Company: LDDD
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001213900-25-042963
Chunk: 227

Company: Longduoduo Co Ltd
Filing Date: 2025-05-14
Form: 10-Q
Item: Part II, Item 8
Chunk 227
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 31, 2024

(UNAUDITED)

H. Property and equipment

Property and equipment are stated at cost. Expenditures
for maintenance and repairs are charged to operations when incurred, while additions and betterments are capitalized. Depreciation is
recorded on a straight-line basis over the useful lives of the assets. When assets are retired or disposed, the asset’s original
cost and related accumulated depreciation are eliminated from those accounts and any gain or loss is reflected in income.

The Company capitalizes certain costs associated
with the acquisition of software. Once the software is ready for its intended use, these costs are amortized on a straight-line basis
over the software’s expected useful life.

The estimated useful lives for property and equipment
categories are as follows:

    Office equipment and furniture 
     3 years 
  
    Leasehold Improvements 
     1-5 years 

I. Fair value measurements

The Company applies the provisions of the Financial
Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Section 820, Fair Value
Measurements (“ASC 820”), for fair value measurements of financial assets and financial liabilities and for fair
value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements. ASC 820 also establishes
a framework for measuring fair value and expands disclosures about fair value measurements.

Fair value is defined as the price that would
be received when selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement
date. In determining the fair value for the assets and liabilities required or permitted to be recorded, the Company considers the principal
or most advantageous market in which it would transact, and it considers assumptions that market participants would use when pricing the
asset or liability.

ASC 820 establishes a fair value hierarchy that
requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC
820 establishes three levels of inputs that may be used to measure fair value. The hierarchy gives the highest priority to unadjusted
quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving
significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:

Level 1: Unadjusted quoted prices in active markets
that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2: Quoted prices,