2023 Q2 Form 10-Q Financial Statement

#000121390023041711 Filed on May 22, 2023

View on sec.gov

Income Statement

Concept 2023 Q2 2023 Q1 2022 Q4
Revenue $3.059M $280.1K $64.19K
YoY Change -61.32% -93.06%
Cost Of Revenue $292.1K $118.5K $25.80K
YoY Change -42.16% -91.6%
Gross Profit $2.767M $161.6K $38.39K
YoY Change -68.88% -93.79%
Gross Profit Margin 90.45% 57.69% 59.81%
Selling, General & Admin $1.770M $634.1K $215.1K
YoY Change 2.23% -76.61%
% of Gross Profit 63.99% 392.36% 560.21%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $16.67K $17.38K $16.35K
YoY Change
% of Gross Profit 0.6% 10.75% 42.59%
Operating Expenses $1.773M $14.74K $14.14K
YoY Change -14.58% -17.58%
Operating Profit $993.9K -$472.5K -$176.7K
YoY Change 368.27% -41.35%
Interest Expense
YoY Change
% of Operating Profit
Other Income/Expense, Net $350.00 $1.213K $529.00
YoY Change -319.75% -125.8%
Pretax Income $994.2K -$471.3K -$176.2K
YoY Change 364.53% -41.92%
Income Tax $10.25K
% Of Pretax Income 1.03%
Net Earnings $829.3K -$471.3K -$176.2K
YoY Change 364.52% -41.96%
Net Earnings / Revenue 27.11% -168.24% -274.42%
Basic Earnings Per Share $0.00 $0.00
Diluted Earnings Per Share $0.03 $0.00 $0.00
COMMON SHARES
Basic Shares Outstanding 300.0M shares 300.0M shares 300.0M shares
Diluted Shares Outstanding 300.0M shares 300.0M shares

Balance Sheet

Concept 2023 Q2 2023 Q1 2022 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.137M $644.6K $118.3K
YoY Change
Cash & Equivalents $1.137M $644.6K $118.3K
Short-Term Investments
Other Short-Term Assets $68.34K $114.7K $9.160K
YoY Change
Inventory $820.00 $1.923K $1.660K
Prepaid Expenses $68.34K $114.7K $9.160K
Receivables
Other Receivables $107.0K $22.76K $31.11K
Total Short-Term Assets $1.313M $784.0K $160.2K
YoY Change 209.38%
LONG-TERM ASSETS
Property, Plant & Equipment $152.7K $122.3K $120.6K
YoY Change 39.81%
Goodwill
YoY Change
Intangibles $3.828K $4.530K $4.994K
YoY Change
Long-Term Investments
YoY Change
Other Assets
YoY Change
Total Long-Term Assets $170.0K $142.7K $155.7K
YoY Change -8.76%
TOTAL ASSETS
Total Short-Term Assets $1.313M $784.0K $160.2K
Total Long-Term Assets $170.0K $142.7K $155.7K
Total Assets $1.483M $926.7K $315.9K
YoY Change 142.81%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.044M $266.9K $9.884K
YoY Change 2458.68%
Accrued Expenses $90.86K $101.5K $51.11K
YoY Change -27.86%
Deferred Revenue $588.3K
YoY Change
Short-Term Debt $0.00 $0.00 $307.3K
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $2.047M $2.890M $1.800M
YoY Change 25.55%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $6.890K $7.280K $7.250K
YoY Change
Total Long-Term Liabilities $6.890K $7.280K $7.250K
YoY Change
TOTAL LIABILITIES
Total Short-Term Liabilities $2.047M $2.890M $1.800M
Total Long-Term Liabilities $6.890K $7.280K $7.250K
Total Liabilities $2.053M $2.897M $1.807M
YoY Change 25.75%
SHAREHOLDERS EQUITY
Retained Earnings -$7.885M -$8.714M -$8.284M
YoY Change 0.5%
Common Stock $30.01K $300.0K $300.0K
YoY Change -90.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$542.0K -$1.784M -$1.346M
YoY Change
Total Liabilities & Shareholders Equity $1.483M $926.7K $315.9K
YoY Change 142.81%

