Cover
Cover - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Jan. 10, 2022 | |
Cover [Abstract] | ||
Document Type | 10-K/A | |
Amendment Flag | true | |
Amendment Description | Amendment No. 1 | |
Document Annual Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2021 | |
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 | Unit 2702, Building T1, The Han’s Plaza | |
Entity Address, Address Line Two | No. 2 Ronghua South Road | |
Entity Address, Address Line Three | Beijing Econo mic | |
Entity Address, City or Town | Beijing | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 100176 | |
City Area Code | 86 | |
Local Phone Number | 10-87227012 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
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 | $ 1,689,668 | |
Entity Common Stock, Shares Outstanding | 40,000,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Current assets | ||
Cash and cash equivalents | $ 2,059,685 | $ 141,166 |
Advance and prepayments | 687,648 | 42,711 |
Other receivables | 123,824 | 55,658 |
Total current assets | 2,871,157 | 239,535 |
Noncurrent assets | ||
Property, plant and equipment, net | 68,725 | 70,122 |
Intangible assets, net | 2,568 | |
Right-of-use assets | 282,466 | 413,156 |
Security deposits | 76,510 | |
Other noncurrent assets | 4 | |
Total noncurrent assets | 353,759 | 559,792 |
Total assets | 3,224,916 | 799,327 |
Current liabilities | ||
Trade and other payables | 1,430,576 | 12,446 |
Deferred revenue | 3,122,705 | 203,586 |
Payroll payable | 105,923 | 88,744 |
Tax payable | 261,771 | 44,444 |
Other payables- related party | 39,629 | 252,606 |
Operating lease obligations-current portion | 229,337 | 254,780 |
Total current liabilities | 5,189,941 | 856,606 |
Noncurrent liabilities | ||
Operating lease obligations-net | 53,129 | 158,376 |
Total noncurrent liabilities | 53,129 | 158,376 |
Total liabilities | 5,243,070 | 1,014,982 |
Commitment and contingencies | ||
Equity | ||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized; no shares issued and outstanding as of September 30, 2021, and 2020 | ||
Common stock, $0.0001 par value, 200,000,000 shares authorized; 40,000,000 shares issued and outstanding as of September 30, 2021, and 40,000,000 shares authorized; 21,376,918 shares issued and outstanding at September 30, 2020 | 4,000 | 2,138 |
Additional paid-in capital | (4,000) | (2,134) |
Accumulated deficits | (1,821,105) | (208,771) |
Accumulated other comprehensive loss | (32,016) | (6,888) |
Total stockholders’ equity | (1,853,121) | (215,655) |
Non-controlling interests | (165,033) | |
Total equity | (2,018,154) | (215,655) |
Total liabilities and equity | $ 3,224,916 | $ 799,327 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2021 | Sep. 09, 2021 | Sep. 30, 2020 | |
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 | $ 0.0001 | |
Common stock, shares authorized | 200,000,000 | 210,000,000 | 40,000,000 | [1] |
Common stock, shares issued | 40,000,000 | 21,376,918 | [1] | |
Common stock, shares outstanding | 40,000,000 | 21,376,918 | [1] | |
[1] | Outstanding and issued shares retrospectively reflected the effect of recapitalization due to reverse acquisition |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | ||
Income Statement [Abstract] | |||
Revenue, net | $ 5,587,446 | $ 819,130 | |
Cost of revenue | (1,001,777) | (122,783) | |
Gross profit | 4,585,669 | 696,347 | |
Operating expenses | |||
General and administrative expenses | 2,619,588 | 380,777 | |
Selling expense | 3,741,389 | 524,443 | |
Total operating expenses | 6,360,977 | 905,220 | |
Loss from operations | (1,775,308) | (208,873) | |
Other (expenses) income: | |||
Interest income | 1,062 | 82 | |
Other (expenses) income | (488) | 20 | |
Total other income, net | 574 | 102 | |
Loss before income taxes | (1,774,734) | (208,771) | |
Income tax expense | |||
Net loss | (1,774,734) | (208,771) | |
Less: Net loss attributable to non-controlling interest | (162,400) | ||
Net loss attributable to Kun Peng International Ltd | (1,612,334) | (208,771) | |
Foreign currency translation adjustment | (27,761) | (6,888) | |
Comprehensive loss | (1,802,495) | (215,659) | |
Less: Comprehensive loss attributable to non-controlling interest | (165,033) | ||
Comprehensive loss attributable to Kun Peng International Ltd | $ (1,637,462) | $ (215,659) | |
Net loss per share attributable to common stockholders | |||
Basic and diluted* | [1] | $ (0.04) | $ (0.01) |
Weighted average shares used to compute net loss per share attributable to common stockholders* | [1] | 37,858,294 | 21,376,918 |
[1] | Outstanding and issued shares retrospectively reflected the effect of recapitalization due to reverse acquisition |
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, 2019 | $ 2,138 | [1] | $ (2,134) | $ 4 | $ 4 | ||||
Beginning balance, shares at Sep. 30, 2019 | [1] | 21,376,918 | |||||||
Net loss attributable to common stockholders | (208,771) | (208,771) | (215,655) | ||||||
Net loss attributable to noncontrolling interest | |||||||||
Foreign currency translation adjustment | (6,888) | (6,888) | |||||||
Ending balance, value at Sep. 30, 2020 | $ 2,138 | [1] | (2,134) | (208,771) | (6,888) | (215,655) | (215,655) | ||
Ending balance, shares at Sep. 30, 2020 | [1] | 21,376,918 | |||||||
Cancellation of shares | $ (1,554) | [1] | 1,554 | ||||||
Cancellation of shares, shares | [1] | (15,535,309) | |||||||
Reverse acquisition recapitalization | $ 3,416 | [1] | (3,420) | (4) | (4) | ||||
Reverse acquisition recapitalization, shares | [1] | 34,158,391 | |||||||
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) | |||||
Ending balance, value at Sep. 30, 2021 | $ 4,000 | [1] | $ (4,000) | $ (1,821,105) | $ (32,016) | $ (1,853,121) | $ (165,033) | $ (2,018,154) | |
Ending balance, shares at Sep. 30, 2021 | [1] | 40,000,000 | |||||||
[1] | Outstanding and issued shares retrospectively reflected the effect of recapitalization due to reverse acquisition |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities | ||
Net loss | $ (1,774,734) | $ (208,771) |
Adjustments to reconcile net loss to net cash provided by operating activities | ||
Depreciation and amortization | 24,527 | 2,865 |
Amortization of right-of-use assets | 294,658 | 93,784 |
Changes in operating assets and liabilities | ||
Advance and prepayments | (636,390) | (41,347) |
Other receivables | 15,242 | (127,946) |
Trade and other payables | 1,404,380 | 12,049 |
Deferred revenue | 2,879,891 | 197,085 |
Payroll payable | 12,323 | 85,910 |
Amount due to a related party | (224,243) | 244,539 |
Tax payable | 212,862 | 43,023 |
Lease liabilities | (294,658) | (93,784) |
Net cash provided by operating activities | 1,913,858 | 207,407 |
Cash flows from investing activities | ||
Purchase of property and equipment | (19,306) | (70,748) |
Acquisition of intangible assets | (2,677) | |
Net cash used in investing activities | (21,983) | (70,748) |
Effect of exchange rate changes on cash | 26,644 | 4,507 |
Net increase in cash and cash equivalents | 1,918,519 | 141,166 |
Cash and cash equivalents, beginning balance | 141,166 | |
Cash and cash equivalents, ending balance | 2,059,685 | 141,166 |
