Company: LDDD
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-108744
Chunk: 47

Company: Longduoduo Co Ltd
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 2
Chunk 47
---

solely to our service revenue, and mainly consists of our payments to the third-party healthcare service providers who perform healthcare
services for our customers. During the three months ended September 30, 2025, our cost of revenue was $6,710, with our gross loss from
service revenue was $1,104 (a gross margin of -20%). Healthcare service volume remained limited this quarter; with equipment depreciation
of $2,444, our gross margin turned negative. By comparison, our gross profit from service revenue for the three months ended September
30, 2024 was $14,319, representing 31% of service revenue for that quarter.

When our net service revenue in the three months
ended September 30, 2025 was combined with commission revenue (for which there is no cost of revenue), we achieved gross profit of $652,054.
However, we realized a $84,414 loss from operations for the three months ended September 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. Our operating expenses during the
three months ended September 30, 2025 decreased by $62,404, primarily attributable to:

    ●
    $314,481 in advertising and promotion expenses incurred in the three months ended September 30, 2025, compared to $308,910 recorded in the three months ended September 30, 2024. 

    ●
    $135,429 in salaries and benefits expenses in the three months ended September 30, 2025, compared to $135,321 in the three months ended September 30, 2024. 

    ●
    $144,722 in office expenses incurred during the three months ended September 30, 2025, compared to $208,623 recorded during the three months ended September 30, 2024. The decrease was primarily attributable to a tactical decision by Management to reduce additional administrative services.

    ●
    $93,254 in professional fees in the three months ended September 30, 2025, compared to $105,000 in recorded in the three months ended September 30, 2024. In both cases, the expense