Cashflow Statement

Concept 2023 Q2 2023 Q1 2022 Q4
OPERATING ACTIVITIES
Net Income $829.3K -$471.3K -$176.2K
YoY Change 364.52% -41.96%
Depreciation, Depletion And Amortization $16.67K $17.38K $16.35K
YoY Change
Cash From Operating Activities $457.4K $845.7K -$478.9K
YoY Change
INVESTING ACTIVITIES
Capital Expenditures $50.55K $21.07K -$940.00
YoY Change
Acquisitions
YoY Change
Other Investing Activities $20.00 -$40.00 $110.00
YoY Change
Cash From Investing Activities -$50.53K -$21.11K $1.050K
YoY Change
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -4.880K -304.7K 128.2K
YoY Change
NET CHANGE
Cash From Operating Activities 457.4K 845.7K -478.9K
Cash From Investing Activities -50.53K -21.11K 1.050K
Cash From Financing Activities -4.880K -304.7K 128.2K
Net Change In Cash 402.0K 519.9K -349.6K
YoY Change
FREE CASH FLOW
Cash From Operating Activities $457.4K $845.7K -$478.9K
Capital Expenditures $50.55K $21.07K -$940.00
Free Cash Flow $406.9K $824.6K -$477.9K
YoY Change

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CY2022Q1 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
-870173 usd
CY2022Q2 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
-1022339 usd
CY2022Q3 us-gaap Net Income Loss
NetIncomeLoss
-315432 usd
CY2022Q3 us-gaap Temporary Equity Foreign Currency Translation Adjustments
TemporaryEquityForeignCurrencyTranslationAdjustments
63957 usd
CY2022Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
-1273814 usd
lddc Cost Of Revenue Percentage
CostOfRevenuePercentage
0.10 pure
CY2022Q4 us-gaap Net Income Loss
NetIncomeLoss
-176160 usd
CY2022Q4 us-gaap Temporary Equity Foreign Currency Translation Adjustments
TemporaryEquityForeignCurrencyTranslationAdjustments
-41600 usd
CY2022Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
-1491574 usd
CY2023Q1 us-gaap Net Income Loss
NetIncomeLoss
-471308 usd
CY2023Q1 us-gaap Temporary Equity Foreign Currency Translation Adjustments
TemporaryEquityForeignCurrencyTranslationAdjustments
-7394 usd
CY2023Q1 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
-1970276 usd
us-gaap Net Income Loss
NetIncomeLoss
-962900 usd
us-gaap Net Income Loss
NetIncomeLoss
-7366118 usd
us-gaap Depreciation
Depreciation
51071 usd
us-gaap Depreciation
Depreciation
46973 usd
us-gaap Cost Of Goods And Services Sold Amortization
CostOfGoodsAndServicesSoldAmortization
1282 usd
us-gaap Operating Lease Right Of Use Asset Amortization Expense
OperatingLeaseRightOfUseAssetAmortizationExpense
57687 usd
us-gaap Operating Lease Right Of Use Asset Amortization Expense
OperatingLeaseRightOfUseAssetAmortizationExpense
65968 usd
us-gaap Share Based Compensation
ShareBasedCompensation
6739128 usd
us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
3397 usd
us-gaap Increase Decrease In Accounts Receivable And Other Operating Assets
IncreaseDecreaseInAccountsReceivableAndOtherOperatingAssets
-10776 usd
us-gaap Increase Decrease In Accounts Receivable And Other Operating Assets
IncreaseDecreaseInAccountsReceivableAndOtherOperatingAssets
27428 usd
us-gaap Increase Decrease In Prepaid Expense
IncreaseDecreaseInPrepaidExpense
78131 usd
us-gaap Increase Decrease In Prepaid Expense
IncreaseDecreaseInPrepaidExpense
30820 usd
us-gaap Increase Decrease In Inventories
IncreaseDecreaseInInventories
-848 usd
us-gaap Increase Decrease In Inventories
IncreaseDecreaseInInventories
22963 usd
us-gaap Increase Decrease In Due From Related Parties
IncreaseDecreaseInDueFromRelatedParties
9758 usd
us-gaap Increase Decrease In Due From Related Parties
IncreaseDecreaseInDueFromRelatedParties
-35889 usd
lddc Increase Decrease In Account Payable
IncreaseDecreaseInAccountPayable
224965 usd
lddc Increase Decrease In Account Payable
IncreaseDecreaseInAccountPayable
-169066 usd
us-gaap Increase Decrease In Other Receivables
IncreaseDecreaseInOtherReceivables
-585035 usd
us-gaap Increase Decrease In Other Receivables
IncreaseDecreaseInOtherReceivables
-290030 usd
us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
-26813 usd
us-gaap Increase Decrease In Due To Related Parties Current
IncreaseDecreaseInDueToRelatedPartiesCurrent
374589 usd
us-gaap Increase Decrease In Due To Related Parties Current
IncreaseDecreaseInDueToRelatedPartiesCurrent
159754 usd
us-gaap Increase Decrease In Security Deposits
IncreaseDecreaseInSecurityDeposits
27188 usd
us-gaap Increase Decrease In Security Deposits
IncreaseDecreaseInSecurityDeposits
121311 usd
us-gaap Increase Decrease In Other Accounts Payable
IncreaseDecreaseInOtherAccountsPayable
260836 usd
us-gaap Increase Decrease In Other Accounts Payable
IncreaseDecreaseInOtherAccountsPayable
95683 usd
us-gaap Increase Decrease In Operating Lease Liability
IncreaseDecreaseInOperatingLeaseLiability
-21633 usd
