Company: LDDD
Filing Date: 2025-09-26
Form Type: 10-K
Source: 0001213900-25-091988
Chunk: 68

Company: Longduoduo Co Ltd
Filing Date: 2025-09-26
Form: 10-K
Item: Item 1
Chunk 68
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 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-11

LONGDUODUO
COMPANY LIMITED AND SUBSIDIARIES

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

FOR
THE YEARS ENDED JUNE 30, 2025 AND JUNE 30, 2024

L.
Income taxes

The
Company follows FASB ASC Section 740, Income Taxes, which requires the recognition of deferred tax assets and liabilities
for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method,
deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities
and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods
in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred
tax assets to the amount expected to be realized.

ASC
740-10-30 requires income tax positions to meet a more-likely-than-not recognition threshold to be recognized in the financial statements.
Under ASC 740-10-30, tax positions that previously failed to meet the more-likely-than-not threshold should be recognized in the first
subsequent financial reporting period in which that threshold is met.

The
application of tax laws and regulations is subject to legal and factual interpretation, judgment and uncertainty. Tax laws and regulations
themselves are subject to change as a result of changes in fiscal policy, changes in legislation, the evolution of regulations and court
rulings. Therefore, the actual liability may be materially different from our estimates, which could result in the need to record additional
tax liabilities or potentially reverse previously recorded tax liabilities or the deferred tax asset valuation allowance.

As
a result of the implementation of ASC 740-10, the Company made a comprehensive review of its portfolio of tax positions in accordance
with recognition standards established by ASC 740-10. The Company recognized no material adjustments to liabilities or shareholder’s
equity as a result of the implementation.

M.
Earnings (loss) per share

The
Company computes earnings (loss) per share (“EPS”) in accordance with ASC 260, Earnings Per Share. ASC 260 requires
companies with complex capital structures to