Cover
Cover - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Dec. 20, 2022 | Mar. 31, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K/A | ||
Amendment Flag | true | ||
Amendment Description | This Amendment No. 1 to the Annual Report on Form 10-K (this “Amendment”) amends the Annual Report on Form 10-K of Kun Peng International Limited (the “Company,” “we,” and “our”) for the year ended September 30, 2022, which was originally filed with the U.S. Securities and Exchange Commission on December 29, 2022 (the “Original Filing”). | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Sep. 30, 2022 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2022 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity File Number | 333-169805 | ||
Entity Registrant Name | KUN PENG INTERNATIONAL LTD | ||
Entity Central Index Key | 0001502557 | ||
Entity Tax Identification Number | 32-0538640 | ||
Entity Incorporation, State or Country Code | NV | ||
Entity Address, Address Line One | 1F, Building 3, No 1001 Huihe South Street | ||
Entity Address, Address Line Two | Banbidian Village | ||
Entity Address, Address Line Three | Gaobeidian Town, Chaoyang District | ||
Entity Address, City or Town | Beijing | ||
Entity Address, Country | CN | ||
Entity Address, Postal Zip Code | 100025 | ||
City Area Code | 86 | ||
Local Phone Number | 10-87227012 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Elected Not To Use the Extended Transition Period | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 11,221,556 | ||
Entity Common Stock, Shares Outstanding | 400,000,000 | ||
Auditor Name | J&S Associate PLT | ||
Auditor Firm ID | 6743 | ||
Auditor Location | Malaysia |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 | ||
Current assets | ||||
Cash and cash equivalents | $ 267,131 | $ 2,059,685 | ||
Advance and prepayments | 268,306 | 338,629 | ||
Other receivables | 65,850 | 123,824 | ||
Amount due from a related party | 316,192 | 349,019 | ||
Total current assets | 917,479 | 2,871,157 | ||
Noncurrent assets | ||||
Property, plant and equipment, net | 134,023 | 68,725 | ||
Intangible assets, net | 2,082 | 2,568 | ||
Security deposits | 43,062 | |||
Right-of-use assets | 675,655 | 282,466 | ||
Others | 8,317 | |||
Total noncurrent assets | 863,139 | 353,759 | ||
Total assets | 1,780,618 | 3,224,916 | ||
Current liabilities | ||||
Trade and other payables | 1,538,741 | 1,430,576 | ||
Deferred revenue | 2,960,357 | 3,122,705 | ||
Payroll payable | 53,890 | 105,923 | ||
Tax payable | 47,330 | 261,771 | ||
Amounts due to related parties | 267,006 | 39,629 | ||
Operating lease obligations, current portion | 304,753 | 229,337 | ||
Total current liabilities | 5,172,077 | 5,189,941 | ||
Noncurrent liabilities | ||||
Operating lease obligations, net of current portion | 264,124 | 53,129 | ||
Total noncurrent liabilities | 264,124 | 53,129 | ||
Total liabilities | 5,436,201 | 5,243,070 | ||
Commitment and contingencies | ||||
Equity | ||||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized; no shares issued and outstanding as of September 30, 2022 and 2021 | ||||
Common stock, $0.0001 par value, 1,000,000,000 shares authorized; 400,000,000 shares issued and outstanding as of September 30, 2022 and 2021 | [1] | 40,000 | 40,000 | |
Additional paid-in capital | (40,000) | (40,000) | ||
Accumulated deficits | (3,653,996) | (1,821,105) | ||
Accumulated other comprehensive income / (loss) | 279,367 | (32,016) | ||
Total stockholders’ equity | (3,374,629) | (1,853,121) | ||
Non-controlling interests | (280,954) | (165,033) | ||
Total equity | (3,655,583) | (2,018,154) | [2] | |
Total liabilities and equity | $ 1,780,618 | $ 3,224,916 | ||
[1]Outstanding and issued shares retrospectively reflected the forward stock split 10:1 effected on October 18, 2022[2]Outstanding and issued shares retrospectively reflected the forward stock split 10:1 effected on October 18, 2022 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - $ / shares | Sep. 30, 2022 | Sep. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 400,000,000 | 400,000,000 |
Common stock, shares outstanding | 400,000,000 | 400,000,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | ||
Income Statement [Abstract] | |||
Revenue, net | $ 7,510,059 | $ 5,587,446 | |
Cost of revenue | (1,195,624) | (1,001,777) | |
Gross profit | 6,314,435 | 4,585,669 | |
Operating expenses | |||
General and administrative expenses | 1,680,560 | 2,619,588 | |
Selling expense | 6,641,485 | 3,741,389 | |
Total operating expenses | 8,322,045 | 6,360,977 | |
Loss from operations | (2,007,610) | (1,775,308) | |
Other income: | |||
Interest income | 1,836 | 1,062 | |
Other income (expenses) | 32,933 | (488) | |
Total other income, net | 34,769 | 574 | |
Loss before income taxes | (1,972,841) | (1,774,734) | |
Income tax expense | |||
Net loss | (1,972,841) | (1,774,734) | |
Less: Net loss attributable to non-controlling interest | (139,950) | (162,400) | |
Net loss attributable to Kun Peng International Ltd | (1,832,891) | (1,612,334) | |
Foreign currency translation adjustment | 335,412 | (27,761) | |
Comprehensive loss | (1,637,429) | (1,802,495) | |
Less: Comprehensive loss attributable to non-controlling interest | (115,921) | (165,033) | |
Comprehensive loss attributable to Kun Peng International Ltd | $ (1,521,508) | $ (1,637,462) | |
Net loss per share attributable to common stockholders | |||
Basic and diluted | [1] | $ (0.005) | $ (0.004) |
Weighted average shares used to compute net loss per share attributable to common stockholders | [1] | 400,000,000 | 400,000,000 |
[1]Outstanding and issued shares retrospectively reflected the forward stock split 10:1 effected on October 18, 2022 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Deficit - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Parent [Member] | Noncontrolling Interest [Member] | Total | |
Beginning balance, value at Sep. 30, 2020 | $ 2,138 | $ (2,134) | $ (208,771) | $ (6,888) | $ (215,655) | $ (215,655) | ||
Beginning balance, shares at Sep. 30, 2020 | [1] | 21,376,918 | ||||||
Net loss attributable to common stockholders | (1,612,334) | (1,612,334) | (1,612,334) | |||||
Net loss attributable to noncontrolling interest | (162,400) | (162,400) | ||||||
Foreign currency translation adjustment | (25,128) | (25,128) | (2,633) | (27,761) | ||||
Cancellation of shares | $ (1,554) | 1,554 | ||||||
Cancellation of shares, shares | [1] | (15,535,309) | ||||||
Reverse acquisition recapitalization | $ 3,416 | (3,420) | (4) | (4) | ||||
Reverse acquisition recapitalization shares | [1] | 34,158,391 | ||||||
Forward stock split | [1] | $ 36,000 | (36,000) | |||||
Forward stock split, shares | [1] | 360,000,000 | ||||||
Ending balance, value at Sep. 30, 2021 | [1] | $ 40,000 | (40,000) | (1,821,105) | (32,016) | (1,853,121) | (165,033) | (2,018,154) |
Ending balance, shares at Sep. 30, 2021 | [1] | 400,000,000 | ||||||
Net loss attributable to common stockholders | (1,832,891) | (1,832,891) | (1,832,891) | |||||
Net loss attributable to noncontrolling interest | (139,950) | (139,950) | ||||||
Foreign currency translation adjustment | 311,383 | 311,383 | 24,029 | 335,412 | ||||
Ending balance, value at Sep. 30, 2022 | $ 40,000 | $ (40,000) | $ (3,653,996) | $ 279,367 | $ (3,374,629) | $ (280,954) | $ (3,655,583) | |
Ending balance, shares at Sep. 30, 2022 | 400,000,000 | |||||||
[1]Outstanding and issued shares retrospectively reflected the forward stock split 10:1 effected on October 18, 2022 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities | ||
Net loss | $ (1,972,841) | $ (1,774,734) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities | ||
Depreciation and amortization | 55,932 | 24,527 |
Amortization of right-of-use assets | 386,152 | 294,658 |
Loss on disposal of property and equipment | 3,752 | |
Changes in operating assets and liabilities | ||
Advance and prepayments | 32,770 | (636,390) |
Other receivables | 50,351 | 15,242 |
Security deposits | (46,802) | |
Trade and other payables | 257,078 | 1,404,380 |
Deferred revenue | 142,789 | 2,879,891 |
Payroll payable | (45,723) | 12,323 |
Amount due to a related party | 251,175 | (224,243) |
Tax payable | (206,303) | 212,862 |
Lease liabilities | (500,460) | (294,658) |
Net cash (used in) provided by operating activities | (1,592,130) | 1,913,858 |
Cash flows from investing activities | ||
Purchase of property and equipment | (139,155) | (19,306) |
Acquisition of intangible assets | (2,677) | |
Net cash used in investing activities | (139,155) | (21,983) |
Effect of exchange rate changes on cash | (61,269) | 26,644 |
Net increase in cash and cash equivalents | (1,792,554) | 1,918,519 |
Cash and cash equivalents, beginning balance | 2,059,685 | 141,166 |
Cash and cash equivalents, ending balance | 267,131 | 2,059,685 |
Supplementary cash flows information: | ||
Cash paid for interest | ||
Cash paid for income tax | 5,633 | |
Supplemental disclosures of noncash transactions | ||
Right-of-use assets acquired with operating lease obligation | $ 750,486 | $ 195,738 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 12 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS Kun Peng International Limited (“the Company”, “KPIL”, “KPEA”, “we”, “us”, “our”), a Nevada corporation is (formerly known as CX Network Group, Inc.), through its subsidiaries and VIE, currently engages in the sale of health care and health related household products through its online platform, King Eagle Mall. SCHEDULE OF COMPANY INFORMATION AND ORGANIZATIONAL ACTIVITIES Name Background Ownership Registered capital / Authorized shares Principal activities Kun Peng International Limited ● A U.S. company ● Incorporated on January 22, 2020 Authorized shares: ● Common stock: 1,000,000,000 0.0001 ● 400,000,000 Preferred stock: ● 10,000,000 0.0001 ● no Investment holding Kun Peng International Holding Limited ● A BVI company ● Incorporated on April 20, 2021 100% Paid capital: $ 400 0.01 Investment holding Kunpeng (China) Industrial Development Company Limited ● A Hong Kong company ● Incorporated on August 11, 2017 100% Paid share capital : 10,000 1,292 10,000 Investment holding Kun Peng (Hong Kong) Industrial Development Limited ● A Hong Kong company ● Incorporated on June 21, 2021 100% Paid share capital: 1 0.13 1 Investment holding King Eagle (China) Co., Ltd ● a limited liability company incorporated in the People’s Republic of China ● Incorporated on March 20, 2019 100% Registered capital: approximately $ 15 100 Providing technical and management support to King Eagle VIE 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% 10.5% 10% 6% 5% Registered capital of approximately $ 1.5 10 Operating King Eagle Mall and new online platform Kun Peng Tian Yu Health Technology (Tianjin) Co., Ltd. ● a limited liability company incorporated in the People’s Republic of China ● Incorporated on August 10, 2021 100% Registered capital of RMB 5 0.7 Exploring future business opportunities King Eagle (Beijing) Technology Co., Ltd ● a limited liability company incorporated in the People’s Republic of China ● Incorporated on December 1, 2022 100% Registered capital of RMB 5 0.7 To commence its operation in January 2023 and the new online platform will be operated under this entity. Reverse Merger On May 17, 2021, the Company entered into a share exchange agreement (“Share Exchange Agreement”) with (i) Kun Peng International Holding Limited (“KP International Holding”), a limited liability company incorporated in British Virgin Islands on April 20, 2021, and (ii) the five members of KP International to acquire all the issued and outstanding capital stock of KP International in exchange for the issuance to those members of an aggregate of 34,158,391 15,535,309 For accounting purpose, the transaction with KP International Holding was treated as a reverse acquisition and KP International Holding is deemed to be the acquirer and the Company as the acquired party. Consequently, the assets and liabilities and the historical operations that will be reflected in the accompanying consolidated financial statements prior to the Reverse Acquisition will be those of KP International Holding and its consolidated subsidiaries and will be recorded at the historical cost basis of KP International Holding, and the accompanying consolidated financial statements after consummation of the reverse acquisition will include the assets and liabilities of KP International Holding and its subsidiaries and VIE, historical operations of KP International and its subsidiaries and VIE, and operations of the Company from the Closing Date of the Reverse Acquisition. The accompanying consolidated financial statements share and per share information has been retroactively adjusted to reflect the exchanged shares in the Acquisition. The equity structure of the Company was retrospectively adjusted under ASC Topic 805-40. As of September 30, 2021, there were 40,000,000 Authorized Shares and Name Change Effective as of September 9, 2021, the Company’s Articles of Incorporation were amended to change the name of the Company from CX Network Group, Inc. to Kun Peng International Limited. (“KPIL”) and to increase the Company’s authorized capital to 210,000,000 200,000,000 0.0001 10,000,000 0.0001 Effective October 12, 2022, we increased our authorized common stock from 200,000,000 0.0001 1,000,000,000 $0.0001 400,000,000 On November 8, 2022, the Company changed its name from CX Network Group, Inc. to Kun Peng International Ltd. and its trading symbol was changed to “KPEA.” On November 11, 2022, the Company received an electronic notice that OTC Markets had approved its application for uplisting from OTC Pink to the OTCQB Venture Market (OTCQB). The Company’s securities commenced trading on the OTCQB at the market open on November 14, 2022. The Company’s shares trade on the OTCQB under the current ticker symbol, “KPEA.” Kun Peng International Holding Limited KP International Holding was incorporated in the British Virgin Islands on April 20, 2021. On May 3, 2021, KP International Holding purchased all of the issued and outstanding equity securities of Kunpeng (China) Industrial Development Company Limited (“KP Industrial”), incorporated in Hong Kong on August 11, 2017, at a cash consideration of $ 0.129 1 Kunpeng (China) Industrial Development Company Limited Kunpeng (China) Industrial Development Company Limited (“KP Industrial”) was incorporated as a limited liability company in Hong Kong under the name of Jing Jin Ji Investment Group Co., Limited (“Jing Jin Ji”) on August 11, 2017. The share capital of KP Industrial is 10,000 1,292 10,000 Kun Peng (Hong Kong) Industrial Development Limited Kun Peng (Hong Kong) Industrial Development Limited (“KP (Hong Kong)”) was incorporated as a limited liability company in Hong Kong on June 21, 2021. It is a holding company and is wholly owned by Kun Peng International Holding Limited. The share capital of this entity upon formation is $ 0.13 1 King Eagle (China) Co., Ltd. King Eagle (China) Co., Ltd. (“King Eagle (China)”) was incorporated as a limited liability company in Beijing Economic Technological Development Zone in the People’s Republic of China (“the PRC”) on March 20, 2019 with a registered capital of approximately $ 15 100 2.2 15 15% On March 26, 2021, Guoxin Ruilian Group Co., Ltd entered into equity transfer agreements with KP Industrial and Guoxin Zhengye. Both Guoxin Ruilian Group Co., Ltd and Guoxin Zhengye are wholly owned by a common shareholder, Guoxin United Holdings Group Co., Ltd. Under the agreements, Guoxin Ruilian Group Co., Ltd agreed to transfer its 8 7 92 8% 8 Some of the business engaged in by King Eagle (Tianjin) is restricted or prohibited for foreign investment under PRC regulations. As such, King Eagle (China) has entered into the VIE Agreements with King Eagle (Tianjin) and their shareholders. We do not own any equity interests in King Eagle (Tianjin), but control and receive the economic benefits of their respective business operations through the VIE Agreements. The VIE Agreements enable us to provide King Eagle (Tianjin) with consulting services on an exclusive basis, in exchange for all of its annual profits, if any. In addition, we are able to appoint its senior executives and approve all matters requiring approval of its shareholders. The VIE Agreements are comprised of a Consulting Service Agreement, Business Operation Agreement, Proxy Agreement, Equity Disposal Agreement, and Equity Pledge Agreement. Under current Chinese laws and regulations, the Company believes that the VIE Agreements are not subject to any government approval. The shareholders of King Eagle (Tianjin) were required to register with SAFE when they established offshore vehicles to hold KP International, and such SAFE registration was effected on May 14, 2021. These shareholders of King Eagle (Tianjin) will have to register their equity pledge arrangement as required under the Equity Pledge Agreement with King Eagle (China). The Company faces uncertainty with respect to future actions by the PRC government that could significantly affect King Eagle (Tianjin)’s