us-gaap Increase Decrease In Operating Lease Liability
IncreaseDecreaseInOperatingLeaseLiability
-24982 usd
us-gaap Increase Decrease In Other Current Liabilities
IncreaseDecreaseInOtherCurrentLiabilities
12900 usd
us-gaap Increase Decrease In Other Current Liabilities
IncreaseDecreaseInOtherCurrentLiabilities
-2550 usd
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
507942 usd
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-92588 usd
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
69584 usd
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
108130 usd
us-gaap Payments To Acquire Intangible Assets
PaymentsToAcquireIntangibleAssets
5769 usd
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-75353 usd
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-108130 usd
us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
31228 usd
lddc Repayment Of Shortterm Borrowing From Third Party
RepaymentOfShorttermBorrowingFromThirdParty
-138450 usd
lddc Repayment Of Shortterm Borrowing From Third Party
RepaymentOfShorttermBorrowingFromThirdParty
54648 usd
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
-138450 usd
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
85876 usd
us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
-6189 usd
us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
3539 usd
us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
287950 usd
us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
-111303 usd
CY2022Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
356672 usd
CY2021Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
273116 usd
CY2023Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
644622 usd
CY2022Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
161813 usd
us-gaap Stock Issued1
StockIssued1
106680 usd
lddc Share Issuance In Exchange For Equipment
ShareIssuanceInExchangeForEquipment
15240 usd
us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability
70914 usd
us-gaap Income Taxes Paid
IncomeTaxesPaid
11678 usd
CY2021Q4 us-gaap Shares Issued
SharesIssued
300000000 shares
CY2021Q4 lddc Exchange Interest Rate Percentage
ExchangeInterestRatePercentage
1 pure
CY2021Q3 lddc Equity Method Investments Ownership Percentage
EquityMethodInvestmentsOwnershipPercentage
1 pure
CY2020Q3 lddc Equity Method Investments Ownership Percentage
EquityMethodInvestmentsOwnershipPercentage
0.90 pure
CY2021Q1 lddc Equity Method Investments Ownership Percentage
EquityMethodInvestmentsOwnershipPercentage
0.80 pure
CY2021Q2 lddc Equity Method Investments Ownership Percentage
EquityMethodInvestmentsOwnershipPercentage
0.80 pure
CY2021Q3 lddc Equity Method Investments Ownership Percentage
EquityMethodInvestmentsOwnershipPercentage
0.51 pure
us-gaap Federal Deposit Insurance Corporation Premium Expense
FederalDepositInsuranceCorporationPremiumExpense
73000 usd
CY2023Q1 us-gaap Cash Fdic Insured Amount
CashFDICInsuredAmount
156298 usd
CY2022Q2 us-gaap Cash Fdic Insured Amount
CashFDICInsuredAmount
93510 usd
lddc Revenue Generated Percentage
RevenueGeneratedPercentage
0.10 pure
lddc Revenue Generated Percentage
RevenueGeneratedPercentage
0.10 pure
lddc Cost Of Revenue Percentage
CostOfRevenuePercentage
0.10 pure
CY2023Q1 us-gaap Non Investment Assets Less Non Investment Liabilities Percent Of Net Assets
NonInvestmentAssetsLessNonInvestmentLiabilitiesPercentOfNetAssets
1 pure
us-gaap Use Of Estimates
UseOfEstimates
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>D. Use of estimates</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the inventory valuation allowance and the treatment of the shares issued. These estimates are often based on complex judgments and assumptions that management believes to be reasonable but are inherently uncertain and unpredictable. Actual results could differ from these estimates.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><i>F. Concentration of credit risk</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company maintains cash in state-owned banks in China. In China, the insurance coverage of each bank is RMB500,000 (approximately USD$73,000). As of March 31, 2023 and June 30, 2022, the Company had $156,298 and $93,510 cash in excess of the insured amount, respectively.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the nine months ended March 31, 2023 and 2022, no customer generated more than 10% of revenue.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the nine months ended March 31, 2023 and 2022, the Company had four and three major suppliers that accounted for over 10% of its total cost of revenue, respectively.