Company: NCL
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001575872-25-000691
Chunk: 81

Company: Northann Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1F
Chunk 81
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 to higher purchase price of our raw material and the higher US tariff included in the purchase price.

 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 sales operations. Our selling expenses increased by $7,337,095 to $ 7,901,900 for the nine months ended September 30, 2025, from $564,805 for the same period in 2024, which was mainly caused by an increase of $6,745,950 in share-based compensation, an increase in rent of $369,591 resulting from the new US warehouse, an increase in salaries and social insurance of $90,672, an increase in advertising of $79,033, and an increase in freight of $53,202, partly offset by minor decrease in travel.

 Nine Months Ended September 30,  2025  2024  Fluctuation  Amount  Proportion  Amount  Proportion  Amount  Proportion Salaries and social insurance $ 331,075   4.2% $ 240,403   42.6% $ 90,672   37.7%Share-based compensation  6,745,950   85.4%  -   -  6,745,950   -Freight  110,067   1.4%  56,865   10.1%  53,202   93.6%Rent  409,701   5.2%  40,110   7.1%  369,591   921.4%Advertising fee  232,717   2.9%  153,684   27.2%  79,033   51.4%Travel fee  72,390   0.9%  73,180   13.0%  (790)  -1.1%Others  -   -%  563   -%  (563)  -100.0%Total selling expenses $ 7,901,900   100.0% $ 564,805   100.0% $ 7,337,095   1299.0%

4

General and administrative expenses. As shown below, our general