Company: LDDD
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-013782
Chunk: 197

Company: Longduoduo Co Ltd
Filing Date: 2025-02-14
Form: 10-Q
Item: Part II, Item 8
Chunk 197
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, Segment Reporting. The company’s revenues are from customers in
the People’s Republic of China (“PRC”). Substantially all assets of the Company are located in the PRC.

L. Revenue recognition

The Company adopted FASB ASC Section 606 —
Revenue from Contracts with Customers. Under ASC 606, the Company recognizes revenue from the sales of products and services by applying
the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine
the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue when
each performance obligation is satisfied.

The Company recognizes revenue when the amount
of revenue can be reliably measured, it is probable that economic benefits will flow to the entity, and specific criteria have been met
for each of the Company’s activities as described below.

Service Revenue

The Company sells healthcare service packages
to customers, which represent the rights to services purchased by the Company. The delivery of a healthcare service package to a customer
represents a separate performance obligation. The Company’s policy is to recognize service revenue at that time when the healthcare
service package has been sold, ownership and risk of loss have been transferred to the customer, and the service has been provided. Accordingly,
revenue is recognized at the point in time when the service is provided. Service revenue is recognized when the healthcare service package
has been delivered to the customer and there are no remaining performance obligations.

Management regularly reviews the sales returns
and allowances based on historical experience. Any subsequent sales returns and cancellations are recognized upon notification from the
customers. The liability for sales returns and allowances relating to the sale of healthcare service packages amounted to $811 and
$923 as of December 31, 2024 and June 30, 2024, respectively. Management’s provision for sales returns and allowances was 1.4%
and 1.13%, respectively, of the total service revenue for the three months ended December 31,
2024 and 2023

The Company typically collects fees before delivery
of healthcare packages. Amounts received from a customer before the delivery of the healthcare package are recorded as deferred revenue
on the Consolidated Balance Sheets.

Commission
Revenue

Commencing in the three months ended June 30,
2023, the Company started offering in a sales agent capacity healthcare service and product packages of a third-party provider. The third
party is