Company: NCL
Filing Date: 2025-11-18
Form Type: 424B3
Source: 0001575872-25-000699
Chunk: 38

Company: Northann Corp.
Filing Date: 2025-11-18
Form: 424B3
Chunk 38
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 in gross profit and increase
in operating expenses.

Liquidity and Capital Resources

As of September 30, 2025 and December 31, 2024,
we had cash of $40,883, and $245,164, respectively. To date, we have financed our operations primarily through our business operations,
borrowings from our stockholders, related and unrelated parties, and proceeds from IPO.

The Company believes that its current levels of
cash and cash flows from operations will be sufficient to meet its anticipated cash needs for at least the next twelve months. However,
it may need additional cash resources in the future if it finds and wishes to pursue opportunities for investment, acquisition, strategic
cooperation or other similar actions. If it determines that its cash requirements exceed its amounts of cash on hand or if it decides
to further optimize its capital structure, it may seek to issue additional debt or equity securities or obtain credit facilities or other
sources of funding.

| 5 |

The following table set forth a summary of its cash flows for the periods
indicated:

|                                                      |     | For the Nine Months Ended 
 September 30,             |        2025 |   |     |   |       2024 |   |
|:-----------------------------------------------------|:----|:--------------------------|------------:|:--|:----|:--|-----------:|:--|
| Net cash (used in) provided by operating activities  |     | $                         | (3,845,524, | ) |     | $ |    345,402 |   |
| Net cash (used in) investing activities              |     | $                         |  (1,018,571 | ) |     | $ |   (348,795 | ) |
| Net cash provided by (used in ) financing activities |     | $                         |   3,777,759 |   |     | $ | (1,076,360 | ) |

Operating Activities

Net cash used in operating activities was $3,845,524
for the nine months ended September 30, 2025. The net cash used in operating activities for the nine months ended September 30, 2025
was mainly due to our net loss of $13,691,600 adjusted for (i) a net increase of non-cash items of $7,446,535 which consisted primarily
of share-based compensation, depreciation and amortization, and a tax payable write-off and (ii) a net increase of