Company: LDDD
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001213900-25-042963
Chunk: 60

Company: Longduoduo Co Ltd
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 2
Chunk 60
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 by OANDA
on the balance sheet date. Translation adjustments resulting from this process are included in other comprehensive income (loss). For
the nine months ended March 31, 2025 and 2024, foreign currency translation adjustments of $(1,848) and $(4,761), 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 March 31, 2025, the Company had $1,456,125
in cash and cash equivalents, an increase of $52,083 since the previous fiscal year-end. On the same date, we had a working capital of
$786,440, an increase of $395,609 since June 30, 2024. The increase in working capital occurred primarily because customers used $128,719
in prepayments to purchase services and the Company reduced its accounts payable balance by $113,289. Nevertheless, our March 31, 2025
balance sheet included only $150,176 of prepayments among our current assets, while recording $586,460 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.

5

Cash Flows

The following unaudited table summarizes our cash
flows for the nine months ended March 31, 2025 and 2024.

    For the Nine Months Ended March 31,  

    2025  
    2024  

    (Unaudited)  
    (Unaudited)  
    Change 
  
    Net cash provided by operating activities 
    $93,150  
    $988,