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 | $ 195,738 | $ 511,710 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 12 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS ORGANIZATION Kun Peng International Limited (“the Company”, “KPIL”, “CXKJ”, “we”, “us”, “our”), a Nevada corporation (formerly known as CX Network Group, Inc.), through its subsidiaries and VIE, engages in the sale of health care and health related household products through its online platform, King Eagle Mall. 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”), 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. 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 Ltd. (“KPIL”) and to increase the Company’s authorized capital to 210,000,000 200,000,000 0.0001 10,000,000 0.0001 Kun Peng International Holding Limited Kun Peng International Holding Limited (“KP International”) was incorporated in the British Virgin Islands on April 20, 2021. KP International is a holding company and entered into a Bought and Sold Note with Kunpeng (China) Industrial Development Company Limited (“KP Industrial”), incorporated in Hong Kong on August 11, 2017, at a cash consideration of $0.129 (HK$1) on May 3, 2021. 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 ordinary shares at $1,292 (HKD10,000) and was wholly owned by an individual. 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 (HK$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 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 It is owned by multiple individuals: Chengyuan Li, 51%, Jinjing Zhang, Wanfeng Hu, Cuilian Liu, Zhizhong Wang (each of them owns 6%), Zhandong Fan, Yanlu Li, Yuanyuan Zhang, Xiangyi Mao and Hui Teng (each of them owns 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 $ 5 The following diagram illustrates our corporate structure as of the date of this Report: |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2021 | |
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, 2021 and 2020 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. Going Concern The accompanying 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. As of September 30, 2021, although the Company generated cash inflows from operating activities, $ 1,913,858 , the Company incurred a net loss of $ 1,774,734 and a negative working capital of $ 2,318,784 . Moreover, as the COVID-19 outbreak continues, there is a delay in the progress of construction and approval for the construction permit of smart kiosk due to the lockdown of the affected areas in the PRC and the closure of the government agencies in the PRC. These conditions raise substantial doubt about the ability of the Company to continue as a going concern. During the fiscal year, the Company has reviewed its operations to help refine the Company’s financial liquidity. 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. In order to continue as a going concern for the next 12 months, the Company will focus on increasing its revenue through the sale of health care products on its online platform, King Eagle Mall, 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. COVID-19 Outbreak In March 2020 the World Health Organization declared coronavirus COVID-19 a global pandemic. The ongoing and evolving COVID-19 pandemic continues to spread throughout the world and outbreak caused a widespread of quarantines, lockdowns, site closures. It has negatively impacted the global economy, workforces, customers, and created significant volatility and disruption of economic activities. Due to restrictions, quarantines and closures in certain affected areas and government agencies in the PRC, the approval process of our applications for the construction permits of smart kiosks was delayed by the local governmental agencies and the construction project of smart kiosks was also postponed. The Company continues to focus its business through its online platform, King Eagle Mall, to mitigate the adverse impacts by COVID-19 and follows up closely with the local governmental agencies for the application for the construction permits of smart kiosks. In fact, the pandemic arose the overall public health consciousness in the PRC, the Company experienced a growth in its average monthly online sale revenue by $ 0.19 million or 70.5 % from $ 0.27 million for the year ended September 30, 2020 to $ 0.46 million for the year ended September 30, 2021. While there is a delay in the opening of our smart kiosks due to the pandemic and our plan of enhancing our face-to-face customer services and increasing our market share is impacted, we continued to focus on our online business and recruited service agents to promote our products. 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 loss amounted to $ 32,016 6,888 Below is a table with foreign exchange rates used for translation: SCHEDULE OF FOREIGN EXCHANGE RATES 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 For the year ended September 30, 2020 (Average Rate) Hong Kong Dollar (HKD) Chinese Renminbi (RMB) United States dollar ($1) 7.7506 7.0145 As of September 30, 2020 (Closing Rate) United States dollar ($1) 7.7500 6.7905 Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. We maintain with various financial institutions in PRC. As of September 30, 2021 and 2020, cash balances held in PRC banks are uninsured. We have not experienced any losses in bank accounts and believes we are not exposed to any risks on our cash in bank accounts. 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, 2021 and 2020. 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, 2021 and 2020, 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. 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, 2021 and 2020 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. Revenue was recorded 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. Revenue is measured based on the amount of consideration that we expect to receive, reduced by promotional discounts, and rebates. Revenue also excludes any amounts collected on behalf of third parties, including sales and indirect taxes. 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. Lease In February 2016, the FASB issued ASU 2016-12, Leases (ASC Topic 842), which amends the leases requirements in ASC Topic 840, Leases. Under the new lease accounting standard, a lessee will be required to recognize a right-of-use asset and lease liability for most leases on the balance sheet. The new standard also modifies the classification criteria and accounting for sales-type and direct financing leases, and enhances the disclosure requirements. Leases will continue to be classified as either finance or operating leases. The Company adopted ASC Topic 842 using the modified retrospective transition method on July 1, 2020. There was no cumulative effect of initially applying ASC Topic 842 that required an adjustment to the opening retained earnings on the adoption date nor revision of the balances in comparative periods. As a result of the adoption, the Company recognized a lease liability and right-of-use asset for each of the existing lease arrangement. The adoption of the new lease standard does not have a material impact on the consolidated income statements or the consolidated statements of cash flows. Advertising Expenses Advertising costs are classified as selling expenses and are expensed in the period incurred and represent online marketing, including fees paid to search engines, and online and offline marketing. Advertising expenses were $ 3,123 and $ nil , respectively, for the years ended September 30, 2021, and 2020, respectively. 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, 2021 and 2020, $ 1,886,622 12,162,295 140,430 953,588 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. In meeting its liquidity requirements, the Company closely monitors its forecasted cash requirements with the expected cash drawdown. Concentration of customers and vendors There was no revenue from customers that individually represent greater than 10% For the year ended September 30, 2020, two major vendors accounted for 57 38% 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 Recent Accounting Pronouncement Recently Adopted Accounting Standards Adoption of ASC Topic 606, “Revenue from Contracts with Customers” In May 2014, the Financial Accounting Standards Board (FASB) issued Topic 606, which supersedes the revenue recognition requirements in Topic 605. The Company adopted Topic 606 as of the inception date. Adoption of ASC Topic 842, “Leases” In February 2016, the FASB issued ASU 2016-12, Leases (ASC Topic 842), which amends the leases requirements in ASC Topic 840, Leases. The Company adopted ASC Topic 842 using the modified retrospective transition method effective the inception date. There was no cumulative effect of initially applying ASC Topic 842 that required an adjustment to the opening retained earnings on the adoption date. See Note 2 “Leases” above for further details. Accounting Pronouncements Issued But Not Yet Adopted Financial Instruments Income Taxes Except for the ASU above, in the period from October 2021 through December 2021, the FASB has issued ASU No. 2021-07 through ASU 2021-10, which are not expected to have a material impact on the consolidated financial statements upon adoption. |
