Company: NCL
Filing Date: 2025-11-18
Form Type: 424B3
Source: 0001575872-25-000699
Chunk: 18

Company: Northann Corp.
Filing Date: 2025-11-18
Form: 424B3
Chunk 18
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of the CODM’s title and position is required on an annual basis, as well as an explanation of how the CODM uses the reported measure(s)
and other disclosures; (5) entities with a single reportable segment—public entities must apply all of the ASU’s disclosure
requirements, as well as all existing segment disclosure and reconciliation requirements in ASC Topic 280, Segment Reporting; (6) recasting
of prior-period segment information to conform to current-period segment information—recasting is required if segment information
regularly provided to the CODM is changed in a manner that causes the identification of significant segment expenses to change. The amendments
in ASU 2023-07 are effective for all public entities for fiscal years beginning after December 15, 2023. Early adoption is permitted.
A public entity should apply the amendments in this update retrospectively to all prior periods presented in the financial statements.
The Company adopted this update beginning January 1, 2024.

In December 2023, the FASB issued ASU 2023-09,
which establishes new income tax disclosure requirements in addition to modifying and eliminating certain existing requirements. The ASU
amends ASC 740-10-50-12 to require public business entities (“PBEs”) to disclose a reconciliation between the amount of reported
income tax expense (or benefit) from continuing operations and the amount computed by multiplying the income (or loss) from continuing
operations before income taxes by the applicable statutory federal (national) income tax rate of the jurisdiction (country) of domicile.
If PBE is not domiciled in the United States, the federal (national) income tax rate in such entity’s jurisdiction (country) of
domicile shall normally be used in the rate reconciliation. The amendments prohibit the use of different income tax rates for subsidiaries
or segments. Further, PBEs that use an income tax rate in the rate reconciliation that is other than the U.S. income tax rate must disclose
the rate used and the basis for using it. The ASU also adds ASC 740-10-50-12A, which requires entities to annually disaggregate the income
tax rate reconciliation between the following eight categories by both percentages and reporting currency amounts: (1) State and
local income tax, net of federal (national) income tax effect; (2) Foreign tax effects; (3) Effect of changes in tax laws or
rates enacted in the current period; (4) Effect of cross-border