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"> </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="14" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the Nine Months Ended<br/> March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Cost of<br/> revenue</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Percentage of<br/> Cost of<br/> revenue</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Cost of<br/> revenue</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Percentage of<br/> Cost of<br/> revenue</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; text-align: left">A</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">110,993</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">37</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">234,669</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">32</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">B</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">57,587</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">19</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">98,505</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">13</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">C</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">53,500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">18</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">184,605</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">25</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">D</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">45,009</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">15</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">65,784</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9</td><td style="text-align: left">%</td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"> </p>
us-gaap Federal Deposit Insurance Corporation Premium Expense
FederalDepositInsuranceCorporationPremiumExpense
500000 cny
lddc Office Equipment And Furniture
OfficeEquipmentAndFurniture
P3Y
us-gaap Revenue Recognition Allowances
RevenueRecognitionAllowances
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>L. Revenue recognition</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration:underline">Service and Product Revenue</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company sells healthcare package, including healthcare consulting services and healthcare products. Customers may purchase healthcare services packages, or healthcare services combined with nutritional products. Currently all sales of products are bundled with healthcare services. The combination of services and products are generally capable of being distinct and accounted for as separate performance obligations. For the sale of healthcare package that includes services and products, the Company allocates revenues based on their relative selling prices.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company sells a healthcare service package to a customer which represents the rights to services purchased by the Company. The delivery of healthcare service package to a customer represents a separate performance obligation. The Company’s policy is to recognize the service revenue when service is provided. At that time of the sale of healthcare service package, ownership and risk of loss have been transferred to the customer. 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 as no performance obligation remaining after the delivery of healthcare service package.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Management regularly reviews the sales return and allowance based on historical experience. Any subsequent sales return and cancellations are recognized upon notification from the customers. The amount of sales return allowance for the sale of healthcare service package amounted to $4,485 and $4,817 as of March 31, 2023 and June 30, 2022, respectively. Management’s estimated sales return were 1.3% and 0.87%, respectively, of the total service revenue for the nine months ended March 31, 2023 and 2022.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Product revenue mainly resulted from the sale of healthcare and nutritional products, including Collagen peptide, Calcium tablet and other products. The Company recognized revenue when the product has been delivered, ownership and risk of loss have been transferred to the customer. The Company accepts returns if the products are well packaged and can be resold. Management regularly reviews the sales return and allowance based on historical experience. The amount of sales return allowance for the sale of healthcare products amounted to $865 and $997 as of March 31, 2023 and June 30, 2022, respectively. Management’s estimated sales return were 1.77% and 0.96%, respectively, of the total product revenue for the nine months ended March 31, 2023 and 2022.