VARIABLE INTEREST ENTITIES _VIE
VARIABLE INTEREST ENTITIES “VIE” ARRANGEMENTS | 12 Months Ended |
Sep. 30, 2021 | |
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 It is owned by multiple individuals: Chengyuan Li, 51%, Jinjing Zhang, Wanfeng Hu, Cuilian Liu, Zhizhong Wang (each of them owns 6%), Zhandong Fan, Yanlu Li, Yuanyuan Zhang, Xiangyi Mao and Hui Teng (each of them owns 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 10 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 through voting rights, right to receive the expected residual returns of the entity or 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 activities at King Eagle (Tianjin) that most significantly impact such entity’s economic performance, and (2) The obligation to absorb losses of, and the right to receive benefits from, King Eagle (Tianjin) that could potentially be significant to such entity. Pursuant to the Contractual Arrangements, King Eagle (Tianjin) pays service fees equal to all of its net profit after tax payments to King Eagle (China). At the same time, to King Eagle (China) is obligated to absorb all of their losses. The Contractual Arrangements are designed so that King Eagle (Tianjin) operates to the benefit of King Eagle (China) and ultimately the Company. Based on the foregoing VIE Agreements, King Eagle (China) has effective 100 Accordingly, the accounts of the 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, 2021, and 2020. 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, 2021 2020 Current assets $ 3,712,560 $ 210,995 Noncurrent assets 145,935 69,513 Total assets 3,858,495 280,508 Total liabilities 4,525,808 290,892 Net liabilities $ (667,313 ) $ (10,384 ) The VIE’s liabilities consisted of the following as of September 30, 2021, and 2020: September 30, 2021 2020 Current liabilities Trade and other payable $ 1,024,064 $ 9,244 Advance from customers 3,122,705 203,586 Payroll payable 14,802 - Tax payable 218,301 8,550 Operating lease obligations, currents 92,807 40,752 Total current liabilities 4,472,679 262,132 Total noncurrent liabilities - - Operating lease obligations, net of current portion 53,129 28,760 Total noncurrent liabilities 53,129 28,760 Total liabilities $ 4,525,808 $ 290,892 The operating results of the VIE were as follows: September 30, 2021 2020 Revenue $ 5,587,446 $ 818,647 Gross profit 4,590,774 563,048 Loss from operations (650,804 ) (10,054 ) Other income 834 - Net loss $ (649,970 ) $ (10,054 ) |
ADVANCE AND PREPAYMENTS
ADVANCE AND PREPAYMENTS | 12 Months Ended |
Sep. 30, 2021 | |
Advance And Prepayments | |
ADVANCE AND PREPAYMENTS | NOTE 4 - ADVANCE AND PREPAYMENTS Prepayments consisted of the following: SCHEDULE OF PREPAYMENTS 2021 2020 September 30, 2021 2020 Prepaid service fee (1) $ 349,019 $ - Prepaid rent and building management and utilities 85,474 34,651 Prepaid supplies (2) 78,248 - Prepaid system maintenance services 5,209 6,733 Prepaid income tax 5,689 - Prepaid professional services (3) 148,708 356 Prepaid others 15,301 971 Total prepayments $ 687,648 $ 42,711 (1) Prepaid service fee was paid to Guoxin Star Network Co., Ltd (“Guoxin”) by our VIE, King Eagle (Tianjin). It represents prepayments for operation fee and the usage of the Smart Kiosk which are still under construction and development. Both parties are entitled to exercise the Force Majeure Clause of the contract signed between both parties. As such, this prepaid service fee may or may not be recoverable. Nevertheless, an impairment of this prepayment is not necessary because both parties have expressed the intention to progress with the construction of the Smart Kiosks, and thereafter, with the operation of the same as soon as the circumstances allow. (2) As of September 30, 2021, and 2020, the Company had prepared the supplies of $ 78,248 and 0 respectively. The prepayment will be recognized in cost of goods sold in its consolidated statement of operations and comprehensive loss when the corresponding deferred revenue is recognized. (3) As of September 30, 2021, we remitted a payment in advance, $ 138,367 10,341 These amounts are expected to be recoverable within twelve (12) months. |
OTHER RECEIVABLES
OTHER RECEIVABLES | 12 Months Ended |
Sep. 30, 2021 | |
Other Receivables | |
OTHER RECEIVABLES | NOTE 5 - OTHER RECEIVABLES Other receivables included the following: SCHEDULE OF OTHER RECEIVABLES 2021 2020 September 30, 2021 2020 Rental deposits $ 93,583 $ 8,847 Advance to employees 30,241 46,811 Total other receivables, net $ 123,824 $ 55,658 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. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Sep. 30, 2021 | |
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 September 30, 2021 2020 Leasehold improvements $ 29,886 $ 28,372 Furniture and fixtures 9,534 - Computer equipment 43,452 32,625 Office equipment 1,633 720 Computer software 11,971 11,364 Subtotal 96,476 73,081 Less: accumulated depreciation (27,751 ) (2,959 ) Total property and equipment, net $ 68,725 $ 70,122 The depreciation expense was $ 24,392 and $ 2,865 for the years ended September 30, 2021, and 2020, respectively. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | NOTE 7 – INTANGIBLE ASSETS SCHEDULE OF INTANGIBLE ASSET 2021 2020 September 30, 2021 2020 Trademarks $ 2,703 $ - Subtotal 2,703 - Less: accumulated amortization (135 ) - Total intangible assets, net $ 2,568 $ - Intangible assets consist of the Company’s trademarks of King Eagle Mall with the useful life of ten years Amortization expense was $ 135 and nil for the years ended September 30, 2021, and 2020, respectively. |
DEFERRED REVENUE
DEFERRED REVENUE | 12 Months Ended |
Sep. 30, 2021 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
DEFERRED REVENUE | NOTE 8 – DEFERRED REVENUE SCHEDULE OF DEFERRED REVENUE 2021 2020 September 30, 2021 2020 Advance payments from customers $ 3,122,705 $ 203,586 Total deferred revenue $ 3,122,705 $ 203,586 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, 2021 and 2020, the Company had a total deferred revenue of $ 3,122,705 203,586 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 9 - RELATED PARTY TRANSACTIONS Other payables-related party are payables arising from transactions between the Company and a related party, such as payments of operating expenses by such related party on behalf of our entities in PRC. The payables owed to the related party are interest free, unsecured, and repayable on demand. Other payables-related party consisted of the following: SCHEDULE OF OTHER PAYABLES-RELATED PARTY September 30, Name of related party Relationship Nature of transactions 2021 2020 Mr. Yihe Pang Director Payments made to the lessors on behalf of King Eagle (China) $ 39,629 $ 252,606 Total $ 39,629 $ 252,606 |
EQUITY
EQUITY | 12 Months Ended |
Sep. 30, 2021 | |
Equity | |
