Company: NCL
Filing Date: 2025-11-18
Form Type: 424B3
Source: 0001575872-25-000699
Chunk: 9

Company: Northann Corp.
Filing Date: 2025-11-18
Form: 424B3
Chunk 9
---
 2024, the Company acquired
Cedar Modern Limited and Raleigh Industries Limited, respectively.

Going Concern

The accompanying financial statements have been
prepared assuming that the Company will continue as a going concern. As of September 30, 2025, the Company had a working capital deficit
of $2,427,539 and net cash used in operating activities of $3,845,524 for the nine months ended September 30, 2025. The Company may
not have adequate liquidity to remain solvent and settle its obligations when payment become due; these factors gave rise to substantial
doubt that the Company would continue as a going concern. Management is closely monitoring its financial position, especially its working
capital and cash position, as well as its gross profit margins where its positive results of operations will allow the Company to continue
as going concern. The company’s foremost plan is to boost revenue and improve profitability. These financial statements do not include
any adjustments that might result from the outcome of this uncertainly.

| F-5 |

| 2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |

Basis of Presentation

The consolidated financial statements of the Company
have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”), and include
the assets, liabilities, revenues, expenses and cash flows of all subsidiaries. All significant inter-company transactions and balances
between the Company and its subsidiaries are eliminated upon consolidation.

Subsidiaries are those entities in which the Company,
directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies,
to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors.

Use of Estimates

The preparation of these consolidation financial
statements requires management of the Company to make estimates and judgments that affect the reported amounts of assets, liabilities,
revenues, costs and expenses, and related disclosures. On an on-going basis, the Company evaluates its estimates based on historical experience
and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making
judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ
from these estimates under different assumptions or conditions. Identified below are the accounting policies that reflect the Company’s
most significant estimates and judgments, and those that the Company believes are the most critical to