Form 10-Q Luduson G Inc. For: Mar 31

LUDUSON G INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Currency expressed in United States Dollars
(“US$”), except for number of shares)

See accompanying notes to condensed consolidated
financial statements.

LUDUSON G INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME

(Currency expressed in United States Dollars
(“US$”))

(Unaudited)

See accompanying notes to condensed consolidated
financial statements.

LUDUSON G INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Currency expressed in United States Dollars
(“US$”))

(Unaudited)

See accompanying notes to condensed consolidated
financial statements.

LUDUSON G INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES
IN STOCKHOLDERS’ EQUITY

(Currency expressed in United States Dollars
(“US$”), except for number of shares)

(Unaudited)

See accompanying notes to condensed consolidated
financial statements.

LUDUSON G INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2021
AND 2020

(Currency expressed in United States Dollars
(“US$”), except for number of shares)

(Unaudited)

NOTE – 1 DESCRIPTION OF BUSINESS AND
ORGANIZATION

Luduson G Inc. was organized under the laws of
the State of Delaware on March 6, 2014. The Company changed its current name on July 15, 2020.

Description of subsidiaries

The Company and its subsidiaries are hereinafter
referred to as (the “Company”).

NOTE – 2 SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES

The accompanying condensed consolidated financial statements reflect
the application of certain significant accounting policies as described in this note and elsewhere in the accompanying financial statements
and notes.

l  
Basis of presentation

These accompanying condensed consolidated financial statements have
been prepared in U.S. Dollars in conformity with generally accepted accounting principles in the United States of America (“U.S.
GAAP”) for interim financial information pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”).
Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the
opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary to make the financial statements
not misleading have been included. Operating results for the interim period ended March 31, 2021 are not necessarily indicative of the
results that may be expected for the fiscal year ending December 31, 2021. The information included in this Form 10-Q should be read in
conjunction with Management’s Discussion and Analysis, and the financial statements and notes thereto included in the Company’s
Form 10-K for the fiscal year ended December 31, 2020, filed with the SEC on May 25, 2021.

l  
Use of estimates and assumptions

In preparing these condensed consolidated financial
statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheet
and revenues and expenses during the periods reported. Actual results may differ from these estimates.

LUDUSON G INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2021
AND 2020

(Currency expressed in United States Dollars
(“US$”), except for number of shares)

(Unaudited)

l  
Basis of consolidation

The condensed consolidated financial statements
include the financial statements of the Company and its subsidiaries. All significant inter-company balances and transactions within the
Company have been eliminated upon consolidation.

l  
Cash and cash equivalents

Cash and cash equivalents are carried at cost
and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an
original maturity of three months or less as of the purchase date of such investments.

l  
Accounts receivable

Accounts receivable are recorded at the invoiced
amount and do not bear interest, which are due within contractual payment terms, generally 30 to 90 days from completion of service. Credit
is extended based on evaluation of a customer’s financial condition, the customer credit-worthiness and their payment history. Accounts
receivable outstanding longer than the contractual payment terms are considered past due. Past due balances over 90 days and over a specified
amount are reviewed individually for collectibility. At the end of fiscal year, the Company specifically evaluates individual customer’s
financial condition, credit history, and the current economic conditions to monitor the progress of the collection of accounts receivables.
The Company will consider the allowance for doubtful accounts for any estimated losses resulting from the inability of its customers to
make required payments. For the receivables that are past due or not being paid according to payment terms, the appropriate actions are
taken to exhaust all means of collection, including seeking legal resolution in a court of law. Account balances are charged off against
the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does
not have any off-balance-sheet credit exposure related to its customers. As of March 31, 2021 and December 31, 2020, there was no allowance
for doubtful accounts.

l  
Plant and equipment

Plant and equipment are stated at cost less accumulated
depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected
useful lives from the date on which they become fully operational and after taking into account their estimated residual values:

Expenditures for repairs and maintenance are expensed
as incurred. When assets have been retired or sold, the cost and related accumulated depreciation are removed from the accounts and any
resulting gain or loss is recognized in the results of operations.