financial performance and the enforceability of the VIE Agreements. King Eagle (Tianjin) Technology Co., Ltd. King Eagle (Tianjin) Technology Co., Ltd. (“King Eagle (Tianjin)”) was incorporated as a limited liability company in Tianjin Pilot Free Trade Zone in the People’s Republic of China on September 2, 2020, with a registered capital of approximately $ 1.5 10 45.5% 10.5% 10% 6% 5% Kun Peng Tian Yu Health Technology (Tianjin) Co., Ltd. Kun Peng Tian Yu Health Technology Co., Ltd. (“KP Tian Yu”) was incorporated as a limited liability company in Tianjin Pilot Free Trade Zone in the People’s Republic of China on August 10, 2021 with a registered capital of RMB 5 0.7 King Eagle (Beijing) Technology Co., Ltd King Eagle (Beijing) Technology Co., Ltd (“King Eagle (Beijing)”) was incorporated as a limited liability company in Beijing in the People’s Republic of China on December 1, 2022 with a registered capital of RMB 5 0.7 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America. This basis of accounting involves the application of accrual accounting and consequently, revenues and gains are recognized when earned, and expenses and losses are recognized when incurred. The consolidated financial statements are expressed in U.S. dollars. Principles of Consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries and variable interest entity (“VIE”). All significant intercompany transactions and balances within the Company have been eliminated upon consolidation. Use of Estimates and Assumptions The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimate and assumptions that impact the presented amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the presented amounts of revenues and expenses during the period. Actual results may differ from those estimates. Significant estimates during the year ended September 30, 2022 and 2021 include the collectability of receivables, the useful lives of long-lived assets and intangibles, assumptions used in assessing impairment of long-lived assets, valuation of accruals for expenses and tax due. Reclassification Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. Going Concern The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America which contemplate continuation of the Company as a going concern basis. The going-concern basis assures that assets are realized and liabilities are extinguished in the ordinary course of business at amounts disclosed on the financial statements. The Company’s ability to continue as a going concern depends on the liquidation of its current assets and business developments. In assessing the Company’s liquidity, the Company monitors and analyzes its cash and cash equivalents and its operating and capital expenditure commitments. The Company’s liquidity needs are to meet its working capital requirements, operating expenses and capital expenditure obligations. For the year ended September 30, 2022, the Company incurred cash outflows from operating activities of $ 1,592,130 1,972,841 4,254,598 The Company continues to monitor its operations to help refine the Company’s financial liquidity. The financial liquidity of the Company has declined to very unhealthy level in this year due to the decline in the balance of cash and cash equivalent. Options under consideration in the review process include, but not limited to, increase of sales on its online business, reduction of overhead costs, fund advance from the Company’s stockholders and directors, or financing through issuance of shares. Besides, our new online platform which focuses on promoting and selling own brand preventive health care products to wholesalers and retailers was placed in service in October 2022. Since the first quarter of 2022, the Company has been focusing on increasing its revenue through its online platform to reduce the costs of goods sold and slimming its administrative overhead costs. For example, we reduced the compensation and benefits of our executives, decreased office supplies expense, trimmed staff meeting expense. Additionally, the Company obtained a fund advance of approximately $ 0.3 In order to continue as a going concern for the next 12 months, the Company continues to focus on increasing its revenue through the sale of health care products on its online platform, King Eagle Mall, and promoting and selling its own brand health care products on its new online platform to reduce costs of goods sold, streamlining its overhead costs or obtaining a financing from its stockholders or directors. However, the Company cannot provide any assurance that it will be able to increase revenue, that it will be able to successfully implement its business plan, or that financing that will be available to it on commercially acceptable terms, if at all. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern. The directors will continue to support the group by providing adequate financial assistance to enable the group to continue its business operations for the foreseeable future. COVID-19 Outbreak The COVID-19 pandemic has resulted in quarantines, travel restrictions, limitations on social or public gatherings, and the temporary closure of business venues and facilities around the world. Due to restrictions, quarantines and closures in certain affected areas and government agencies in the PRC, the approval process of our applications for construction permits for Smart Kiosks was delayed by the local governmental agencies and construction projects of Smart Kiosks were therefore postponed. Businesses and markets in mainland China have reopened and mainland China relaxed its policies and controls relating to COVID-19 in early December 2022. The number of cases of COVID-19 is expected to increase greatly which may cause restrictions on our service agents to travel and launch face-to-face marketing activities. Construction of our Smart Kiosks may not be immediate, which impacts our plan of enhancing our face-to-face customer services and increasing our market share. The Company continues to focus its business on its online platform, King Eagle Mall, and to promote its own brand of consumer health care and health related household products on its new online platform, which was introduced and implemented in October 2022, to mitigate the adverse impacts of COVID-19. The Company also follows up closely with the local governmental agencies regarding its applications for construction permits for Smart Kiosks. However, as the pandemic increased overall public health consciousness in the PRC, the Company’s average monthly online sale revenue increased by $ 0.2 34.4 0.4 0.6 Therefore, we do not expect that the virus will have a material adverse effect on our business or financial results at this time. However, it is not possible to predict the unanticipated consequence of the pandemic on our future business performance and liquidity due to the severity of global situation of COVID-19. The Company continues to monitor and assess the evolving situation closely and evaluate its potential exposure. Earnings (loss) Per Share Basic income (loss) per share is computed by dividing net income (loss) attributable to the holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year. Diluted income (loss) per share is calculated by dividing net income (loss) attributable to the holders of ordinary shares as adjusted for the effect of dilutive ordinary share equivalents, if any, by the weighted average number of ordinary shares and dilutive ordinary share equivalents outstanding during the period. However, ordinary share equivalents are not included in the denominator of the diluted earnings per share calculation when inclusion of such shares would be anti-dilutive, such as in a period in which a net loss is recorded. Foreign Currency Translation The reporting currency of the Company is the U.S. Dollar. Our entity in British Virgin Islands use U.S. dollar. Our entities in the PRC and Hong Kong use the local currencies, Renminbi (RMB) and Hong Kong Dollar (HKD), as its functional currencies as determined based on the criteria of ASC 830, “Foreign Currency Translation”. Assets and liabilities are translated at the unified exchange rate as quoted by www.xe.com at the end of the period. Income and expense accounts are translated at the average translation rates and the equity accounts are translated at historical rates. Translation adjustments resulting from this process are included in accumulated other comprehensive income in the statement of equity. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. Translation adjustments included in accumulated other comprehensive gain (loss) amounted to $ 279,367 (32,016) Below is a table with foreign exchange rates used for translation: SCHEDULE OF FOREIGN EXCHANGE RATES For the year ended September 30, 2022 (Average Rate) Hong Kong Dollar (HKD) Chinese Renminbi (RMB) United States dollar ($1) 7.8221 6.5473 As of September 30, 2022 (Closing Rate) United States dollar ($1) 7.8500 7.1159 For the year ended September 30, 2021 (Average Rate) Hong Kong Dollar (HKD) Chinese Renminbi (RMB) United States dollar ($1) 7.7631 6.5101 As of September 30, 2021 (Closing Rate) United States dollar ($1) 7.7851 6.4466 Cash and Cash Equivalents Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and a certain amount of cash kept in electronic wallets, “e-wallets”. We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. We maintain accounts with various financial institutions in the PRC, and also e-wallets. As of September 30, 2022 and 2021, cash balances held in PRC banks are uninsured. Monies that are held in e-wallets are deemed equivalent to cash, they are highly liquid, and are relatively unsafe compared to cash in banks. We have not experienced any losses in bank accounts or e-wallets and believe we are not exposed to significant risks with respect to our cash in bank accounts and low risk for our cash in e-wallets. Financial Instrument The carrying amount reported in the balance sheet for cash, other receivables, accrued liabilities and other payables approximate fair value because of the immediate or short-term maturity of these financial instruments. Property and Equipment Property and equipment are stated at cost less accumulated depreciation and impairment losses. Gains and losses on dispositions of property and equipment are included in operating income (loss). Major additions, renewals and improvements are capitalized, while maintenance and repairs are recognized as expense as incurred. Depreciation is provided over the estimated useful life of each class of depreciable assets and is computed using the straight-line method over the useful lives of the assets are as follows: SCHEDULE OF PROPERTY PLANT AND EQUIPMENT USEFUL LIVES Classification Estimated useful life Leasehold improvements 5 Office equipment 3 Computer equipment 3 Computer software 5 Intangible Assets Intangible assets represent the licensing cost for the trademark registration. For intangible assets with indefinite lives, the Company evaluates intangible assets for impairment at least annually and more often whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. For intangible assets with definite lives, they are amortized over estimated useful lives, and are reviewed annually for impairment. The Company has not recorded impairment of intangible assets as of September 30, 2022 and 2021. Impairment of Long-lived Assets Long-lived assets, including buildings and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. We assess the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated discounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. When we identify an impairment, reduce the carrying amount of the asset to the estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. As of September 30, 2022 and 2021, management determined that there was no impairment. Fair Value Measurements The Company applies the provisions of ASC Subtopic 820-10, “Fair Value Measurements”, for fair value measurements of financial assets and financial liabilities and for fair value measurements of non-financial items that are recognized or disclosed at fair value in the financial statements. ASC 820 also establishes a framework for measuring fair value and expands disclosures about fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes three levels of inputs that may be used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: ● 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. The Company’s financial assets and liabilities include cash, receivables, accounts payable and accrued expenses. Related Party Transactions The Company follows the ASC 850-10, “Related Party Disclosures” for the identification of related parties and disclosure of related party transactions. Pursuant to section 850-10-20 the related parties include a) affiliates of the Company; b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of section 825–10–15, to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and income-sharing trusts that are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The consolidated financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a) the nature of the relationship(s) involved; b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented; and c) such other information deemed necessary to an understanding of the nature of the related party transactions. Comprehensive Income (Loss) Other comprehensive income (loss) refers to revenues, expenses, gains and losses that under generally accepted accounting principles are included in comprehensive income but are excluded from net income (loss) as these amounts are recorded directly as an adjustment to stockholders’ equity. Our other comprehensive loss for the years ended September 30, 2022 and 2021 was comprised of foreign currency translation adjustments. Revenue Recognition Revenue is comprised of sales of goods and represents the amount of consideration the Company is entitled to upon the transfer of goods. Pursuant to FASB ASU No. 2016-08, Revenue from Contracts with Customers (TOPIC 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), the Company recorded revenue on a gross basis, net of surcharges and value added tax (“VAT”) of gross sales. The Company recorded revenue on a gross basis because the Company is the primary obligor of the sales arrangements has latitude in establishing prices, has discretion in suppliers’ selection and assumes credit risks on receivables on gross sales from customers. The Company adopted Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”) using the full retrospective transition method. The Company’s adoption of ASU 2014-09 did not have a material impact on the amount and timing of revenue recognized in its consolidated financial statements. