Company: NCL
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001575872-25-000691
Chunk: 59

Company: Northann Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1F
Chunk 59
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 the risk inherent in the Company’s business model is determined by its management. An impairment loss would be recorded if the Company determined that the carrying value of long-lived assets may not be recoverable. The impairment to be recognized is measured by the amount by which the carrying values of the assets exceed the fair value of the assets. No impairment has been recorded by the Company for the nine months ended September 30, 2025 and 2024.

Net earnings per share of common stock

The Company has adopted ASC Topic 260, “Earnings per Share,” (“EPS”) which requires presentation of basic EPS on the face of the income statement for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation. In the accompanying consolidation financial statements, basic earnings (loss) per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period.

			September 30,

			2025

			2024

			(Unaudited)

			Net (loss) 

			$

			(13,691,600

			)

			$

			(440,897

			)

			Weighted average number of shares of common stock outstanding - basic

			91,645,170

			*

			22,861,075

			*

			Weighted average number of shares of common stock outstanding - diluted

			91,645,170

			*

			22,861,075

			*

			Basic and diluted (loss) earnings per share

			$

			(0.15

			)*

			$

			(0.02

			)*

* Retrospectively restated for the effect of 1-for-2 reverse stock split. (Note 16)

F-9

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