Company: LDDD
Filing Date: 2025-09-26
Form Type: 10-K
Source: 0001213900-25-091988
Chunk: 877

Company: Longduoduo Co Ltd
Filing Date: 2025-09-26
Form: 10-K
Item: Item 1C
Chunk 877
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, 2024

J.
Segment information and geographic data

The
Company is operating in one segment in accordance with the accounting guidance in FASB ASC Topic 280, Segment Reporting.
The company’s revenues are from customers in the People’s Republic of China (“PRC”). Substantially all assets
of the Company are located in the PRC.

K.
Revenue recognition

The
Company adopted FASB ASC Section 606 — Revenue from Contracts with Customers. Under ASC 606, the Company recognizes revenue from
the sales of products and services by applying the following steps: (1) identify the contract with a customer; (2) identify the performance
obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in
the contract; and (5) recognize revenue when each performance obligation is satisfied.

The
Company recognizes revenue when the amount of revenue can be reliably measured, it is probable that economic benefits will flow to the
entity, and specific criteria have been met for each of the Company’s activities as described below.

Service
Revenue

The
Company sells healthcare service packages to customers, which represent the rights to services purchased by the Company. The delivery
of a healthcare service package to a customer represents a separate performance obligation. The Company’s policy is to recognize
service revenue at that time when the healthcare service package has been sold, ownership and risk of loss have been transferred to the
customer, and the service has been provided. Accordingly, revenue is recognized at the point in time when the service is provided. Service
revenue is recognized when the healthcare service package has been delivered to the customer and there are no remaining performance obligations.

Management
regularly reviews the sales returns and allowances based on historical experience. Any subsequent sales returns and cancellations are
recognized upon notification from the customers. The liability for sales returns and allowances relating to the sale of healthcare service
packages amounted to $208 and $923 as of June 30, 2025 and June 30, 2024, respectively. Management’s provision for sales
returns and allowances was 1.60% and 1.13%, respectively, of the total service revenue for the years ended June 30, 2025 and
2024.

The
Company typically collects fees before delivery of healthcare packages. Amounts received from a customer before the delivery of the healthcare
package are recorded as deferred revenue on the Consolidated Balance Sheets.

Commission
Revenue