Depreciation expense for the three months ended
March 31, 2021 and 2020 were $39,743 and $1,254, respectively.

l  
Revenue recognition

The Company adopted Accounting Standards Codification
(“ASC”) 606 – Revenue from Contracts with Customers” (“ASC 606”). Under ASC 606, a performance
obligation is a promise within a contract to transfer a distinct good or service, or a series of distinct goods and services, to a customer.
Revenue is recognized when performance obligations are satisfied and the customer obtains control of promised goods or services. The amount
of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for goods or services.
Under the standard, a contract’s transaction price is allocated to each distinct performance obligation. To determine revenue recognition
for arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps:

LUDUSON G INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31,
2021 AND 2020

(Currency expressed in United States Dollars
(“US$”), except for number of shares)

(Unaudited)

l  
Income taxes

The Company adopted the ASC 740 Income tax
provisions of paragraph 740-10-25-13, which addresses the determination of whether tax benefits claimed or expected to be claimed on a
tax return should be recorded in the condensed consolidated financial statements. Under paragraph 740-10-25-13, the Company may recognize
the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination
by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from
such a position should be measured based on the largest benefit that has a greater than fifty percent (50{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}) likelihood of being realized
upon ultimate settlement. Paragraph 740-10-25-13 also provides guidance on de-recognition, classification, interest and penalties on income
taxes, accounting in interim periods and requires increased disclosures. The Company had no material adjustments to its liabilities for
unrecognized income tax benefits according to the provisions of paragraph 740-10-25-13.

The estimated future tax effects of temporary
differences between the tax basis of assets and liabilities are reported in the accompanying balance sheets, as well as tax credit carry-backs
and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its balance sheets and provides
valuation allowances as management deems necessary.

l  
Uncertain tax positions

The Company did not take any uncertain tax positions
and had no adjustments to its income tax liabilities or benefits pursuant to the ASC 740 provisions of Section 740-10-25 for the three
months ended March 31, 2021 and 2020.

l  
Foreign currencies translation

Transactions denominated in currencies other than
the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction.
Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency
using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the consolidated statement
of operations.

The reporting currency of the Company is United
States Dollar (“US$”) and the accompanying consolidated financial statements have been expressed in US$. In addition, the Company
is operating in Hong Kong and maintain its books and record in its local currency, Hong Kong Dollars (“HKD”), which is a functional
currency as being the primary currency of the economic environment in which their operations are conducted. In general, for consolidation
purposes, assets and liabilities of its subsidiary whose functional currency is not US$ are translated into US$, in accordance with ASC
Topic 830-30, “Translation of Financial Statement”, using the exchange rate on the balance sheet date. Revenues and
expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements
of foreign subsidiary are recorded as a separate component of accumulated other comprehensive income within the statements of changes
in stockholder’s equity.

Translation of amounts from HKD into US$ has been
made at the following exchange rates for the three months ended March 31, 2021 and 2020:

l  
Comprehensive income

ASC Topic 220, “Comprehensive Income”,
establishes standards for reporting and display of comprehensive income, its components and accumulated balances. Comprehensive income
as defined includes all changes in equity during a period from non-owner sources. Accumulated other comprehensive income, as presented
in the accompanying condensed consolidated statements of changes in stockholders’ equity, consists of changes in unrealized gains
and losses on foreign currency translation. This comprehensive income is not included in the computation of income tax expense or benefit.

LUDUSON G INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2021
AND 2020

(Currency expressed in United States Dollars
(“US$”), except for number of shares)

(Unaudited)

l  
Related parties

The Company follows the ASC 850-10, Related
Party for the identification of related parties and disclosure of related party transactions.

Pursuant to section 850-10-20 the related parties
include a) affiliates of the Company; b) entities for which investments in their equity securities would be required, absent the
election of the fair value option under the Fair Value Option Subsection of section 825–10–15, to be accounted for by the
equity method by the investing entity; c) trusts for the benefit of employees, such as pension and Income-sharing trusts that are managed
by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties with which
the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent
that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g) other parties that
can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one
of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be
prevented from fully pursuing its own separate interests.

The condensed consolidated financial statements
shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other
similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated
or combined financial statements is not required in those statements. The disclosures shall include: a) the nature of the relationship(s)
involved; b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each
of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects
of the transactions on the financial statements; c) the dollar amounts of transactions for each of the periods for which income statements
are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d) amount
due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of
settlement.

l  
Commitments and contingencies

The Company follows the ASC 450-20, Commitments
to report accounting for contingencies. Certain conditions may exist as of the date the financial statements are issued, which may result
in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such
contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal
proceedings that are pending against the Company or un-asserted claims that may result in such proceedings, the Company evaluates the
perceived merits of any legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected
to be sought therein.

