Company: NCL
Filing Date: 2025-07-01
Form Type: 10-K
Source: 0001575872-25-000433
Chunk: 27

Company: Northann Corp.
Filing Date: 2025-07-01
Form: 10-K
Item: Item 12
Chunk 27
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 only one reporting unit. The Company recorded impairment losses on goodwill of nil and $2,507,455 during the years ended December 31, 2023 and 2024, respectively, Impairment of Long-lived Assets In accordance with ASC 360-10-35, the Company reviews the carrying values of long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Based on the existence of one or more indicators of impairment, the Company measures any impairment of long-lived assets using the projected discounted cash flow method at the asset group level. The estimation of future cash flows requires significant management judgment based on the Company’s historical results and anticipated results and is subject to many factors. The discount rate that is commensurate with 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 loss has been recorded by the Company in the years ended December 31, 2024 and 2023.

F-11

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.   2024  2023        Net loss $(4,379,875) $(7,132,573)         Weighted average number of shares of common stock outstanding - basic*   26,267,990   20,278,226 Add: potentially dilutive effect of shares issuable upon exercise of warrants  -    -           Weighted average number of shares of common stock outstanding - diluted*  26,267,990   20,278,226          Net loss per ordinary share        -Basic $(0.17) $(0.35)-Diluted $(0.17) $(0.35) * Retrospectively restated for the effect