Reverse Mergers & Low Float Plays

[Potse]

KPEA...Q4 revenue guidance shows sharp increase......

Possible signs of an improving situation at KPEA following the pandemic-related decline in revenue last year. Revenue had been looking pretty good with KPEA putting up quarters of $2-4+M before some of the more draconian shutdown measures were implemented. Revenue guidance for 2023 Q4 (as disclosed in the Q3 report) is a minimum of $1.5M. None of the last 4 quarters have shown revenue over $650K, so this is a noticeable improvement.

Also, perhaps worth noting, over the last couple of months or so the company and Ant Cloud Medical Internet Hospital have been increasing their cooperative efforts. This teaming with Ant Cloud would basically transform some of KPEA's physical locations/stores into things partially resembling medical centers (diagnostic/treatment equipment). The first batch of KPEA employees underwent training around the middle of August.

http://www.kp-china.com/lists/26.html

Deferred revenue results from transactions where the Company has received the payments from the customers but revenue recognition criteria under the five-step model of ASC Topic 606 have yet to be met. Once all revenue recognition criteria have been satisfied, the revenues will be recognized upon the transfer of risk and rewards to the customers in the consolidated statement of operations. We anticipate that approximately $1.5 million and $2.7 million of the advance receipt as of June 30, 2023 will be recognized in revenue in the fiscal years 2023 and 2024, respectively. Management has agreed that the amount received is non-refundable; however, this term is not bound by any written agreement. Thus, customers may have the right to challenge and demand the advances to be refunded under relevant commercial laws and regulations.

https://www.otcmarkets.com/filing/html?id=16877050&guid=GNg-kqRAI_nSJth