Company: NCL
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001575872-25-000134
Chunk: 6

Company: Northann Corp.
Filing Date: 2025-02-07
Form: 424B3
Chunk 6
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 U.S. stock exchanges if its auditor is not subject to PCAOB inspections for two consecutive years instead of three,
thus reducing the time period for triggering the prohibition on trading. On August 26, 2022, the PCAOB announced that it
had signed a Statement of Protocol (the “Statement of Protocol”) with the CSRC and the Ministry of Finance of China. The terms
of the Statement of Protocol would grant the PCAOB complete access to audit work papers and other information so that it may
inspect and investigate PCAOB-registered accounting firms headquartered in China and Hong Kong. On December 15, 2022, the PCAOB announced
that it was able to secure complete access to inspect and investigate PCAOB-registered public accounting firms headquartered in mainland
China and Hong Kong completely in 2022. The PCAOB Board vacated its previous 2021 determinations that the PCAOB was unable to inspect
or investigate completely registered public accounting firms headquartered in mainland China and Hong Kong. Our auditor, WWC, P.C., is
headquartered in Mateo, CA and has been inspected by the PCAOB on a regular basis. WWC, P.C., is not headquartered in Mainland China or
Hong Kong. Notwithstanding the foregoing, if the PCAOB determines that it cannot inspect or fully investigate our auditor at such
future time, trading in our common stock will be prohibited under the HFCA Act, the Consolidated Appropriations Act, and NYSE American
may determine to delist our common stock. See “Risk Factors— Risks Related to Our Common Stock this Offering, and Our Status
as a Public Company—Our common stock may be delisted or prohibited from being traded on a national exchange under the Holding Foreign
Companies Accountable Act (the “HFCA Act”) and the Consolidated Appropriations Act, 2023, if the Public Company Accounting
Oversight Board (the “PCAOB”) is unable to inspect our auditors for two consecutive years beginning in 2021. The delisting
of our common stock, or the threat of their being delisted, may materially and adversely affect the value of your investment” on
page 22.

As a holding company, the Company may rely on
dividends and other distributions on equity paid by its subsidiaries for cash and financing requirements. If any of the subsidiaries incurs
debt on its own behalf in the future, the instruments governing such debt may restrict their ability to pay dividends to the Company.