VARIABLE INTEREST ENTITIES - “VIE” AGREEMENTS | NOTE 3 - VARIABLE INTEREST ENTITIES - “VIE” AGREEMENTS On May 15, 2021, King Eagle (China) entered into a series of contractual arrangements with King Eagle (Tianjin) and its shareholders. As a result of the contractual arrangements, the Company classified King Eagle (Tianjin) as a Variable Interest Entity “VIE.” King Eagle (Tianjin) Technology Co., Ltd. (“King Eagle (Tianjin)”) was incorporated as a limited liability company in Tianjin Pilot Free Trade Zone in the People’s Republic of China on September 2, 2020, with a registered capital of approximately $ 1.5 10 45.5 10.5 10 6 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 the Exclusive Consulting Service Agreement dated May 15, 2021, between King Eagle (China) and King Eagle (Tianjin) (the “Consulting Service Agreement”), King Eagle (China) is the exclusive consulting service provider to King Eagle (Tianjin) to provide business-related software research and development services; design, installation, and testing services; network equipment support, upgrade, maintenance, monitor, and problem-solving services; employees technical training services; technology development and sublicensing services; public relations services; market investigation, research, and consultation services; short to medium term marketing plan-making services; compliance consultation services; marketing events and membership related activities organizing services; intellectual property permits; equipment and rental services; and business-related management consulting services. Pursuant to the Consulting Service Agreement, the service fee is the remaining amount after King Eagle (Tianjin)’s profit before tax in the corresponding year deducts King Eagle (Tianjin)’s losses, if any, in the previous year, the necessary costs, expenses, taxes, and fees incurred in the corresponding year, and the withdraws of the statutory provident fund. King Eagle (Tianjin)agreed not to transfer its rights and obligations under the Consulting Service Agreement to any third party without prior written consent from King Eagle (China). In addition, King Eagle (China) may transfer its rights and obligations under the Consulting Service Agreement to King Eagle (China)’s affiliates without King Eagle (Tianjin)’s consent, but King Eagle (China) shall notify King Eagle (Tianjin) of such transfer. This Agreement is valid for a term of 10 years subject to any extension requested by King Eagle (China) unless terminated by King Eagle (China) unilaterally prior to the expiration. Business Operation Agreement Pursuant to the terms of the Business Operation Agreement dated May 15, 2021, among King Eagle (China), King Eagle (Tianjin) and the shareholders of King Eagle (Tianjin) (the “Business Operation Agreement”), King Eagle (Tianjin) has agreed to subject the operations and management of its business to the control of King Eagle (China). According to the Business Operation Agreement, King Eagle (Tianjin) is not allowed to conduct any transaction that has substantial impact upon its operations, assets, rights, obligations, and personnel without King Eagle (China)’s written approval. The shareholders of King Eagle (Tianjin) and King Eagle (Tianjin) will take King Eagle (China)’s advice on the appointment or dismissal of directors, employment of King Eagle (Tianjin)’s employees, regular operation, and financial management of King Eagle (Tianjin). The shareholders of King Eagle (Tianjin) have agreed to transfer any dividends, distributions, or other profits that they receive as the shareholders of King Eagle (Tianjin) to King Eagle (China) without consideration. The Business Operation Agreement is valid for a term of 10 years or longer upon the request of King Eagle (China) prior to the expiration thereof. The Business Operation Agreement might be terminated earlier by King Eagle (China) with a 30-day written notice. 