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 Preferred stock The Company’s authorized shares of preferred stock were 10,000,000 0.0001 No Common stock T he Company’s authorized shares of common stock were 200,000,000 and 40,000,000 shares , with a par value of $ 0.0001 , as of September 30, 2021, and 2020, respectively. The issued and outstanding shares of common stock were 40,000,000 and 21,376,918 as of September 30, 2021 and 2020, respectively. 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. As of September 30, 2021, there were 40,000,000 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 50 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, 2021, and 2020, 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. Due to the net operating loss, as of September 30, 2021, King Eagle (China), King Eagle (Tianjin) and KP Tian Yu incurred negative net assets which amounted to $ 1,039,840 , $ 667,313 and nil, respectively. As of September 30, 2020, King Eagle (China) and King Eagle (Tianjin) incurred negative net assets which amounted to $ 205,275 and $ 10,384 , respectively. Accordingly, the Company did not accrue statutory reserve funds as of September 30, 2021. and 2020. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2021 | |
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 Ltd 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, 2021, and 2020. British Virgin Islands KP International 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, 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, 2021 and 2020 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%, for the calculation of deferred taxes for our subsidiaries in Hong Kong. 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 2021 2020 September 30 2021 2020 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 2021 2020 September 30, 2021 2020 Loss before income tax expense $ (1,774,734 ) $ (208,771 ) Computed tax expense (benefit) with statutory tax rate 21.0 % 25.0 % Impact of different tax rates in other jurisdictions 3.2 % 0 % Tax effect of non-deductible expenses (0.7 )% (0.8 )% Change in valuation allowance (23.5 )% (24.2 )% Effective tax rate 0 % 0 % Deferred tax assets included the following: SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS 2021 2020 September 30, 2021 2020 Deferred tax assets $ $ Net operating loss carryforwards 668,825 52,201 Organizational expense 1,216 Total deferred tax assets 670,041 52,201 Valuation allowance (670,041 ) (52,201 ) Total deferred tax assets, net $ - $ - As of September 30, 2021, and 2020, the Company had generated gross net operating loss carryforwards in an amount of $ 2,872,763 and $ 1,139,203 . As of September 30, 2021. and 2020, our US entity generated gross net operating loss carryforwards in an amount of $ 1,223,130 and $ 930,401 , respectively, available to offset future taxable income. For net operating losses arising after December 31, 2017, the Tax Act limits the Company’s ability to utilize NOL carryforwards to 80% of taxable income and carryforwards the NOL indefinitely. NOLs generated prior to January 1, 2018, will not be subject to the taxable income limitation and will begin to expire in 2033 if not utilized. The Companies in Hong Kong incurred gross net operating loss carryforwards in an amount of $ 2,624 Our entities in the PRC generated $ 1,647,009 and $ 208,802 gross net operating loss carryforwards as of September 30, 2021, and 2020, respectively. Those net operating loss carryforwards can be used to offset taxable income in future periods and reduce the income taxes payable of our PRC entities in those future periods and will expire in 5 years from the date they incurred if they are not used. If not utilized, approximately $ 208,802 and $ 1,438,207 will be expired in the years of 2025 and 2026, respectively. 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, 2021, and 2020. 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
RIGHT-OF-USE ASSETS AND | 12 Months Ended |
Sep. 30, 2021 | |
Right-of-use Assets And | |
RIGHT-OF-USE ASSETS AND | NOTE 12 - RIGHT-OF-USE ASSETS AND 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, 2021, and 2020: SUMMARY OF OPERATING LEASE ASSETS AND LIABILITIES Assets/liabilities Classification September 30, September 30, Assets Operating lease right-of-use assets Operating lease assets $ 282,466 $ 413,156 Liabilities Current Operating lease liability - current Current operating lease liabilities $ 229,337 $ 254,780 Long-term Operating lease liability – net of current portion Long-term operating lease liabilities $ 53,129 $ 158,376 Total lease liabilities $ 282,466 $ 413,156 The operating lease expense for the years September 30, 2021, and 2020 was as follows: SUMMARY OF OPERATING LEASE EXPENSE September 30 Lease Cost Classification 2021 2020 Operating lease cost General and administrative $ 375,170 $ 96,463 Total lease cost $ 375,170 $ 96,463 Maturities of operating lease liabilities as of September 30, 2021, were as follow: SCHEDULE OF MATURITY OF OPERATING LEASE LIABILITIES 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 Maturities of operating lease liabilities as of September 30, 2020, were as follow: Maturity of Lease Liabilities Operating Leases 2021 $ 267,360 2022 162,677 2023 - 2024 - 2025 - Thereafter - Total lease payments $ 430,037 Less: interest (16,881 ) Present value of lease payments $ 413,156 Supplemental information related to operating leases was as follows: SCHEDULE OF OPERATING LEASES 2021 2020 September 30 2021 2020 Cash paid for amounts included in the measurement of lease liabilities $ 297,978 $ 101,434 New operating lease assets obtained in exchange for operating lease liabilities $ 195,738 $ 511,710 Weighted average remaining lease term 1.1 1.6 Weighted average discount rate 4.75 % 4.75 % The amortization expense was $ 294,658 and $ 93,784 for the years ended September 30, 2021, and 2020, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 13 - COMMITMENTS AND CONTINGENCIES 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 1.14 7,500,000 0.34 2,250,000 0.8 5,250,000 |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | NOTE 14 - SUBSEQUENT EVENT On November 30, 2021, Ms. Xiangyi MAO submitted her resignation as the Chief Executive Officer of the Company to be effective on December 1, 2021. The Board of Directors approved and elected Mr. Richun ZHUANG as the Chief Executive Officer of the Company effective December 1, 2021. As of September 30, 2021, the Company evaluated and concluded that there are no 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, 2021 | |
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, 2021 and 2020 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. |
Going Concern | Going Concern The accompanying 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. As of September 30, 2021, although the Company generated cash inflows from operating activities, $ 1,913,858 , the Company incurred a net loss of $ 1,774,734 and a negative working capital of $ 2,318,784 . Moreover, as the COVID-19 outbreak continues, there is a delay in the progress of construction and approval for the construction permit of smart kiosk due to the lockdown of the affected areas in the PRC and the closure of the government agencies in the PRC. These conditions raise substantial doubt about the ability of the Company to continue as a going concern. During the fiscal year, the Company has reviewed its operations to help refine the Company’s financial liquidity. 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. In order to continue as a going concern for the next 12 months, the Company will focus on increasing its revenue through the sale of health care products on its online platform, King Eagle Mall, 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. |