If the assessment of a contingency indicates that
it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would
be accrued in the Company’s condensed consolidated financial statements. If the assessment indicates that a potentially material
loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent
liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed.

Loss contingencies considered remote are generally
not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon
information available at this time that these matters will have a material adverse effect on the Company’s financial position, results
of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s
business, financial position, and results of operations or cash flows.

LUDUSON G INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2021
AND 2020

(Currency expressed in United States Dollars
(“US$”), except for number of shares)

(Unaudited)

l  
Fair value of financial instruments

The Company follows paragraph 825-10-50-10 of
the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and has adopted paragraph 820-10-35-37
of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments.
Paragraph 820-10-35-37 of the FASB Accounting Standards Codification establishes a framework for measuring fair value in generally accepted
accounting principles (GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair
value measurements and related disclosures, paragraph 820-10-35-37 of the FASB Accounting Standards Codification establishes a fair value
hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value
hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest
priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by paragraph 820-10-35-37 of the FASB Accounting
Standards Codification are described below:

Financial assets are considered Level 3 when their
fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant
model assumption or input is unobservable.

The fair value hierarchy gives the highest priority
to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If
the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is
based on the lowest level input that is significant to the fair value measurement of the instrument.

The carrying amounts of the Company’s financial
assets and liabilities, such as cash and cash equivalents, accounts receivable, deposits, prepayments and other receivables and operating
lease right-of-use assets approximate their fair values because of the short maturity of these instruments.

l  
Recent accounting pronouncements

From time to time, new accounting pronouncements
are issued by the Financial Accounting Standard Board (“FASB”) or other standard setting bodies and adopted by the Company
as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that
are not yet effective will not have a material impact on its financial position or results of operations upon adoption.

Simplifying the Accounting
for Debt with Conversion and Other Options.

In June 2020, the FASB
issued ASU 2020-06 to simplify the accounting in ASC 470, “Debt with Conversion and Other Options” and ASC 815, “Contracts
in Equity’s Own Entity”. The guidance simplifies the current guidance for convertible instruments and the derivatives
scope exception for contracts in an entity’s own equity. Additionally, the amendments affect the diluted EPS calculation for instruments
that may be settled in cash or shares and for convertible instruments. This ASU will be effective beginning in the first quarter of the
Company’s fiscal year 2022. Early adoption is permitted. The amendments in this update must be applied on either full retrospective
basis or modified retrospective basis through a cumulative-effect adjustment to retained earnings/(deficit) in the period of adoption.
The Company is currently evaluating the impact of ASU 2020-06 on its consolidated financial statements and related disclosures, as well
as the timing of adoption.

LUDUSON G INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31,
2021 AND 2020

(Currency expressed in United States Dollars
(“US$”), except for number of shares)

(Unaudited)

Financial Instruments

In June 2016, the FASB
issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”
(“ASU 2016-13”), which modifies the measurement of expected credit losses of certain financial instruments. In February
2020, the FASB issued ASU 2020-02 and delayed the effective date of ASU 2016-13 until fiscal year beginning after December 15, 2022. The
Company is currently evaluating the impact of adopting ASU 2016-13 on its consolidated financial statements.

Simplifying the Accounting
for Income Taxes

In December 2019, the
FASB issued ASU 2019-12 to simplify the accounting in ASC 740, “Income Taxes.” This guidance removes certain exceptions
related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period, and the recognition
of deferred tax liabilities for outside basis differences. This guidance also clarifies and simplifies other areas of ASC 740. This ASU
will be effective beginning in the first quarter of the Company’s fiscal year 2021. Early adoption is permitted. Certain amendments
in this update must be applied on a prospective basis, certain amendments must be applied on a retrospective basis, and certain amendments
must be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings/(deficit) in the period
of adoption. The adoption of ASU 2019-12 does not have a significant impact on the Company’s consolidated financial statements as
of and for the three-month period ended March 31, 2021.

Earnings Per Share

In April 2021, the FASB
issued ASU 2021-04, which included Topic 260 “Earnings Per Share”. This guidance clarifies and reduces diversity in
an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options due to a lack of explicit
guidance in the FASB Codification. The ASU 2021-04 is effective for all entities for fiscal years beginning after December 15, 2021. Early
adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2021-04 on its consolidated financial statements.

