Company: NCL
Filing Date: 2025-07-02
Form Type: 10-K/A
Source: 0001575872-25-000444
Chunk: 30

Company: Northann Corp.
Filing Date: 2025-07-02
Form: 10-K/A
Chunk 30
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 Changes in valuation allowances; (7) Nontaxable or nondeductible items; (8) Changes in unrecognized tax benefits. PBEs must apply the ASU’s guidance to annual periods beginning after December 15, 2024 (2025 for calendar-year-end PBEs). Early adoption is permitted. Entities may apply the amendments prospectively or may elect retrospective application. The Company is currently evaluating the impact from the adoption of this ASU on its consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03 “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40)”. The amendments in this update intend to improve the disclosures about a public business entity’s expenses and address requests from investors for more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation, amortization, and depletion) in commonly presented expense captions (such as cost of sales, selling, general and administrative expenses, and research and development). ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027. The Company is currently evaluating the impact from the adoption of this ASU on its consolidated financial statements.

| F-15 |

| 3. | BUSINESS COMBINATION |

In October 2024, in order to expand its sales, the Company acquired 100% equity interests of Cedar Modern Limited (“Cedar”) for consideration of 4,484,400ordinary shares of the Company. Cedar is a trading company incorporated in Hong Kong.

The fair value of assets acquired, liabilities assumed and goodwill resulted for this acquisition are as follows:

|                                                             |     |    Amount |
|                                                             |     |       US$ |
| Amount due from related party                               |     |   190,359 |
| Total identifiable assets acquired                          |     |   190,359 |
| Total liabilities assumed                                   |     |         - |
| Net identifiable assets acquired                            |     |   190,359 |
| Number of Class A ordinary shares issued as consideration   |     | 4,484,400 |
| Quoted price of Class A ordinary shares on acquisition date |     |     0.168 |
| Total purchase consideration                                |     |   753,379 |
| Goodwill                                                    |     |   563,020 |

In November 2024, in order to expand its sales, the Company