COVID-19 Outbreak | COVID-19 Outbreak In March 2020 the World Health Organization declared coronavirus COVID-19 a global pandemic. The ongoing and evolving COVID-19 pandemic continues to spread throughout the world and outbreak caused a widespread of quarantines, lockdowns, site closures. It has negatively impacted the global economy, workforces, customers, and created significant volatility and disruption of economic activities. Due to restrictions, quarantines and closures in certain affected areas and government agencies in the PRC, the approval process of our applications for the construction permits of smart kiosks was delayed by the local governmental agencies and the construction project of smart kiosks was also postponed. The Company continues to focus its business through its online platform, King Eagle Mall, to mitigate the adverse impacts by COVID-19 and follows up closely with the local governmental agencies for the application for the construction permits of smart kiosks. In fact, the pandemic arose the overall public health consciousness in the PRC, the Company experienced a growth in its average monthly online sale revenue by $ 0.19 million or 70.5 % from $ 0.27 million for the year ended September 30, 2020 to $ 0.46 million for the year ended September 30, 2021. While there is a delay in the opening of our smart kiosks due to the pandemic and our plan of enhancing our face-to-face customer services and increasing our market share is impacted, we continued to focus on our online business and recruited service agents to promote our products. 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 loss amounted to $ 32,016 6,888 Below is a table with foreign exchange rates used for translation: SCHEDULE OF FOREIGN EXCHANGE RATES 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 For the year ended September 30, 2020 (Average Rate) Hong Kong Dollar (HKD) Chinese Renminbi (RMB) United States dollar ($1) 7.7506 7.0145 As of September 30, 2020 (Closing Rate) United States dollar ($1) 7.7500 6.7905 |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. We maintain with various financial institutions in PRC. As of September 30, 2021 and 2020, cash balances held in PRC banks are uninsured. We have not experienced any losses in bank accounts and believes we are not exposed to any risks on our cash in bank accounts. |
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, 2021 and 2020. |
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, 2021 and 2020, 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. |
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, 2021 and 2020 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. Revenue was recorded 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. Revenue is measured based on the amount of consideration that we expect to receive, reduced by promotional discounts, and rebates. Revenue also excludes any amounts collected on behalf of third parties, including sales and indirect taxes. 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. |
Revenue Recognition, Deferred Revenue [Policy Text Block] | |
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. |
Lease | Lease In February 2016, the FASB issued ASU 2016-12, Leases (ASC Topic 842), which amends the leases requirements in ASC Topic 840, Leases. Under the new lease accounting standard, a lessee will be required to recognize a right-of-use asset and lease liability for most leases on the balance sheet. The new standard also modifies the classification criteria and accounting for sales-type and direct financing leases, and enhances the disclosure requirements. Leases will continue to be classified as either finance or operating leases. The Company adopted ASC Topic 842 using the modified retrospective transition method on July 1, 2020. There was no cumulative effect of initially applying ASC Topic 842 that required an adjustment to the opening retained earnings on the adoption date nor revision of the balances in comparative periods. As a result of the adoption, the Company recognized a lease liability and right-of-use asset for each of the existing lease arrangement. The adoption of the new lease standard does not have a material impact on the consolidated income statements or the consolidated statements of cash flows. |
Advertising Expenses | Advertising Expenses Advertising costs are classified as selling expenses and are expensed in the period incurred and represent online marketing, including fees paid to search engines, and online and offline marketing. Advertising expenses were $ 3,123 and $ nil , respectively, for the years ended September 30, 2021, and 2020, respectively. |
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, 2021 and 2020, $ 1,886,622 12,162,295 140,430 953,588 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. In meeting its liquidity requirements, the Company closely monitors its forecasted cash requirements with the expected cash drawdown. Concentration of customers and vendors There was no revenue from customers that individually represent greater than 10% For the year ended September 30, 2020, two major vendors accounted for 57 38% 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 |
Recent Accounting Pronouncement | Recent Accounting Pronouncement Recently Adopted Accounting Standards Adoption of ASC Topic 606, “Revenue from Contracts with Customers” In May 2014, the Financial Accounting Standards Board (FASB) issued Topic 606, which supersedes the revenue recognition requirements in Topic 605. The Company adopted Topic 606 as of the inception date. Adoption of ASC Topic 842, “Leases” In February 2016, the FASB issued ASU 2016-12, Leases (ASC Topic 842), which amends the leases requirements in ASC Topic 840, Leases. The Company adopted ASC Topic 842 using the modified retrospective transition method effective the inception date. There was no cumulative effect of initially applying ASC Topic 842 that required an adjustment to the opening retained earnings on the adoption date. See Note 2 “Leases” above for further details. |
Accounting Pronouncements Issued But Not Yet Adopted | Accounting Pronouncements Issued But Not Yet Adopted Financial Instruments Income Taxes Except for the ASU above, in the period from October 2021 through December 2021, the FASB has issued ASU No. 2021-07 through ASU 2021-10, which are not expected to have a material impact on the consolidated financial statements upon adoption. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
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, 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 For the year ended September 30, 2020 (Average Rate) Hong Kong Dollar (HKD) Chinese Renminbi (RMB) United States dollar ($1) 7.7506 7.0145 As of September 30, 2020 (Closing Rate) United States dollar ($1) 7.7500 6.7905 |
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, 2021 | |
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, 2021, and 2020. 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, 2021 2020 Current assets $ 3,712,560 $ 210,995 Noncurrent assets 145,935 69,513 Total assets 3,858,495 280,508 Total liabilities 4,525,808 290,892 Net liabilities $ (667,313 ) $ (10,384 ) The VIE’s liabilities consisted of the following as of September 30, 2021, and 2020: September 30, 2021 2020 Current liabilities Trade and other payable $ 1,024,064 $ 9,244 Advance from customers 3,122,705 203,586 Payroll payable 14,802 - Tax payable 218,301 8,550 Operating lease obligations, currents 92,807 40,752 Total current liabilities 4,472,679 262,132 Total noncurrent liabilities - - Operating lease obligations, net of current portion 53,129 28,760 Total noncurrent liabilities 53,129 28,760 Total liabilities $ 4,525,808 $ 290,892 The operating results of the VIE were as follows: September 30, 2021 2020 Revenue $ 5,587,446 $ 818,647 Gross profit 4,590,774 563,048 Loss from operations (650,804 ) (10,054 ) Other income 834 - Net loss $ (649,970 ) $ (10,054 ) |
ADVANCE AND PREPAYMENTS (Tables
ADVANCE AND PREPAYMENTS (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Advance And Prepayments | |
