Company: NCL
Filing Date: 2025-11-18
Form Type: 424B3
Source: 0001575872-25-000699
Chunk: 31

Company: Northann Corp.
Filing Date: 2025-11-18
Form: 424B3
Chunk 31
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Regulation S-X requires the condensed financial information of registrant shall be filed when the restricted net assets of consolidated
subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. For purposes of the
above test, restricted net assets of consolidated subsidiaries shall mean that amount of the registrant’s proportionate share of
net assets of consolidated subsidiaries (after intercompany eliminations) which as of the end of the most recent fiscal year may not be
transferred to the parent company by subsidiaries in the form of loans, advances or cash dividends without the consent of a third party
(i.e., lender, regulatory agency, foreign government, etc.). The Company’s only assets are its equity interests in its subsidiaries.
Unrestricted net assets are held in the Company’s subsidiaries located in the US and Hong Kong. The Company does maintain substantial
assets and operating subsidiaries in China; therefore, the ability for operating subsidiaries to pay dividends or transfer assets to the
Company may be restricted due to the foreign exchange control policies and availability of cash balances of the Chinese operating subsidiaries.

As of September 30, 2025, there were
no material contingencies, significant provisions of long-term obligations, mandatory dividend or redemption requirements of redeemable
stocks or guarantees of the Company, except for those which have been separately disclosed in the Consolidated Financial Statements, if
any.

| F-20 |

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Results of Operations

Comparison for the Three Months Ended September 30, 2025 and 2024

The following table sets forth key components
of our results of operations for the three months ended September 30, 2025 and 2024, both in dollars and as a percentage of our revenues.

|                                         |     | Three Months Ended September 30, 
 2025                             
 Amount                           |            |   |     | of Revenue |        |    |     | 2024   
 Amount |           |   |     | of Revenue |       |    |
|:----------------------------------------|:----|:---------------------------------|-----------:|:--|:----|:-----------|-------:|:---|:----|:-------|----------:|:--|:----|:-----------|------:|:---|
| Revenues                                |     | $                                |  3,545,412 |   |     |            |  100.0 | %  |