Company: NCL
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001575872-25-000691
Chunk: 133

Company: Northann Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 133
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 activities for the nine months ended September 30, 2025 was mainly due to our net loss of $13,691,600 adjusted for (i) a net increase of non-cash items of $7,446,535 which consisted primarily of share-based compensation, depreciation and amortization, and a tax payable write-off and (ii) a net increase of $2,726,683 in operating assets and liabilities. The net increase in changes in operating assets and liabilities was attributable primarily to an increase of $2,095,805 in accruals and other payables, an increase of $1,716,794 in unearned revenue, a decrease in accounts receivable of $532,635, and a decrease in prepayments of $309,187, partially offset by an increase in inventory of $1,442,530, and a decrease in due to related party of $444,008.

The net cash provided by operating activities for the nine months ended September 30, 2024 mainly included net loss of $440,897, adjusted by share-based compensation of $1,182,496, other income of $250,000 resulting from the final settlement of the convertible notes, and a net decrease of $710,757 in operating assets and liabilities. The net decrease in changes in operating assets and liabilities was attributable primarily to an increased in inventory of $1,162,252, a decrease in accounts payable of $209,448, and a decrease in unearned revenue of $186,225, partially offset by a decrease in accounts receivable of $674,820, a decrease in prepayments of $185,792, and minor change of other accounts. 

Investing Activities

Net cash used in investing activities was $1,018,571 for the nine months ended September 30, 2025. The net cash used in investing activities for the nine months ended September 30, 2025 mainly included the payments for construction in progress and purchasing equipment. 

Net cash used in investing activities was $348,795 for the nine months ended September 30, 2024. The net cash used in investing activities for the nine months ended September 30, 2024 mainly included the payments for construction in progress.

Financing Activities

Net cash provided by financing activities for the nine months ended September 30, 2025 was $3,777,759. The net cash provided by financing activities mainly came from the partial proceeds from the issuance of 120,