NOTE – 3 ACCOUNTS RECEIVABLE

The majority of the Company’s sales are
on open credit terms and in accordance with terms specified in the contracts governing the relevant transactions. The Company evaluates
the need of an allowance for doubtful accounts based on specifically identified amounts that management believes to be uncollectible.
If actual collections experience changes, revisions to the allowance may be required. Based upon the aforementioned criteria, the Company
has not provide the allowance for the three months ended March 31, 2021 and 2020.

The Company expects these balances to be recovered
in the next 12 months.

LUDUSON G INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31,
2021 AND 2020

(Currency expressed in United States Dollars
(“US$”), except for number of shares)

(Unaudited)

NOTE – 4 DEPOSITS, PREPAYMENTS AND
OTHER RECEIVABLES

Deposits, prepayments and other receivables consisted
of the following,

Purchase deposits represent deposit payments made
to vendors for procurement of equipment, which are interest-free, unsecured and relieved against accounts payable when goods are received
by the Company.

NOTE –
5 STOCKHOLDERS’ EQUITY

Authorized shares

As of March 31, 2021 and December 31, 2020, the
authorized share capital of the Company consisted of 100,000,000 shares of common stock with $0.0001 par value, and 20,000,000 shares
of preferred stock also with $0.0001 par value. No other classes of stock are authorized.

The Court also ordered the distribution of 2,500,000
warrants in the Company to all administrative creditors of PSD, with these creditors to receive five warrants in the Company for each
$0.10 of PSD’s administrative debt which they held. These creditors received 2,500,000 warrants consisting of 500,000 “A Warrants”
each convertible into one share of common stock at an exercise price of $4.00; 500,000 “B Warrants” each convertible into one
share of common stock at an exercise price of $5.00; 500,000 “C Warrants” each convertible into one share of common stock at
an exercise price of $6.00; 500,000 “D Warrants” each convertible into one share of common stock at an exercise price of $7.00;
and 500,000 “E Warrants” each convertible into one share of common stock at an exercise price of $8.00. All warrants are exercisable
at any time prior to August 30, 2020.

As of March 31, 2021, no warrants have been exercised.

Issued and outstanding shares

As of March 31, 2021 and December 31, 2020, 28,110,000
common shares issued and outstanding, and 2,500,000 warrants to acquire common shares issued and outstanding.

NOTE –
6 INCOME TAX

The Company mainly operates in Hong Kong that
is subject to taxes in the governing jurisdictions in which it operates. The effective tax rate in the period presented is the result
of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rate, as follows:

BVI

Under the current BVI law, the Company is not
subject to tax on income.

LUDUSON G INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31,
2021 AND 2020

(Currency expressed in United States Dollars
(“US$”), except for number of shares)

(Unaudited)

Hong Kong

The Company’s subsidiary operating in Hong
Kong is subject to the Hong Kong Profits Tax at the two-tiered profits tax rates from 8.25{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} to 16.5{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} on the estimated assessable profits
arising in Hong Kong during the current year, after deducting a tax concession for the tax year. The reconciliation of income tax rate
to the effective income tax rate for the three months ended March 31, 2021 and 2020 is as follows:

NOTE –
7 RELATED PARTY TRANSACTIONS

Apart from the transactions and balances detailed
elsewhere in these accompanying condensed consolidated financial statements, the Company has no other significant or material related
party transactions during the periods presented.

NOTE –
8 CONCENTRATIONS OF RISK

The Company is exposed to the following concentrations of risk:

(a)       Major
customers

For the three months ended March 31, 2021 and
2020, the individual customer who accounts for 10{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} or more of the Company’s revenues and its outstanding receivable balances as
at period-end dates, are presented as follows:

LUDUSON G INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2021
AND 2020

(Currency expressed in United States Dollars
(“US$”), except for number of shares)

(Unaudited)

(b)       Economic
and political risk

The Company’s major operations are conducted
in Hong Kong. Accordingly, the political, economic, and legal environments in Hong Kong, as well as the general state of Hong Kong’s
economy may influence the Company’s business, financial condition, and results of operations.

(c)       Exchange
rate risk

The Company cannot guarantee that the current
exchange rate will remain steady; therefore there is a possibility that the Company could post the same amount of profit for two comparable
periods and because of the fluctuating exchange rate actually post higher or lower profit depending on exchange rate of HKD converted
to US$ on that date. The exchange rate could fluctuate depending on changes in political and economic environments without notice.

9.       COMMITMENTS
AND CONTINGENCIES

As of March 31, 2021, the Company has no material
commitments or contingencies.

10.       SUBSEQUENT
EVENTS

In accordance with ASC Topic 855, “Subsequent
Events”, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date
but before consolidated financial statements are issued, the Company has evaluated all events or transactions that occurred after March
31, 2021, up through the date the Company issued the unaudited condensed consolidated financial statements. The Company determined that
there were no further events to disclose.

The following discussion
and analysis of our Company’s financial condition and results of operations should be read in conjunction with our unaudited condensed
consolidated financial statements and the related notes included elsewhere in the report. This discussion contains forward-looking statements
that involve risks and uncertainties. Actual results and the timing of selected events could differ materially from those anticipated
in these forward-looking statements as a result of various factors. See “Cautionary Note Concerning Forward-Looking Statements”
on page 2.

The description of our
business included in this quarterly report is summary in nature and only includes material developments that have occurred since the latest
full description. The full discussion of the history and general development of our business is included in “Item 1. Description
of Business” section of the Company’s Annual Report on Form 10-K filed with the SEC on March 25, 2021, which section is incorporated
by reference.

Currency and exchange
rate

Unless otherwise noted,
all currency figures quoted as “U.S. dollars”, “dollars” or “US$” refer to the legal currency of the
United States. References to “Hong Kong Dollar” are to the Hong Kong Dollar, the legal currency of the Hong Kong Special Administrative
Region of the People’s Republic of China. Throughout this report, assets and liabilities of the Company’s subsidiaries are
translated into U.S. dollars using the exchange rate on the balance sheet date. Revenue and expenses are translated at average rates prevailing
during the period. The gains and losses resulting from translation of financial statements of foreign subsidiaries are recorded as a separate
component of accumulated other comprehensive income within the statement of stockholders’ equity.

Overview

We were incorporated under
the laws of the State of Delaware on March 6, 2014, under the name “Jovanovic-Steele, Inc.” Our name was changed to Baja Custom
Designs, Inc. on October 26, 2017. On May 8, 2020, we acquired Luduson Holding Company Limited, a limited liability company organized
under the laws of British Virgin Islands (“LHCL”). As a result of our acquisition of LHCL, we entered into the business-to-business
gaming technology industry.

We are business-to-business
gaming technology company that provides events marketing strategies with a combination of digital interactive solutions and content production
services in Hong Kong. In digital marketing industry, we offer business-to-business digital marketing solutions on our proprietary and
secure network, which accommodates a wide range of devices and theme-based gaming content, including multi-touch table, body motion sensing,
indoor positioning device and electronic circuit system, together with the customized game contents, as an integrated marketing solution.
We are principally engaged in developing and granting a right-to-use digital entertainment – interactive game software and providing system
development consultancy and maintenance services to our customers and interactive games installations in shopping mall events, exhibitions
and brand promotions.

We provide our business customers
in entertainment industry with a full line of custom-made interactive gaming services. In this entertainment segment, we offer a customized
device box with a library of self-developed interactive game contents, such as, sport-themed social games, motion-sensing action games,
logic and puzzle games, original IP characters education game for children, etc., to meet with our business customers’ operational
use or business-to-business social solutions.

Our goal is to provide an
innovative and effective interactive solution services to satisfy diverse marketing needs. We are committed to working at a high-quality
standard to address the needs of differing budgets. We provide services to wide range of customer across different industry segments and
regions.

Our principal executive and
registered offices are located at 17/F, 80 Gloucester Road, Wanchai, Hong Kong, telephone number +852-2119 1031.

Results of Operations

Comparison of the three months ended March
31, 2021 and 2020

The following table sets
forth certain operational data for the three months ended March 31, 2021 and 2020:

Revenue. We generated
revenues of $193,376 and $96,519 for the three months ended March 31, 2021 and 2020. The significant increase is due to the increase
in business volume in digital advertising income from our online entertainment portal. To cope with changing entertainment consumption
patterns since the COVID-19 pandemic, we launched our self-developed online portal and shared freely our game contents with users.