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: ● 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. Consistent with the criteria of ASC 606 “Revenue from Contracts with Customers,” we recognize revenue when performance obligations are satisfied by transferring control of a promised good or service to a customer. For performance obligations that are satisfied at a point in time, we also consider the following indicators to assess whether control of a promised good or service is transferred to the customer: (i) right to payment, (ii) legal title, (iii) physical possession, (iv) significant risks and rewards of ownership, and (v) acceptance of the good or service. For performance obligations satisfied over time, we recognize revenue over time by measuring the progress toward complete satisfaction of a performance obligation. Deferred Revenue Deferred revenue results from transactions where the Company has received the payments from the customers but revenue recognition criteria under the five-step model of ASC Topic 606 have yet to be met. Once all revenue recognition criteria have been satisfied, the revenues will be recognized upon the transfer of risk and rewards to the customers in the consolidated statement of operations. We anticipated the majority of the revenue will be recognized in the fiscal year 2023. Management agreed that the amount received is non-refundable; however, this term is not bound by any agreement. Thus, the customers may have the rights to challenge and demand the advances to be refunded under relevant Commercial Laws or regulations. Accrued Product Liability The Company records accruals for product liability when deemed probable and estimable based on facts and circumstances, and prior claims experience. Accruals for product credit are valued based upon the Company’s prior claims experience, including defect goods, goods lost in transit. We have experienced insignificant amount of goods returned and claims from goods lost in transit from the past, our product liability is insignificant; therefore, Management believes product liability accrual as at September, 30 2022 and 2021 is not required. Discount allowed - Accrued Store-Credit We provide store-credit, “Golden Beans” to our customers after sales of goods to them. The Golden Beans can be utilized against their future purchases with restrictions and expiry date. The amount utilized will be recognized as direct discount as and when the sales arise, and the price net of this discount has been controlled and set by the management, to ensure that the sales will always result in a gross profit. As such, we do not accrue any liability from this store-credit as there is no present obligation arising from this Golden Bean as of September, 30 2022, and 2021, and the utilization of these Golden Beans is not expected to result in an outflow from the Company’s resources embodying economic benefits. Lease Under ASC Topic 842, the Company determines if an arrangement is a lease at inception. Lease assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value of the future lease payments is the Company’s incremental borrowing rate based on the information available at the lease commencement date. The Company generally uses the base, non-cancelable lease term in calculating the right-of-use assets and lease liabilities. The Company may recognize the lease payments in the condensed consolidated statements of operation on a straight-line basis over the lease terms and variable lease payments in the periods in which the obligations for those payments are incurred, if any. The lease payments under the lease arrangements are fixed. The Company elected the package of practical expedients which allow the Company to carryforward its historical lease classification, its assessment on whether a contract is or contains a lease, and its initial direct costs for any lease that exists prior to adoption of the new standard. The Company also elected to apply the short-term lease exception for lease arrangements with a lease term of 12 months or less at commencement. Lease terms used to compute the present value of lease payments do not include any option to extend, renew, or terminate the lease that the Company is not reasonably certain to exercise upon the lease inception. Accordingly, operating lease right-of-use assets and liabilities do not include leases with a lease term of 12 months or less. Research and Development Expenses Research and development (R&D) expenses are all costs associated with the original development and design of the product as well as any intellectual property (IP) generated during the development phase, including patents and copyrights. Research and development expenses are included in the overall operating expenses and reflected as a separate line item on the consolidated statement of operations. We purchase the consumer preventive health food and health related household products sold on our platforms from our suppliers and we did not develop, design or manufacture those products. Moreover, although we have built our online platform and mobile commerce in-house, the compensation costs for our in-house technology team were not significant. Accordingly, instead of capitalizing the compensation costs of our in-house technology team as Research and Development in Balance Sheet or presenting it as Research and Development expenses, we included these amounts in Employee Compensation and Benefit expenses within General and Administrative expenses for the years ended September 30, 2022 and 2021. Selling Expenses Selling expenses consist primarily of marketing and promotional service fee to service agents and other costs incurred by our sales and marketing department such as staff costs, office supplies and other incidental expenses that are incurred directly to attract or retain consumers. Our selling expenses for the years ended September 30, 2022 and 2021 were $ 6,641,485 3,741,389 5,844,846 2,929,080 Concentration of Risk Credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and other receivable. As September 30, 2022 and 2021, $ 252,512 1,796,861 1,886,622 12,162,295 Historically, deposits in Chinese banks are secure due to state policy to protect depositor interests. However, China promulgated a Bankruptcy Law in August 2006 that came into effect on June 1, 2007, which contains a separate article expressly stating that the State Council may promulgate implementation measures to provide for the bankruptcy of Chinese banks based on the Bankruptcy Law. Under the current Bankruptcy Law, a Chinese bank may file bankruptcy if it deems itself to be insolvent. In addition, since China’s concession to the World Trade Organization, foreign banks have been gradually permitted to operate in China and have intensified competition in many aspects, especially since the opening of the Renminbi business to foreign banks in late 2006. Therefore, the risk of bankruptcy at the institutions that the Company maintains deposits has increased. In the event of bankruptcy, the Company is unlikely to reclaim its deposits in full since it is unlikely to be classified as a secured creditor under PRC laws. Risks of variable interest entity structure In the opinion of management, (i) the corporate structure of the Company is in compliance with existing PRC laws and regulations; (ii) the VIE Arrangements are valid and binding, and do not result in any violation of PRC laws or regulations currently in effect; and (iii) the business operations of the foreign-invested enterprise and the VIE are in compliance with existing PRC laws and regulations in all material respects. However, there are substantial uncertainties regarding the interpretation and application of current and future PRC laws and regulations. Accordingly, the Company cannot be assured that PRC regulatory authorities will not ultimately take a contrary view to the foregoing opinion of its management. If the current corporate structure of the Company or the VIE Arrangements is found to be in violation of any existing or future PRC laws and regulations, the Company may be required to restructure its corporate structure and operations in the PRC to comply with changing and new PRC laws and regulations. In the opinion of management, the likelihood of loss in respect of the Company’s current corporate structure or the VIE Arrangements is remote based on current facts and circumstances. Foreign currency exchange risk The value of RMB against the U.S. dollar and other currencies may fluctuate and is affected by, among other things, changes in political and economic conditions and the foreign exchange policy adopted by the PRC government. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the RMB and the U.S. dollar in the future. There remains significant international pressure on the PRC government to adopt a more flexible currency policy, which could result in greater fluctuation of the RMB against the U.S. dollar. The Company is a holding company and it relies on dividends paid by the Company’s operating subsidiaries in China for its cash needs. Any significant revaluation of the RMB may materially and adversely affect its liquidity and cash flows. To the extent that the Company needs to convert U.S. dollars into RMB for its operations, appreciation of the RMB against the U.S. dollar would have an adverse effect on the RMB amount the Company would receive. Conversely, if the Company decides to convert RMB into U.S. dollars for other business purposes, appreciation of the U.S. dollar against the RMB would have a negative effect on the U.S. dollar amount the Company would receive. Liquidity risk Liquidity risk is the risk that the Company will encounter difficulty raising liquid funds to meet commitments as they fall due. See our commitments and contingencies in Note 13 under Item 8, Financial Statements and Supplementary Data. In meeting its liquidity requirements, the Company continues to focus on increasing its revenue through the sale of consumer health care products on its online platform, King Eagle Mall, and promoting its own brand of preventive health care related products on its new online platform to reduce its costs of goods sold, streamlining its overhead costs, or obtaining financing from its stockholders or directors. Concentration of customers and vendors There was no revenue from customers that individually represent greater than 10% For the year ended September 30, 2022, four major vendors accounted for 18% 16% 16% 12% For the year ended September 30, 2021, three major vendors accounted for 22% 16% 14% Income Taxes We account for income taxes using the liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance against deferred tax assets if, based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. We apply ASC 740, Accounting for Income Taxes Commitments and Contingencies The Company follows the ASC 450-20, “Contingencies” to report accounting for contingencies. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or un-asserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time that these matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. Recent Accounting Pronouncement Recently Adopted Accounting Standards Income Taxes Accounting Pronouncements Issued But Not Yet Adopted Financial Instruments In the period from October 2022 through December 2022, the FASB has not issued any additional accounting standards updates that have a significant impact on the Company. |
VARIABLE INTEREST ENTITIES _VIE
VARIABLE INTEREST ENTITIES “VIE” ARRANGEMENTS | 12 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES “VIE” ARRANGEMENTS | NOTE 3 - VARIABLE INTEREST ENTITIES “VIE” ARRANGEMENTS On May 15, 2021, King Eagle (China) entered into a series of contractual arrangements with King Eagle (Tianjin) and its shareholders. As a result of the contractual arrangements, the Company classified King Eagle (Tianjin) as a Variable Interest Entity “VIE.” King Eagle (Tianjin) Technology Co., Ltd. (“King Eagle (Tianjin)”) was incorporated as a limited liability company in Tianjin Pilot Free Trade Zone in the People’s Republic of China on September 2, 2020, with a registered capital of approximately $ 1.5 10 45.5 10.5% 10% 6% 5% The VIE Agreements are as follows: (1) Consulting Service Agreement (2) Business Operation Agreement (3) Proxy Agreement (4) Equity Disposal Agreement (5) Equity Pledge Agreement Consulting Service Agreement Pursuant to the terms of certain Exclusive Consulting Service Agreement dated May 15, 2021, between King Eagle (China) and King Eagle (Tianjin) (the “ Consulting Service Agreement Business Operation Agreement Pursuant to the terms of certain Business Operation Agreement dated on May 15, 2021, among King Eagle (China), King Eagle (Tianjin)and the shareholders of King Eagle (Tianjin) (the “ Business Operation Agreement Proxy Agreement Pursuant to the terms of the Proxy Agreement dated on May 15, 2021, among King Eagle (China), and the shareholders of King Eagle (Tianjin) (the “ Proxy Agreement Equity Disposal Agreement Pursuant to the terms of the Equity Disposal Agreement dated on May 15, 2021, among King Eagle (China), King Eagle (Tianjin), and the shareholders of King Eagle (Tianjin) (the “ Equity Disposal Agreement Equity Pledge Agreement Pursuant to the terms of certain Equity Pledge Agreement dated on May 15, 2021, among King Eagle (China) and the shareholders of King Eagle (Tianjin) (the “ Pledge Agreement Agreement Agreements A VIE is an entity that has either a total equity investment that is insufficient to permit the entity to finance its activities without additional subordinated financial support, or whose equity investors lack the characteristics of a controlling financial interest, such as voting rights and the right to receive the expected residual returns of the entity or the obligation to absorb the expected losses of the entity. The variable interest holder, if any, that has a controlling financial interest in a VIE is deemed to be the primary beneficiary and must consolidate the VIE. King Eagle (China) is deemed to have a controlling financial interest and be the primary beneficiary of King Eagle (Tianjin) because it has both of the following characteristics: (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. Pursuant to the Contractual Arrangements, the shareholders of King Eagle (Tianjin) have agreed to transfer any dividends, distributions or any other profits that they receive to King Eagle (China). King Eagle (Tianjin) pays service fees equal to all of its net profit after tax to King Eagle (China). The Contractual Arrangements are designed so that King Eagle (Tianjin) operates for the benefit of King Eagle (China) and ultimately the Company. Moreover, King Eagle (Tianijn) has agreed to subject the operations and management of its business to the full control under King Eagle (China) and King Eagle (Tianjin) will take King Eagle (China)’s advice on the appointment of dismissal of directors and employment, regular operation and financial management. Accordingly, the Company consolidates the accounts of King Eagle (Tianjin) and its subsidiaries for the periods presented herein, in accordance with Accounting Standards Codification, or ASC, 810-10, Consolidation. Accordingly, the accounts of King Eagle (Tianjin) are consolidated in the accompanying financial statements pursuant to ASC 810-10, Consolidation. In addition, their financial positions and results of operations are included in the Company’s financial statements. The Company consolidated its VIE as of September 30, 2022, and 2021. The carrying amounts and classification of the VIE’s assets and liabilities included in the consolidated balance sheets are as follows: SCHEDULE OF VIE’S ASSETS AND LIABILITIES INCLUDED IN THE CONSOLIDATED BALANCE SHEETS September 30, 2022 2021 Current assets $ 2,530,776 $ 3,838,468 Noncurrent assets 107,774 145,935 Total assets 2,638,550 3,984,403 Total liabilities 4,633,855 4,651,716 Net liabilities $ (1,995,305 ) $ (667,313 ) The VIE’s liabilities consisted of the following as of September 30, 2022, and 2021: September 30, 2022 2021 Current liabilities Trade and other payable $ 1,253,421 $ 1,194,972 Amount due to a related party 267,006 - Deferred revenue 2,960,357 3,122,705 Payroll payable 4,312 14,802 Tax payable 41,345 218,301 Operating lease obligations, currents 85,390 92,807 Total current liabilities 4,611,831 4,598,587 Total noncurrent liabilities Operating lease obligations, net of current portion 22,024 53,129 Total noncurrent liabilities 22,024 53,129 Total liabilities $ 4,633,855 $ 4,651,716 The operating results of the VIE were as follows: 2022 2021 September 30, 2022 2021 Revenue $ 7,510,059 $ 5,587,446 Gross profit 6,321,414 4,590,774 Loss from operations (1,540,642 ) (650,804 ) Other income 29,098 834 Net loss $ (1,511,544 ) $ (649,970 ) |
ADVANCE AND PREPAYMENTS
ADVANCE AND PREPAYMENTS | 12 Months Ended |
Sep. 30, 2022 | |
Advance And Prepayments | |
ADVANCE AND PREPAYMENTS | NOTE 4 - ADVANCE AND PREPAYMENTS Prepayments consisted of the following: SCHEDULE OF PREPAYMENTS 2022 2021 September 30, 2022 2021 Prepaid rent and building management and utilities $ 23,324 $ 85,474 Prepaid supplies (1) 202,150 78,248 Prepaid system maintenance services - 5,209 Prepaid income tax 5,154 5,689 Prepaid professional services (2) 25,941 148,708 Prepaid others 11,737 15,301 Total prepayments $ 268,306 $ 338,629 (1) As of September 30, 2022, and 2021, the Company had prepaid supplies of $ 202,150 78,248 (2) As of September 30, 2022, the ending balance of prepaid professional services included two types of prepayments, $ 9,369 16,572 As of September 30, 2021, the ending balance of our prepaid professional service fee was $ 148,708 10,341 138,367 These amounts are expected to be recoverable within twelve (12) months. |
OTHER RECEIVABLES
OTHER RECEIVABLES | 12 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
OTHER RECEIVABLES | NOTE 5 - OTHER RECEIVABLES Other receivables included the following: SCHEDULE OF OTHER RECEIVABLES 2022 2021 September 30, 2022 2021 Rental deposits $ 14,735 $ 93,583 Advance to employees 45,250 30,241 Others 5,865 - Total other receivables, net $ 65,850 $ 123,824 Advance to employees represents funds provided to our officers and employees for the business expenses, such as travel, parking, gasoline, membership, meals, that are anticipated to be incurred by our officers and employees on behalf of the Company. Advances to employees are required to repay within a year. Others, $ 5,865 3,677 2,188 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 6 - PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT 2022 2021 September 30, 2022 2021 Leasehold improvements $ 127,301 $ 29,886 Furniture and fixtures 1,235 9,534 Computer equipment 40,099 43,452 Office equipment 1,480 1,633 Computer software - 11,971 Subtotal 170,115 96,476 Less: accumulated depreciation (36,092 ) (27,751 ) Total property and equipment, net $ 134,023 $ 68,725 Depreciation expense was $ 55,666 24,392 On February 28, 2022, King Eagle (China) entered into a lease agreement for its new office in Beijing. As it moved to a new office premise in May 2022, it removed the leasehold improvement in May 2022 and the estimated useful life of the leasehold improvements of our previous office in Beijing changed from 60 months to 22 months. Accordingly, an additional amount of depreciation expense of the relative leasehold improvements, $ 16,184 3,677 281 3,752 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | NOTE 7 – INTANGIBLE ASSETS SCHEDULE OF INTANGIBLE ASSET 2022 2021 September 30, 2022 2021 Trademarks $ 2,449 $ 2,703 Subtotal 2,449 2,703 Less: accumulated amortization (367 ) (135 ) Total intangible assets, net $ 2,082 $ 2,568 Intangible assets consist of the Company’s trademarks of King Eagle Mall with the useful life of ten years. Approximately $ 1,071 1,377 Amortization expense was $ 266 135 |