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”), the shareholders of King Eagle (Tianjin) have entrusted their voting rights as King Eagle (Tianjin)’s shareholders to King Eagle (China) for the longest duration permitted by PRC law. The Proxy Agreement can be terminated by mutual consent of King Eagle (Tianjin)’s shareholders and King Eagle (China) or upon a 30-day notice of King Eagle (China). Equity Disposal Agreement Pursuant to the terms of the Equity Disposal Agreement dated May 15, 2021, among King Eagle (China), King Eagle (Tianjin), and the shareholders of King Eagle (Tianjin) (the “Equity Disposal Agreement”), the shareholders of King Eagle (Tianjin) granted King Eagle (China) or its designees an irrevocable and exclusive purchase option (the “Option”) to purchase all or part of the equity interests in and/or assets of King Eagle (Tianjin) at the lowest purchase price permitted by PRC laws and regulations. The Option is exercisable at any time at King Eagle (China)’s discretion in full or in part, to the extent permitted by PRC law. The shareholders of King Eagle (Tianjin) agreed to give King Eagle (China) the total amount of the exercise price as a gift, or other method, upon King Eagle (China)’s written consent to transfer the exercise price to King Eagle (Tianjin). The Equity Disposal Agreement is valid for a term of 10 years or longer upon the request of King Eagle (China). Equity Pledge Agreement Pursuant to the terms of the Equity Pledge Agreement dated May 15, 2021, among King Eagle (China) and the shareholders of King Eagle (Tianjin) (the “Pledge Agreement”), the shareholders of King Eagle (Tianjin) pledged all of their equity interests in King Eagle (Tianjin)to King Eagle (China), including the proceeds thereof, to guarantee King Eagle (Tianjin)’s performance of its obligations under the Business Operation Agreement, the Consulting Service Agreement, and the Equity Disposal Agreement (each, an “Agreement” and, collectively, the “Agreements”). If King Eagle (Tianjin) or its shareholders breach their respective contractual obligations under any Agreement, or cause to occur one of the events regarded as an event of default under any Agreement, King Eagle (China), as pledgee, will be entitled to certain rights, including the right to dispose of the pledged equity interest in King Eagle (Tianjin). During the term of the Pledge Agreement, the pledged equity interests cannot be transferred without King Eagle (China)’s prior written consent. The Pledge Agreement is valid until all the obligations due under the Agreement have been fulfilled. A VIE is an entity that has either a total equity investment that is insufficient to permit the entity to finance its activities without additional subordinated financial support, or whose equity investors lack the characteristics of a controlling financial interest, such as voting rights and the right to receive the expected residual returns of the entity or the obligation to absorb the expected losses of the entity. The variable interest holder, if any, that has a controlling financial interest in a VIE is deemed to be the primary beneficiary and must consolidate the VIE. King Eagle (China) is deemed to have a controlling financial interest and be the primary beneficiary of King Eagle (Tianjin) because it has both of the following characteristics: (1) The power to direct the activities of King Eagle (Tianjin) that most significantly impact such entity’s economic performance, and (2) The obligation to absorb losses of, or the right to receive benefits from, King Eagle (Tianjin) that could potentially be significant to such entity. As of the date of this Quarterly Report, King Eagle (Tianjin) has established five subsidiaries: King Eagle (Beijing) Technology Co., Ltd, King Eagle (Huai’an) Health Management Co., Ltd., Kun Zhi Jian (Huai’an) Technology Co., Ltd . Pursuant to the VIE Agreements, the shareholders of King