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company typically collects fees before delivery of healthcare packages. Amounts received from a customer before the delivery of healthcare package are recorded as deferred revenue on the Consolidated Balance Sheets.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Cost of Revenues</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Cost of service consists primarily of the cost of healthcare service packages purchased from third party healthcare service providers to fulfil a contract with a customer. No asset was recognized from the costs incurred to obtain or fulfil a contract with a customer.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Cost of products consists primarily of the cost of healthcare products purchased from suppliers. Cost of products is recognized when the product has been delivered to the customer.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
CY2023Q1 us-gaap Deferred Tax Liabilities Prepaid Expenses
DeferredTaxLiabilitiesPrepaidExpenses
114691 usd
CY2022Q2 us-gaap Deferred Tax Liabilities Prepaid Expenses
DeferredTaxLiabilitiesPrepaidExpenses
33837 usd
CY2023Q1 us-gaap Operating Loss Carryforwards
OperatingLossCarryforwards
1795300 usd
CY2023Q1 srt Financing Receivable Before Allowance For Credit Loss To Total Percent
FinancingReceivableBeforeAllowanceForCreditLossToTotalPercent
1 pure
CY2023Q1 us-gaap Deferred Tax Assets Operating Loss Carryforwards State And Local
DeferredTaxAssetsOperatingLossCarryforwardsStateAndLocal
124397 usd
CY2023Q1 us-gaap Furniture And Fixtures Gross
FurnitureAndFixturesGross
161928 usd
CY2022Q2 us-gaap Furniture And Fixtures Gross
FurnitureAndFixturesGross
104458 usd
CY2023Q1 us-gaap Leasehold Improvements Gross
LeaseholdImprovementsGross
76091 usd
CY2022Q2 us-gaap Leasehold Improvements Gross
LeaseholdImprovementsGross
70561 usd
CY2023Q1 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
238019 usd
CY2022Q2 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
175019 usd
CY2023Q1 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
115715 usd
CY2022Q2 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
65786 usd
CY2023Q1 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
122304 usd
CY2022Q2 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
109233 usd
CY2023Q1 us-gaap Depreciation Expense On Reclassified Assets
DepreciationExpenseOnReclassifiedAssets
16898 usd
CY2023Q1 us-gaap Operating Expenses
OperatingExpenses
14743 usd
CY2023Q1 us-gaap Other Cost Of Operating Revenue
OtherCostOfOperatingRevenue
2155 usd
us-gaap Depreciation Expense On Reclassified Assets
DepreciationExpenseOnReclassifiedAssets
51071 usd
us-gaap Operating Expenses
OperatingExpenses
45362 usd
us-gaap Other Cost Of Operating Revenue
OtherCostOfOperatingRevenue
5709 usd
CY2022Q1 us-gaap Depreciation Expense On Reclassified Assets
DepreciationExpenseOnReclassifiedAssets
19232 usd
CY2022Q1 us-gaap Operating Expenses
OperatingExpenses
17260 usd
CY2022Q1 us-gaap Other Cost Of Operating Revenue
OtherCostOfOperatingRevenue
1972 usd
us-gaap Depreciation Expense On Reclassified Assets
DepreciationExpenseOnReclassifiedAssets
46973 usd
us-gaap Operating Expenses
OperatingExpenses
43101 usd
us-gaap Other Cost Of Operating Revenue
OtherCostOfOperatingRevenue
3872 usd
CY2022 us-gaap Line Of Credit Facility Maximum Monthend Outstanding Amount
LineOfCreditFacilityMaximumMonthendOutstandingAmount
143333 usd
lddc Effective Income Tax Rate Reconciliation Change In Deferred Tax Assets Valuation Allowance1
EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance1
1 pure
CY2023Q1 us-gaap Deferred Tax Assets Net
DeferredTaxAssetsNet
74246 usd
CY2022Q2 us-gaap Deferred Tax Assets Net
DeferredTaxAssetsNet
48123 usd
CY2023Q1 us-gaap Deferred Taxes Business Combination Valuation Allowance Available To Reduce Goodwill And Intangible Assets
DeferredTaxesBusinessCombinationValuationAllowanceAvailableToReduceGoodwillAndIntangibleAssets
26123 usd
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dei Entity Registrant Name
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Longduoduo Co Ltd
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CY2022Q1 us-gaap Diluted Earnings Per Share Pro Forma
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us-gaap Diluted Earnings Per Share Pro Forma
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dei Amendment Flag
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false
dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
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dei Document Fiscal Period Focus
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Q3
dei Entity Central Index Key
EntityCentralIndexKey
0001892316

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