Company: NCL
Filing Date: 2025-11-24
Form Type: PRE 14A
Source: 0001575872-25-000718
Chunk: 43

Company: Northann Corp.
Filing Date: 2025-11-24
Form: PRE 14A
Chunk 43
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 shares exchanged. The Treasury Regulations provide
detailed rules for allocating the tax basis and holding period of shares of common stock surrendered in a recapitalization to shares
received in the recapitalization. Stockholders of our common stock acquired on different dates and at different prices should consult
their tax advisors regarding the allocation of the tax basis and holding period of such shares.

A stockholder who holds a
number of shares of common stock not evenly divisible by the Approved Split Ratio will automatically be entitled to receive an additional
fraction of a share of common stock to round up to the next whole share of common stock. The U.S. federal income tax consequences of
the receipt of such an additional fraction of a share are not clear. A stockholder that receives a full share in lieu of a fractional
share may be treated as though it received a distribution from us to the extent that the value of the full share exceeds the value of
the fractional share the stockholder otherwise would have received. Such distribution would generally be a dividend to the extent of
our current or accumulated earnings and profits. Any amount in excess of earnings and profits would generally reduce the stockholder’s
basis in their shares of common stock by the amount of such excess. The portion of the full share in excess of the fractional share would
generally have a tax basis equal to the amount recognized as a dividend and the holding period for such share would begin on the date
of the deemed distribution. Stockholders are urged to consult their own tax advisors as to the possible tax consequences of receiving
an additional fraction of a share in the Reverse Split.

THE PRECEDING DISCUSSION
IS INTENDED ONLY AS A SUMMARY OF CERTAIN FEDERAL U.S. INCOME TAX CONSEQUENCES OF THE REVERSE SPLIT AND DOES NOT PURPORT TO BE A COMPLETE
ANALYSIS OR DISCUSSION OF ALL POTENTIAL TAX EFFECTS RELEVANT THERETO. YOU SHOULD CONSULT YOUR OWN TAX ADVISORS AS TO THE PARTICULAR FEDERAL,
STATE, LOCAL, FOREIGN AND OTHER TAX CONSEQUENCES OF THE REVERSE SPLIT IN LIGHT OF YOUR SPECIFIC CIRCUMSTANCES.

Required Vote of Stockholders

The Reverse will be effectuated
pursuant to NRS 78.2055, which was amended by the Nevada Legislature in 2023, pursuant to Assembly Bill No. 126. In accordance with such
amendment and our bylaws, approval of the Reverse Split requires the affirmative vote of the holders of a majority