Company: NCL
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001575872-25-000540
Chunk: 117

Company: Northann Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 117
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 and development expenses decreased to $718,238 for the six months ended June 30, 2025 from $932,185 for the same period in 2024. 

Income tax expense. Our Income tax expense was $nil for the six months ended June 30, 2025 and $2,799 for the six months ended June 30, 2024.

Net (loss) income. As a result of the cumulative effect of the factors described above, our net loss was $4,892,287 for the six months ended June 30, 2025 and $937,462 for the six months ended June 30, 2024. The increase in net loss was primarily due to the decrease in gross profit and increase in operating expenses, partly offset by the decrease in interest expense.

Liquidity and Capital Resources

As of June 30, 2025 and December 31, 2024, we had cash of $1,062,038, and $245,164, respectively. To date, we have financed our operations primarily through our business operations, borrowings from our stockholders, related and unrelated parties, and proceeds from IPO.

The Company believes that its current levels of cash and cash flows from operations will be sufficient to meet its anticipated cash needs for at least the next twelve months. However, it may need additional cash resources in the future if it finds and wishes to pursue opportunities for investment, acquisition, strategic cooperation or other similar actions. If it determines that its cash requirements exceed its amounts of cash on hand or if it decides to further optimize its capital structure, it may seek to issue additional debt or equity securities or obtain credit facilities or other sources of funding.

The following table set forth a summary of its cash flows for the periods indicated:

  For the Six Months Ended   June 30,   2025  2024 Net cash (used in) provided by operating activities $(3,829,935) $175,674 Net cash (used in) investing activities $(785,240) $(326,829)Net cash provided by (used in ) financing activities $4,450,938  $(889,558)

Operating Activities

Net cash used in operating activities was $3,829,935 for the six months ended June 30, 2025. The net cash used in operating activities for the six months ended June 30, 2025 was mainly due to our net loss of