Company: LDDD
Filing Date: 2025-09-26
Form Type: 10-K
Source: 0001213900-25-091988
Chunk: 190

Company: Longduoduo Co Ltd
Filing Date: 2025-09-26
Form: 10-K
Item: Item 1B
Chunk 190
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. Meanwhile, as we wait for the economy
to revive, the Company is implementing plans to improve its operations by adjusting its operational policies.

Cost
of revenue relates solely to our healthcare service revenue, and mainly consists of our payments to the third-party healthcare service
providers who perform healthcare services for our customers. During the year ended June 30, 2025, our cost of revenue was $91,099, with
the result that our gross profit from service revenue was $29,767 (a gross margin of 25%). By comparison, our gross profit from healthcare
service revenue for the year ended June 30, 2024 was $154,250, representing 47% of service revenue for that year.

When
our net service revenue in fiscal year 2025 was combined with commission revenue (for which there is no cost of revenue), we achieved
gross profit of $4,171,564. However, we realized only $552,679 in income from operations for the year ended June 30, 2025 because the
Company incurred significant marketing expense in connection with establishing its brand as a new company. The Company will continue
to invest heavily in advertising and promotion expenses in the near future as it continues to establish and expand its brand and products
and services.

Our
operating expenses consist primarily of advertising and promotion expenses, salaries and benefits, office expenses, professional fees
and depreciation and amortization. Our operating expenses in fiscal year 2025 decreased by $1,571,467, primarily attributable to:

●$1,942,661
in advertising and promotion expenses incurred in the year ended June 30, 2025, compared to $3,338,737 recorded in the year ended June
30, 2024. The decrease was primarily attributable to the decline in revenue, which we intend to roll over into expanded advertising
and promotion expense for the purpose of achieving a broader market.

31

●$182,198
in professional fees in the year ended June 30, 2025, compared to $172,337 in recorded in the year ended June 30, 2024. In both cases,
the expense was primarily related to the costs incurred by the Company to establish and sustain its status as an SEC-reporting company
in the United States.

●$580,370
in salaries and benefits expenses in the year ended June 30, 2025, compared to $642,094 in the year ended June 30, 2024.