Company: NCL
Filing Date: 2025-07-02
Form Type: 10-K/A
Source: 0001575872-25-000444
Chunk: 39

Company: Northann Corp.
Filing Date: 2025-07-02
Form: 10-K/A
Chunk 39
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 term (years) |                              |     |              |   |     |     |              |   |
| Operating leases                              |                              |     |         4.57 |   |     |     |         2.92 |   |
| Weighted-average discount rate (%)            |                              |     |              |   |     |     |              |   |
| Operating leases                              |                              |     |            5 | % |     |     |            5 | % |

| 16. | CONCENTRATIONS AND CREDIT RISK |

| (a) | Concentrations |

During the fiscal year ended December 31, 202 4 , twocustomers accounted for nearly 72 % of the Company’s revenues. During the fiscal year ended December 31, 202 3 , twocustomers accounted for nearly 91 % of the Company’s revenues. Noother customer accounts for more than 6% of the Company’s revenue in the years ended December 31, 2024 and 2023 .

As of December 31, 202 4 , fivecustomers accounted for 94 % of the Company’s accounts receivable. As of December 31, 202 3 , fivecustomers accounted for 72% of the Company’s accounts receivable. Noother customer accounts for more than 3% of the Company’s accounts receivable for the years ended December 31, 202 4 and 202 3 .

During the fiscal year ended December 31, 202 4 , five suppliers accounted for a total of 48% of the Company’s cost of revenues. During the fiscal year ended December 31, 202 3 , threesuppliers accounted for a total of 32 %of the Company’s cost of revenues. Noother supplier accounts for over 4% of the Company’s cost of revenues.

| F-24 |

As of December 31, 202 4 , onesupplier accounted for over 10 % of the Company’s accounts payable. As of December 31, 202 3 , onesupplier 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, 202 4 and 202 3 , substantially all of the Company’s cash were held by major financial institutions located in the PRC, Hong Kong, and the United States, which