Company: NCL
Filing Date: 2025-07-01
Form Type: 10-K
Source: 0001575872-25-000433
Chunk: 88

Company: Northann Corp.
Filing Date: 2025-07-01
Form: 10-K
Item: Item 13
Chunk 88
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			2.92

			Weighted-average discount rate (%)

			Operating leases

			5

			%

			5

			%

			16.

			CONCENTRATIONS AND CREDIT RISK

			(a)

			Concentrations

During the fiscal year ended December 31, 2024, two customers accounted for nearly 72% of the Company’s revenues. During the fiscal year ended December 31, 2023, two customers accounted for nearly 91% of the Company’s revenues.  No other customer accounts for more than 6% of the Company’s revenue in the years ended December 31, 2024 and 2023.

As of December 31, 2024, five customers accounted for 94% of the Company’s accounts receivable. As of December 31, 2023, five customers accounted for 72% of the Company’s accounts receivable. No other customer accounts for more than 3% of the Company’s accounts receivable for the years ended December 31, 2024 and 2023.

During the fiscal year ended December 31, 2024, five suppliers accounted for a total of 48% of the Company’s cost of revenues. During the fiscal year ended December 31, 2023, three  suppliers accounted for a total of 32%of the Company’s cost of revenues. No other supplier accounts for over 4% of the Company’s cost of revenues.

F-23

As of December 31, 2024, one supplier accounted for over 10% of the Company’s accounts payable. As of December 31, 2023, one supplier accounted for 10% of the Company’s accounts payable.  (b)Credit risk Financial instruments that potentially subject the Company to a significant concentration of credit risk consist primarily of cash. As of December 31, 2024 and 2023, substantially all of the Company’s cash were held by major financial institutions located in the PRC, Hong Kong, and the United States, which management believes are of high credit quality. Deposits in the United States up to $250,000 are insured by the Federal Depository Insurance Corporation. For the credit risk related to trade accounts receivable, the Company performs ongoing credit evaluations of its customers and, if necessary, maintains reserves for potential credit losses. Historically, such losses have been within management’s expectations.

17.COMMIT