DEFERRED REVENUE
DEFERRED REVENUE | 12 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
DEFERRED REVENUE | NOTE 8 – DEFERRED REVENUE SCHEDULE OF DEFERRED REVENUE 2022 2021 September 30, 2022 2021 Advance payments from customers $ 2,960,357 $ 3,122,705 Total deferred revenue $ 2,960,357 $ 3,122,705 Deferred revenue resulted from transactions where the Company has received the payments from the customers but revenue recognition criteria under the five-step model have yet to be met. As at September 30, 2022 and 2021, the Company had a total deferred revenue of $ 2,960,357 3,122,705 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 9 - RELATED PARTY TRANSACTIONS Amount due from a related party represented the prepaid service fee remitted to Guoxin Star Network Co., Ltd. by our VIE, King Eagle (Tianjin). On March 31, 2021, King Eagle (Tianjin) entered into a Cooperation Agreement with our related party, Guoxin Star Network Co., Ltd. Guoxin Star Network Co. Ltd. was formerly our related party due to its being wholly owned by Guoxin Rulian Group Co. Ltd., which also owns Guoxin Zhengye. Guoxin Zhengye was the 8% Under the Cooperation Agreement, King Eagle (Tianjin) is required to pay Guoxin Star Network Co., Ltd. in an amount of approximately $ 1.05 7.5 0.32 2,250,000 0.74 5.3 SCHEDULE OF AMOUNTS DUE TO RELATED PARTIES September 30, Name of related party Relationship Nature of transactions 2022 2021 Guoxin Star Network Co., Ltd It is wholly owned by Guoxin Ruilian Group Co., Ltd, the common shareholder of our former owner, Guoxin Zhengye, which owned an 8% interest in King Eagle (China) until August 2022 Prepaid services for the operation of the smart kiosk $ 316,192 $ 349,019 Total $ 316,192 $ 349,019 Amounts due to related parties are payables arising from transactions between the Company and related parties, such as payments of operating expenses by such related parties on behalf of our entities in PRC and funding to meet working capital requirements. The payables owed to the related parties are interest free, unsecured, and repayable on demand. Amounts due to related parties consisted of the following: September 30, Name of related party Relationship Nature of transactions 2022 2021 Mr. Yihe Pang Director Payments made to the lessors on behalf of King Eagle (China). The balance was paid off in December 2021 $ - $ 39,629 Ms. Xiujin Wang One of the shareholders of King Eagle (Tianjin) Operational support to King Eagle (Tianjin) to meet its working capital requirement. 267,006 - Total $ 267,006 $ 39,629 |
EQUITY
EQUITY | 12 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
EQUITY | NOTE 10 - EQUITY Effective as of September 9, 2021, the Company’s Articles of Incorporation were amended to increase the Company’s authorized capital to 210,000,000 200,000,000 0.0001 10,000,000 0.0001 Effective on October 12, 2022, a Certificate of Amendment was filed with the Nevada Secretary of State to increase the authorized number of shares of the Corporation’s $ 0.0001 200,000,000 1,000,000,000 The Company’s board of directors approved and declared a 10:1 forward split of its common stock on September 6, 2022. As a result of the stock split, holders of pre-split shares of common stock have the right to receive post-split shares of common stock at a ratio of ten (10) shares of post-split common stock for every one (1) share of pre-split common stock. The stock split had a record date on September 16, 2022 and an effective date on October 18, 2022. No fractional shares will be issuable as a result of the Forward Stock Split. After the forward stock split, the issued and outstanding of our common stock is 400,000,000 0.0001 Preferred stock The Company’s authorized shares of preferred stock were 10,000,000 0.0001 No Common stock With the retrospective effect of the increase in authorized shares of common stock and 10:1 forward stock split, the Company’s authorized shares of common stock were 1,000,000,000 1,000,000,000 0.0001 400,000,000 Reverse acquisition On May 17, 2021, the Company entered into a share exchange agreement (“Share Exchange Agreement”) with (i) Kun Peng International Holding Limited (“KP International”), a limited liability company incorporated in British Virgin Islands on April 20, 2021, and (ii) the five members of KP International to acquire all the issued and outstanding capital stock of KP International in exchange for the issuance to those members of an aggregate of 34,158,391 15,535,309 For accounting purpose, the transaction with KP International was treated as a reverse acquisition and KP International is deemed to be the acquirer and the Company as the acquired party. Consequently, the assets and liabilities and the historical operations that will be reflected in the accompanying consolidated financial statements prior to the Reverse Acquisition will be those of KP International and its consolidated subsidiaries and will be recorded at the historical cost basis of KP International, and the accompanying consolidated financial statements after consummation of the reverse acquisition will include the assets and liabilities of KP International and its subsidiaries and VIE, historical operations of KP International and its subsidiaries and VIE, and operations of the Company from the Closing Date of the Reverse Acquisition. The accompanying consolidated financial statements share and per share information has been retroactively adjusted to reflect the exchanged shares in the Acquisition. The equity structure of the Company was retrospectively adjusted under ASC Topic 805-40. Restricted net assets Our ability to pay dividends is primarily dependent on us receiving distributions of funds from its subsidiary or VIE. Relevant PRC statutory laws and regulations permit payments of dividends by only out of its retained earnings, if any, as determined in accordance with PRC accounting standards and regulations and after it has met the PRC requirements for appropriation to statutory reserves. Share capital of the PRC subsidiary and VIE included in the Company’s consolidated net assets are also non-distributable for dividend purposes. The results of operations reflected in the accompanying consolidated financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of King Eagle (China), the foreign-invested enterprise, King Eagle (Tianjin), the VIE and KP Tian Yu. The Company is required to set aside at least 10% of their after-tax profits each year, if any, to fund certain statutory reserve funds until such reserve funds reach 50% of its registered capital. In addition, the Company may allocate a portion of its after-tax profits based on PRC accounting standards to enterprise expansion fund and staff bonus and welfare fund at its discretion. The statutory reserve funds and the discretionary funds are not distributable as cash dividends. As a result of the foregoing restrictions, King Eagle (China), King Eagle (Tianjin) and KP Tian Yu are restricted in their ability to transfer their net assets to the Company. Foreign exchange and other regulation in the PRC may further restrict these two entities from transferring funds to the Company in the form of dividends, loans and advances. As of September 30, 2022, and 2021, the Company had negative net assets which included common stock, additional paid-in capital, subscription receivable, accumulated deficit and foreign exchange translation adjustment of its subsidiaries in BVI, Hong Kong and the PRC and the VIE that are included in the Company’s consolidated financial statements. As of September 30, 2022, King Eagle (China), King Eagle (Tianjin) and KP Tian Yu incurred negative assets in an amount of $ 844,025 2,311,792 351 1,039,840 667,313 nil |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 11- INCOME TAXES The Company accounts for income taxes pursuant to the accounting standards that requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial statements and the tax basis of assets and liabilities, and for the expected future tax benefit to be derived from tax losses and tax credit carryforwards. Additionally, the accounting standards require the establishment of a valuation allowance to reflect the likelihood of realization of deferred tax assets. The Company and its subsidiaries file separate income tax returns. United States Kun Peng International Limited is incorporated in the State of Nevada and is subject to the United States federal income tax. No provision for income taxes in the U.S. has been made as the Company has no U.S. taxable income for the years ended September 30, 2022, and 2021. British Virgin Islands KP International Holding is a holding corporation organized as an International Business Company under the laws of the British Virgin Islands (“BVI”), and its principal operating subsidiaries are organized under the laws of Hong Kong and the laws of the PRC. KP International and its subsidiaries are not subject to income taxes in the BVI. Hong Kong The two-tier profits tax rates system was introduced under the Inland Revenue (Amendment)(No.3) Ordinance 2018 (“the Ordinance”) of Hong Kong became effective for the assessment year 2018/2019. Under the two-tier profit tax rates regime, the profits tax rate for the first $ 0.26 2 8.25 16.5 Since KP Industrial and KP (Hong Kong) are wholly owned and under the control of KP International Holding, these entities are connected entities. Under the Ordinance, it is an entity’s election to nominate the entity that will be subject to the two-tier profits tax rates on its profits tax return. The election is irrevocable. The Company elected KP (Hong Kong) to be subject to the two-tier profits tax rates. KP Industrial and KP (Hong Kong) did not earn any income that was derived in Hong Kong for years ended September 30, 2022 and 2021 and therefore, KP Industrial and KP (Hong Kong) were not subject to Hong Kong profits tax for the periods reported. Since the two-tier profit tax rates regime is tentative, we applied the original profits tax rate, 16.5 PRC The PRC’s statutory income tax rate is 25 25 Income tax expense was comprised of the following: SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE BENEFIT 2022 2021 September 30 2022 2021 Current $ $ Federal - - State - - Foreign - - Total current - - Deferred Federal - - State - - Foreign - - Total deferred - - Total income tax expense $ - $ - A reconciliation between the Company’s actual provision for income taxes and the provision at the statutory rate is as follow: SCHEDULE OF RECONCILIATION OF PROVISION OF INCOME TAX 2022 2021 September 30, 2022 2021 Loss before income tax expense $ (1,972,841 ) $ (1,774,734 ) Computed tax expense (benefit) with statutory tax rate 21.0 % 21.0 % Impact of different tax rates in other jurisdictions 3.5 % 3.2 % Tax effect of non-deductible expenses (0.3 )% (0.7 )% Change in valuation allowance (24.2 )% (23.5 )% Effective tax rate 0 % 0 % Deferred tax assets included the following: SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS 2022 2021 September 30, 2022 2021 Deferred tax assets $ $ Net operating loss carryforwards 922,114 668,825 Organizational expense 1,216 Total deferred tax assets 922,114 670,041 Valuation allowance (922,114 ) (670,041 ) Total deferred tax assets, net $ - $ - As of September 30, 2022, and 2021, the Company had generated gross net operating loss carryforwards in an amount of $ 3,807,069 2,872,763 726,495 1,223,130 The Companies in Hong Kong incurred gross net operating loss carryforwards in an amount of $ 3,548 2,624 Our entities in the PRC generated $ 3,077,026 1,647,009 5 208,802 1,438,207 1,430,017 At this time, the Company considered it is more likely than not that its US, Hong Kong and PRC entities have sufficient taxable income in the near future that will allow us to realize these DTAs. Therefore, the Company recorded a full valuation allowance against all of its deferred tax assets as of September 30, 2022, and 2021. The Company intends to continue maintaining a full valuation allowance on its deferred tax assets until there is sufficient evidence to support the reversal of all or portion of these allowances. |
RIGHT-OF-USE ASSETS AND LEASE
RIGHT-OF-USE ASSETS AND LEASE | 12 Months Ended |
Sep. 30, 2022 | |
Right-of-use Assets And Lease | |
RIGHT-OF-USE ASSETS AND LEASE | NOTE 12 - RIGHT-OF-USE ASSETS AND LEASE The Company has operating leases for its office facilities and employee accommodation. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The following table provides a summary of leases as of September 30, 2022, and 2021: SUMMARY OF OPERATING LEASE ASSETS AND LIABILITIES Assets/liabilities Classification September 30, September 30, Assets Operating lease right-of-use assets Operating lease assets $ 675,655 $ 282,466 Liabilities Current Operating lease liability - current Current operating lease liabilities $ 304,753 $ 229,337 Long-term Operating lease liability – net of current portion Long-term operating lease liabilities $ 264,124 $ 53,129 Total lease liabilities $ 568,877 $ 282,466 The operating lease expense for the years September 30, 2022, and 2021 was as follows: SUMMARY OF OPERATING LEASE EXPENSE Lease Cost Classification 2022 2021 September 30 Lease Cost Classification 2022 2021 Operating lease cost General and administrative $ 398,133 $ 375,170 Total lease cost $ 398,133 $ 375,170 Maturities of operating lease liabilities as of September 30, 2022, were as follow: SCHEDULE OF MATURITY OF OPERATING LEASE LIABILITIES Maturity of Lease Liabilities Operating 2022 $ 236,506 2023 $ 328,832 2024 273,520 2025 - 2026 - 2027 - Thereafter - Total lease payments $ 602,352 Less: interest (33,475 ) Present value of lease payments $ 568,877 Maturities of operating lease liabilities as of September 30, 2021, were as follow: Maturity of Lease Liabilities Operating 2022 $ 236,506 2023 54,292 2024 - 2025 - 2026 - Thereafter - Total lease payments $ 290,798 Less: interest (8,332 ) Present value of lease payments $ 282,466 Supplemental information related to operating leases was as follows: SCHEDULE OF OPERATING LEASES 2022 2021 September 30 2022 2021 Cash paid for amounts included in the measurement of lease liabilities $ 500,460 $ 294,658 New operating lease assets obtained in exchange for operating lease liabilities $ 750,486 $ 195,738 Weighted average remaining lease term 2.3 1.1 Weighted average discount rate 4.72 % 4.75 % The amortization expense was $ 386,152 294,658 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 13 - COMMITMENTS AND CONTINGENCIES Purchase and service commitments King Eagle (China) and King Eagle (Tianjin) entered into multiple purchase and service commitments. As of September 30, 2022 and 2021, King Eagle (China) and King Eagle (Tianjin) had purchase and service commitments in an amount of $ 53,910 93,383 Cooperation commitment of smart kiosk On March 31, 2021, King Eagle (Tianjin) entered into a Cooperation Agreement with Guoxin Star Network Co., Ltd who assigned and franchised the operation of 50 Smart Kiosks to King Eagle (Tianjin) for five years 1.05 7,500,000 0.32 2,250,000 0.74 5,250,000 |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | NOTE 14 - SUBSEQUENT EVENT Effective October 12, 2022, we increased our authorized common stock from 200,000,000 0.0001 1,000,000,000 0.0001 10:1 forward stock split . In October 2022, we introduced and implemented a new online platform which focuses on promoting and selling our own brand health care related products to wholesalers and retailers. On November 11, 2022, Kun Peng International Ltd. (“Kun Peng”) received an electronic notice that OTC Markets had approved Kun Peng’s application for uplisting from OTC Pink to the OTCQB Venture Market (OTCQB). Kun Peng commenced trading on the OTCQB at the market open on November 14, 2022. Kun Peng’s shares trade on the OTCQB under the current ticker symbol, “KPEA”. Existing shareholders will see their shares quoted on the OTCQB without any further action needed. On December 1, 2022, King Eagle (Beijing) Technology Co., Ltd. (“King Eagle (Beijing)”) was established as a wholly-owned subsidiary of King Eagle (Tianjin). As of September 30, 2022, the Company evaluated and concluded that there are no other subsequent events have occurred that would require recognition or disclosure in the financial statements other than ones disclosed above. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America. This basis of accounting involves the application of accrual accounting and consequently, revenues and gains are recognized when earned, and expenses and losses are recognized when incurred. The consolidated financial statements are expressed in U.S. dollars. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries and variable interest entity (“VIE”). All significant intercompany transactions and balances within the Company have been eliminated upon consolidation. |
