Company: NCL
Filing Date: 2025-07-01
Form Type: 10-K
Source: 0001575872-25-000433
Chunk: 41

Company: Northann Corp.
Filing Date: 2025-07-01
Form: 10-K
Item: Item 12
Chunk 41
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. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company does not separate non-lease components from the lease components to which they relate, and instead accounts for each separate lease and non-lease component associated with that lease component as a single lease component for all underlying asset classes.

The following table provides a summary of leases by balance sheet location as of December 31, 2024 and 2023:

			Assets/liabilities

			December 31, 

			2024

			December 31, 

			2023

			Assets

			Operating lease right-of-use assets

			$

			1,822,266

			$

			87,380

			Liabilities

			Operating lease liability - current

			$

			355,754

			$

			31,413

			Operating lease liability - non-current

			1,466,512

			55,967

			Total lease liabilities

			$

			1,822,266

			$

			87,380

F-22

The operating lease expenses for the year ended December 31, 2024 and 2023 were as follows:

			Lease Cost

			Classification

			December 31, 

			2024

			December 31, 

			2023

			Operating lease expense

			General and administrative expenses

			$

			438,854

			$

			30,274

Maturities of operating lease liabilities as of December 31, 2024 were as follows:

			Maturity of Lease Liabilities

			Operating 

			Leases

			12 months ending December 31,

			2025

			$

			438,854

			2026

			439,278

			2027

			$

			428,376

			2028

			441,227

			2029

			299,976

			Total lease payments

			$

			2,047,712

			Less: interest

			(225,445

			)

			Present value of lease payments

			$

			1,822,266

Lease liabilities