Company: NCL
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001575872-25-000540
Chunk: 56

Company: Northann Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1F
Chunk 56
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. Assets and liabilities are translated into U.S. dollars at the current exchange rate in effect at the balance sheet date, and revenues and expenses are translated at the average of the exchange rates in effect during the reporting period. Stockholders’ equity accounts are translated using the historical exchange rates at the date the entry to stockholders’ equity was recorded, except for the change in retained earnings during the period, which is translated using the historical exchange rates used to translate each period’s income statement. Differences 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        June 30, 2025  RMB7.1636 to $1   HKD7.7787 to $1 December 31, 2024  RMB7.0950 to $1   HKD7.8259 to $1          Income statement and cash flows items        For the three months ended June 30, 2025  RMB7.2526 to $1   HKD7.7774 to $1 For the three months ended June 30, 2024  RMB7.1028 to $1   HKD7.8199 to $1  Cash consist 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. There was no allowance for doubtful accounts recorded as of June 30, 2025 and December 31, 2024. Long-Lived Assets Long-lived assets consist primarily of equipment and intangible assets.  F-8

  Equipment Equipment is recorded