2024 Q2 Form 10-Q Financial Statement

#000149315224019649 Filed on May 15, 2024

View on sec.gov

Income Statement

Concept 2024 Q2 2024 Q1 2023 Q1
Revenue $672.1K $364.5K $319.0K
YoY Change 45.9% 14.28% -84.2%
Cost Of Revenue $180.3K $99.46K $72.04K
YoY Change 177.85% 38.06% -78.65%
Gross Profit $491.8K $265.1K $246.9K
YoY Change 24.26% 7.35% -85.31%
Gross Profit Margin 73.18% 72.72% 77.41%
Selling, General & Admin $776.3K $848.7K $947.9K
YoY Change -53.09% -10.47% -58.87%
% of Gross Profit 157.85% 320.19% 383.9%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $21.16K $21.22K $15.44K
YoY Change 37.73% 37.49% -41.15%
% of Gross Profit 4.3% 8.01% 6.25%
Operating Expenses $776.3K $848.7K $947.9K
YoY Change -53.09% -10.47% -58.87%
Operating Profit -$284.5K -$583.6K -$701.0K
YoY Change -77.41% -16.74% 12.48%
Interest Expense $50.00
YoY Change -68.75%
% of Operating Profit
Other Income/Expense, Net -$1.087K -$440.00 $109.0K
YoY Change -89.37% -100.4% 1197.24%
Pretax Income -$285.6K -$584.1K -$592.0K
YoY Change -77.5% -1.34% -3.69%
Income Tax $2.665K $13.36K
% Of Pretax Income
Net Earnings -$292.5K -$577.0K -$592.0K
YoY Change -76.96% -2.54% 3.93%
Net Earnings / Revenue -43.53% -158.3% -185.62%
Basic Earnings Per Share $0.00 $0.00 $0.00
Diluted Earnings Per Share $0.00 $0.00 $0.00
COMMON SHARES
Basic Shares Outstanding 400.0M shares 400.0M shares 400.0M shares
Diluted Shares Outstanding 400.0M shares 400.0M shares 400.0M shares

Balance Sheet

Concept 2024 Q2 2024 Q1 2023 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $59.47K
YoY Change -94.87%
Cash & Equivalents $294.7K $21.54K $59.47K
Short-Term Investments
Other Short-Term Assets $622.3K
YoY Change -1.25%
Inventory $17.64K $41.38K
Prepaid Expenses $130.0K $170.1K $259.7K
Receivables $12.49K
Other Receivables $309.4K $245.0K
Total Short-Term Assets $765.5K $504.4K $726.1K
YoY Change -39.04% -30.54% -62.62%
LONG-TERM ASSETS
Property, Plant & Equipment $579.0K $98.05K $107.5K
YoY Change 565.9% -8.78% -85.19%
Goodwill
YoY Change
Intangibles $2.550K $2.656K $3.170K
YoY Change -12.46% -16.21%
Long-Term Investments
YoY Change
Other Assets $69.69K $10.63K $6.033K
YoY Change 1452.55% 76.2% -86.5%
Total Long-Term Assets $932.7K $474.2K $683.3K
YoY Change 42.67% -30.61% -11.59%
TOTAL ASSETS
Total Short-Term Assets $765.5K $504.4K $726.1K
Total Long-Term Assets $932.7K $474.2K $683.3K
Total Assets $1.698M $978.6K $1.409M
YoY Change -11.06% -30.57% -48.09%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.470M
YoY Change 79.06%
Accrued Expenses $338.6K
YoY Change 4.77%
Deferred Revenue $938.9K $938.9K
YoY Change
Short-Term Debt $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $7.752M $7.178M $6.189M
YoY Change 1.12% 15.99% 31.45%
LONG-TERM LIABILITIES
Long-Term Debt $0.00
YoY Change
Other Long-Term Liabilities $126.9K
YoY Change -62.31%
Total Long-Term Liabilities $410.8K $126.9K
YoY Change 150.17% -62.31%
TOTAL LIABILITIES
Total Short-Term Liabilities $7.752M $7.178M $6.189M
Total Long-Term Liabilities $410.8K $126.9K
Total Liabilities $8.163M $7.178M $6.315M
YoY Change 4.25% 13.66% 29.86%
SHAREHOLDERS EQUITY
Retained Earnings -$7.193M -$6.901M -$5.006M
YoY Change 14.62% 37.84%
Common Stock $40.00K $40.00K $40.00K
YoY Change 0.0% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$6.154M -$5.884M -$4.625M
YoY Change
Total Liabilities & Shareholders Equity $1.698M $978.6K $1.409M
YoY Change -11.06% -30.57% -48.09%

