Company: NCL
Filing Date: 2025-01-14
Form Type: S-1/A
Source: 0001575872-25-000059
Chunk: 54

Company: Northann Corp.
Filing Date: 2025-01-14
Form: S-1/A
Chunk 54
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 rapidly changing value of our common stock.

Our common stock may be subject to extreme volatility
that is seemingly unrelated to the underlying performance of our business. In particular, our common stock may be subject to rapid and
substantial price volatility, low volumes of trades and large spreads in bid and ask prices, given that we have relatively small public
floats. Such volatility, including any stock-run up, may be unrelated to our actual or expected operating performance, financial condition
or prospects.

Holders of our common stock may also not be able
to readily liquidate their investment or may be forced to sell at depressed prices due to low volume trading. Broad market fluctuations
and general economic and political conditions may also adversely affect the market price of our common stock. As a result of this volatility,
investors may experience losses on their investment in our common stock. Furthermore, the potential extreme volatility may confuse the
public investors of the value of our stock, distort the market perception of our stock price, our company’s financial performance,
public image, and negatively affect the long-term liquidity of our common stock, regardless of our actual or expected operating performance.
If we encounter such volatility, including any rapid stock price increases and declines seemingly unrelated to our actual or expected
operating performance and financial condition or prospects, it will likely make it difficult and confusing for prospective investors to
assess the rapidly changing value of our common stock and understand the value thereof.

Raising additional capital by issuing securities may cause dilution to existing shareholders and/or have other adverse effects on our operations.

We may need to raise future capital to implement
our business strategies. We may seek additional capital through a combination of public and private equity offerings, debt financings,
strategic partnerships and alliances and licensing arrangements. To the extent that we raise additional capital through the sale of equity,
convertible debt securities or other equity-based derivative securities, the existing shareholders’ ownership interest will be diluted
and the terms may include liquidation or other preferences that adversely affect the existing shareholders’ rights as shareholders.
Any additional indebtedness we incur would result in increased fixed payment obligations and could involve restrictive covenants, such
as limitations on our ability to incur additional debt, limitations on our ability to acquire or license intellectual property rights
and other operating restrictions that could adversely impact our ability to conduct our business. Furthermore, the issuance of additional
securities, whether equity or debt, by us, or the possibility of such issuance, may cause the market price of our common stock to decline
and existing