Company: LDDD
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-013782
Chunk: 32

Company: Longduoduo Co Ltd
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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 improve. Also, the company intends to improve its operations by adjusting
its operational policies. 

Our reporting currency is the U.S. dollar. Our
local currency, the Renminbi (RMB), is our functional currency. Results of operations and cash flow 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 six months ended December 31, 2024 and 2023, foreign currency translation adjustments of $(15,068) and $5,357, respectively,
have been reported as other comprehensive income (loss) in the consolidated statement of operations and comprehensive income (loss). 

Liquidity and Capital Resources

As of December 31, 2024, the Company had $1,619,033
in cash and cash equivalents. On the same date, we had a working capital of only $859,873, in part because we had received $371,302 from
customers as prepayment for future services and products but used the majority of the deposited sum to pay ongoing expenses. As a result,
our December 31, 2024 balance sheet included only $170,328 of prepayments among our current assets, while recording $371,302 of deferred
revenue among our current liabilities. 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 additional funds from a public offering and/or debt financing.
We expect Zhang Liang, our majority shareholder, to continue to provide support in the future, if needed. However, we can provide no assurances
that we will be able to generate sufficient cash flows from operations and/or obtain additional financing on terms satisfactory to us,
if at all, to remain a going concern.

Cash Flows

The following unaudited table summarizes our cash
flows for the six months ended December 31, 2024 and 2023.

    For the Six Months Ended December 31,  

    202