Use of Estimates and Assumptions | Use of Estimates and Assumptions The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimate and assumptions that impact the presented amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the presented amounts of revenues and expenses during the period. Actual results may differ from those estimates. Significant estimates during the year ended September 30, 2022 and 2021 include the collectability of receivables, the useful lives of long-lived assets and intangibles, assumptions used in assessing impairment of long-lived assets, valuation of accruals for expenses and tax due. |
Reclassification | Reclassification Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. |
Going Concern | Going Concern The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America which contemplate continuation of the Company as a going concern basis. The going-concern basis assures that assets are realized and liabilities are extinguished in the ordinary course of business at amounts disclosed on the financial statements. The Company’s ability to continue as a going concern depends on the liquidation of its current assets and business developments. In assessing the Company’s liquidity, the Company monitors and analyzes its cash and cash equivalents and its operating and capital expenditure commitments. The Company’s liquidity needs are to meet its working capital requirements, operating expenses and capital expenditure obligations. For the year ended September 30, 2022, the Company incurred cash outflows from operating activities of $ 1,592,130 1,972,841 4,254,598 The Company continues to monitor its operations to help refine the Company’s financial liquidity. The financial liquidity of the Company has declined to very unhealthy level in this year due to the decline in the balance of cash and cash equivalent. Options under consideration in the review process include, but not limited to, increase of sales on its online business, reduction of overhead costs, fund advance from the Company’s stockholders and directors, or financing through issuance of shares. Besides, our new online platform which focuses on promoting and selling own brand preventive health care products to wholesalers and retailers was placed in service in October 2022. Since the first quarter of 2022, the Company has been focusing on increasing its revenue through its online platform to reduce the costs of goods sold and slimming its administrative overhead costs. For example, we reduced the compensation and benefits of our executives, decreased office supplies expense, trimmed staff meeting expense. Additionally, the Company obtained a fund advance of approximately $ 0.3 In order to continue as a going concern for the next 12 months, the Company continues to focus on increasing its revenue through the sale of health care products on its online platform, King Eagle Mall, and promoting and selling its own brand health care products on its new online platform to reduce costs of goods sold, streamlining its overhead costs or obtaining a financing from its stockholders or directors. However, the Company cannot provide any assurance that it will be able to increase revenue, that it will be able to successfully implement its business plan, or that financing that will be available to it on commercially acceptable terms, if at all. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern. The directors will continue to support the group by providing adequate financial assistance to enable the group to continue its business operations for the foreseeable future. |
COVID-19 Outbreak | COVID-19 Outbreak The COVID-19 pandemic has resulted in quarantines, travel restrictions, limitations on social or public gatherings, and the temporary closure of business venues and facilities around the world. Due to restrictions, quarantines and closures in certain affected areas and government agencies in the PRC, the approval process of our applications for construction permits for Smart Kiosks was delayed by the local governmental agencies and construction projects of Smart Kiosks were therefore postponed. Businesses and markets in mainland China have reopened and mainland China relaxed its policies and controls relating to COVID-19 in early December 2022. The number of cases of COVID-19 is expected to increase greatly which may cause restrictions on our service agents to travel and launch face-to-face marketing activities. Construction of our Smart Kiosks may not be immediate, which impacts our plan of enhancing our face-to-face customer services and increasing our market share. The Company continues to focus its business on its online platform, King Eagle Mall, and to promote its own brand of consumer health care and health related household products on its new online platform, which was introduced and implemented in October 2022, to mitigate the adverse impacts of COVID-19. The Company also follows up closely with the local governmental agencies regarding its applications for construction permits for Smart Kiosks. However, as the pandemic increased overall public health consciousness in the PRC, the Company’s average monthly online sale revenue increased by $ 0.2 34.4 0.4 0.6 Therefore, we do not expect that the virus will have a material adverse effect on our business or financial results at this time. However, it is not possible to predict the unanticipated consequence of the pandemic on our future business performance and liquidity due to the severity of global situation of COVID-19. The Company continues to monitor and assess the evolving situation closely and evaluate its potential exposure. |
Earnings (loss) Per Share | Earnings (loss) Per Share Basic income (loss) per share is computed by dividing net income (loss) attributable to the holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year. Diluted income (loss) per share is calculated by dividing net income (loss) attributable to the holders of ordinary shares as adjusted for the effect of dilutive ordinary share equivalents, if any, by the weighted average number of ordinary shares and dilutive ordinary share equivalents outstanding during the period. However, ordinary share equivalents are not included in the denominator of the diluted earnings per share calculation when inclusion of such shares would be anti-dilutive, such as in a period in which a net loss is recorded. |
Foreign Currency Translation | Foreign Currency Translation The reporting currency of the Company is the U.S. Dollar. Our entity in British Virgin Islands use U.S. dollar. Our entities in the PRC and Hong Kong use the local currencies, Renminbi (RMB) and Hong Kong Dollar (HKD), as its functional currencies as determined based on the criteria of ASC 830, “Foreign Currency Translation”. Assets and liabilities are translated at the unified exchange rate as quoted by www.xe.com at the end of the period. Income and expense accounts are translated at the average translation rates and the equity accounts are translated at historical rates. Translation adjustments resulting from this process are included in accumulated other comprehensive income in the statement of equity. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. Translation adjustments included in accumulated other comprehensive gain (loss) amounted to $ 279,367 (32,016) Below is a table with foreign exchange rates used for translation: SCHEDULE OF FOREIGN EXCHANGE RATES For the year ended September 30, 2022 (Average Rate) Hong Kong Dollar (HKD) Chinese Renminbi (RMB) United States dollar ($1) 7.8221 6.5473 As of September 30, 2022 (Closing Rate) United States dollar ($1) 7.8500 7.1159 For the year ended September 30, 2021 (Average Rate) Hong Kong Dollar (HKD) Chinese Renminbi (RMB) United States dollar ($1) 7.7631 6.5101 As of September 30, 2021 (Closing Rate) United States dollar ($1) 7.7851 6.4466 |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and a certain amount of cash kept in electronic wallets, “e-wallets”. We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. We maintain accounts with various financial institutions in the PRC, and also e-wallets. As of September 30, 2022 and 2021, cash balances held in PRC banks are uninsured. Monies that are held in e-wallets are deemed equivalent to cash, they are highly liquid, and are relatively unsafe compared to cash in banks. We have not experienced any losses in bank accounts or e-wallets and believe we are not exposed to significant risks with respect to our cash in bank accounts and low risk for our cash in e-wallets. |
Financial Instrument | Financial Instrument The carrying amount reported in the balance sheet for cash, other receivables, accrued liabilities and other payables approximate fair value because of the immediate or short-term maturity of these financial instruments. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation and impairment losses. Gains and losses on dispositions of property and equipment are included in operating income (loss). Major additions, renewals and improvements are capitalized, while maintenance and repairs are recognized as expense as incurred. Depreciation is provided over the estimated useful life of each class of depreciable assets and is computed using the straight-line method over the useful lives of the assets are as follows: SCHEDULE OF PROPERTY PLANT AND EQUIPMENT USEFUL LIVES Classification Estimated useful life Leasehold improvements 5 Office equipment 3 Computer equipment 3 Computer software 5 |
Intangible Assets | Intangible Assets Intangible assets represent the licensing cost for the trademark registration. For intangible assets with indefinite lives, the Company evaluates intangible assets for impairment at least annually and more often whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. For intangible assets with definite lives, they are amortized over estimated useful lives, and are reviewed annually for impairment. The Company has not recorded impairment of intangible assets as of September 30, 2022 and 2021. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets Long-lived assets, including buildings and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. We assess the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated discounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. When we identify an impairment, reduce the carrying amount of the asset to the estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. As of September 30, 2022 and 2021, management determined that there was no impairment. |
Fair Value Measurements | Fair Value Measurements The Company applies the provisions of ASC Subtopic 820-10, “Fair Value Measurements”, for fair value measurements of financial assets and financial liabilities and for fair value measurements of non-financial items that are recognized or disclosed at fair value in the financial statements. ASC 820 also establishes a framework for measuring fair value and expands disclosures about fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes three levels of inputs that may be used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: ● 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. The Company’s financial assets and liabilities include cash, receivables, accounts payable and accrued expenses. |
Related Party Transactions | Related Party Transactions The Company follows the ASC 850-10, “Related Party Disclosures” for the identification of related parties and disclosure of related party transactions. Pursuant to section 850-10-20 the related parties include a) affiliates of the Company; b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of section 825–10–15, to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and income-sharing trusts that are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The consolidated financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a) the nature of the relationship(s) involved; b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented; and c) such other information deemed necessary to an understanding of the nature of the related party transactions. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Other comprehensive income (loss) refers to revenues, expenses, gains and losses that under generally accepted accounting principles are included in comprehensive income but are excluded from net income (loss) as these amounts are recorded directly as an adjustment to stockholders’ equity. Our other comprehensive loss for the years ended September 30, 2022 and 2021 was comprised of foreign currency translation adjustments. |
Revenue Recognition | Revenue Recognition Revenue is comprised of sales of goods and represents the amount of consideration the Company is entitled to upon the transfer of goods. Pursuant to FASB ASU No. 2016-08, Revenue from Contracts with Customers (TOPIC 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), the Company recorded revenue on a gross basis, net of surcharges and value added tax (“VAT”) of gross sales. The Company recorded revenue on a gross basis because the Company is the primary obligor of the sales arrangements has latitude in establishing prices, has discretion in suppliers’ selection and assumes credit risks on receivables on gross sales from customers. The Company adopted Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”) using the full retrospective transition method. The Company’s adoption of ASU 2014-09 did not have a material impact on the amount and timing of revenue recognized in its consolidated financial statements. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: ● 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. Consistent with the criteria of ASC 606 “Revenue from Contracts with Customers,” we recognize revenue when performance obligations are satisfied by transferring control of a promised good or service to a customer. For performance obligations that are satisfied at a point in time, we also consider the following indicators to assess whether control of a promised good or service is transferred to the customer: (i) right to payment, (ii) legal title, (iii) physical possession, (iv) significant risks and rewards of ownership, and (v) acceptance of the good or service. For performance obligations satisfied over time, we recognize revenue over time by measuring the progress toward complete satisfaction of a performance obligation. |
Deferred Revenue | Deferred Revenue Deferred revenue results from transactions where the Company has received the payments from the customers but revenue recognition criteria under the five-step model of ASC Topic 606 have yet to be met. Once all revenue recognition criteria have been satisfied, the revenues will be recognized upon the transfer of risk and rewards to the customers in the consolidated statement of operations. We anticipated the majority of the revenue will be recognized in the fiscal year 2023. Management agreed that the amount received is non-refundable; however, this term is not bound by any agreement. Thus, the customers may have the rights to challenge and demand the advances to be refunded under relevant Commercial Laws or regulations. |
Accrued Product Liability | Accrued Product Liability The Company records accruals for product liability when deemed probable and estimable based on facts and circumstances, and prior claims experience. Accruals for product credit are valued based upon the Company’s prior claims experience, including defect goods, goods lost in transit. We have experienced insignificant amount of goods returned and claims from goods lost in transit from the past, our product liability is insignificant; therefore, Management believes product liability accrual as at September, 30 2022 and 2021 is not required. |
Discount allowed - Accrued Store-Credit | Discount allowed - Accrued Store-Credit We provide store-credit, “Golden Beans” to our customers after sales of goods to them. The Golden Beans can be utilized against their future purchases with restrictions and expiry date. The amount utilized will be recognized as direct discount as and when the sales arise, and the price net of this discount has been controlled and set by the management, to ensure that the sales will always result in a gross profit. As such, we do not accrue any liability from this store-credit as there is no present obligation arising from this Golden Bean as of September, 30 2022, and 2021, and the utilization of these Golden Beans is not expected to result in an outflow from the Company’s resources embodying economic benefits. |
