Company: NCL
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001575872-25-000540
Chunk: 115

Company: Northann Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 115
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 for the six months ended June 30, 2025 due to higher purchase price of our raw material and the higher US tariff included in the purchase price.

4

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 $1,134,150 to $ 1,539,587 for the six months ended June 30, 2025, from $405,437 for the same period in 2024, which was mainly caused by an increase of $816,750 in share-based compensation, an increase in rent of 232,396 resulting from the new US warehouse, an increase in advertising of 51,717, and an increase in freight of 35,853, partly offset by minor decrease in travel.

  Six Months Ended June 30,   2025  2024  Fluctuation   Amount  Proportion  Amount  Proportion  Amount  Proportion Salaries and Social Insurance  160,927   10.45%  160,113   39.49%  814   0.5%Share-based compensation  816,750   53.05%  -   0.00%  816,750   -Freight  77,043   5.00%  41,190   10.16%  35,853   87.0%Rent  260,090   16.89%  27,694   6.83%  232,396   839.2%Advertising fee  174,222   11.32%  122,505   30.22%  51,717   42.2%Travel fee  50,555   3.28%  53,935   13.30%  (3,380)  -6.3%Total selling expenses  1,539,587   100.0%  405,437   100.0%  1,134,150   279.7%

General and administrative expenses. As shown below, our general and administrative expenses consist primarily of compensation and benefits to our general management, finance and administrative staff, professional fees and other expenses incurred in connection with general operations. Our general and administrative