During the three months ended March 31, 2021 and
2020, the following customers accounted for 10{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} or more of our total net revenues:

 All of our major customers are located in Hong Kong and the PRC

Cost of Revenue. Cost
of revenue for the three months ended March 31, 2021, was $34,371, and as a percentage of net revenue, approximately 17.8{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}. Cost of revenue
for the three months ended March 31, 2020, was $96,519, and as a percentage of net revenue, approximately 19.7{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}. Cost of revenue increased
primarily as a result of the increase in our business volume.

Gross Profit. We achieved
a gross profit of $159,005 and $92,838 for the three months ended March 31, 2021 and 2020, respectively. The increase in gross profit
is primarily attributable to the increase in our business volume.

General and Administrative
Expenses (“G&A”). We incurred G&A expenses of $38,853 and $36,692 for the three months ended March 31, 2021, and
2020, respectively. The increase in G&A is primarily attributable to the increase in our business volume.

Income Tax Expense.
Our income tax expenses for the quarters ended March 31, 2021 and 2020 was $12,840 and $4,717, respectively.

Net Income. During
the three months ended March 31, 2021, we incurred a net income of $107,312, as compared to $51,429 for the same period ended March 31,
2020. The decrease in net income is primarily attributable to the decrease in our business volume amid the coronavirus (COVID-19) outbreak
in 2020.

Liquidity and Capital Resources

As
of March 31, 2021, we had cash and cash equivalents of $10,000, accounts receivable of $4,660,147, deposits, prepayments and other receivables
of $663,193.

We believe that our current
cash and other sources of liquidity discussed below are adequate to support general operations for at least the next 12 months.

Net Cash Used In Operating Activities.

For the three months ended March 31, 2021, net cash used in operating activities was $9,959, which consisted primarily of
a net income of $107,312, an increase in income tax payable of $10,733, offset by an increase in accounts receivables of $160,401, an
decrease in accrued expenses and other payables of $7,346, and depreciation of plant and equipment of $39,743.

For the three months ended
March 31, 2020, net cash used in operating activities was $53,581, which consisted primarily of non-cash items, $1,254 of depreciation
of plant and equipment and $9,433 of lease expenses, offset by, an increase in accounts receivables of $1,881, an increase in deposits,
prepayments and other receivables of $108,859. 

We expect to continue to rely
on cash generated through financing from our existing shareholders and private placements of our securities, however, to finance our operations
and future acquisitions.

Net Cash Provided By (Used In) Investing Activities.

For the three months ended
March 31, 2021, there is no net cash provided by investing activities.

For the three months ended
March 31, 2020, there is no net cash provided by investing activities.

Net Cash Provided By Financing Activities.

For the three months ended
March 31, 2021, net cash used in financing activities was $9,674 consisting primarily of a repayment to a director.

For the three months ended
March 31, 2020, net cash used in financing activities was $186,084, consisting primarily of dividends paid to the former shareholder of
the Company.

Off-Balance Sheet Arrangements

We have no outstanding off-balance sheet guarantees,
interest rate swap transactions or foreign currency contracts.  We do not engage in trading activities involving non-exchange traded
contracts.

Critical Accounting Policies and Estimates.

The preparation of financial
statements in conformity with accounting principles generally accepted in the United States requires our management to make assumptions,
estimates and judgments that affect the amounts reported, including the notes thereto, and related disclosures of commitments and contingencies,
if any. We have identified certain accounting policies that are significant to the preparation of our financial statements. These accounting
policies are important for an understanding of our financial condition and results of operations. Critical accounting policies are those
that are most important to the presentation of our financial condition and results of operations and require management’s subjective or
complex judgment, often as a result of the need to make estimates about the effect of matters that are inherently uncertain and may change
in subsequent periods. Certain accounting estimates are particularly sensitive because of their significance to financial statements and
because of the possibility that future events affecting the estimate may differ significantly from management’s current judgments. We
believe the following accounting policies are critical in the preparation of our financial statements.

l
 Basis of presentation

These accompanying consolidated financial statements
have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”).

l
 Use of estimates and assumptions

In preparing these consolidated financial statements,
management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheet and revenues
and expenses during the period reported. Actual results may differ from these estimates.

l
 Basis of consolidation

The consolidated financial statements include
the accounts of the Company and its subsidiaries. All significant inter-company balances and transactions within the Company have been
eliminated upon consolidation.