Cashflow Statement

Concept 2024 Q2 2024 Q1 2023 Q1
OPERATING ACTIVITIES
Net Income -$292.5K -$577.0K -$592.0K
YoY Change -76.96% -2.54% 3.93%
Depreciation, Depletion And Amortization $21.16K $21.22K $15.44K
YoY Change 37.73% 37.49% -41.15%
Cash From Operating Activities -$220.4K
YoY Change -86.24%
INVESTING ACTIVITIES
Capital Expenditures $100.00
YoY Change -433.33%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities -$100.00
YoY Change 233.33%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 186.4K
YoY Change
NET CHANGE
Cash From Operating Activities -220.4K
Cash From Investing Activities -100.0
Cash From Financing Activities 186.4K
Net Change In Cash -34.16K
YoY Change -97.87%
FREE CASH FLOW
Cash From Operating Activities -$220.4K
Capital Expenditures $100.00
Free Cash Flow -$220.5K
YoY Change -86.23%

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us-gaap Operating Lease Right Of Use Asset Amortization Expense
OperatingLeaseRightOfUseAssetAmortizationExpense
189510 usd
us-gaap Increase Decrease In Prepaid Expense
IncreaseDecreaseInPrepaidExpense
-20015 usd
us-gaap Increase Decrease In Finance Receivables
IncreaseDecreaseInFinanceReceivables
12516 usd
us-gaap Increase Decrease In Other Receivables
IncreaseDecreaseInOtherReceivables
10962 usd
us-gaap Increase Decrease In Inventories
IncreaseDecreaseInInventories
-67134 usd
us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
195018 usd
us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
631642 usd
us-gaap Increase Decrease In Other Accounts Payable And Accrued Liabilities
IncreaseDecreaseInOtherAccountsPayableAndAccruedLiabilities
454872 usd
us-gaap Increase Decrease In Other Accounts Payable And Accrued Liabilities
IncreaseDecreaseInOtherAccountsPayableAndAccruedLiabilities
192575 usd
us-gaap Increase Decrease In Deferred Revenue
IncreaseDecreaseInDeferredRevenue
-1235253 usd
us-gaap Increase Decrease In Deferred Revenue
IncreaseDecreaseInDeferredRevenue
-79706 usd
us-gaap Increase Decrease In Employee Related Liabilities
IncreaseDecreaseInEmployeeRelatedLiabilities
33623 usd
us-gaap Increase Decrease In Employee Related Liabilities
IncreaseDecreaseInEmployeeRelatedLiabilities
6325 usd
us-gaap Increase Decrease In Due To Related Parties
IncreaseDecreaseInDueToRelatedParties
1535989 usd
us-gaap Increase Decrease In Due To Related Parties
IncreaseDecreaseInDueToRelatedParties
2294 usd
us-gaap Increase Decrease In Accrued Income Taxes Payable
IncreaseDecreaseInAccruedIncomeTaxesPayable
-59276 usd
us-gaap Increase Decrease In Accrued Income Taxes Payable
IncreaseDecreaseInAccruedIncomeTaxesPayable
103818 usd
us-gaap Increase Decrease In Operating Lease Liability
IncreaseDecreaseInOperatingLeaseLiability
-97258 usd
us-gaap Increase Decrease In Operating Lease Liability
IncreaseDecreaseInOperatingLeaseLiability
-197570 usd
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-390008 usd
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-463322 usd
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
58596 usd
us-gaap Payments To Acquire Intangible Assets
PaymentsToAcquireIntangibleAssets
606 usd
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-58596 usd
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-606 usd
us-gaap Proceeds From Contributions From Parent
ProceedsFromContributionsFromParent
186352 usd
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
186352 usd
us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
12564 usd
us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
69917 usd
us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
-436040 usd
us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
-207659 usd
CY2023Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
457580 usd
CY2022Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
267131 usd
CY2023Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
59472 usd
CY2022Q4 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
200000000 shares
CY2022Q4 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.0001
CY2022Q4 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
1000000000 shares
CY2022Q4 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.0001
CY2022Q4 us-gaap Common Stock Shares Issued
CommonStockSharesIssued
400000000 shares
CY2022Q4 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
400000000 shares
us-gaap Use Of Estimates
UseOfEstimates
<p id="xdx_847_eus-gaap--UseOfEstimates_zVYMFj6rbam7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline"><span id="xdx_86E_z497eaCH9Ds4">Use of Estimates and Assumptions</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The preparation of the condensed consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates 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 six months ended March 31, 2024 and 2023 include the collectability of receivables, the valuation of inventory, the useful lives of long-lived assets and intangibles, the assumptions used in assessing impairment of long-lived assets, the valuation of accruals for expenses and tax due.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-390008 usd
