Company: LDDD
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-108744
Chunk: 48

Company: Longduoduo Co Ltd
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 2
Chunk 48
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 was primarily related to the costs incurred by the Company to establish and sustain its status as an SEC-reporting company in the United States.

Our net loss for the three months ended September
30, 2025 was $111,182, compared to a net loss of $59,504 for the three months ended September 30, 2024.

Our reporting currency is the U.S. dollar. Our
functional currency is the local currency, which is the Renminbi (RMB) for our Chinese subsidiaries, the Hong Kong Dollar (HKD) for our
Hong Kong subsidiaries, and the U.S. Dollar (USD) for our BVI subsidiary. Results of operations and cash flow for RMB and HKD are translated
at average exchange rates during the period being reported upon, and assets and liabilities are translated at the unified exchange rate
as quoted by OANDA on the balance sheet date. Translation adjustments resulting from this process are included in other comprehensive
income (loss). For the three months ended September 30, 2025 and 2024, foreign currency translation adjustments of $13,886 and $46,989,
respectively, have been reported as other comprehensive income in the consolidated statement of operations and comprehensive income (loss).

Liquidity and Capital
Resources

As of September 30, 2025,
the Company had $1,247,296 in cash and cash equivalents. On the same date, we had a working capital of only $843,540, primarily because
we received $385,128 of deferred revenue from customers as prepayment for future services and products but used the majority of the deposited
sum to pay ongoing expenses and so had only $194,259 in prepayments on our September 30, 2025 balance sheet. Going forward, we will strive
to achieve a better balance of customer deposits and prepayments; but we will achieve that better balance only when profits from operations
and funds from financing are adequate to support the expansion effort that will be necessary for successful operations.

We anticipate that our
future liquidity requirements will arise from the need to fund our growth, pay current obligations and future capital expenditures. The
primary sources of funding for such requirements are expected to be cash generated from operations and raising additional funds from a
public offering and/or debt financing. We expect Zhang Liang, our majority shareholder, to continue to provide support in the future,
if needed. However, we can provide no assurances that we will be able to generate sufficient cash flows from operations