Lease | Lease Under ASC Topic 842, the Company determines if an arrangement is a lease at inception. Lease assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value of the future lease payments is the Company’s incremental borrowing rate based on the information available at the lease commencement date. The Company generally uses the base, non-cancelable lease term in calculating the right-of-use assets and lease liabilities. The Company may recognize the lease payments in the condensed consolidated statements of operation on a straight-line basis over the lease terms and variable lease payments in the periods in which the obligations for those payments are incurred, if any. The lease payments under the lease arrangements are fixed. The Company elected the package of practical expedients which allow the Company to carryforward its historical lease classification, its assessment on whether a contract is or contains a lease, and its initial direct costs for any lease that exists prior to adoption of the new standard. The Company also elected to apply the short-term lease exception for lease arrangements with a lease term of 12 months or less at commencement. Lease terms used to compute the present value of lease payments do not include any option to extend, renew, or terminate the lease that the Company is not reasonably certain to exercise upon the lease inception. Accordingly, operating lease right-of-use assets and liabilities do not include leases with a lease term of 12 months or less. |
Research and Development Expenses | Research and Development Expenses Research and development (R&D) expenses are all costs associated with the original development and design of the product as well as any intellectual property (IP) generated during the development phase, including patents and copyrights. Research and development expenses are included in the overall operating expenses and reflected as a separate line item on the consolidated statement of operations. We purchase the consumer preventive health food and health related household products sold on our platforms from our suppliers and we did not develop, design or manufacture those products. Moreover, although we have built our online platform and mobile commerce in-house, the compensation costs for our in-house technology team were not significant. Accordingly, instead of capitalizing the compensation costs of our in-house technology team as Research and Development in Balance Sheet or presenting it as Research and Development expenses, we included these amounts in Employee Compensation and Benefit expenses within General and Administrative expenses for the years ended September 30, 2022 and 2021. |
Selling Expenses | Selling Expenses Selling expenses consist primarily of marketing and promotional service fee to service agents and other costs incurred by our sales and marketing department such as staff costs, office supplies and other incidental expenses that are incurred directly to attract or retain consumers. Our selling expenses for the years ended September 30, 2022 and 2021 were $ 6,641,485 3,741,389 5,844,846 2,929,080 |
Concentration of Risk | Concentration of Risk Credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and other receivable. As September 30, 2022 and 2021, $ 252,512 1,796,861 1,886,622 12,162,295 Historically, deposits in Chinese banks are secure due to state policy to protect depositor interests. However, China promulgated a Bankruptcy Law in August 2006 that came into effect on June 1, 2007, which contains a separate article expressly stating that the State Council may promulgate implementation measures to provide for the bankruptcy of Chinese banks based on the Bankruptcy Law. Under the current Bankruptcy Law, a Chinese bank may file bankruptcy if it deems itself to be insolvent. In addition, since China’s concession to the World Trade Organization, foreign banks have been gradually permitted to operate in China and have intensified competition in many aspects, especially since the opening of the Renminbi business to foreign banks in late 2006. Therefore, the risk of bankruptcy at the institutions that the Company maintains deposits has increased. In the event of bankruptcy, the Company is unlikely to reclaim its deposits in full since it is unlikely to be classified as a secured creditor under PRC laws. Risks of variable interest entity structure In the opinion of management, (i) the corporate structure of the Company is in compliance with existing PRC laws and regulations; (ii) the VIE Arrangements are valid and binding, and do not result in any violation of PRC laws or regulations currently in effect; and (iii) the business operations of the foreign-invested enterprise and the VIE are in compliance with existing PRC laws and regulations in all material respects. However, there are substantial uncertainties regarding the interpretation and application of current and future PRC laws and regulations. Accordingly, the Company cannot be assured that PRC regulatory authorities will not ultimately take a contrary view to the foregoing opinion of its management. If the current corporate structure of the Company or the VIE Arrangements is found to be in violation of any existing or future PRC laws and regulations, the Company may be required to restructure its corporate structure and operations in the PRC to comply with changing and new PRC laws and regulations. In the opinion of management, the likelihood of loss in respect of the Company’s current corporate structure or the VIE Arrangements is remote based on current facts and circumstances. |
Foreign currency exchange risk | Foreign currency exchange risk The value of RMB against the U.S. dollar and other currencies may fluctuate and is affected by, among other things, changes in political and economic conditions and the foreign exchange policy adopted by the PRC government. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the RMB and the U.S. dollar in the future. There remains significant international pressure on the PRC government to adopt a more flexible currency policy, which could result in greater fluctuation of the RMB against the U.S. dollar. The Company is a holding company and it relies on dividends paid by the Company’s operating subsidiaries in China for its cash needs. Any significant revaluation of the RMB may materially and adversely affect its liquidity and cash flows. To the extent that the Company needs to convert U.S. dollars into RMB for its operations, appreciation of the RMB against the U.S. dollar would have an adverse effect on the RMB amount the Company would receive. Conversely, if the Company decides to convert RMB into U.S. dollars for other business purposes, appreciation of the U.S. dollar against the RMB would have a negative effect on the U.S. dollar amount the Company would receive. |
Liquidity risk | Liquidity risk Liquidity risk is the risk that the Company will encounter difficulty raising liquid funds to meet commitments as they fall due. See our commitments and contingencies in Note 13 under Item 8, Financial Statements and Supplementary Data. In meeting its liquidity requirements, the Company continues to focus on increasing its revenue through the sale of consumer health care products on its online platform, King Eagle Mall, and promoting its own brand of preventive health care related products on its new online platform to reduce its costs of goods sold, streamlining its overhead costs, or obtaining financing from its stockholders or directors. Concentration of customers and vendors There was no revenue from customers that individually represent greater than 10% For the year ended September 30, 2022, four major vendors accounted for 18% 16% 16% 12% For the year ended September 30, 2021, three major vendors accounted for 22% 16% 14% |
Income Taxes | Income Taxes We account for income taxes using the liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance against deferred tax assets if, based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. We apply ASC 740, Accounting for Income Taxes |
Commitments and Contingencies | Commitments and Contingencies The Company follows the ASC 450-20, “Contingencies” to report accounting for contingencies. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or un-asserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time that these matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. |
Recent Accounting Pronouncement | Recent Accounting Pronouncement Recently Adopted Accounting Standards Income Taxes Accounting Pronouncements Issued But Not Yet Adopted Financial Instruments In the period from October 2022 through December 2022, the FASB has not issued any additional accounting standards updates that have a significant impact on the Company. |
ORGANIZATION AND DESCRIPTION _2
ORGANIZATION AND DESCRIPTION OF BUSINESS (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SCHEDULE OF COMPANY INFORMATION AND ORGANIZATIONAL ACTIVITIES | SCHEDULE OF COMPANY INFORMATION AND ORGANIZATIONAL ACTIVITIES Name Background Ownership Registered capital / Authorized shares Principal activities Kun Peng International Limited ● A U.S. company ● Incorporated on January 22, 2020 Authorized shares: ● Common stock: 1,000,000,000 0.0001 ● 400,000,000 Preferred stock: ● 10,000,000 0.0001 ● no Investment holding Kun Peng International Holding Limited ● A BVI company ● Incorporated on April 20, 2021 100% Paid capital: $ 400 0.01 Investment holding Kunpeng (China) Industrial Development Company Limited ● A Hong Kong company ● Incorporated on August 11, 2017 100% Paid share capital : 10,000 1,292 10,000 Investment holding Kun Peng (Hong Kong) Industrial Development Limited ● A Hong Kong company ● Incorporated on June 21, 2021 100% Paid share capital: 1 0.13 1 Investment holding King Eagle (China) Co., Ltd ● a limited liability company incorporated in the People’s Republic of China ● Incorporated on March 20, 2019 100% Registered capital: approximately $ 15 100 Providing technical and management support to King Eagle VIE 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% 10.5% 10% 6% 5% Registered capital of approximately $ 1.5 10 Operating King Eagle Mall and new online platform Kun Peng Tian Yu Health Technology (Tianjin) Co., Ltd. ● a limited liability company incorporated in the People’s Republic of China ● Incorporated on August 10, 2021 100% Registered capital of RMB 5 0.7 Exploring future business opportunities King Eagle (Beijing) Technology Co., Ltd ● a limited liability company incorporated in the People’s Republic of China ● Incorporated on December 1, 2022 100% Registered capital of RMB 5 0.7 To commence its operation in January 2023 and the new online platform will be operated under this entity. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
SCHEDULE OF FOREIGN EXCHANGE RATES | Below is a table with foreign exchange rates used for translation: SCHEDULE OF FOREIGN EXCHANGE RATES For the year ended September 30, 2022 (Average Rate) Hong Kong Dollar (HKD) Chinese Renminbi (RMB) United States dollar ($1) 7.8221 6.5473 As of September 30, 2022 (Closing Rate) United States dollar ($1) 7.8500 7.1159 For the year ended September 30, 2021 (Average Rate) Hong Kong Dollar (HKD) Chinese Renminbi (RMB) United States dollar ($1) 7.7631 6.5101 As of September 30, 2021 (Closing Rate) United States dollar ($1) 7.7851 6.4466 |
SCHEDULE OF PROPERTY PLANT AND EQUIPMENT USEFUL LIVES | Depreciation is provided over the estimated useful life of each class of depreciable assets and is computed using the straight-line method over the useful lives of the assets are as follows: SCHEDULE OF PROPERTY PLANT AND EQUIPMENT USEFUL LIVES Classification Estimated useful life Leasehold improvements 5 Office equipment 3 Computer equipment 3 Computer software 5 |
VARIABLE INTEREST ENTITIES _V_2
VARIABLE INTEREST ENTITIES “VIE” ARRANGEMENTS (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SCHEDULE OF VIE’S ASSETS AND LIABILITIES INCLUDED IN THE CONSOLIDATED BALANCE SHEETS | The Company consolidated its VIE as of September 30, 2022, and 2021. The carrying amounts and classification of the VIE’s assets and liabilities included in the consolidated balance sheets are as follows: SCHEDULE OF VIE’S ASSETS AND LIABILITIES INCLUDED IN THE CONSOLIDATED BALANCE SHEETS September 30, 2022 2021 Current assets $ 2,530,776 $ 3,838,468 Noncurrent assets 107,774 145,935 Total assets 2,638,550 3,984,403 Total liabilities 4,633,855 4,651,716 Net liabilities $ (1,995,305 ) $ (667,313 ) The VIE’s liabilities consisted of the following as of September 30, 2022, and 2021: September 30, 2022 2021 Current liabilities Trade and other payable $ 1,253,421 $ 1,194,972 Amount due to a related party 267,006 - Deferred revenue 2,960,357 3,122,705 Payroll payable 4,312 14,802 Tax payable 41,345 218,301 Operating lease obligations, currents 85,390 92,807 Total current liabilities 4,611,831 4,598,587 Total noncurrent liabilities Operating lease obligations, net of current portion 22,024 53,129 Total noncurrent liabilities 22,024 53,129 Total liabilities $ 4,633,855 $ 4,651,716 The operating results of the VIE were as follows: 2022 2021 September 30, 2022 2021 Revenue $ 7,510,059 $ 5,587,446 Gross profit 6,321,414 4,590,774 Loss from operations (1,540,642 ) (650,804 ) Other income 29,098 834 Net loss $ (1,511,544 ) $ (649,970 ) |
ADVANCE AND PREPAYMENTS (Tables
ADVANCE AND PREPAYMENTS (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Advance And Prepayments | |
SCHEDULE OF PREPAYMENTS | Prepayments consisted of the following: SCHEDULE OF PREPAYMENTS 2022 2021 September 30, 2022 2021 Prepaid rent and building management and utilities $ 23,324 $ 85,474 Prepaid supplies (1) 202,150 78,248 Prepaid system maintenance services - 5,209 Prepaid income tax 5,154 5,689 Prepaid professional services (2) 25,941 148,708 Prepaid others 11,737 15,301 Total prepayments $ 268,306 $ 338,629 (1) As of September 30, 2022, and 2021, the Company had prepaid supplies of $ 202,150 78,248 (2) As of September 30, 2022, the ending balance of prepaid professional services included two types of prepayments, $ 9,369 16,572 As of September 30, 2021, the ending balance of our prepaid professional service fee was $ 148,708 10,341 138,367 |
OTHER RECEIVABLES (Tables)
OTHER RECEIVABLES (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
SCHEDULE OF OTHER RECEIVABLES | Other receivables included the following: SCHEDULE OF OTHER RECEIVABLES 2022 2021 September 30, 2022 2021 Rental deposits $ 14,735 $ 93,583 Advance to employees 45,250 30,241 Others 5,865 - Total other receivables, net $ 65,850 $ 123,824 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY AND EQUIPMENT | Property and equipment consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT 2022 2021 September 30, 2022 2021 Leasehold improvements $ 127,301 $ 29,886 Furniture and fixtures 1,235 9,534 Computer equipment 40,099 43,452 Office equipment 1,480 1,633 Computer software - 11,971 Subtotal 170,115 96,476 Less: accumulated depreciation (36,092 ) (27,751 ) Total property and equipment, net $ 134,023 $ 68,725 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF INTANGIBLE ASSET | SCHEDULE OF INTANGIBLE ASSET 2022 2021 September 30, 2022 2021 Trademarks $ 2,449 $ 2,703 Subtotal 2,449 2,703 Less: accumulated amortization (367 ) (135 ) Total intangible assets, net $ 2,082 $ 2,568 |
DEFERRED REVENUE (Tables)
DEFERRED REVENUE (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
SCHEDULE OF DEFERRED REVENUE | SCHEDULE OF DEFERRED REVENUE 2022 2021 September 30, 2022 2021 Advance payments from customers $ 2,960,357 $ 3,122,705 Total deferred revenue $ 2,960,357 $ 3,122,705 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
SCHEDULE OF AMOUNTS DUE TO RELATED PARTIES | SCHEDULE OF AMOUNTS DUE TO RELATED PARTIES September 30, Name of related party Relationship Nature of transactions 2022 2021 Guoxin Star Network Co., Ltd It is wholly owned by Guoxin Ruilian Group Co., Ltd, the common shareholder of our former owner, Guoxin Zhengye, which owned an 8% interest in King Eagle (China) until August 2022 Prepaid services for the operation of the smart kiosk $ 316,192 $ 349,019 Total $ 316,192 $ 349,019 Amounts due to related parties are payables arising from transactions between the Company and related parties, such as payments of operating expenses by such related parties on behalf of our entities in PRC and funding to meet working capital requirements. The payables owed to the related parties are interest free, unsecured, and repayable on demand. Amounts due to related parties consisted of the following: September 30, Name of related party Relationship Nature of transactions 2022 2021 Mr. Yihe Pang Director Payments made to the lessors on behalf of King Eagle (China). The balance was paid off in December 2021 $ - $ 39,629 Ms. Xiujin Wang One of the shareholders of King Eagle (Tianjin) Operational support to King Eagle (Tianjin) to meet its working capital requirement. 267,006 - Total $ 267,006 $ 39,629 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE BENEFIT | Income tax expense was comprised of the following: SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE BENEFIT 2022 2021 September 30 2022 2021 Current $ $ Federal - - State - - Foreign - - Total current - - Deferred Federal - - State - - Foreign - - Total deferred - - Total income tax expense $ - $ - |