SCHEDULE OF PREPAYMENTS | Prepayments consisted of the following: SCHEDULE OF PREPAYMENTS 2021 2020 September 30, 2021 2020 Prepaid service fee (1) $ 349,019 $ - Prepaid rent and building management and utilities 85,474 34,651 Prepaid supplies (2) 78,248 - Prepaid system maintenance services 5,209 6,733 Prepaid income tax 5,689 - Prepaid professional services (3) 148,708 356 Prepaid others 15,301 971 Total prepayments $ 687,648 $ 42,711 (1) Prepaid service fee was paid to Guoxin Star Network Co., Ltd (“Guoxin”) by our VIE, King Eagle (Tianjin). It represents prepayments for operation fee and the usage of the Smart Kiosk which are still under construction and development. Both parties are entitled to exercise the Force Majeure Clause of the contract signed between both parties. As such, this prepaid service fee may or may not be recoverable. Nevertheless, an impairment of this prepayment is not necessary because both parties have expressed the intention to progress with the construction of the Smart Kiosks, and thereafter, with the operation of the same as soon as the circumstances allow. (2) As of September 30, 2021, and 2020, the Company had prepared the supplies of $ 78,248 and 0 respectively. The prepayment will be recognized in cost of goods sold in its consolidated statement of operations and comprehensive loss when the corresponding deferred revenue is recognized. (3) As of September 30, 2021, we remitted a payment in advance, $ 138,367 10,341 |
OTHER RECEIVABLES (Tables)
OTHER RECEIVABLES (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Other Receivables | |
SCHEDULE OF OTHER RECEIVABLES | Other receivables included the following: SCHEDULE OF OTHER RECEIVABLES 2021 2020 September 30, 2021 2020 Rental deposits $ 93,583 $ 8,847 Advance to employees 30,241 46,811 Total other receivables, net $ 123,824 $ 55,658 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY AND EQUIPMENT | Property and equipment consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT September 30, 2021 2020 Leasehold improvements $ 29,886 $ 28,372 Furniture and fixtures 9,534 - Computer equipment 43,452 32,625 Office equipment 1,633 720 Computer software 11,971 11,364 Subtotal 96,476 73,081 Less: accumulated depreciation (27,751 ) (2,959 ) Total property and equipment, net $ 68,725 $ 70,122 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF INTANGIBLE ASSET | SCHEDULE OF INTANGIBLE ASSET 2021 2020 September 30, 2021 2020 Trademarks $ 2,703 $ - Subtotal 2,703 - Less: accumulated amortization (135 ) - Total intangible assets, net $ 2,568 $ - |
DEFERRED REVENUE (Tables)
DEFERRED REVENUE (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
SCHEDULE OF DEFERRED REVENUE | SCHEDULE OF DEFERRED REVENUE 2021 2020 September 30, 2021 2020 Advance payments from customers $ 3,122,705 $ 203,586 Total deferred revenue $ 3,122,705 $ 203,586 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
SCHEDULE OF OTHER PAYABLES-RELATED PARTY | Other payables-related party consisted of the following: SCHEDULE OF OTHER PAYABLES-RELATED PARTY September 30, Name of related party Relationship Nature of transactions 2021 2020 Mr. Yihe Pang Director Payments made to the lessors on behalf of King Eagle (China) $ 39,629 $ 252,606 Total $ 39,629 $ 252,606 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
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 2021 2020 September 30 2021 2020 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 2021 2020 September 30, 2021 2020 Loss before income tax expense $ (1,774,734 ) $ (208,771 ) Computed tax expense (benefit) with statutory tax rate 21.0 % 25.0 % Impact of different tax rates in other jurisdictions 3.2 % 0 % Tax effect of non-deductible expenses (0.7 )% (0.8 )% Change in valuation allowance (23.5 )% (24.2 )% 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 2021 2020 September 30, 2021 2020 Deferred tax assets $ $ Net operating loss carryforwards 668,825 52,201 Organizational expense 1,216 Total deferred tax assets 670,041 52,201 Valuation allowance (670,041 ) (52,201 ) Total deferred tax assets, net $ - $ - |
RIGHT-OF-USE ASSETS AND (Tables
RIGHT-OF-USE ASSETS AND (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Right-of-use Assets And | |
SUMMARY OF OPERATING LEASE ASSETS AND LIABILITIES | The following table provides a summary of leases as of September 30, 2021, and 2020: SUMMARY OF OPERATING LEASE ASSETS AND LIABILITIES Assets/liabilities Classification September 30, September 30, Assets Operating lease right-of-use assets Operating lease assets $ 282,466 $ 413,156 Liabilities Current Operating lease liability - current Current operating lease liabilities $ 229,337 $ 254,780 Long-term Operating lease liability – net of current portion Long-term operating lease liabilities $ 53,129 $ 158,376 Total lease liabilities $ 282,466 $ 413,156 |
SUMMARY OF OPERATING LEASE EXPENSE | The operating lease expense for the years September 30, 2021, and 2020 was as follows: SUMMARY OF OPERATING LEASE EXPENSE September 30 Lease Cost Classification 2021 2020 Operating lease cost General and administrative $ 375,170 $ 96,463 Total lease cost $ 375,170 $ 96,463 |
SCHEDULE OF MATURITY OF OPERATING LEASE LIABILITIES | Maturities of operating lease liabilities as of September 30, 2021, were as follow: SCHEDULE OF MATURITY OF OPERATING LEASE LIABILITIES 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 Maturities of operating lease liabilities as of September 30, 2020, were as follow: Maturity of Lease Liabilities Operating Leases 2021 $ 267,360 2022 162,677 2023 - 2024 - 2025 - Thereafter - Total lease payments $ 430,037 Less: interest (16,881 ) Present value of lease payments $ 413,156 |
SCHEDULE OF OPERATING LEASES | Supplemental information related to operating leases was as follows: SCHEDULE OF OPERATING LEASES 2021 2020 September 30 2021 2020 Cash paid for amounts included in the measurement of lease liabilities $ 297,978 $ 101,434 New operating lease assets obtained in exchange for operating lease liabilities $ 195,738 $ 511,710 Weighted average remaining lease term 1.1 1.6 Weighted average discount rate 4.75 % 4.75 % |
ORGANIZATION AND DESCRIPTION _2
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Narrative) $ / shares in Units, ¥ in Millions, $ in Millions | Aug. 10, 2021USD ($) | Jun. 21, 2021 | May 17, 2021shares | May 03, 2021 | Apr. 20, 2021 | Nov. 02, 2020USD ($) | Nov. 02, 2020CNY (¥) | Sep. 02, 2020USD ($) | Sep. 02, 2020CNY (¥) | Sep. 02, 2020CNY (¥) | Mar. 20, 2019USD ($) | Mar. 20, 2019CNY (¥) | Sep. 30, 2021$ / sharesshares | Sep. 09, 2021$ / sharesshares | Sep. 30, 2020$ / sharesshares | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||||||||||
Common Stock, Shares, Outstanding | 40,000,000 | 21,376,918 | [1] | |||||||||||||
Common Stock, Shares, Issued | 40,000,000 | 21,376,918 | [1] | |||||||||||||
Common Stock, Shares Authorized | 200,000,000 | 210,000,000 | 40,000,000 | [1] | ||||||||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||||||||
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | ||||||||||||||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0.0001 | $ 0.0001 | ||||||||||||||
Kun Peng International Holding Limited [Member] | ||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||||||||||
Ownership percentage | 92.00% | |||||||||||||||
Guoxin Zhengye [Member] | ||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||||||||||
Ownership percentage | 8.00% | |||||||||||||||
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 | |||||||||||||||
Kun Peng International Holding Limited [Member] | ||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||||||||||
Foreign currency translation, cash consideration, description | cash consideration of $0.129 (HK$1) on May 3, 2021. | |||||||||||||||
Kunpeng China Industrial Development Company Limited [Member] | ||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||||||||||
Share capital, description | The share capital of KP Industrial is 10,000 ordinary shares at $1,292 (HKD10,000) and was wholly owned by an individual. | |||||||||||||||
