Company: NCL
Filing Date: 2025-11-18
Form Type: 424B3
Source: 0001575872-25-000699
Chunk: 13

Company: Northann Corp.
Filing Date: 2025-11-18
Form: 424B3
Chunk 13
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 re-measurement are included in the statements
of comprehensive loss.

The consolidated financial statements are presented
in U.S. dollars. Assets and liabilities are translated into U.S. dollars at the current exchange rate in effect at the balance sheet date,
and revenues and expenses are translated at the average of the exchange rates in effect during the reporting period. Stockholders’
equity accounts are translated using the historical exchange rates at the date the entry to stockholders’ equity was recorded, except
for the change in retained earnings during the period, which is translated using the historical exchange rates used to translate each
period’s income statement. Differences resulting from translating functional currencies to the reporting currency are recorded in
accumulated other comprehensive income in the consolidated balance sheets.

Translation of amounts from RMB and HKD into U.S.
dollars has been made at the following exchange rates:

| Balance sheet items, except for equity accounts |     |                 |     |                 |
| September 30, 2025                              |     | RMB7.1190 to $1 |     | HKD7.8 to $1    |
| December 31, 2024                               |     | RMB7.0950 to $1 |     | HKD7.8259 to $1 |
| Income statement and cash flows items           |     |                 |     |                 |
| For the nine months ended September 30, 2025    |     | RMB7.2201 to $1 |     | HKD7.8 to $1    |
| For the nine months ended September 30, 2024    |     | RMB7.1107 to $1 |     | HKD7.8088 to $1 |

Cash consist of cash on hand and at banks and
highly liquid investments, which are unrestricted from withdrawal or use, and which have original maturities of three months or less when
purchased.

Accounts Receivable, Net

Accounts receivable is stated at the historical
carrying amount net of allowance for doubtful accounts. The Company determines the allowance for doubtful accounts on an individual basis
taking into consideration various factors including but not limited to historical collection experience and creditworthiness of the debtors
as well as the age of the individual receivables balance.

Additionally, the Company would make specific
bad debt provisions based on any specific knowledge the Company has acquired that might indicate that an account is uncollectible. The
facts and circumstances of each account may require the