Company: LDDD
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-013782
Chunk: 204

Company: Longduoduo Co Ltd
Filing Date: 2025-02-14
Form: 10-Q
Item: Part II, Item 8
Chunk 204
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 period between April 1, 2024 and March
31, 2027.

On August 14, 2024, Qingguo leased office space
(approximately 482 square meters) under an operating lease agreement with Inner Mongolia Chuangfuhui Enterprise Management Co.,
Ltd. Under the terms of the agreement, Qingguo is committed to make lease payments of approximately $30,510 (RMB 220,000) for
the period between September 10, 2024 and September 10, 2025.

Leases with
an initial term of 12 months or less are not recorded on the balance sheet. Operating lease cost is recognized as a single lease cost
on a straight-line basis over the lease term and is recorded in selling, general and administrative expenses. For lease agreements entered
into or reassessed after the adoption of Topic 842, the Company did not combine lease and non-lease components.

Most leases
do not include options to renew. The exercise of lease renewal options has to be agreed to by the lessors. The depreciable life of assets
and leasehold improvements are limited by the term of leases, unless there is a transfer of title or purchase option reasonably certain
of exercise. Lease expense is recognized on a straight-line basis over the term of the lease. Lease expense related to noncancelable operating
leases was $28,354 and $20,312 for the six months ended December 31, 2024 and 2023, respectively.

Balance sheet information related
to the Company’s leases is presented below:

    December 31, 2024  
    June 30, 2024 
  
    Assets 

    Operating lease right of use assets 
    $41,172  
    $50,070 
  
    Liabilities 

    Operating lease liabilities – current 
    $17,886  
    $17,618 
  
    Operating lease liabilities – non-current 
     18,593  
     18,314 
  
    Total Operating lease liabilities 
    $36,479  
    $35,932 

F-13

LONGDUODUO COMPANY LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

(UNAUDITED)

As most of the Company’s leases do