Company: NCL
Filing Date: 2025-12-04
Form Type: 424B3
Source: 0001575872-25-000746
Chunk: 43

Company: Northann Corp.
Filing Date: 2025-12-04
Form: 424B3
Chunk 43
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. Income Tax Consequences of the Reverse Split

The following is a summary
of certain material U.S. federal income tax consequences of a Reverse Split to our stockholders. The summary is based on the Internal
Revenue Code of 1986, as amended (the “Code”), applicable Treasury Regulations promulgated thereunder, judicial authority
and current administrative rulings and practices as in effect on the date of this Proxy Statement. Changes to the laws could alter the
tax consequences described below, possibly with retroactive effect. We have not sought and will not seek an opinion of counsel or a ruling
from the Internal Revenue Service regarding the federal income tax consequences of a Reverse Split. This discussion only addresses stockholders
who hold common stock as capital assets. It does not purport to be complete and does not address stockholders subject to special tax
treatment under the Code, including, without limitation, financial institutions, tax-exempt organizations, insurance companies, dealers
in securities, foreign stockholders, stockholders who hold their pre-reverse stock split shares as part of a straddle, hedge or conversion
transaction, and stockholders who acquired their pre-reverse stock split shares pursuant to the exercise of employee stock options or
otherwise as compensation. If a partnership (or other entity treated as a partnership for U.S. federal income tax purposes) is the beneficial
owner of our common stock, the U.S. federal income tax treatment of a partner in the partnership will generally depend on the status
of the partner and the activities of the partnership. Accordingly, partnerships (and other entities treated as partnerships for U.S.
federal income tax purpose) holding our common stock and the partners in such entities should consult their own tax advisors regarding
the U.S. federal income tax consequences of the proposed Reverse Split to them. In addition, the following discussion does not address
the tax consequences of the Reverse Split under state, local and foreign tax laws. Furthermore, the following discussion does not address
any tax consequences of transactions effectuated before, after or at the same time as the Reverse Split, whether or not they are in connection
with the Reverse Split.

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In general, the federal income
tax consequences of a Reverse Split will vary among stockholders depending upon whether they receive solely a reduced number of shares
of common stock in exchange for their old shares of common stock or a full share in lieu of a fractional share. We believe that because
the Reverse Split is not part of a plan to increase periodically a stockholder