Company: NCL
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001575872-25-000540
Chunk: 58

Company: Northann Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1F
Chunk 58
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 average number of shares of common stock outstanding during the period.    June 30,   2025  2024   (Unaudited) Net (loss) income $(4,892,287) $(937,462)         Weighted average number of shares of common stock outstanding - basic  95,464,000 *    22,142,099 *         Add: potentially dilutive effect of shares issuable upon conversion of notes        Add: potentially dilutive effect of shares issuable upon exercise of warrants                 Weighted average number of shares of common stock outstanding - diluted  95,464,000 *    22,142,099 *         Basic and diluted (loss) earnings per share $(0.05)* $0.04* * Retrospectively restated for the effect of 2-for-1 reverse stock split. (Note 16)  F-9

  Segments The Company evaluates a reporting unit by first identifying its operating segments, and then evaluates each operating segment to determine if it includes one or more components that constitute a business. If there are components within an operating segment that meets the definition of a business, the Company evaluates those components to determine if they must be aggregated into one or more reporting units. If applicable, when determining if it is appropriate to aggregate different operating segments, the Company determines if the segments are economically similar and, if so, the operating segments are aggregated. The Company has only one major reportable segment in the periods presented. The Company’s chief operation decision maker is the Company’s Chief Executive Officer. Shipping and Handling Costs Outbound shipping and handling costs are expenses as incurred and charged to the selling expense. Inbound shipping and freight are charged for raw material and components are accounted for as cost of revenues. Fair Value of Financial Instruments U.S. GAAP establishes a three-tier hierarchy to prioritize the inputs used in the valuation methodologies in measuring the fair value of financial instruments. This hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three-tier fair value hierarchy is: Level 1 – observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 – include other inputs that are directly or indirectly observable in the market place. Level 3 – unobservable inputs which are supported by little or no