Company: NCL
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001575872-25-000540
Chunk: 110

Company: Northann Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 110
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,248   6.4%Net (loss) income before taxes  (2,261,558)  (132.6)%  (994,696)  (25.6)%Income tax benefit (expenses)  -   0.0%  (2,799)  (0.1)%Net (loss) income  (2,261,558)  (132.6)%  (997,495)  (25.7)%Other comprehensive loss            Foreign currency translation adjustment  1,522,347   89.2%  92,549   2.4%Total comprehensive income  (739,211)  (43.4)%  (902,147)  (23.3)%

Revenues. Our revenues were $1,706,211 for the three months ended June 30, 2025, representing a decrease of 2,182,672 or 56.1% from $3,888,893 for the three months ended June 30, 2024. The decrease was mainly due to decrease in customer demand and our sales volume in the three months ended June 30, 2025 as compared to the same period in 2024. 

Cost of revenues. Our cost of revenues was $2,620,029 for the three months ended June 30, 2025, compared to $2,988,266 for the same period in 2024. Cost of revenues refers to the cost of material and labor cost; the percentage of direct material was over 90% of the total cost of revenues. We paid tariffs of $215,933 during the three months ended June 30, 2025, and $50,057during the three months ended June 30, 2024. The increase in tariff was mainly due to the new higher US tariff against goods imported from China. 

Gross profit and gross margin. Our gross profit was -$913,808 for the three months ended June 30, 2025, compared with a gross profit of $900,627 for the same period in 2024. Gross margin decreased from 23.2% for the three months ended June 30, 2024 to -53.6% for the three months ended June 30, 2025 due to the higher purchase price of our raw material and the higher US tariff included in the