Eagle (Tianjin) have agreed to transfer any dividends, distributions, or other profits that they receive to King Eagle (China). King Eagle (Tianjin) pays service fees equal to all of its net profit after tax to King Eagle (China). The VIE Agreements are designed so that King Eagle (Tianjin) operates for the benefit of King Eagle (China) and ultimately the Company. Moreover, King Eagle (Tianjin) has agreed to subject the operations and management of its business to the full control under King Eagle (China) and King Eagle (Tianjin) will take King Eagle (China)’s advice on the appointment or dismissal of directors and employment, regular operation, and financial management. Accordingly, the Company consolidates the accounts of King Eagle (Tianjin) and its subsidiaries for the periods presented herein, in accordance with Accounting Standards Codification, or ASC, 810-10, “Consolidation.” Accordingly, the accounts of King Eagle (Tianjin) and its subsidiaries 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. VIE Financial Information Set forth below is the consolidated balance sheet information as of June 30, 2024 and September 30, 2023 and the consolidated statements of operations and cash flows for the nine months ended June 30, 2024 and 2023, showing financial information for the parent company, Kun Peng International Limited, the non-VIE subsidiaries (as defined below), and the VIE (as defined below), eliminating entries, and consolidated information (in dollars). In the tables below, the column headings correspond to the following entities: “Parent entity” refers to Kun Peng International Limited; “Non-VIE and Non-WFOE subsidiaries” refers to the following entities: ● Kun Peng International Holding Limited (“KP International Holding”) ● Kun Peng (China) Industrial Development Company Limited (“KP (China)”) ● Kun Peng (Hong Kong) Industrial Development Limited (“KP (Hong Kong)”) ● Kun Peng Tian Yu Health Technology Co., Ltd. (“KP Tian Yu”) until March 3, 2023 ● King Eagle (China) Co., Ltd. (“King Eagle (China)”) commencing March 3, 2023 “WFOE” refers to King Eagle (China) Co., Ltd. (“King Eagle (China)”) until March 3, 2023 and KP Tian Yu commencing March 3, 2023; “VIE” refers to King Eagle (Tianjin) Technology Co., Ltd. (“King Eagle (Tianjin)”), King Eagle (Beijing) Technology Co., Ltd (“King Eagle (Beijing)”), King Eagle (Huai’an) Health Management Co., Ltd. (“King Eagle (Huai’an)”), Kun Zhi Jian (Huai’an) Technology Co., Ltd. (“Kun Zhi Jian (Huai’an)”), Kun Zhi Jian (Shandong) Health Management Co., Ltd (“Kun Zhi Jian (Shangdong)”), Chengdu Wenjiang Pengrun Internet Healthcare Co., Ltd (“Chengdu Wenjiang”) and Kun Pin Hui (Shandong) Trading Co., Ltd (“Kun Pin Hui (Shandong)”). Condensed Consolidated Balance Sheets As of June 30, 2024 SCHEDULE OF VIE OF BALANCE SHEET Parent Non-VIE and WFOE VIE and Elimination Consolidated Cash and cash equivalent $ - $ 1,020 $ 68 $ 293,587 $ - $ 294,675 Advance and Prepayments - 25,307 - 104,708 - 130,015 Accounts receivable - - - - - Other receivables - third party - 20,414 - 288,956 - 309,370 Amount due from a related party - - - 13,760 - 13,760 Inventory - - - 17,644 - 17,644 Intercompany receivables-current - 666,687 (2) - 2,316,194 (1) (2,982,881 ) - Total current Assets - 713,428 68 3,034,849 (2,982,881 ) 765,464 Property and equipment, net - 37,519 - 541,452 - 578,971 Intangible Assets, net - 2,550 - - - 2,550 Security deposits and prepayments, noncurrent - 40,790 - - - 40,790 Prepayments, noncurrent - 71,153 - (1,459 ) - 69,694 ROU assets - 178,744 - 61,999 - 240,743 Intercompany receivables-noncurrent - 4 - - (4 ) - Investment in subsidiary 34,160 - - - (34,160 ) - Total non-current Assets 34,160 330,760 - 601,992 (34,164 ) 932,748 Total assets 34,160 1,044,188 68 3,636,841 (3,017,045 ) 1,698,212 Trade payable - 52,599 - 2,413,857 - 2,466,458 Other payables and accrual 16,000 61,772 - 586,920 - 664,692 Advances from customers - - - 1,242,359 - 1,242,359 Intercompany payables 945,736 (3) 1,887,361 (1) 688 (1) 193,525 (3,027,310 ) - Salary payable - 28,278 - 62,194 - 90,472 Provision for taxation - 10,078 - 185,818 - 195,896 Operating lease obligations-current - 181,668 - 66,736 - 248,404 Amount due to related parties - - - 2,844,011 - 2,844,011 Total current liabilities 961,736 2,221,756 688 7,595,420 (3,027,310 ) 7,752,290 Total noncurrent liabilities - 61,406 - 349,440 - 410,846 Total liabilities 961,736 2,283,162 688 7,944,860 (3,027,310 ) 8,163,136 Total shareholders’ Equity (927,576 ) (1,116,836 ) (620 ) (4,119,351 ) 10,265 (6,154,118 ) Non-controlling interests - (122,138 ) - (188,668 ) - (310,806 ) Total equity (927,576 ) (1,238,974 ) (620 ) (4,308,019 ) 10,265 (6,464,924 ) Total liabilities and equity $ 34,160 $ 1,044,188 $ 68 $ 3,636,841 $ (3,017,045 ) $ 1,698,212 (1) Intercompany receivables from non-VIE entities, WFOE, and parent entity and intercompany payables to VIE represent loans to non-VIE entities, WFOE, and parent entity for working capital purposes. (2) Intercompany receivables from the parent entity represent loans from King Eagle (China) to the parent entity for working capital purposes. (3) Intercompany payables to King Eagle (China) and VIE represent loans from King Eagle (China) and VIE to the parent entity for working capital purposes. (4) Intercompany payable to King Eagle (China) represents loan to King Eagle (Tianjin) for working capital purposes. As of September 30, 2023 Parent Non-VIE and WFOE VIE and Elimination Consolidated Cash and cash equivalent $ - $ 10,457 $ 6 $ 447,117 $ - $ 457,580 Advance and Prepayments - 32,721 - 41,323 - 74,044 Other receivables - third party - 3,629 - 19,431 - 23,060 Inventory - - - 107,263 - 107,263 Intercompany receivables-current - 494,197 (2) - 2,119,294 (1) (2,613,491 ) - Total current Assets - 541,004 6 2,734,428 (2,613,491 ) 661,947 Property and equipment, net - 72,552 - - - 72,552 Intangible Assets, net - 2,806 - - - 2,806 Security deposits and prepayments, noncurrent - 41,999 - - - 41,999 Prepayments, noncurrent - 3,245 - - - 3,245 ROU assets - 351,753 - 127,674 - 479,427 Intercompany receivables-noncurrent - 4 - - (4 ) - Investment in subsidiary 34,160 - - - (34,160 ) - Total non-current Assets 34,160 472,359 - 127,674 (34,164 ) 600,029 Total assets 34,160 1,013,363 6 2,862,102 (2,647,655 ) 1,261,976 Trade payable - - - 2,067,831 - 2,067,831 Other payables and accrual 66,000 10,040 - 8,029 - 84,069 Advances from customers - - - 2,149,238 - 2,149,238 Intercompany payables 724,680 (3) 1,909,747 (1) 617 (1) 34,370 (4) (2,669,414 ) - Salary payable - 26,213 - 37,440 - 63,653 Provision for taxation - 3,852 - 180,505 - 184,357 Operating lease obligations-current - 232,976 - 85,446 - 318,422 Amount due to related parties - - - 1,318,120 - 1,318,120 Total current liabilities 790,680 2,182,828 617 5,880,979 (2,669,414 ) 6,185,690 Total noncurrent liabilities - 60,526 - 35,381 - 95,907 Total liabilities 790,680 2,243,354 617 5,916,360 (2,669,414 ) 6,281,597 Total shareholders’ Equity (756,520 ) (1,107,853 ) (611 ) (2,895,395 ) 21,759 (4,738,620 ) Non-controlling interests - (122,138 ) - (158,863 ) - (281,001 ) Total equity (756,520 ) (1,229,991 ) (611 ) (3,054,258 ) 21,759 (5,019,621 ) Total liabilities and equity $ 34,160 $ 1,013,363 $ 6 $ 2,862,102 $ (2,647,655 ) $ 1,261,976 (1) Intercompany receivables from non-VIE entities, WFOE, and parent entity and intercompany payables to VIE represent loans to non-VIE entities, WFOE, and parent entity for working capital purposes. (2) Intercompany receivables from the parent entity represent loans from King Eagle (China) to the parent entity for working capital purposes. (3) Intercompany payables to King Eagle (China) and VIE represent loans from King Eagle (China) and VIE to the parent entity for working capital purposes. (4) Intercompany payable to King Eagle (China) represents