Company: LDDD
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-108744
Chunk: 19

Company: Longduoduo Co Ltd
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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30, 

    2025  
    2024 
  
    Income tax (benefit) at PRC statutory rate 
     25% 
     25%
  
    Utilization of net operating loss carry forward 
     0% 
     0%
  
    Tax preference 
     (28)% 
     - 
  
    PRC valuation allowance 
     11% 
     (25)%
  
    Income tax (benefit) at PRC effective rate 
     8% 
     0%

The Company did not recognize deferred tax assets
since it is not more likely than not that it will realize such deferred taxes. The deferred tax would apply to Longduoduo in the U.S.
and Julong and subsidiaries in China.

As of September 30,
2025, Julong and its subsidiaries had total net operating loss carry forwards of approximately $535,445 in the PRC that expire through
2030. Due to the uncertainty of utilizing these carry forwards, the Company provided a 100% allowance on all deferred tax assets
of approximately $133,861 and $103,712 related to its operations in the PRC as of September 30,
2025 and June 30, 2025, respectively. The PRC valuation allowance has increased by $30,149 and $4,230 for the three months ended
September 30, 2025 and 2024, respectively.

The Company incurred losses from its United States
operations during the three months ended September 30, 2025 of approximately $96,986. The
Company’s United States operations consist solely of ownership of its foreign subsidiaries, and the losses arise from administration
expenses. Accordingly, management provided a 100% valuation allowance of approximately $279,922 and $259,555 against the
deferred tax assets related to the Company’s United States operations as of September 30,
2025 and June 30, 2025, respectively, because the deferred tax benefits of the net operating loss carry forwards in the United States
are not likely to be utilized. The US valuation allowance has increased by approximately $20,367 and $23,052 for the three months
ended September 30, 2025, and 2024, respectively.

F-13

LONGDUODUO COMPANY LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTH