Company: LDDD
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001213900-25-042963
Chunk: 61

Company: Longduoduo Co Ltd
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 2
Chunk 61
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489  
    $(895,339)
  
    Net cash used in investing activities 
     (29,454) 
     (248,874) 
     219,420 
  
    Effect of exchange rate fluctuation on cash and cash equivalents 
     (11,613) 
     7,084  
     (18,697)
  
    Net decrease in cash and cash equivalents 
     52,083  
     746,699  
     (694,616)
  
    Cash and cash equivalents, beginning of period 
     1,404,042  
     1,136,562  
     267,480 
  
    Cash and cash equivalents, end of period 
    $1,456,125  
    $1,883,261  
    $(427,136)

Net Cash Provided by Operating Activities

For the nine months ended March 31, 2025 our operating
activities provided $93,150 in cash, compared to $988,489 provided by operating activities for the nine months ended March 31, 2024. The
cash inflow that we realized during the nine months ended March 31, 2025 was less than the net income of $325,775 recorded for that period
primarily due to a $128,719 reduction in the amount of deposits by customers for future services and the Company’s use of cash to
reduce its accounts payable balance by $113,289.

By comparison, during the nine months ended March
31, 2024 we received prepayments from customers totaling $546,243 and used $192,880 of that cash to prepay the cost of services we would
sell. This caused us to finish that period with a healthy cash balance but negative working capital.

Net Cash Used in Investing Activities

Net cash used in investing activities for the
nine months ended March 31, 2025 was $29,454, compared to $248,874 for the nine months ended March 31, 2024. In both periods, the cash
was used for the purchase of fixed assets and office decoration.

Trends, Events and Uncertainties

The U.S. government, including the SEC, has made
statements and taken actions that have led to changes in relations between the U.S. and China, and will impact companies with connections
to the United States or China. Those actions by the U.S. government included imposing several rounds of tariffs affecting certain