Company: NCL
Filing Date: 2025-07-01
Form Type: 10-K
Source: 0001575872-25-000433
Chunk: 116

Company: Northann Corp.
Filing Date: 2025-07-01
Form: 10-K
Item: Item 16
Chunk 116
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; (7) Nontaxable or nondeductible items; (8) Changes in unrecognized tax benefits. PBEs must apply the ASU’s guidance to annual periods beginning after December 15, 2024 (2025 for calendar-year-end  PBEs). Early adoption is permitted. Entities may apply the amendments prospectively or may elect retrospective application. The Company is currently evaluating the impact from the adoption of this ASU on its consolidated financial statements. In November 2024, the FASB issued ASU 2024-03 “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40)”. The amendments in this update intend to improve the disclosures about a public business entity’s expenses and address requests from investors for more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation, amortization, and depletion) in commonly presented expense captions (such as cost of sales, selling, general and administrative expenses, and research and development). ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027. The Company is currently evaluating the impact from the adoption of this ASU on its consolidated financial statements.

F-14

3.BUSINESS COMBINATION In October 2024, in order to expand its sales, the Company acquired 100% equity interests of Cedar Modern Limited (“Cedar”) for consideration of 4,484,400 ordinary shares of the Company. Cedar is a trading company incorporated in Hong Kong. The fair value of assets acquired, liabilities assumed and goodwill resulted for this acquisition are as follows:    Amount    US$     Amount due from related party   190,359 Total identifiable assets acquired  190,359     Total liabilities assumed  -     Net identifiable assets acquired  190,359     Number of Class A ordinary shares issued as consideration  4,484,400 Quoted price of Class A ordinary shares on acquisition date  0.168 Total purchase consideration  753,379 Goodwill  563,020  In November 2024, in order to expand its sales, the Company acquired 100% equity interests of Raleigh Industries Limited (“Raleigh”) for consideration of 4,500,000 ordinary shares of the Company. Raleigh is a trading company incorporated in Hong Kong. The