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, description | The share capital of this entity upon formation is $0.13 (HK$1). | |||||||||||||||
King Eagle China [Member] | ||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||||||||||
Registered capital | $ 15 | ¥ 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 | 7.00% | |||||||||||||||
King Eagle China [Member] | Guoxin Zhengye [Member] | ||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||||||||||
Transferred percentage | 8.00% | |||||||||||||||
Guoxin Ruilian Group Co Ltd [Member] | ||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||||||||||
Transferred amount | $ 2.2 | ¥ 15 | ||||||||||||||
Transferred percentage | 15.00% | 15.00% | ||||||||||||||
King Eagle Tianjin [Member] | ||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||||||||||
Registered capital | $ 1.5 | ¥ 10 | ¥ 10 | |||||||||||||
Ownership percentage, description | It is owned by multiple individuals: Chengyuan Li, 51%, Jinjing Zhang, Wanfeng Hu, Cuilian Liu, Zhizhong Wang (each of them owns 6%), Zhandong Fan, Yanlu Li, Yuanyuan Zhang, Xiangyi Mao and Hui Teng (each of them owns 5%) | |||||||||||||||
Kun Peng Tian Yu Health Technology [Member] | ||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||||||||||
Registered capital | $ | $ 5 | |||||||||||||||
[1] | Outstanding and issued shares retrospectively reflected the effect of recapitalization due to reverse acquisition |
SCHEDULE OF FOREIGN EXCHANGE RA
SCHEDULE OF FOREIGN EXCHANGE RATES (Details) | Sep. 30, 2021 | Sep. 30, 2020 |
Period Average HK US Exchange Rate [Member] | ||
Offsetting Assets [Line Items] | ||
Foreign exchange rate | 7.7631 | 7.7506 |
Preiod Average RMB US Exchange Rate [Member] | ||
Offsetting Assets [Line Items] | ||
Foreign exchange rate | 6.5101 | 7.0145 |
Period End HK US Exchange Rate [Member] | ||
Offsetting Assets [Line Items] | ||
Foreign exchange rate | 7.7851 | 7.7500 |
Period End RMB US Exchange Rate [Member] | ||
Offsetting Assets [Line Items] | ||
Foreign exchange rate | 6.4466 | 6.7905 |
SCHEDULE OF PROPERTY PLANT AND
SCHEDULE OF PROPERTY PLANT AND EQUIPMENT USEFUL LIVES (Details) | 12 Months Ended |
Sep. 30, 2021 | |
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, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021CNY (¥) | Sep. 30, 2020CNY (¥) | |
Product Information [Line Items] | ||||
Net Cash Provided by (Used in) Operating Activities | $ 1,913,858 | $ 207,407 | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 1,774,734 | 208,771 | ||
[custom:WorkingCapital] | 2,318,784 | |||
Revenues | $ 190,000 | |||
[custom:RevenuePercentage] | 70.50% | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ 32,016 | 6,888 | ||
Advertising expense | 3,123 | |||
Deposits | $ 1,886,622 | $ 140,430 | ||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customers [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 10.00% | 10.00% | ||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Vendor One [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 22.00% | 57.00% | ||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Vendor Two [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 16.00% | 38.00% | ||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Vendor Three [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 14.00% | |||
CHINA | ||||
Product Information [Line Items] | ||||
Deposits | ¥ | ¥ 12,162,295 | ¥ 953,588 | ||
Minimum [Member] | ||||
Product Information [Line Items] | ||||
Revenues | $ 270,000 | |||
Maximum [Member] | ||||
Product Information [Line Items] | ||||
Revenues | $ 460,000 |
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, 2021 | Sep. 30, 2020 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Current assets | $ 2,871,157 | $ 239,535 |
Noncurrent assets | 353,759 | 559,792 |
Total assets | 3,224,916 | 799,327 |
Total liabilities | 5,243,070 | 1,014,982 |
Trade and other payable | 1,430,576 | 12,446 |
Advance from customers | 3,122,705 | 203,586 |
Payroll payable | 105,923 | 88,744 |
Tax payable | 261,771 | 44,444 |
Operating lease obligations, currents | 229,337 | 254,780 |
Total current liabilities | 5,189,941 | 856,606 |
Total noncurrent liabilities | ||
Operating lease obligations, net of current portion | 53,129 | 158,376 |
Total noncurrent liabilities | 53,129 | 158,376 |
Revenue | 190,000 | |
Gross profit | 4,585,669 | 696,347 |
Other income | 574 | 102 |
Net loss | (1,612,334) | (208,771) |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Current assets | 3,712,560 | 210,995 |
Noncurrent assets | 145,935 | 69,513 |
Total assets | 3,858,495 | 280,508 |
Total liabilities | 4,525,808 | 290,892 |
Net liabilities | (667,313) | (10,384) |
Trade and other payable | 1,024,064 | 9,244 |
Advance from customers | 3,122,705 | 203,586 |
Payroll payable | 14,802 | |
Tax payable | 218,301 | 8,550 |
Operating lease obligations, currents | 92,807 | 40,752 |
Total current liabilities | 4,472,679 | 262,132 |
Operating lease obligations, net of current portion | 53,129 | 28,760 |
Total noncurrent liabilities | 53,129 | 28,760 |
Revenue | 5,587,446 | 818,647 |
Gross profit | 4,590,774 | 563,048 |
Loss from operations | (650,804) | (10,054) |
Other income | 834 | |
Net loss | $ (649,970) | $ (10,054) |
VARIABLE INTEREST ENTITIES _V_3
VARIABLE INTEREST ENTITIES “VIE” ARRANGEMENTS (Details Narrative) ¥ in Millions, $ in Millions | Sep. 02, 2020USD ($) | Sep. 02, 2020CNY (¥) | Sep. 02, 2020CNY (¥) | Sep. 30, 2021 | Sep. 23, 2021 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Effective, percentage | 100.00% | ||||
Consulting Service Agreement [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Agreement valid term | 10 years | ||||
King Eagle Tianjin [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Registered capital | $ 1.5 | ¥ 10 | ¥ 10 | ||
Ownership Percentage Description | It is owned by multiple individuals: Chengyuan Li, 51%, Jinjing Zhang, Wanfeng Hu, Cuilian Liu, Zhizhong Wang (each of them owns 6%), Zhandong Fan, Yanlu Li, Yuanyuan Zhang, Xiangyi Mao and Hui Teng (each of them owns 5%) |
SCHEDULE OF PREPAYMENTS (Detail
SCHEDULE OF PREPAYMENTS (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 | |
Advance And Prepayments | |||
Prepaid service fee | [1] | $ 349,019 | |
Prepaid rent and building management and utilities | 85,474 | 34,651 | |
Prepaid supplies | [2] | 78,248 | |
Prepaid system maintenance services | 5,209 | 6,733 | |
Prepaid income tax | 5,689 | ||
Prepaid professional services | [3] | 148,708 | 356 |
Prepaid others | 15,301 | 971 | |
Total prepayments | $ 687,648 | $ 42,711 | |
[1] | Prepaid service fee was paid to Guoxin Star Network Co., Ltd (“Guoxin”) by our VIE, King Eagle (Tianjin). It represents prepayments for operation fee and the usage of the Smart Kiosk which are still under construction and development. Both parties are entitled to exercise the Force Majeure Clause of the contract signed between both parties. As such, this prepaid service fee may or may not be recoverable. Nevertheless, an impairment of this prepayment is not necessary because both parties have expressed the intention to progress with the construction of the Smart Kiosks, and thereafter, with the operation of the same as soon as the circumstances allow. | ||
[2] | As of September 30, 2021, and 2020, the Company had prepared the supplies of $ | ||
[3] | As of September 30, 2021, we remitted a payment in advance, $ 138,367 10,341 |
SCHEDULE OF PREPAYMENTS (Deta_2
SCHEDULE OF PREPAYMENTS (Details) (Parenthetical) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Advance And Prepayments | ||
[custom:PrepaidSupplies-0] | $ 78,248 | $ 0 |
Payments in advance | 138,367 | |
Legal fees | $ 10,341 |
SCHEDULE OF OTHER RECEIVABLES (
SCHEDULE OF OTHER RECEIVABLES (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Other Receivables | ||
Rental deposits | $ 93,583 | $ 8,847 |
