Company: LDDD
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-108744
Chunk: 14

Company: Longduoduo Co Ltd
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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 at that time when delivery of
the healthcare service package has been contracted for, 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 $111 and
$208 as of September 30, 2025 and June 30, 2025, respectively. Management’s provision for sales returns and allowances was 1.65%
and 1.39%, respectively, of the total service revenue for the three months ended September
30, 2025 and 2024.

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 responsible for fulfillment of the services to the customer and the Company has no performance commitment or liability to the
customer. The Company receives deposits from the customers, remits to the third-party provider the provider’s contracted amounts,
and retains the remaining amounts as commission revenue. The commission revenue is recognized upon acceptance of the customer contract
by the third-party provider and is presented on a net basis in the Statement of Operations and Comprehensive Income (Loss).

Cost of Revenues

Cost of service revenue consists primarily of
the cost of healthcare service packages purchased from third party healthcare service providers to fulfill contracts with customers.

Cost of product revenue consists primarily of
the cost of healthcare products purchased from suppliers. Cost of product revenue is recognized when the product has been delivered to
the customer.

F-9

LONGDUODUO COMPANY LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2025
AND 2024

(UNAUDITED)

L. Income
taxes

The Company follows FASB ASC Section 740, Income
Taxes, which