

 

   2026   2025   2026   2025 
  

Three Months Ended June 30,

  

Nine Months Ended June 30,

 
   2026   2025   2026   2025 
                 
Revenue, net  $31,438   $107,802   $228,714   $1,073,606 
Cost of revenue   (37,082)   (83,824)   (231,636)   (331,449)
Gross profit   (5,644)   23,978    (2,922)   742,157 
                     
Operating expenses                    
General and administrative expenses   151,670    122,897    468,227    625,438 
Selling expense   59,480    333,880    302,916    1,324,525 
Total operating expenses   211,150    456,777    771,143    1,949,963 
                     
Loss from operations   (216,794)   (432,799)   (774,065)   (1,207,806)
                     
Other income (expenses):                    
Interest income   3    -    78    21 
Other (expenses) income   (965)   400,044    (6,876)   441,214 
Equity in net losses   (196)   -    (20,107)     
Share of profit from investment in associate   -    (2,060)   -    (23,504)
Gain from investment   -    -    -    147,579 
Total other income (expenses), net   (1,158)   397,984    (26,905)   565,310 
                     
Loss before income taxes   (217,952)   (34,815)   (800,970)   (642,496)
                     
Income tax expense   5,430    -    5,430    - 
                     
Net loss   (223,382)   (34,815)   (806,400)   (642,496)
Less: Net loss attributable to non-controlling interest   -    -    -    (5,529)
Net loss attributable to Kun Peng International Ltd  $(223,382)  $(34,815)  $(806,400)  $(636,967)

 

 

The cash flows of the VIE were as follows:

 

   2026   2025 
  

Nine Months Ended June 30,

 
   2026   2025 
         
Cash flows from operating activities          
Net loss  $(806,400)  $(642,496)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities          
Depreciation and amortization   40,027    88,867 
Amortization of right-of-use assets   225,799    206,078 
Share of profit from investment in associate   -    23,504 
Equity in net losses   20,107    - 
Gain on investment of a subsidiary   -    (147,579)
Gain on disposal of equipment   (28,062)   - 
Loss on disposal of equipment   32,089    - 
Non-cash lease expense   2,892    - 
Unrealized gain on assets held for sale   

(343

)   - 
           
Changes in operating assets and liabilities          
Prepaid expenses and other current assets, net   7,021    122,961 
Trade receivable- intercompany   -    893,094 
Other receivables- third parties   4,603    84,011 
Other receivables- intercompany   (202,412)   (804,871 
Inventory   4,967    7,280 
Amount due from a related party   250,526    40,340 
Trade payable- third parties   (11,476)   1,845,872 
Trade payable- intercompany   (144)   173,183 
Other payables and accrual- third parties   164,913    1,167,667 
Other payables and accrual- intercompany   -    (500,481)
Deferred revenue   (65,423)   (63,277)
Payroll payable   62,705    71,558 
Amounts due to related parties   407,539    (2,438,891)
Tax payable   (5,797)   (5,599 
Lease liabilities   (82,997)   (51,976)
Net cash provided by  operating activities   20,134    69,245 
          
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         
Repayments to (proceeds from) bank borrowings   (4,324)   98,457 
Payment of finance lease liabilities   (35,934)   (157,187)
Net cash used in financing activities   (40,258)   (58,730)
          
Effect of exchange rate changes on cash   994    (2,365)
          
Net change in cash and cash equivalents   (19,130)   (22,262)
          
Cash and cash equivalents, beginning balance   25,391    81,132 
          
Cash and cash equivalents, ending balance  $6,261   $58,870