Company: NCL
Filing Date: 2025-07-01
Form Type: 10-K
Source: 0001575872-25-000433
Chunk: 125

Company: Northann Corp.
Filing Date: 2025-07-01
Form: 10-K
Item: Item 16
Chunk 125
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 of qualified employees. The relevant local labor bureau is responsible for meeting all retirement benefit obligations; the Company has no further commitments beyond their monthly contributions. For the years ended December 31, 2024 and 2023, the Company contributed a total of $67,699 and $69,131, respectively, to these funds.

			15.

			OPERATING LEASE

The Company has operating leases for its office facilities. The lease is located at 9820 Dino Drive, Suite 110, Elk Grove, California, 95624, which consist of approximately 3,653 square meters. The Company's leases have remaining terms of approximately 37 months for a lease term commencing on August 1, 2020 and ending on August 31, 2023. The lease was renewed for additional 36 months. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company does not separate non-lease components from the lease components to which they relate, and instead accounts for each separate lease and non-lease component associated with that lease component as a single lease component for all underlying asset classes.

The following table provides a summary of leases by balance sheet location as of December 31, 2024 and 2023:

			Assets/liabilities

			December 31, 

			2024

			December 31, 

			2023

			Assets

			Operating lease right-of-use assets

			$

			1,822,266

			$

			87,380

			Liabilities

			Operating lease liability - current

			$

			355,754

			$

			31,413

			Operating lease liability - non-current

			1,466,512

			55,967

			Total lease liabilities

			$

			1,822,266

			$

			87,380

F-22

The operating lease expenses for the year ended December 31, 2024 and 2023 were as follows:

			Lease Cost

			Classification

			December 31, 

			2024

			December 31, 

			2023

			Operating lease expense

			General and administrative expenses

			$

			438,854