Company: NCL
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001575872-25-000540
Chunk: 105

Company: Northann Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 105
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% of the Company’s revenues.  No other customer accounts for more than 10% of the Company’s revenue in the six months ended June 30, 2025 and 2024. As of June 30, 2025, five customers accounted for 91% of the Company’s accounts receivable. As of December 31, 2024, five customers accounted for 84% of the Company’s accounts receivable. No other customer accounts for more than 10% of the Company’s accounts receivable for the six months ended June 30, 2025 and for the year ended December 31, 2024. During the six months ended June 30, 2025, five suppliers accounted for a total of 74% of the Company’s cost of revenues. No other supplier accounts for over 10% of the Company’s cost of revenues. During the six months ended June 30, 2024, no supplier accounts for over 10% of the Company’s cost of revenues. As of June 30, 2025, no supplier accounted for over 10% of the Company’s accounts payable. As of December 31, 2024, no supplier accounted for 10% of the Company’s accounts payable. (b)Credit risk Financial instruments that potentially subject the Company to a significant concentration of credit risk consist primarily of cash. As of June 30, 2025 and December 31, 2024, substantially all of the Company’s cash were held by major financial institutions located in the PRC, Hong Kong, and the United States, which management believes are of high credit quality. Deposits in the United States up to $250,000 are insured by the Federal Depository Insurance Corporation. F-17  For the credit risk related to trade accounts receivable, the Company performs ongoing credit evaluations of its customers and, if necessary, maintains reserves for potential credit losses. Historically, such losses have been within management’s expectations.

15. CAPITAL COMMITMENTS On July 26, 2021, the Company has contracted Changzhou Wanyuan Construction Engineering Co. to build a second phase of its factory. The amount required in the contract is $10 million. Construction is expected to take approximately one and half year, and the second phase of the factory will be approximately 250,000 square feet.

16. STOCK SPLIT Effective on July 6, 2023, the Company implemented a 2