Company: LDDD
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-108744
Chunk: 196

Company: Longduoduo Co Ltd
Filing Date: 2025-11-12
Form: 10-Q
Item: Part II, Item 8
Chunk 196
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 lease cost is recognized as a single lease cost
on a straight-line basis over the lease term and is recorded in selling, general and administrative expenses. For lease agreements entered
into or reassessed after the adoption of Topic 842, the Company did not combine lease and non-lease components.

Most leases
do not include options to renew. The exercise of lease renewal options has to be agreed to by the lessors. The depreciable life of assets
and leasehold improvements are limited by the term of leases, unless there is a transfer of title or purchase option reasonably certain
of exercise. Lease expense is recognized on a straight-line basis over the term of the lease. Lease expense related to noncancelable operating
leases was $23,604 and $13,394 for the three months ended September 30, 2025 and 2024, respectively.

Balance sheet information related
to the Company’s leases is presented below:

    September 30, 2025  
    June 30, 2025 
  
    Assets 

    Operating lease right of use assets 
    $94,012  
    $32,906 
  
    Liabilities 

    Operating lease liabilities – current 
    $41,293  
    $18,570 
  
    Operating lease liabilities – non-current 
     23,203  
     - 
  
    Total Operating lease liabilities 
    $64,496  
    $18,570 

F-14

LONGDUODUO COMPANY LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2025
AND 2024

(UNAUDITED)

As most of the Company’s leases do not provide
an implicit rate, the Company uses the 1-5 years borrowing rates from its bank, i.e. 3.5% and 3.95%, based on the information
available at the commencement date in determining the present value of lease payments.

Maturities of lease liabilities are as follows:

    For the years ending September 30: 

    2026 
    $43,116 
  
    2027 
     23,876 
  
    Total lease payments 
     66,992 
  
    Less: imputed interest 
     (2,496)
  
    Total lease liabilities 
    $64,496 

NOTE