Company: LDDD
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-013782
Chunk: 215

Company: Longduoduo Co Ltd
Filing Date: 2025-02-14
Form: 10-Q
Item: Part II, Item 8
Chunk 215
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 (loss) in the consolidated statement of operations and comprehensive income (loss). 

Liquidity and Capital Resources

As of December 31, 2024, the Company had $1,619,033
in cash and cash equivalents. On the same date, we had a working capital of only $859,873, in part because we had received $371,302 from
customers as prepayment for future services and products but used the majority of the deposited sum to pay ongoing expenses. As a result,
our December 31, 2024 balance sheet included only $170,328 of prepayments among our current assets, while recording $371,302 of deferred
revenue among our current liabilities. Going forward, we will strive to achieve a better balance of customer deposits and prepayments;
but we will achieve that better balance only when profits from operations and funds from financing are adequate to support the expansion
effort that will be necessary for successful operations.

We anticipate that our future liquidity requirements
will arise from the need to fund our growth, pay current obligations and future capital expenditures. The primary sources of funding for
such requirements are expected to be cash generated from operations and additional funds from a public offering and/or debt financing.
We expect Zhang Liang, our majority shareholder, to continue to provide support in the future, if needed. However, we can provide no assurances
that we will be able to generate sufficient cash flows from operations and/or obtain additional financing on terms satisfactory to us,
if at all, to remain a going concern.

Cash Flows

The following unaudited table summarizes our cash
flows for the six months ended December 31, 2024 and 2023.

    For the Six Months Ended December 31,  

    2024  
    2023  

    (Unaudited)  
    (Unaudited)  
    Change 
  
    Net cash provided by operating activities 
    $280,261  
    $1,603,516  
    $(1,323,255)
  
    Net cash used in investing activities 
     (56,306) 
     (250,820) 
     194,514 
  
    Effect of exchange rate fluctuation on cash and cash equivalents 
     (8,964) 
     (54,777) 
     (63,741)
  
    Net decrease in cash and cash equivalents 
     214,991  
     1,407