loan to King Eagle (Tianjin) for working capital purposes. Condensed Consolidated Statements of Operations Data SCHEDULE OF VIE DATA OF OPERATION Parent Non-VIE and WFOE VIE and Eliminating Consolidated For the nine months ended June 30, 2024 Parent Non-VIE and WFOE VIE and Eliminating Consolidated Revenue $ - $ - $ - $ 1,598,728 $ - $ 1,598,728 Intercompany revenue 601,210 - (601,210 ) - Cost of revenue and related tax - 748 - 427,900 - 428,648 Gross profit - 600,462 - 1,170,829 (601,210 ) 1,170,080 Total operating expenses 171,056 604,712 7 995,516 - 2,604,771 Intercompany operating expenses - - - 392,094 (392,094 ) - Loss from operations (171,056 ) (4,250 ) (7 ) (1,259,377 ) - (1,434,690 ) Other income - 37 - 30,626 - 30,663 Loss before income taxes (171,056 ) (4,213 ) (7 ) (1,228,756 ) - (1,404,027 ) Income tax expense - - - 16,029 - 16,029 Net loss $ (171,056 ) $ (4,213 ) $ (7 ) $ (1,244,780 ) $ - $ (1,420,056 ) Parent Only Non-VIE and Non-WFOE Subsidiaries Consolidated WFOE VIE and VIE’s Subsidiaries Consolidated Eliminating Adjustments Consolidated Totals For the nine months ended June 30, 2023 Parent Only Non-VIE and Non-WFOE Subsidiaries Consolidated WFOE VIE and VIE’s Subsidiaries Consolidated Eliminating Adjustments Consolidated Totals Revenue $ - $ - $ - $ 1,231,712 $ - $ 1,231,712 Intercompany revenue 248,805 519,296 - (768,101 ) - Cost of revenue and related tax - 562 1,006 244,534 - 246,102 Gross profit - 248,243 518,290 987,178 (768,101 ) 985,610 Total operating expenses 175,724 239,092 604,401 2,687,249 - 3,706,466 Intercompany operating expenses - - - 768,101 (768,101 ) - Loss from operations (175,724 ) 9,151 (86,111 ) (2,468,172 ) - (2,720,856 ) Other income - (1,299 ) 461 99,949 - 99,111 Loss before income taxes (175,724 ) 7,852 (85,650 ) (2,368,223 ) - (2,621,745 ) Income tax expense - - - - - - Net loss $ (175,724 ) $ 7,852 $ (85,650 ) $ (2,368,223 ) $ - $ (2,621,745 ) Condensed Consolidated Schedules of Cash Flows SCHEDULE OF VIE DATA OF CASH FLOWS Parent Non-VIE and WFOE VIE and Eliminating Consolidated For the nine months ended June 30, 2024 Parent Non-VIE and WFOE VIE and Eliminating Consolidated Net loss $ (171,056 ) $ (4,214 ) $ (7 ) $ (1,012,630 ) $ - $ (1,187,907 ) Intercompany receivables - (148,614 ) - (641,868 ) 790,482 - Intercompany payables 221,056 (38,430 ) 69 663,147 (845,842 ) - Net cash (used in) provided by operating activities - (11,594 ) 62 (474,637 ) (55,360 ) (518,341 ) Net cash used in investing activities - - - - - - Effect of exchange rate fluctuation on cash $ - $ (29,378 ) $ 1 $ 9,227 $ 55,360 $ 43,556 Parent Non-VIE and WFOE VIE and Eliminating Consolidated For the nine months ended June 30, 2023 Parent Non-VIE and WFOE VIE and Eliminating Consolidated Net loss $ (175,724 ) $ 7,852 $ (85,650 ) $ (2,368,223 ) $ - $ (2,621,745 ) Intercompany receivables - (329,669 ) - (881,574 ) 1,211,243 - Intercompany payables 224,724 335,344 190,896 443,776 (1,194,740 ) - Net cash (used in) provided by operating activities - 9,821 (13,007 ) 129,472 16,503 142,789 Net cash used in investing activities - (571 ) (606 ) - - (1,177 ) Net cash provided by financing activities - - - 200,327 - 200,327 Effect of exchange rate fluctuation on cash $ - $ (10,629 ) $ (10,570 ) $ (16,719 ) $ (16,503 ) $ (33,281 ) The Company consolidated its VIE as of June 30, 2024 and September 30, 2023. The carrying amounts and classification of the VIE’s assets and liabilities included in the consolidated balance sheets are as follows: SCHEDULE OF VIE CONSOLIDATED BALANCE SHEETS, OPERATING RESULTS AND CASH FLOWS June 30, 2024 September 30, 2023 Assets Current assets Cash and cash equivalents $ 293,587 $ 447,117 Trade receivable – third parties - - Trade receivable - intercompany - 2,119,294 Advance and prepayments 104,708 41,323 Other receivables - third parties 288,956 19,431 Other receivables - intercompany 2,316,194 - Amount due from a related party 