Company: LDDD
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-013782
Chunk: 193

Company: Longduoduo Co Ltd
Filing Date: 2025-02-14
Form: 10-Q
Item: Part II, Item 8
Chunk 193
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   0    Inner Mongolia Tianju Health Consulting Company Limited   China     51       0   

D. Use
of estimates

The preparation
of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and
the reported amounts of revenue and expenses during the reporting periods. Management makes these estimates using the best information
available at the time the estimates are made; however, actual results could differ from those estimates. Significant items subject to
such estimates and assumptions include the inventory valuation allowance and the treatment of the shares issued. These estimates are often
based on complex judgments and assumptions that management believes to be reasonable but are inherently uncertain and unpredictable. Actual
results could differ from these estimates.

F-6

LONGDUODUO COMPANY LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED DECEMBER 31, 2024 AND
DECEMBER 31, 2023

(UNAUDITED)

E. Functional
currency and foreign currency translation

An entity’s functional currency is the currency
of the primary economic environment in which it operates, normally that is the currency of the environment in which the entity primarily
generates and expends cash. Management’s judgment is essential to determine the functional currency by assessing various indicators,
such as cash flows, sales price and market, expenses, financing and inter-company transactions and arrangements. The functional currency
of the Company is the Chinese Renminbi (“RMB’), except the functional currency of Longduoduo HK is the Hong Kong Dollar and
the functional currency of Longduoduo is the United States Dollar (“US Dollars” or “$”). The reporting currency
of these consolidated financial statements is in US Dollars.

The financial statements of Longduoduo’s
subsidiaries, which are prepared using the RMB, are translated into the Company’s reporting currency, the US Dollar. Assets and
liabilities are translated using the exchange rate at each reporting period end date. Revenue and expenses are translated using weighted
average rates prevailing during each reporting period, and stockholders’ equity (deficit) is translated at historical exchange rates.
Adjustments resulting from the translation are recorded as a separate component of accumulated other comprehensive income or expense.

Transactions denominated in currencies other than
the functional currency are translated into