Company: NCL
Filing Date: 2025-07-01
Form Type: 10-K
Source: 0001575872-25-000433
Chunk: 112

Company: Northann Corp.
Filing Date: 2025-07-01
Form: 10-K
Item: Item 16
Chunk 112
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 shares of common stock outstanding during the period.   2024  2023        Net loss $(4,379,875) $(7,132,573)         Weighted average number of shares of common stock outstanding - basic*   26,267,990   20,278,226 Add: potentially dilutive effect of shares issuable upon exercise of warrants  -    -           Weighted average number of shares of common stock outstanding - diluted*  26,267,990   20,278,226          Net loss per ordinary share        -Basic $(0.17) $(0.35)-Diluted $(0.17) $(0.35) * Retrospectively restated for the effect of 2-for-1 reverse stock split. (Note 18) On May 16, 2022, Northann entered into a securities purchase agreement with certain investors, pursuant to which the Company sold the investors convertible debentures in an aggregate principal amount of $1,000,000 that are convertible into shares of common stock of Northann with a 100% warrant coverage to purchase common stock of Northann and such shares underlying the warrants. Segments The Company evaluates a reporting unit by first identifying its operating segments, and then evaluates each operating segment to determine if it includes one or more components that constitute a business. If there are components within an operating segment that meets the definition of a business, the Company evaluates those components to determine if they must be aggregated into one or more reporting units. If applicable, when determining if it is appropriate to aggregate different operating segments, the Company determines if the segments are economically similar and, if so, the operating segments are aggregated. The Company has only one major reportable segment in the periods presented. The Company’s chief operation decision maker is the Company’s Chief Executive Officer. Shipping and Handling Costs Outbound shipping and handling costs are expenses as incurred and charged to the selling expense. Inbound shipping and freight are charged for raw material and components are accounted for as cost of revenues.

F-12

 Fair Value of Financial Instruments U.S. GAAP establishes a three-tier hierarchy to prioritize the inputs used in the valuation methodologies in measuring the fair value of financial instruments. This hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three