Company: NCL
Filing Date: 2025-07-01
Form Type: 10-K
Source: 0001575872-25-000433
Chunk: 109

Company: Northann Corp.
Filing Date: 2025-07-01
Form: 10-K
Item: Item 16
Chunk 109
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 resulting from translating functional currencies to the reporting currency are recorded in accumulated other comprehensive income in the consolidated balance sheets. Translation of amounts from RMB and HKD into U.S. dollars has been made at the following exchange rates: Balance sheet items, except for equity accounts        December 31, 2024  RMB 7.2993 to $1   HKD 7.7677 to $1  December 31, 2023  RMB 7.0827 to $1   HKD 7.8158 to $1          Income statement and cash flows items        For the year ended December 31, 2024  RMB 7.1957 to $1         HKD 7.803 to $1  For the year ended December 31, 2023  RMB 7.0467 to $1   HKD 7.8279 to $1     F-10

Cash  Cash consists of cash on hand and at banks and highly liquid investments, which are unrestricted from withdrawal or use, and which have original maturities of three months or less when purchased. Accounts Receivable, Net Accounts receivable is stated at the historical carrying amount net of allowance for doubtful accounts. The Company determines the allowance for doubtful accounts on an individual basis taking into consideration various factors including but not limited to historical collection experience and creditworthiness of the debtors as well as the age of the individual receivables balance. Additionally, the Company would make specific bad debt provisions based on any specific knowledge the Company has acquired that might indicate that an account is uncollectible. The facts and circumstances of each account may require the Company to use judgment in assessing its collectability. Allowance for doubtful accounts was nil and nil as of December 31, 2024 and 2023. Inventories  Inventories consist of raw materials, work-in-process, and finished goods and are stated at lower of cost or net realizable value. Costs are computed under the weighted average method. Net realizable value is determined as estimated selling prices in the ordinary course of business, less reasonably predictable costs to sell. Valuation of inventories is based on currently available information about expected recoverable value. The estimate is dependent upon factors such as market trends, inventory ageing, and historical and forecasted customer demands. Inventory write-down would be recorded as cost of revenues