Company: LDDD
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-013782
Chunk: 210

Company: Longduoduo Co Ltd
Filing Date: 2025-02-14
Form: 10-Q
Item: Part II, Item 8
Chunk 210
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 surge
in revenue during the three months ended December 31, 2023. One other important factor influencing revenue in the recent quarter is the
impact of the economic environment, which has led to a decrease in customer health expenditures. Management believes that the government
has recently introduced policies to promote economic recovery, but it may take some time for the situation to truly improve. Meanwhile,
as we wait for the economy to revive, the Company is implementing plans to improve its operations by adjusting its operational policies.

Cost of revenue relates
solely to our service revenue, and mainly consists of our payments to the third-party healthcare service providers who perform healthcare
services for our customers. During the three months ended December 31, 2024, our cost of revenue was $28,781, with the result that our
gross profit from service revenue was $13,540 (a gross margin of 32%). By comparison, our gross profit from service revenue for the three
months ended December 31, 2023 was $59,517, representing 58% of service revenue for that quarter.

When our net service revenue in the three months
ended December 31, 2024 was combined with commission revenue (for which there is no cost of revenue), we achieved gross profit of $1,746,714.
However, we realized only a $602,574 income from operations for the three months ended December 31, 2024 because the Company incurred
significant marketing expense in connection with establishing its brand as a new company. The Company will continue to invest heavily
in advertising and promotion expenses in the near future as it continues to establish and expand its brand and products and services.

Our operating expenses consist primarily of advertising
and promotion expenses, salaries and benefits, office expenses, professional fees and depreciation and amortization. Our operating expenses
during the three months ended December 31, 2024 decreased by $758,519, primarily attributable to:

    ●
    $769,526 in advertising and promotion expenses incurred during the three months ended December 31, 2024, compared to $1,378,465 recorded during the three months ended December 31, 2023. The decrease was primarily attributable to a tactical decision by Management to reduce marketing expense while we await an economic recovery that will fund an increase in non-essential medical expenditures. Over the longer term, we intend to continue to devote available resources to expanded advertising and promotion expense for the purpose of achieving a broader market.

    ●
    $