Advance to employees | 30,241 | 46,811 |
Total other receivables, net | $ 123,824 | $ 55,658 |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 96,476 | $ 73,081 |
Less: accumulated depreciation | (27,751) | (2,959) |
Total property and equipment, net | 68,725 | 70,122 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Sub-total | 29,886 | 28,372 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Sub-total | 9,534 | |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Sub-total | 43,452 | 32,625 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Sub-total | 1,633 | 720 |
Computer Software, Intangible Asset [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Sub-total | $ 11,971 | $ 11,364 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation Expense | $ 24,392 | $ 2,865 |
SCHEDULE OF INTANGIBLE ASSET (D
SCHEDULE OF INTANGIBLE ASSET (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Indefinite-lived Intangible Assets [Line Items] | ||
Subtotal | $ 2,703 | |
Less: accumulated amortization | (135) | |
Total intangible assets, net | 2,568 | |
Trademarks [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Subtotal | $ 2,703 |
INTANGIBLE ASSETS (Details Narr
INTANGIBLE ASSETS (Details Narrative) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangible assets useful life | 10 years | |
Amortization of Intangible Assets | $ 135 |
SCHEDULE OF DEFERRED REVENUE (D
SCHEDULE OF DEFERRED REVENUE (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Advance payments from customers | $ 3,122,705 | $ 203,586 |
Total deferred revenue | $ 3,122,705 | $ 203,586 |
DEFERRED REVENUE (Details Narra
DEFERRED REVENUE (Details Narrative) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Deferred revenue | $ 3,122,705 | $ 203,586 |
SCHEDULE OF OTHER PAYABLES-RELA
SCHEDULE OF OTHER PAYABLES-RELATED PARTY (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Related Party Transaction [Line Items] | ||
Total | $ 39,629 | $ 252,606 |
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) | |
Total | $ 39,629 | $ 252,606 |
EQUITY (Details Narrative)
EQUITY (Details Narrative) - USD ($) | May 17, 2021 | Sep. 30, 2021 | Sep. 09, 2021 | Sep. 30, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Common Stock, Shares Authorized | 200,000,000 | 210,000,000 | 40,000,000 | [1] | |
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 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 outstanding | 40,000,000 | 21,376,918 | [1] | ||
Newly issued shares | 34,158,391 | ||||
Cancel of shares | 15,535,309 | ||||
Common stock, shares issued | 40,000,000 | 21,376,918 | [1] | ||
Restricted net assets tax profits | 10.00% | ||||
Registered capital percentage | 50.00% | ||||
King Eagle China [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Reporting Unit, Zero or Negative Carrying Amount, Amount of Allocated Goodwill | $ 1,039,840 | $ 20,527,500 | |||
King Eagle Tianjin [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Reporting Unit, Zero or Negative Carrying Amount, Amount of Allocated Goodwill | $ 667,313 | $ 1,038,400 | |||
[1] | Outstanding and issued shares retrospectively reflected the effect of recapitalization due to reverse acquisition |
SCHEDULE OF COMPONENTS OF INCOM
SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE BENEFIT (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Federal | ||
State | ||
Foreign | ||
Total current | ||
Federal | ||
State | ||
Foreign | ||
Total deferred | ||
Total income tax expense |
SCHEDULE OF RECONCILIATION OF P
SCHEDULE OF RECONCILIATION OF PROVISION OF INCOME TAX (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Loss before income tax expense | $ (1,774,734) | $ (208,771) |
Computed tax expense (benefit) with statutory tax rate | 21.00% | 25.00% |
Impact of different tax rates in other jurisdictions | 3.20% | 0.00% |
Tax effect of non-deductible expenses | (0.70%) | (0.80%) |
Change in valuation allowance | (23.50%) | (24.20%) |
Effective tax rate | 0.00% | 0.00% |
SCHEDULE OF COMPONENTS OF DEFER
SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforwards | $ 668,825 | $ 52,201 |
Organizational expense | 1,216 | |
Total deferred tax assets | 670,041 | 52,201 |
Valuation allowance | (670,041) | (52,201) |
Total deferred tax assets, net |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) $ in Millions | 12 Months Ended | ||
Sep. 30, 2021USD ($) | Sep. 30, 2021HKD ($) | Sep. 30, 2020USD ($) | |
Operating Loss Carryforwards [Line Items] | |||
Percentage of statutory income tax rate | 21.00% | 21.00% | 25.00% |
Percentage of statutory income tax rate | 0.00% | 0.00% | 0.00% |
[custom:OperatingLossCarryforwardsGross-0] | $ 2,872,763 | $ 1,139,203 | |
[custom:IncomeTaxExpirationTermPeriod] | 5 years | 5 years | |
Other Tax Expense (Benefit) | $ 208,802 | 1,438,207 | |
PRC [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Percentage of statutory income tax rate | 25.00% | 25.00% | |
[custom:OperatingLossCarryforwardsGross-0] | $ 1,647,009 | 208,802 | |
PRC [Member] | VIE [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Percentage of statutory income tax rate | 25.00% | 25.00% | |
HK [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Amount of profits tax rate | $ 260,000 | ||
Percentage of statutory income tax rate | 16.50% | 16.50% | |
[custom:OperatingLossCarryforwardsGross-0] | $ 2,624 | ||
HKD [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Amount of profits tax rate | $ 2 | ||
Percentage of statutory income tax rate | 8.25% | 8.25% | |
UNITED STATES | |||
Operating Loss Carryforwards [Line Items] | |||
[custom:OperatingLossCarryforwardsGross-0] | $ 1,223,130 | $ 930,401 |
SUMMARY OF OPERATING LEASE ASSE
SUMMARY OF OPERATING LEASE ASSETS AND LIABILITIES (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Right-of-use Assets And | ||
Operating lease right-of-use-assets | $ 282,466 | $ 413,156 |
Operating lease, liability, current | 229,337 | 254,780 |
Operating lease liability -net of current portion | 53,129 | 158,376 |
Total lease liabilities | $ 282,466 | $ 413,156 |
SUMMARY OF OPERATING LEASE EXPE
SUMMARY OF OPERATING LEASE EXPENSE (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Right-of-use Assets And | ||
Operating lease cost | $ 375,170 | $ 96,463 |
Total lease cost | $ 375,170 | $ 96,463 |
SCHEDULE OF MATURITY OF OPERATI
SCHEDULE OF MATURITY OF OPERATING LEASE LIABILITIES (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Right-of-use Assets And | ||
Year one | $ 236,506 | $ 267,360 |
Year two | 54,292 | 162,677 |
Year three | ||
Year four | ||
Year five | ||
Thereafter | ||
Total lease payments | 290,798 | 430,037 |
Less: interest | (8,332) | (16,881) |
Present value of lease payments | $ 282,466 | $ 413,156 |
SCHEDULE OF OPERATING LEASES (D
SCHEDULE OF OPERATING LEASES (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Right-of-use Assets And | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 297,978 | $ 101,434 |
New operating lease assets obtained in exchange for operating lease liabilities | $ 195,738 | $ 511,710 |
Weighted average remaining lease term | 1 year 1 month 6 days | 1 year 7 months 6 days |
Weighted average discount rate | 4.75% | 4.75% |
RIGHT-OF-USE ASSETS AND (Detail
RIGHT-OF-USE ASSETS AND (Details Narrative) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Right-of-use Assets And | ||
Operating Lease, Right-of-Use Asset, Amortization Expense | $ 294,658 | $ 93,784 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - Tianjin [Member] $ in Thousands | 12 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2021CNY (¥) | Apr. 30, 2021USD ($) | Apr. 30, 2021CNY (¥) | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Franchised operation | 5 years | |||
Franchise fee payable | $ 1,140 | ¥ 7,500,000 | $ 340 | ¥ 2,250,000 |
Remaining balance of franchise fee payable | $ | $ 800 | |||
Remaining balance of franchise fee payable | ¥ | ¥ 5,250,000 |