In This Story
Kun Peng International Ltd (KPEA+25.87%) has submitted its Form 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing a decrease in revenue to $356,519 from $562,158 in the same quarter the previous year. The decrease is attributed to a decline in retail product sales.
Cost of revenue for the quarter was $55,683, representing 15.6% of sales, compared to 26.6% in the same quarter of the previous year. This decrease in cost ratio is due to a shift in focus towards equipment services.
The company reported a gross profit of $300,836 for the quarter, compared to $412,811 in the previous year, with the decline attributed to reduced retail sales.
General and administrative expenses increased to $652,433 from $547,819, primarily due to higher employee compensation and professional service fees.
Selling expenses decreased to $346,489 from $431,988, primarily due to reduced service agent fees.
Net loss for the quarter was $651,007, compared to $534,806 in the previous year. The company attributes the increased loss to higher operating expenses.
Cash provided by operating activities was $45,864, while cash used in investing and financing activities was $11,070 and $112,755, respectively.
Kun Peng had a working capital deficit of $8,198,139 as of December 31, 2024. The company acknowledges its dependence on increasing revenue and potential financing to meet future obligations.
The filing also details various financial agreements, including a short-term borrowing from China Construction Bank Co., LTD.
Kun Peng does not anticipate cash dividend payments to common stockholders in the near future.
The company identified material weaknesses in its internal controls over financial reporting due to a lack of resources with SEC financial reporting experience.
Kun Peng continues to focus on marketing its health care products and services through its online platforms and highlights its dependence on a few large vendors for a significant portion of its cost of sales.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Kun Peng International Ltd quarterly 10-Q report dated February 14, 2025. To report an error, please email earnings@qz.com.