13,760 - Inventory 17,644 107,263 Total current assets 3,034,849 2,734,428 Noncurrent assets Property and equipment, net $ 541,452 $ - Prepayment, noncurrent (1,459 ) - Right-of-use assets 61,999 127,674 Total noncurrent assets 601,992 127,674 Total assets $ 3,636,841 $ 2,862,102 Liabilities Current liabilities Trade payables - third parties $ 2,413,857 $ 2,067,831 Other payables and accrual 586,920 8,029 Deferred revenue 1,242,359 2,149,238 Intercompany payables 193,525 34,370 Payroll payable 62,194 37,440 Tax payable 185,818 180,505 Amounts due to related parties 2,844,011 1,318,120 Operating lease obligations-current portion 66,736 85,446 Total current liabilities 7,595,420 5,880,979 Noncurrent liabilities Operating lease obligations-net of current portion 349,440 35,381 Total noncurrent liabilities 349,440 35,381 Total liabilities 7,944,860 5,916,360 Commitment and contingencies - Equity Additional paid-in capital 637,801 637,801 Accumulated deficits (4,984,788 ) (3,788,510 ) Accumulated other comprehensive income 227,636 255,314 Total stockholders’ equity (4,119,351 ) (2,895,395 ) Non-controlling interests (188,668 ) (158,863 ) Total equity (4,308,019 ) (3,054,258 ) Total liabilities and equity $ 3,636,841 $ 2,862,102 The operating results of the VIE were as follows: 2024 2023 2024 2023 For the three months ended June 30, For the nine months ended June 30, 2024 2023 2024 2023 Revenue, net $ 672,062 337,031 $ 1,598,728 1,231,712 Cost of revenue 181,014 (66,912 ) 428,648 (244,534 ) Gross profit 491,048 270,119 1,170,080 987,178 Operating expenses General and administrative expenses 665,195 242,687 1,258,889 557,152 Selling expense 62,521 1,324,034 1,174,826 2,898,198 Total operating expenses 727,716 1,566,721 2,433,715 3,455,350 Loss from operations (236,668 ) (1,296,6012 ) (1,263,635 ) (2,468,172 ) Other (expenses) income: Interest income 27 119 402 203 Other income (1,081 ) (9,072 ) 30,261 99,746 Total other (expenses) income, net (1,054 ) (8,953 ) 30,663 99,949 Loss before income taxes (237,722 ) (1,305,555 ) (1,232,972 ) (2,368,223 ) Income tax expense 2,665 - 16,029 - Net loss (235,057 ) (1,305,555 ) (1,216,943 ) (2,368,223 ) Less: Net income (loss) attributable to non-controlling interest - - (47 ) - Net loss attributable to Kun Peng International Ltd (235,057 ) (1,305,555 ) (1,216,990 ) (2,368,223 ) The cash flows of the VIE were as follows: 2024 2023 For the nine months ended June 30, 2024 2023 Cash flows from operating activities Net loss $ (1,254,553 ) (2,368,223 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities Depreciation and amortization 35,932 - Amortization of right-of-use assets 66,631 64,101 Changes in operating assets and liabilities Advance and prepayments (52,252 ) (67,159 ) Other receivable- related parties (13,854 ) - Trade receivable- intercompany (113,820 ) (443,092 ) Other receivables- third parties (226,082 ) 2,063 Other receivables- intercompany (528,048 ) (438,482 ) Inventory 93,253 - Amount due from a related party - - Trade payable- third parties - 1,088,282 Trade payable- intercompany 149,953 442,263 Other payables and accrual- third parties 518,345 399,992 Other payables and accrual- intercompany 513,194 1,513 Deferred revenue (955,853 ) 1,370,302 Payroll payable 24,772 31,898 Amounts due to related parties 1,531,003 (12,020 ) Tax payable (20,923 ) 124,358 Lease liabilities (52,623 ) (66,324 ) Net cash used in operating activities (162,756 ) 129,472 Cash flows from investing activities Purchase of property, plant and equipment - - Net cash used in investing activities - - Cash flows from financing activities Capital contribution - 200,327 Net cash provided by financing activities - 200,327 Effect of exchange rate changes on cash 9,227 (16,719 ) Net change in cash and cash equivalents (153,529 ) 313,080 Cash and cash equivalents, beginning balance 447,117 255,536 Cash and cash equivalents, ending balance $ 20,054 568,616 |