Company: NCL
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001575872-25-000540
Chunk: 111

Company: Northann Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 111
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 purchase price.

2

Selling expenses. As shown below, our selling expenses consist primarily of compensation and benefits to our selling department and other expenses incurred in connection with general sales operations. Our selling expenses increased by $330,526 to $ 517,588 for the three months ended June 30, 2025, from $187,062 for the same period in 2024, which was mainly caused by an increase of $310,500 in share-based compensation, an increase in rent of 93,339 resulting from the new US warehouse, and an increase in freight of 11,089, partly offset by decreases in salaries and social insurance, advertising and travel.

  Three Months Ended June 30,    2025   2024   Fluctuation   Amount  Proportion  Amount  Proportion  Amount  Proportion Salaries and Social Insurance  31,608   6.1%  76,982   41.1%  (45,374)  -58.9%Share-based compensation  310,500   59.9%  -   -  310,500   -Freight  34,039   6.6%  22,950   12.3%  11,089   48.3%Rent  109,109   21.1%  15,770   8.4%  93,339   591.9%Advertising fee  19,516   3.8%  44,662   23.9%  (25,146)  -56.3%Travel fee  12,816   2.5%  26,698   14.3%  (13,882)  -52.0%Total selling expenses  517,588   100.0%  187,062   100.0%  330,526   176.7%

General and administrative expenses. As shown below, our general and administrative expenses consist primarily of compensation and benefits to our general management, finance and administrative staff, professional fees and other expenses incurred in connection with general operations. Our general and administrative expenses decreased by $954,903 to $ 506,322 for the three months ended June 30, 2025, from $1,461,225 for