us-gaap Profit Loss
ProfitLoss
-1131821 usd
CY2024Q1 KPEA Working Capital Deficit
WorkingCapitalDeficit
6673619 usd
us-gaap Proceeds From Related Party Debt
ProceedsFromRelatedPartyDebt
1500000 usd
CY2024Q1 us-gaap Accumulated Other Comprehensive Income Loss Net Of Tax
AccumulatedOtherComprehensiveIncomeLossNetOfTax
378684 usd
CY2023Q3 us-gaap Accumulated Other Comprehensive Income Loss Net Of Tax
AccumulatedOtherComprehensiveIncomeLossNetOfTax
426741 usd
CY2024Q1 us-gaap Inventory Gross
InventoryGross
79487 usd
us-gaap Selling Expense
SellingExpense
752214 usd
us-gaap Selling Expense
SellingExpense
1092158 usd
KPEA Sales Commissions Expense
SalesCommissionsExpense
494352 usd
KPEA Sales Commissions Expense
SalesCommissionsExpense
631509 usd
us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<p id="xdx_84A_eus-gaap--ConcentrationRiskCreditRisk_zRMIIUpTg1S" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline"><span id="xdx_863_zBJ2EDqjeOUa">Concentration of Risk</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Credit risk</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and other receivables. As of March 31, 2024 and September 30, 2023, $<span id="xdx_908_eus-gaap--Deposits_iI_c20240331_zqVdmgU6eqx" title="Deposits">21,332</span> (RMB<span id="xdx_904_eus-gaap--Deposits_iI_uRMB_c20240331_zXV8TZrc4AXk" title="Deposits">154,024</span>) and $<span id="xdx_906_eus-gaap--Deposits_iI_c20230930_zpSRcGhGInEk" title="Deposits">428,088</span> (RMB <span id="xdx_906_eus-gaap--Deposits_iI_uRMB_c20230930_z2tFkI7VeAOg" title="Deposits">3,123,333</span>), respectively, were deposited with various major financial institutions located in the PRC. While management believes that these financial institutions are of high credit quality, it also continually monitors their credit worthiness.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.05pt; text-align: justify; text-indent: -0.05pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Risks of variable interest entity structure</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.05pt; text-align: justify; text-indent: -0.05pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of the date of this 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<b>.</b>, Kun Zhi Jian (Shandong) Health Management Co., Ltd, and Chengdu Wenjiang Pengrun Internet Healthcare Co., Ltd on December 1, 2022, September 19, 2023, October 26, 2023, January 31, 2024, and February 1, 2024, respectively, in the PRC. King Eagle (Tianjin) is the controlling shareholder under the company laws of the PRC. The binding rights over the VIE’s subsidiaries in the contractual arrangements between King Eagle (China) and King Eagle (Tianjin) are implicit and indirect and the company laws and regulations in the PRC governing the business operations of the VIE’s subsidiaries are uncertain.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In the opinion of management, (i) the corporate structure of the Company is in compliance with existing PRC laws and regulations; (ii) the VIE Agreements 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 Agreements 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 Agreements is remote based on current facts and circumstances.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Foreign currency exchange risk</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The value of the 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Liquidity risk</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Liquidity risk is the risk that the Company will encounter difficulty raising liquid funds to meet commitments as they fall due. See our commitments and contingencies in Note 16, Financial Statements and Supplementary Data. In meeting its liquidity requirements, the Company continues to focus on increasing its revenue through the sale of consumer health care products through its Kun Zhi Jian Mini Program and promoting its own brand of preventive health care related products on its new online platform to reduce its costs of goods sold, streamlining its overhead costs, or obtaining financing from its stockholders or directors.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 8.1pt; text-align: justify; text-indent: -8.1pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Concentration of customers and vendors</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">There was no revenue from customers that individually represent greater than <span id="xdx_906_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20231001__20240331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomersMember_zqkNThzT04Z3" title="Concentration risk percentage"><span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20221001__20230331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomersMember_zcYEq3hYoP7k" title="Concentration risk percentage">10</span></span>% of the total revenues for the six months ended March 31, 2024 and 2023.