l
 Accounts receivable

Accounts receivable are recorded at the invoiced
amount and do not bear interest, which are due within contractual payment terms, generally 30 to 90 days from completion of service. Credit
is extended based on evaluation of a customer’s financial condition, the customer credit-worthiness and their payment history. Accounts
receivable outstanding longer than the contractual payment terms are considered past due. Past due balances over 90 days and over a specified
amount are reviewed individually for collectibility. At the end of fiscal year, the Company specifically evaluates individual customer’s
financial condition, credit history, and the current economic conditions to monitor the progress of the collection of accounts receivables.
The Company will consider the allowance for doubtful accounts for any estimated losses resulting from the inability of its customers to
make required payments. For the receivables that are past due or not being paid according to payment terms, the appropriate actions are
taken to exhaust all means of collection, including seeking legal resolution in a court of law. Account balances are charged off against
the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does
not have any off-balance-sheet credit exposure related to its customers.

l
 Revenue recognition

The Company adopted Accounting Standards Codification
(“ASC”) 606 – Revenue from Contracts with Customers” (“ASC 606”). Under ASC 606, a performance
obligation is a promise within a contract to transfer a distinct good or service, or a series of distinct goods and services, to a customer.
Revenue is recognized when performance obligations are satisfied and the customer obtains control of promised goods or services. The amount
of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for goods or services.
Under the standard, a contract’s transaction price is allocated to each distinct performance obligation. To determine revenue recognition
for arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps:

l
 Foreign currencies translation

Transactions denominated in currencies other than
the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction.
Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency
using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the consolidated statement
of operations.

The reporting currency of the Company is United
States Dollar (“US$”) and the accompanying consolidated financial statements have been expressed in US$. In addition, the Company’s
operating subsidiaries in Hong Kong and Seychelles maintain their books and record in its local currency, Hong Kong Dollars (“S$”),
which is a functional currency as being the primary currency of the economic environment in which their operations are conducted. In general,
for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in
accordance with ASC Topic 830-30, “ Translation of Financial Statement”, using the exchange rate on the balance sheet
date. Revenues and expenses are translated at average rates prevailing during the year. The gains and losses resulting from translation
of financial statements of foreign subsidiaries are recorded as a separate component of accumulated other comprehensive income within
the statements of changes in stockholder’s equity.

l
 Leases

The Company adopted Topic 842, Leases (“ASC
842”). At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique
facts and circumstances present. Leases with a term greater than one year are recognized on the balance sheet as right-of-use (“ROU”)
assets, lease liabilities and long-term lease liabilities. The Company has elected not to recognize on the balance sheet leases with terms
of one year or less. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of
lease payments over the expected remaining lease term. However, certain adjustments to the right-of-use asset may be required for items
such as prepaid or accrued lease payments. The interest rate implicit in lease contracts is typically not readily determinable. As a result,
the Company utilizes its incremental borrowing rates, which are the rates incurred to borrow on a collateralized basis over a similar
term an amount equal to the lease payments in a similar economic environment.

In accordance with the guidance in ASC 842, components
of a lease should be split into three categories: lease components (e.g. land, building, etc.), non-lease components (e.g. common area
maintenance, consumables, etc.), and non-components (e.g. property taxes, insurance, etc.). Subsequently, the fixed and in-substance fixed
contract consideration (including any related to non-components) must be allocated based on the respective relative fair values to the
lease components and non-lease components.

Lease expense is recognized on a straight-line
basis over the lease terms. Lease expense includes amortization of the ROU assets and accretion of the lease liabilities. Amortization
of ROU assets is calculated as the periodic lease cost less accretion of the lease liability. The amortized period for ROU assets is limited
to the expected lease term.

The Company has elected a practical expedient
to combine the lease and non-lease components into a single lease component. The Company also elected the short-term lease measurement
and recognition exemption and does not establish ROU assets or lease liabilities for operating leases with terms of 12 months
or less.

l
 Recent accounting pronouncements

From time to time, new accounting pronouncements
are issued by the Financial Accounting Standards Board (FASB), or other standard setting bodies and adopted by the Company as of the specified
effective date. Under the Jumpstart Our Business Startups Act of 2012 (JOBS Act), the Company meets the definition of an emerging growth
company. The Company has elected to use the extended transition period for complying with new or revised accounting standards pursuant
to Section 107(b) of the JOBS Act. Unless otherwise discussed, the impact of recently issued standards that are not yet effective will
not have a material impact on the Company’s financial position or results of operations upon adoption.