SCHEDULE OF RECONCILIATION OF PROVISION OF INCOME TAX | A reconciliation between the Company’s actual provision for income taxes and the provision at the statutory rate is as follow: SCHEDULE OF RECONCILIATION OF PROVISION OF INCOME TAX 2022 2021 September 30, 2022 2021 Loss before income tax expense $ (1,972,841 ) $ (1,774,734 ) Computed tax expense (benefit) with statutory tax rate 21.0 % 21.0 % Impact of different tax rates in other jurisdictions 3.5 % 3.2 % Tax effect of non-deductible expenses (0.3 )% (0.7 )% Change in valuation allowance (24.2 )% (23.5 )% Effective tax rate 0 % 0 % |
SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS | Deferred tax assets included the following: SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS 2022 2021 September 30, 2022 2021 Deferred tax assets $ $ Net operating loss carryforwards 922,114 668,825 Organizational expense 1,216 Total deferred tax assets 922,114 670,041 Valuation allowance (922,114 ) (670,041 ) Total deferred tax assets, net $ - $ - |
RIGHT-OF-USE ASSETS AND LEASE (
RIGHT-OF-USE ASSETS AND LEASE (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Right-of-use Assets And Lease | |
SUMMARY OF OPERATING LEASE ASSETS AND LIABILITIES | The following table provides a summary of leases as of September 30, 2022, and 2021: SUMMARY OF OPERATING LEASE ASSETS AND LIABILITIES Assets/liabilities Classification September 30, September 30, Assets Operating lease right-of-use assets Operating lease assets $ 675,655 $ 282,466 Liabilities Current Operating lease liability - current Current operating lease liabilities $ 304,753 $ 229,337 Long-term Operating lease liability – net of current portion Long-term operating lease liabilities $ 264,124 $ 53,129 Total lease liabilities $ 568,877 $ 282,466 |
SUMMARY OF OPERATING LEASE EXPENSE | The operating lease expense for the years September 30, 2022, and 2021 was as follows: SUMMARY OF OPERATING LEASE EXPENSE Lease Cost Classification 2022 2021 September 30 Lease Cost Classification 2022 2021 Operating lease cost General and administrative $ 398,133 $ 375,170 Total lease cost $ 398,133 $ 375,170 |
SCHEDULE OF MATURITY OF OPERATING LEASE LIABILITIES | Maturities of operating lease liabilities as of September 30, 2022, were as follow: SCHEDULE OF MATURITY OF OPERATING LEASE LIABILITIES Maturity of Lease Liabilities Operating 2022 $ 236,506 2023 $ 328,832 2024 273,520 2025 - 2026 - 2027 - Thereafter - Total lease payments $ 602,352 Less: interest (33,475 ) Present value of lease payments $ 568,877 Maturities of operating lease liabilities as of September 30, 2021, were as follow: Maturity of Lease Liabilities Operating 2022 $ 236,506 2023 54,292 2024 - 2025 - 2026 - Thereafter - Total lease payments $ 290,798 Less: interest (8,332 ) Present value of lease payments $ 282,466 |
SCHEDULE OF OPERATING LEASES | Supplemental information related to operating leases was as follows: SCHEDULE OF OPERATING LEASES 2022 2021 September 30 2022 2021 Cash paid for amounts included in the measurement of lease liabilities $ 500,460 $ 294,658 New operating lease assets obtained in exchange for operating lease liabilities $ 750,486 $ 195,738 Weighted average remaining lease term 2.3 1.1 Weighted average discount rate 4.72 % 4.75 % |
SCHEDULE OF COMPANY INFORMATION
SCHEDULE OF COMPANY INFORMATION AND ORGANIZATIONAL ACTIVITIES (Details) $ / shares in Units, ¥ in Millions | 12 Months Ended | |||||
Sep. 30, 2022 USD ($) $ / shares shares | Sep. 30, 2022 HKD ($) shares | Sep. 30, 2022 CNY (¥) shares | Aug. 26, 2022 | Sep. 30, 2021 $ / shares shares | Sep. 02, 2020 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | ||
Common stock par value | $ / shares | $ 0.0001 | $ 0.0001 | ||||
Common stock, shares issued | 400,000,000 | 400,000,000 | 400,000,000 | 400,000,000 | ||
Common stock, shares outstanding | 400,000,000 | 400,000,000 | 400,000,000 | 400,000,000 | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | ||
Preferred stock par value | $ / shares | $ 0.0001 | $ 0.0001 | ||||
Preferred stock, shares issued | 0 | 0 | 0 | 0 | ||
Preferred stock, shares outstanding | 0 | 0 | 0 | 0 | ||
Variable Interest Entity, Not Primary Beneficiary [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Business incorporation date | May 15, 2021 | |||||
Kun Peng International Limited [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Description of principal activities | Investment holding | |||||
Ownership percentage | 100% | 100% | 100% | |||
Kun Peng International Holding Limited [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Business incorporation date | Apr. 20, 2021 | |||||
Common stock par value | $ / shares | $ 0.01 | |||||
Description of principal activities | Investment holding | |||||
Ownership percentage | 100% | 100% | 100% | 92% | ||
Paid in Capital | $ | $ 400 | |||||
Kunpeng China Industrial Development Company Limited [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Business incorporation date | Aug. 11, 2017 | |||||
Common stock, shares authorized | 10,000 | 10,000 | 10,000 | |||
Description of principal activities | Investment holding | |||||
Common stock par value | $ 1,292 | $ 10,000 | ||||
Kun Peng Hong Kong Industrial Development Limited [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Business incorporation date | Jun. 21, 2021 | |||||
Common stock, shares authorized | 1 | 1 | 1 | |||
Common stock par value | $ / shares | $ 0.13 | |||||
Description of principal activities | Investment holding | |||||
Ownership percentage | 100% | 100% | 100% | |||
Common stock par value | $ | $ 1 | |||||
King Eagle China Co Ltd [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Business incorporation date | Mar. 20, 2019 | |||||
Description of principal activities | Providing technical and management support to King Eagle VIE | |||||
Registered capital value | $ 15,000,000 | ¥ 100 | ||||
King Eagle Tianjin Technology Co Ltd [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Business incorporation date | Sep. 02, 2020 | |||||
Description of principal activities | Operating King Eagle Mall and new online platform | |||||
Ownership percentage | 100% | 100% | 100% | |||
Registered capital value | $ 1,500,000 | ¥ 10 | ||||
Chengyuan Li [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Ownership percentage | 45.50% | 45.50% | 45.50% | 45.50% | ||
Xiujin Wang [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Ownership percentage | 10.50% | 10.50% | 10.50% | 10.50% | ||
Yuanyuan Zhang [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Ownership percentage | 10% | 10% | 10% | 10% | ||
Jinjing Zhang [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Ownership percentage | 6% | 6% | 6% | 6% | ||
Wanfeng Hu [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Ownership percentage | 6% | 6% | 6% | 6% | ||
Cuilian Liu [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Ownership percentage | 6% | 6% | 6% | 6% | ||
Zhizhong Wang [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Ownership percentage | 6% | 6% | 6% | 6% | ||
Zhandong Fan [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Ownership percentage | 5% | 5% | 5% | 5% | ||
Hui Teng [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Ownership percentage | 5% | 5% | 5% | 5% | ||
Kun Peng Tian Yu Health Technology Tianjin Co Ltd [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Business incorporation date | Aug. 10, 2021 | |||||
Description of principal activities | Exploring future business opportunities | |||||
Registered capital value | $ 700,000 | ¥ 5 | ||||
King Eagle Beijing Technology Co Ltd [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Business incorporation date | Dec. 01, 2022 | |||||
Description of principal activities | To commence its operation in January 2023 and the new online platform will be operated under this entity. | |||||
Registered capital value | $ 700,000 | ¥ 5 | ||||
Kun Peng International Limited [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Business incorporation date | Jan. 22, 2020 | |||||
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | |||
Common stock par value | $ / shares | $ 0.0001 | |||||
Common stock, shares issued | 400,000,000 | 400,000,000 | 400,000,000 | |||
Common stock, shares outstanding | 400,000,000 | 400,000,000 | 400,000,000 | |||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | |||
Preferred stock par value | $ / shares | $ 0.0001 | |||||
Preferred stock, shares issued | 0 | 0 | 0 | |||
Preferred stock, shares outstanding | 0 | 0 | 0 |
ORGANIZATION AND DESCRIPTION _3
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Narrative) $ / shares in Units, $ / shares in Units, ¥ in Millions | 12 Months Ended | ||||||||||||||||||||||||
Dec. 01, 2022 USD ($) | Dec. 01, 2022 CNY (¥) | Aug. 10, 2021 CNY (¥) | Aug. 10, 2021 USD ($) | Jun. 21, 2021 $ / shares | Jun. 21, 2021 $ / shares | May 17, 2021 shares | Apr. 20, 2021 | Nov. 02, 2020 USD ($) | Nov. 02, 2020 CNY (¥) | Sep. 02, 2020 USD ($) | Sep. 02, 2020 CNY (¥) | Mar. 20, 2019 USD ($) | Mar. 20, 2019 CNY (¥) | Sep. 30, 2022 USD ($) $ / shares shares | Sep. 30, 2021 USD ($) $ / shares shares | Nov. 11, 2022 $ / shares | Nov. 11, 2022 $ / shares | Oct. 18, 2022 $ / shares shares | Oct. 12, 2022 $ / shares shares | Oct. 11, 2022 $ / shares shares | Sep. 30, 2022 HKD ($) shares | Aug. 26, 2022 | Sep. 09, 2021 $ / shares shares | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||||||
Stock issuance in reverse merger | 34,158,391 | ||||||||||||||||||||||||
Number of shares cancelled | 15,535,309 | ||||||||||||||||||||||||
Common stock, shares issued | 400,000,000 | 400,000,000 | 400,000,000 | ||||||||||||||||||||||
Common stock, shares outstanding | 400,000,000 | 400,000,000 | 400,000,000 | ||||||||||||||||||||||
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | ||||||||||||||||||||||
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | |||||||||||||||||||||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | ||||||||||||||||||||||
Preferred stock par value | $ / shares | $ 0.0001 | $ 0.0001 | |||||||||||||||||||||||
Ordinary shares | $ | [1] | $ 40,000 | $ 40,000 | ||||||||||||||||||||||
Kun Peng International Holding Limited [Member] | |||||||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||||||
Common stock, par value | $ / shares | $ 0.01 | ||||||||||||||||||||||||
Equity method ownership percentage | 100% | 100% | 92% | ||||||||||||||||||||||
Guoxin Zhengye [Member] | |||||||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||||||
Equity method ownership percentage | 8% | ||||||||||||||||||||||||
Chengyuan Li [Member] | |||||||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||||||
Equity method ownership percentage | 45.50% | 45.50% | 45.50% | 45.50% | |||||||||||||||||||||
Xiujin Wang [Member] | |||||||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||||||
Equity method ownership percentage | 10.50% | 10.50% | 10.50% | 10.50% | |||||||||||||||||||||
Yuanyuan Zhang [Member] | |||||||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||||||
Equity method ownership percentage | 10% | 10% | 10% | 10% | |||||||||||||||||||||
Jinjing Zhang [Member] | |||||||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||||||
Equity method ownership percentage | 6% | 6% | 6% | 6% | |||||||||||||||||||||
Wanfeng Hu [Member] | |||||||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||||||
Equity method ownership percentage | 6% | 6% | 6% | 6% | |||||||||||||||||||||
Cuilian Liu [Member] | |||||||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||||||
Equity method ownership percentage | 6% | 6% | 6% | 6% | |||||||||||||||||||||
Zhizhong Wang [Member] | |||||||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||||||
Equity method ownership percentage | 6% | 6% | 6% | 6% | |||||||||||||||||||||
Zhandong Fan [Member] | |||||||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||||||
Equity method ownership percentage | 5% | 5% | 5% | 5% | |||||||||||||||||||||
Hui Teng [Member] | |||||||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||||||
Equity method ownership percentage | 5% | 5% | 5% | 5% | |||||||||||||||||||||
Subsequent Event [Member] | |||||||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||||||
Common stock, shares authorized | 1,000,000,000 | 200,000,000 | |||||||||||||||||||||||
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | |||||||||||||||||||||||
Capital Units [Member] | |||||||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||||||
Capital stock, shares authorized | 210,000,000 | ||||||||||||||||||||||||
Common Stock [Member] | |||||||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||||||
Number of shares cancelled | [2] | (15,535,309) | |||||||||||||||||||||||
Common stock, shares authorized | 400,000,000 | 200,000,000 | |||||||||||||||||||||||
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||||||||||||||||
Preferred Stock [Member] | |||||||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||||||
Preferred stock, shares authorized | 10,000,000 | ||||||||||||||||||||||||
Preferred stock par value | $ / shares | $ 0.0001 | ||||||||||||||||||||||||
Wenhai Xia [Member] | |||||||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||||||
Number of shares cancelled | 15,535,309 | ||||||||||||||||||||||||
KP International [Member] | |||||||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||||||
Stock issuance in reverse merger | 34,158,391 | ||||||||||||||||||||||||
KP International Holding [Member] | |||||||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||||||
Common stock, shares issued | 40,000,000 | ||||||||||||||||||||||||
Common stock, shares outstanding | 40,000,000 | ||||||||||||||||||||||||
Kun Peng International Holding Limited [Member] | |||||||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||||||
Stock price per share | (per share) | $ 0.129 | $ 1 | |||||||||||||||||||||||
Kunpeng China Industrial Development Company Limited [Member] | |||||||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||||||
Number of shares of stock issued | 10,000 | ||||||||||||||||||||||||
Ordinary shares | $ 1,292 | $ 10,000 | |||||||||||||||||||||||
Kun Peng Hong Kong Industrial Development Limited [Member] | |||||||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||||||
Share capital | (per share) | $ 0.13 | $ 1 | |||||||||||||||||||||||
King Eagle China [Member] | |||||||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||||||
Registered capital | $ 15,000,000 | ¥ 100 | |||||||||||||||||||||||
King Eagle China [Member] | Kun Peng International Holding Limited [Member] | |||||||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||||||
Transferred percentage | 7% | ||||||||||||||||||||||||
King Eagle China [Member] | Guoxin Zhengye [Member] | |||||||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||||||
Transferred percentage | 8% | ||||||||||||||||||||||||
Guoxin Ruilian Group Co Ltd [Member] | |||||||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||||||
Transferred amount | $ 2,200,000 | ¥ 15 | |||||||||||||||||||||||
Transferred percentage | 15% | 15% | |||||||||||||||||||||||
King Eagle Tianjin [Member] | |||||||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||||||
Registered capital | $ 1,500,000 | ¥ 10 | |||||||||||||||||||||||
Kun Peng Tian Yu Health Technology Co Ltd [Member] | |||||||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||||||
Registered capital | ¥ 5 | $ 700,000 | |||||||||||||||||||||||
King Eagle Beijing Technology Co Ltd [Member] | Subsequent Event [Member] | |||||||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||||||||||
Registered capital | $ 700,000 | ¥ 5 | |||||||||||||||||||||||
[1]Outstanding and issued shares retrospectively reflected the forward stock split 10:1 effected on October 18, 2022[2]Outstanding and issued shares retrospectively reflected the forward stock split 10:1 effected on October 18, 2022 |
SCHEDULE OF FOREIGN EXCHANGE RA
SCHEDULE OF FOREIGN EXCHANGE RATES (Details) | Sep. 30, 2022 | Sep. 30, 2021 |
Period Average HKD Exchange Rate [Member] | ||
Offsetting Assets [Line Items] | ||
Foreign exchange rate | 7.8221 | 7.7631 |
Period Average R M B Exchange Rate [Member] | ||
Offsetting Assets [Line Items] | ||
Foreign exchange rate | 6.5473 | 6.5101 |
Period Closing Rate HKD Exchange Rate [Member] | ||
Offsetting Assets [Line Items] | ||
Foreign exchange rate | 7.8500 | 7.7851 |
Period Closing Rate R M B Exchange Rate [Member] | ||
Offsetting Assets [Line Items] | ||
Foreign exchange rate | 7.1159 | 6.4466 |
SCHEDULE OF PROPERTY PLANT AND
SCHEDULE OF PROPERTY PLANT AND EQUIPMENT USEFUL LIVES (Details) | 12 Months Ended |
Sep. 30, 2022 | |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Office Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Computer Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 12 Months Ended | |||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2021 CNY (¥) | |
Product Information [Line Items] | ||||
Net cash providing operating activities | $ 1,592,130 | $ (1,913,858) | ||
Net loss | 1,972,841 | 1,774,734 | ||
Working capital deficit | 4,254,598 | |||
Advances from related party | 300,000 | |||
Revenues | $ 600,000 | 400,000 | ||
Revenues percentage | 34.40% | |||
Accumulated other comprehensive gain (loss) | $ 279,367 | (32,016) | ||
