Company: LDDD
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-013782
Chunk: 9

Company: Longduoduo Co Ltd
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 9
---
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED DECEMBER 31, 2024 AND
DECEMBER 31, 2023

(UNAUDITED)

NOTE 2. SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES

A. Going concern

The accompanying consolidated financial statements
have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and liquidation
of liabilities in the normal course of business. At June 30, 2023, the Company had cash of $1,136,562, negative working capital of $733,781,
and a stockholders’ deficit of $570,655. For the year ended June 30, 2023, the Company had net income of $21,085. The Company’s
independent auditor included a going concern emphasis paragraph in its audit report for the years ended June 30, 2023 and June 30, 2022.

Commencing in the last quarter of the fiscal year
ended June 30, 2023, the Company changed its business plan to focus on resale of health care services offered by its contractor. The benefits
of the change were promptly realized. At June 30, 2024, the Company had cash of $1,404,042, working capital of $395,609, and stockholders’
equity of $780,851. For the year ended June 30, 2024, the Company had net income of $1,363,278. As a result of the improved results,
the Company’s independent auditor did not include a going concern emphasis paragraph in its audit report for the year ended June
30, 2024. Although we cannot guarantee that we will continue to achieve profits in our operations, the initial results of the change in
our business plan have reduced our doubts concerning the ability of the Company to continue as a going concern.

B. Basis
of presentation

The accompanying
consolidated financial statements are expressed in U.S. Dollars and have been prepared on the accrual basis of accounting in accordance
with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

C. Principles
of consolidation

The consolidated
financial statements include the accounts of Longduoduo and its subsidiaries. All significant inter-company accounts and transactions
have been eliminated. The consolidated financial statements include 100% of assets, liabilities, and net income or