Recently Adopted Accounting Pronouncements

On January 1, 2021, the Company adopted Accounting
Standards Update (“ASU”) No. 2016-02 (Topic 842) “Leases” which supersedes the lease recognition requirements
in ASC Topic 840, “Leases”. Under ASU No. 2016-02, lessees are required to recognize assets and liabilities on the consolidated
balance sheets for most leases and provide enhanced disclosures. For companies that are not emerging growth companies (“EGCs”),
the ASU was effective for fiscal years beginning after December 15, 2018. For EGCs, the ASU is effective for fiscal years beginning after
December 15, 2021. The Company early adopted the new standard using the modified retrospective method by recording and right-of-use asset
of $13.2 million, short-term portion of lease liabilities of $6.3 million and long-term portion of lease liabilities of $7.2 million
as of the effective date. Prior periods will not be restated and will continue to be reported under Topic 840 guidance in effect during
those periods. The Company applied the package of practical expedients to leases that commenced before the effective date whereby the
Company elected to not reassess the following: (i) whether any expired or existing contracts contain leases; (ii) the lease classification
for any expired or existing leases; and (iii) initial direct costs for any existing leases. The adoption did not have a material impact
on its consolidated statements of operations or its consolidated statements of cash flows. See Note 13, Leases, for further information
and disclosures related to the adoption of this standard.

In December 2019, the FASB issued ASU No. 2019-12, Income
Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU No. 2019-12”), which is intended to simplify various
aspects of the accounting for income taxes. ASU No. 2019-12 removes certain exceptions to the general principles in Topic 740 and clarifies
and amends existing guidance to improve consistent application. This standard is effective for fiscal years and interim periods within
those fiscal years, beginning after December 15, 2020. Early adoption is permitted. The Company has adopted the pronouncement and it did
not have a material impact on its consolidated financial statements and related disclosures.

As a smaller reporting company,
as defined by Item 10 (f)(1) of Regulation S-K, we are not required to provide the information required by this item.

CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

As required
by Rule 13a-15 under the Securities Exchange Act of 1934 (the “1934 Act”), as of March 31, 2021, we carried out an evaluation
of the effectiveness of the design and operation of our disclosure controls and procedures. This evaluation was carried out under the
supervision and with the participation of our Chief Executive Officer (our principal executive officer) and our Chief Financial Officer
(our principal financial officer), who concluded, that because of the material weakness in our internal control over financial reporting
(“ICFR”) described in our Annual Report on Form 10-K filed with the SEC on March 25, 2021, our disclosure controls and procedures
were not effective as of December 31, 2020.

Disclosure controls and procedures
are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted
under the Securities Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities
and Exchange Commission’s rules and forms.  Disclosure controls and procedures include, without limitation, controls and procedures
designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated
to our management, including our principal executive officer and our principal financial officer, as appropriate, to allow timely decisions
regarding required disclosure.

Changes in Internal Control over Financial
Reporting

There have been no changes
in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act
Rules 13a-15 or 15d-15 that occurred during our last quarter ended March 31,
2021, that have materially affected, or are reasonable likely to materially affect, our internal control over financial reporting.

PART II OTHER INFORMATION

The Company is not a party
to any legal proceedings.

None.

There were no sales of unregistered
equity securities during the covered time period.

None.

None.

None.

SIGNATURES

In accordance with Section 13 or 15 (d) of the
Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: May 24, 2021

EXHIBIT 31.1 

CERTIFICATION PURSUANT TO

18 USC, SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES OXLEY ACT OF 2002

I, Ka Leung Wong, certify that:

EXHIBIT 31.2

CERTIFICATION PURSUANT TO

18 USC, SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES OXLEY ACT OF 2002

I, Lan Chan, certify that:

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 USC, SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Luduson
G Inc. (the “Company”) on Form 10-Q for the period ending March 31,
2021 (the “Report”), I, Ka Leung Wong, Chief Executive Officer of the Company, certify, pursuant to 18 USC Section
1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge and belief:

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 USC, SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Luduson
G Inc. (the “Company”) on Form 10-Q for the period ending March 31,
2021 (the “Report”), I, Lan Chan, Chief Financial Officer, Chief Operating Officer and Secretary of the Company, certify,
pursuant to 18 USC Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge
and belief: