Company: NCL
Filing Date: 2025-07-01
Form Type: 10-K
Source: 0001575872-25-000433
Chunk: 73

Company: Northann Corp.
Filing Date: 2025-07-01
Form: 10-K
Item: Item 13
Chunk 73
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 that is commensurate with the risk inherent in the Company’s business model is determined by its management. An impairment loss would be recorded if the Company determined that the carrying value of long-lived assets may not be recoverable. The impairment to be recognized is measured by the amount by which the carrying values of the assets exceed the fair value of the assets. No impairment loss has been recorded by the Company in the years ended December 31, 2024 and 2023.

F-11

Net earnings per share of common stock The Company has adopted ASC Topic 260, “Earnings per Share,” (“EPS”) which requires presentation of basic EPS on the face of the income statement for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation. In the accompanying consolidation financial statements, basic earnings (loss) per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period.   2024  2023        Net loss $(4,379,875) $(7,132,573)         Weighted average number of shares of common stock outstanding - basic*   26,267,990   20,278,226 Add: potentially dilutive effect of shares issuable upon exercise of warrants  -    -           Weighted average number of shares of common stock outstanding - diluted*  26,267,990   20,278,226          Net loss per ordinary share        -Basic $(0.17) $(0.35)-Diluted $(0.17) $(0.35) * Retrospectively restated for the effect of 2-for-1 reverse stock split. (Note 18) On May 16, 2022, Northann entered into a securities purchase agreement with certain investors, pursuant to which the Company sold the investors convertible debentures in an aggregate principal amount of $1,000,000 that are convertible into shares of common stock of Northann with a 100% warrant coverage to purchase common stock of Northann and such shares underlying the warrants. 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