Selling expense | 6,641,485 | 3,741,389 | ||
Sales commissions expense | 5,844,846 | 2,929,080 | ||
Deposits | $ 252,512 | $ 1,886,622 | ||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customers [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 10% | 10% | ||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Vendor One [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 18% | 22% | ||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Vendor Two [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 16% | 16% | ||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Vendor Three [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 16% | 14% | ||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Vendor Four [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 12% | |||
CHINA | ||||
Product Information [Line Items] | ||||
Deposits | ¥ | ¥ 1,796,861 | ¥ 12,162,295 | ||
Minimum [Member] | ||||
Product Information [Line Items] | ||||
Revenues | $ 200,000 |
SCHEDULE OF VIE_S ASSETS AND LI
SCHEDULE OF VIE’S ASSETS AND LIABILITIES INCLUDED IN THE CONSOLIDATED BALANCE SHEETS (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Current assets | $ 917,479 | $ 2,871,157 |
Noncurrent assets | 863,139 | 353,759 |
Total assets | 1,780,618 | 3,224,916 |
Total liabilities | 5,436,201 | 5,243,070 |
Trade and other payable | 1,538,741 | 1,430,576 |
Amount due to a related party | 267,006 | 39,629 |
Deferred revenue | 2,960,357 | 3,122,705 |
Payroll payable | 53,890 | 105,923 |
Tax payable | 47,330 | 261,771 |
Operating lease obligations, currents | 304,753 | 229,337 |
Total current liabilities | 5,172,077 | 5,189,941 |
Operating lease obligations, net of current portion | 264,124 | 53,129 |
Total noncurrent liabilities | 264,124 | 53,129 |
Total liabilities | 5,436,201 | 5,243,070 |
Revenue | 600,000 | 400,000 |
Gross profit | 6,314,435 | 4,585,669 |
Other income | 34,769 | 574 |
Net loss attributable to Kun Peng International Ltd | (1,832,891) | (1,612,334) |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Current assets | 2,530,776 | 3,838,468 |
Noncurrent assets | 107,774 | 145,935 |
Total assets | 2,638,550 | 3,984,403 |
Total liabilities | 4,633,855 | 4,651,716 |
Net liabilities | (1,995,305) | (667,313) |
Trade and other payable | 1,253,421 | 1,194,972 |
Amount due to a related party | 267,006 | |
Deferred revenue | 2,960,357 | 3,122,705 |
Payroll payable | 4,312 | 14,802 |
Tax payable | 41,345 | 218,301 |
Operating lease obligations, currents | 85,390 | 92,807 |
Total current liabilities | 4,611,831 | 4,598,587 |
Operating lease obligations, net of current portion | 22,024 | 53,129 |
Total noncurrent liabilities | 22,024 | 53,129 |
Total liabilities | 4,633,855 | 4,651,716 |
Revenue | 7,510,059 | 5,587,446 |
Gross profit | 6,321,414 | 4,590,774 |
Loss from operations | (1,540,642) | (650,804) |
Other income | 29,098 | 834 |
Net loss attributable to Kun Peng International Ltd | $ (1,511,544) | $ (649,970) |
VARIABLE INTEREST ENTITIES _V_3
VARIABLE INTEREST ENTITIES “VIE” ARRANGEMENTS (Details Narrative) ¥ in Millions, $ in Millions | Sep. 02, 2020 USD ($) | Sep. 02, 2020 CNY (¥) | Sep. 30, 2022 |
Chengyuan Li [Member] | |||
Equity method ownership percentage | 45.50% | 45.50% | 45.50% |
Xiujin Wang [Member] | |||
Equity method ownership percentage | 10.50% | 10.50% | 10.50% |
Yuanyuan Zhang [Member] | |||
Equity method ownership percentage | 10% | 10% | 10% |
Jinjing Zhang [Member] | |||
Equity method ownership percentage | 6% | 6% | 6% |
Wanfeng Hu [Member] | |||
Equity method ownership percentage | 6% | 6% | 6% |
Cuilian Liu [Member] | |||
Equity method ownership percentage | 6% | 6% | 6% |
Zhizhong Wang [Member] | |||
Equity method ownership percentage | 6% | 6% | 6% |
Zhandong Fan [Member] | |||
Equity method ownership percentage | 5% | 5% | 5% |
Hui Teng [Member] | |||
Equity method ownership percentage | 5% | 5% | 5% |
King Eagle Tianjin [Member] | |||
Registered capital | $ 1.5 | ¥ 10 |
SCHEDULE OF PREPAYMENTS (Detail
SCHEDULE OF PREPAYMENTS (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 | |
Advance And Prepayments | |||
Prepaid rent and building management and utilities | $ 23,324 | $ 85,474 | |
Prepaid supplies | [1] | 202,150 | 78,248 |
Prepaid system maintenance services | 5,209 | ||
Prepaid income tax | 5,154 | 5,689 | |
Prepaid professional services | [2] | 25,941 | 148,708 |
Prepaid others | 11,737 | 15,301 | |
Total prepayments | $ 268,306 | $ 338,629 | |
[1]As of September 30, 2022, and 2021, the Company had prepaid supplies of $ 202,150 78,248 9,369 16,572 |
SCHEDULE OF PREPAYMENTS (Deta_2
SCHEDULE OF PREPAYMENTS (Details) (Parenthetical) - USD ($) | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Prepaid supplies | $ 202,150 | $ 78,248 |
Prepayments | 9,369 | 148,708 |
Promotional and marketing fee | $ 16,572 | |
General and Administrative Expense [Member] | ||
Amortization of legal service fee | 10,341 | |
Prepayment for a planned marketing campaign | $ 138,367 |
SCHEDULE OF OTHER RECEIVABLES (
SCHEDULE OF OTHER RECEIVABLES (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Receivables [Abstract] | ||
Rental deposits | $ 14,735 | $ 93,583 |
Advance to employees | 45,250 | 30,241 |
Others | 5,865 | |
Total other receivables, net | $ 65,850 | $ 123,824 |
OTHER RECEIVABLES (Details Narr
OTHER RECEIVABLES (Details Narrative) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Receivables [Abstract] | ||
Others | $ 5,865 | |
Refundable | 3,677 | |
Short term loan | $ 2,188 |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 170,115 | $ 96,476 |
Less: accumulated depreciation | (36,092) | (27,751) |
Total property and equipment, net | 134,023 | 68,725 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 127,301 | 29,886 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 1,235 | 9,534 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 40,099 | 43,452 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 1,480 | 1,633 |
Computer Software, Intangible Asset [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 11,971 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |
May 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 55,666 | $ 24,392 | |
Leasehold Improvements | $ 16,184 | ||
Other receivables | 3,677 | ||
Proceeds for disposal Amount | 281 | ||
Loss on disposal of property, plant and equipment | $ 3,752 | $ 3,752 |
SCHEDULE OF INTANGIBLE ASSET (D
SCHEDULE OF INTANGIBLE ASSET (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 | Jul. 31, 2021 | Apr. 30, 2021 |
Indefinite-Lived Intangible Assets [Line Items] | ||||
Subtotal | $ 2,449 | $ 2,703 | ||
Less: accumulated amortization | (367) | (135) | ||
Total intangible assets, net | 2,082 | 2,568 | $ 1,071 | $ 1,377 |
Trademarks [Member] | ||||
Indefinite-Lived Intangible Assets [Line Items] | ||||
Subtotal | $ 2,449 | $ 2,703 |
INTANGIBLE ASSETS (Details Narr
INTANGIBLE ASSETS (Details Narrative) - USD ($) | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Jul. 31, 2021 | Apr. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Intangible assets, net | $ 2,082 | $ 2,568 | $ 1,071 | $ 1,377 |
Amortization of intangible assets | $ 266 | $ 135 |
SCHEDULE OF DEFERRED REVENUE (D
SCHEDULE OF DEFERRED REVENUE (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Advance payments from customers | $ 2,960,357 | $ 3,122,705 |
Total deferred revenue | $ 2,960,357 | $ 3,122,705 |
DEFERRED REVENUE (Details Narra
DEFERRED REVENUE (Details Narrative) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue | $ 2,960,357 | $ 3,122,705 |
SCHEDULE OF AMOUNTS DUE TO RELA
SCHEDULE OF AMOUNTS DUE TO RELATED PARTIES (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Apr. 26, 2022 | Sep. 30, 2021 | |
Related Party Transaction [Line Items] | |||
Due to related parties | $ 267,006 | $ 39,629 | |
Guoxin Zhengye Enterprise Management Co Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Ownership percentage | 8% | ||
Guoxin Star Network Co Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Relationship | It is wholly owned by Guoxin Ruilian Group Co., Ltd, the common shareholder of our former owner, Guoxin Zhengye, which owned an 8% | ||
Nature of transactions | Prepaid services for the operation of the smart kiosk | ||
Due to related parties | $ 316,192 | 349,019 | |
Mr Yihe Pang [Member] | |||
Related Party Transaction [Line Items] | |||
Relationship | Director | ||
Nature of transactions | Payments made to the lessors on behalf of King Eagle (China). The balance was paid off in December 2021 | ||
Due to related parties | 39,629 | ||
Ms Xiujin Wang [Member] | |||
Related Party Transaction [Line Items] | |||
Relationship | One of the shareholders of King Eagle (Tianjin) | ||
Nature of transactions | Operational support to King Eagle (Tianjin) to meet its working capital requirement. | ||
Due to related parties | $ 267,006 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) $ in Thousands | Apr. 26, 2022 | Apr. 30, 2021 USD ($) | Apr. 30, 2021 CNY (¥) | Mar. 31, 2021 USD ($) | Mar. 31, 2021 CNY (¥) |
Tianjin [Member] | Cooperation Agreement [Member] | |||||
Related Party Transaction [Line Items] | |||||
Due from related party | $ 320 | ¥ 2,250,000 | $ 1,050 | ¥ 7,500,000 | |
Remaining obligation of related party | $ 740 | ¥ 5,300,000 | |||
Guoxin Zhengye Enterprise Management Co Ltd [Member] | |||||
Related Party Transaction [Line Items] | |||||
Ownership percentage | 8% |
EQUITY (Details Narrative)
EQUITY (Details Narrative) - USD ($) | 12 Months Ended | ||||||
May 17, 2021 | Sep. 30, 2021 | Oct. 18, 2022 | Oct. 12, 2022 | Sep. 30, 2022 | Sep. 09, 2021 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 | |||||
Common stock, par value | $ 0.0001 | $ 0.0001 | |||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | |||||
Preferred stock, par value | $ 0.0001 | $ 0.0001 | |||||
Preferred stock, shares issued | 0 | 0 | |||||
Preferred stock, shares outstanding | 0 | 0 | |||||
Common stock, shares issued | 400,000,000 | 400,000,000 | |||||
Common stock, shares outstanding | 400,000,000 | 400,000,000 | |||||
Stock issuance in reverse merger | 34,158,391 | ||||||
Number of shares cancelled | 15,535,309 | ||||||
King Eagle China [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Negative net asset | $ 1,039,840 | $ 844,025 | |||||
King Eagle Tianjin [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Negative net asset | $ 667,313 | 2,311,792 | |||||
KP Tian Yu [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Negative net asset | $ 351 | ||||||
Capital Units [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Capital stock, shares authorized | 210,000,000 | ||||||
Common Stock [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Common stock, shares authorized | 400,000,000 | 200,000,000 | |||||
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||
Number of shares cancelled | [1] | (15,535,309) | |||||
Common Stock [Member] | Minimum [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Common stock, shares authorized | 200,000,000 | ||||||
Common Stock [Member] | Maximum [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Common stock, shares authorized | 1,000,000,000 | ||||||
Preferred Stock [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Preferred stock, shares authorized | 10,000,000 | ||||||
Preferred stock, par value | $ 0.0001 | ||||||
[1]Outstanding and issued shares retrospectively reflected the forward stock split 10:1 effected on October 18, 2022 |
SCHEDULE OF COMPONENTS OF INCOM
SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE BENEFIT (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||
Federal | ||
State | ||
Foreign | ||
Total current | ||
Federal | ||
State | ||
Foreign | ||
Total deferred | ||
Total income tax expense |
SCHEDULE OF RECONCILIATION OF P
SCHEDULE OF RECONCILIATION OF PROVISION OF INCOME TAX (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||
Loss before income tax expense | $ (1,972,841) | $ (1,774,734) |
Computed tax expense (benefit) with statutory tax rate | 21% | 21% |
Impact of different tax rates in other jurisdictions | 3.50% | 3.20% |
Tax effect of non-deductible expenses | (0.30%) | (0.70%) |
Change in valuation allowance | (24.20%) | (23.50%) |
Effective tax rate | 0% | 0% |
SCHEDULE OF COMPONENTS OF DEFER
SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforwards | $ 922,114 | $ 668,825 |
Organizational expense | 1,216 | |
Total deferred tax assets | 922,114 | 670,041 |
Valuation allowance | (922,114) | (670,041) |
Total deferred tax assets, net |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 USD ($) | Sep. 30, 2022 HKD ($) | Sep. 30, 2021 USD ($) | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Percentage of statutory income tax rate | 21% | 21% | 21% |
Operating loss carry forwards | $ 3,807,069 | $ 2,872,763 | |
Income tax expiration period | 5 years | 5 years | |
2025 [Member] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Amount of expiration | $ 208,802 | ||
2026 [Member] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Amount of expiration | 1,438,207 | ||
2027 [Member] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Amount of expiration | $ 1,430,017 | ||
PRC [Member] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Percentage of statutory income tax rate | 25% | 25% | |
Operating loss carry forwards | $ 3,077,026 | 1,647,009 | |
PRC [Member] | VIE [Member] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Percentage of statutory income tax rate | 25% | 25% | |
HK [Member] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Profits tax rate | $ 260,000 | ||
Percentage of profits tax | 16.50% | 16.50% | |
HK [Member] | Minimum [Member] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Percentage of profits tax | 8.25% | 8.25% | |
HKD [Member] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Profits tax rate | $ 2 | ||
UNITED STATES | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Operating loss carry forwards | $ 726,495 | 1,223,130 | |
HONG KONG | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Operating loss carry forwards | $ 3,548 | $ 2,624 |
SUMMARY OF OPERATING LEASE ASSE
SUMMARY OF OPERATING LEASE ASSETS AND LIABILITIES (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Right-of-use Assets And Lease | ||
Operating lease right-of-use-assets | $ 675,655 | $ 282,466 |
Operating lease, liability, current | 304,753 | 229,337 |
Operating lease liability - net of current portion | 264,124 | 53,129 |
Total lease liabilities | $ 568,877 | $ 282,466 |
SUMMARY OF OPERATING LEASE EXPE
SUMMARY OF OPERATING LEASE EXPENSE (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Total lease cost | $ 398,133 | $ 375,170 |
General and Administrative Expense [Member] | ||
Operating lease cost | $ 398,133 | $ 375,170 |
SCHEDULE OF MATURITY OF OPERATI
SCHEDULE OF MATURITY OF OPERATING LEASE LIABILITIES (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Right-of-use Assets And Lease | ||
2022 | $ 236,506 | $ 236,506 |
2023 | 328,832 | 54,292 |
2024 | 273,520 | |
2025 | ||
2026 | ||
2027 | ||
Thereafter | ||
Total lease payments | 602,352 | 290,798 |
Less: interest | (33,475) | (8,332) |
Present value of lease payments | $ 568,877 | $ 282,466 |
SCHEDULE OF OPERATING LEASES (D
SCHEDULE OF OPERATING LEASES (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Right-of-use Assets And Lease | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 500,460 | $ 294,658 |
New operating lease assets obtained in exchange for operating lease liabilities | $ 750,486 | $ 195,738 |
Weighted average remaining lease term | 2 years 3 months 18 days | 1 year 1 month 6 days |
Weighted average discount rate | 4.72% | 4.75% |
RIGHT-OF-USE ASSETS AND LEASE_2
RIGHT-OF-USE ASSETS AND LEASE (Details Narrative) - USD ($) | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Right-of-use Assets And Lease | ||
Amortization expense | $ 386,152 | $ 294,658 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) | Mar. 31, 2021 USD ($) | Sep. 30, 2022 USD ($) | Apr. 30, 2022 USD ($) | Apr. 30, 2022 CNY (¥) | Sep. 30, 2021 USD ($) | Apr. 30, 2021 USD ($) | Apr. 30, 2021 CNY (¥) | Mar. 31, 2021 CNY (¥) |
Tianjin [Member] | ||||||||
Other Commitments [Line Items] | ||||||||
Franchised operation | 5 years | |||||||
Franchise fee payable | $ 1,050,000 | $ 320,000 | ¥ 2,250,000 | ¥ 7,500,000 | ||||
Remaining balance of franchise fee payable | $ 740,000 | ¥ 5,250,000 | ||||||
Purchase and Service Commitments [Member] | King Eagle China and Tianjin [Member] | ||||||||
Other Commitments [Line Items] | ||||||||
Purchase and service commitments | $ 53,910 | $ 93,383 |
SUBSEQUENT EVENT (Details Narra
SUBSEQUENT EVENT (Details Narrative) - $ / shares | Oct. 12, 2022 | Oct. 11, 2022 | Sep. 30, 2022 | Sep. 30, 2021 |
Subsequent Event [Line Items] | ||||
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 | ||
Common stock par value | $ 0.0001 | $ 0.0001 | ||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Common stock, shares authorized | 1,000,000,000 | 200,000,000 | ||
Common stock par value | $ 0.0001 | $ 0.0001 | ||
Description of froward stock split | 10:1 forward stock split |