Company: LDDD
Filing Date: 2025-09-26
Form Type: 10-K
Source: 0001213900-25-091988
Chunk: 49

Company: Longduoduo Co Ltd
Filing Date: 2025-09-26
Form: 10-K
Item: Item 1
Chunk 49
---
ju). For that reason, we allocate to non-controlling interests the portion of net income corresponding to the minority
interest. After that allocation of $31,825, the net income attributable to common stockholders for the year ended June 30, 2025 was $460,435
(i.e. $0.015 per share). By comparison, for the year ended June 30, 2024 we recorded a net income attributable to common stockholders
of $1,255,448.

Our reporting currency is the U.S. dollar. Our
functional currency is the local currency, which is the Renminbi (RMB) for our Chinese subsidiaries, the Hong Kong Dollar (HKD) for our
Hong Kong subsidiaries, and the U.S. Dollar (USD) for our BVI subsidiary. Results of operations and cash flow for RMB and HKD are translated
at average exchange rates during the period being reported upon, and assets and liabilities are translated at the unified exchange rate
as quoted by OANDA on the balance sheet date. Translation adjustments resulting from this process are included in other comprehensive
income (loss). For the years ended June 30, 2025 and 2024, foreign currency translation adjustments of $22,921 and $(11,722), respectively,
have been reported as other comprehensive income in the consolidated statement of operations and comprehensive income.

Liquidity
and Capital Resources

As
of June 30, 2025, the Company had $1,642,721 in cash and cash equivalents. On the same date, we had a working capital of only $983,123,
primarily because we received $335,484 of deferred revenue from customers as prepayment for future services and products but used the
majority of the deposited sum to pay ongoing expenses and so had only $133,610 in prepayments on our June 30, 2025 balance sheet. Going
forward, we will strive to achieve a better balance of customer deposits and prepayments; but we will achieve that better balance only
when profits from operations and funds from financing are adequate to support the expansion effort that will be necessary for successful
operations.

We
anticipate that our future liquidity requirements will arise from the need to fund our growth, pay current obligations and future capital
expenditures. The primary sources of funding for such requirements are expected to be cash generated from operations and raising additional
funds from a public offering and/or debt financing. We expect Zhang Liang,