Company: LDDD
Filing Date: 2025-09-26
Form Type: 10-K
Source: 0001213900-25-091988
Chunk: 153

Company: Longduoduo Co Ltd
Filing Date: 2025-09-26
Form: 10-K
Item: Item 1A
Chunk 153
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in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred
tax assets to the amount expected to be realized.

ASC
740-10-30 requires income tax positions to meet a more-likely-than-not recognition threshold to be recognized in the financial statements.
Under ASC 740-10-30, tax positions that previously failed to meet the more-likely-than-not threshold should be recognized in the first
subsequent financial reporting period in which that threshold is met.

The
application of tax laws and regulations is subject to legal and factual interpretation, judgment and uncertainty. Tax laws and regulations
themselves are subject to change as a result of changes in fiscal policy, changes in legislation, the evolution of regulations and court
rulings. Therefore, the actual liability may be materially different from our estimates, which could result in the need to record additional
tax liabilities or potentially reverse previously recorded tax liabilities or the deferred tax asset valuation allowance.

As
a result of the implementation of ASC 740-10, the Company made a comprehensive review of its portfolio of tax positions in accordance
with recognition standards established by ASC 740-10. The Company recognized no material adjustments to liabilities or shareholder’s
equity as a result of the implementation.

M.
Earnings (loss) per share

The
Company computes earnings (loss) per share (“EPS”) in accordance with ASC 260, Earnings Per Share. ASC 260 requires
companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income (loss) divided by the
weighted average common shares outstanding during the period.

Diluted
EPS is similar to basic EPS but presents the dilutive effect on a per share basis of contracts to issue common shares (e.g., convertible
securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later.
The computation of diluted EPS includes the estimated impact of the exercise of contracts to purchase common stock using the treasury
stock method and the potential shares of converted common stock associated with the convertible debt using the if-converted method. Potential
common shares that have an anti-dilutive effect (i.e., those that increase earnings per share or decrease loss per share) are excluded
from the calculation of diluted EPS. 

On
February 19, 2025, Longduoduo issued 10,020 shares of its common stock to the original shareholders of