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the six months ended March 31, 2024, one major vendor accounted for <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20231001__20240331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--VendorOneMember_z6SjJ49WYC3a">10.7</span>% of the Company’s total cost of sales.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the six months ended March 31, 2023, one major vendor accounted for <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20221001__20230331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--VendorOneMember_zZYMMRyZDau3" title="Concentration risk percentage">30.9</span>% of the Company’s total cost of sales.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
CY2024Q1 us-gaap Deposits
Deposits
21332 usd
CY2024Q1 us-gaap Deposits
Deposits
154024
CY2023Q3 us-gaap Deposits
Deposits
428088 usd
CY2023Q3 us-gaap Deposits
Deposits
3123333
CY2024Q1 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
21540 usd
CY2024Q1 us-gaap Prepaid Expense Current
PrepaidExpenseCurrent
170127 usd
CY2024Q1 us-gaap Accounts Receivable Net Current
AccountsReceivableNetCurrent
12492 usd
CY2024Q1 KPEA Amount Due From Related Party
AmountDueFromRelatedParty
13850 usd
CY2024Q1 us-gaap Inventory Net
InventoryNet
41383 usd
CY2024Q1 us-gaap Assets Current
AssetsCurrent
504409 usd
CY2024Q1 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
98053 usd
CY2024Q1 us-gaap Intangible Assets Net Excluding Goodwill
IntangibleAssetsNetExcludingGoodwill
2656 usd
CY2024Q1 us-gaap Security Deposit
SecurityDeposit
42440 usd
CY2024Q1 us-gaap Prepaid Expense Noncurrent
PrepaidExpenseNoncurrent
10630 usd
CY2024Q1 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
320405 usd
CY2024Q1 us-gaap Assets Noncurrent
AssetsNoncurrent
474184 usd
CY2024Q1 us-gaap Assets
Assets
978593 usd
CY2024Q1 KPEA Trade Payable
TradePayable
2284154 usd
CY2024Q1 us-gaap Other Accounts Payable And Accrued Liabilities
OtherAccountsPayableAndAccruedLiabilities
538146 usd
CY2024Q1 KPEA Advance Payments From Customers
AdvancePaymentsFromCustomers
938891 usd
CY2024Q1 us-gaap Employee Related Liabilities Current
EmployeeRelatedLiabilitiesCurrent
97879 usd
CY2024Q1 us-gaap Taxes Payable Current
TaxesPayableCurrent
125167 usd
CY2024Q1 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
328813 usd
CY2024Q1 us-gaap Other Short Term Borrowings
OtherShortTermBorrowings
2867978 usd
CY2024Q1 us-gaap Liabilities Current
LiabilitiesCurrent
7178028 usd
CY2024Q1 us-gaap Liabilities
Liabilities
7178028 usd
CY2024Q1 us-gaap Stockholders Equity
StockholdersEquity
-5884192 usd
CY2024Q1 us-gaap Minority Interest
MinorityInterest
-315243 usd
CY2024Q1 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
-6199435 usd
CY2024Q1 us-gaap Liabilities And Stockholders Equity
LiabilitiesAndStockholdersEquity
978593 usd
CY2023Q3 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
457580 usd
CY2023Q3 us-gaap Prepaid Expense Current
PrepaidExpenseCurrent
74044 usd
CY2023Q3 us-gaap Other Receivables Net Current
OtherReceivablesNetCurrent
23060 usd
CY2023Q3 us-gaap Inventory Net
InventoryNet
107263 usd
CY2023Q3 us-gaap Assets Current
AssetsCurrent
661947 usd
CY2023Q3 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
72552 usd
CY2023Q3 us-gaap Intangible Assets Net Excluding Goodwill
IntangibleAssetsNetExcludingGoodwill
2806 usd
CY2023Q3 us-gaap Security Deposit
SecurityDeposit
41999 usd
CY2023Q3 us-gaap Prepaid Expense Noncurrent
PrepaidExpenseNoncurrent
3245 usd
CY2023Q3 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
479427 usd
CY2023Q3 us-gaap Assets Noncurrent
AssetsNoncurrent
600029 usd
CY2023Q3 us-gaap Assets
Assets
1261976 usd
CY2023Q3 KPEA Trade Payable
TradePayable
2067831 usd
CY2023Q3 us-gaap Other Accounts Payable And Accrued Liabilities
OtherAccountsPayableAndAccruedLiabilities
84069 usd
CY2023Q3 KPEA Advance Payments From Customers
AdvancePaymentsFromCustomers
2149238 usd
CY2023Q3 us-gaap Employee Related Liabilities Current
EmployeeRelatedLiabilitiesCurrent
63653 usd
CY2023Q3 us-gaap Taxes Payable Current
TaxesPayableCurrent
184357 usd
CY2023Q3 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
318422 usd
CY2023Q3 us-gaap Other Short Term Borrowings
OtherShortTermBorrowings
1318120 usd
CY2023Q3 us-gaap Liabilities Current
LiabilitiesCurrent
6185690 usd
CY2023Q3 us-gaap Liabilities Noncurrent
LiabilitiesNoncurrent
95907 usd
CY2023Q3 us-gaap Liabilities
Liabilities
6281597 usd
CY2023Q3 us-gaap Stockholders Equity
StockholdersEquity
-4738620 usd
CY2023Q3 us-gaap Minority Interest
MinorityInterest
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CY2023Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
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