Company: NCL
Filing Date: 2025-07-01
Form Type: 10-K
Source: 0001575872-25-000433
Chunk: 127

Company: Northann Corp.
Filing Date: 2025-07-01
Form: 10-K
Item: Item 16
Chunk 127
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 72% of the Company’s accounts receivable. No other customer accounts for more than 3% of the Company’s accounts receivable for the years ended December 31, 2024 and 2023.

During the fiscal year ended December 31, 2024, five suppliers accounted for a total of 48% of the Company’s cost of revenues. During the fiscal year ended December 31, 2023, three  suppliers accounted for a total of 32%of the Company’s cost of revenues. No other supplier accounts for over 4% of the Company’s cost of revenues.

F-23

As of December 31, 2024, one supplier accounted for over 10% of the Company’s accounts payable. As of December 31, 2023, one supplier 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, 2024 and 2023, substantially all of the Company’s cash were held by major financial institutions located in the PRC, Hong Kong, and the United States, which management believes are of high credit quality. Deposits in the United States up to $250,000 are insured by the Federal Depository Insurance Corporation. For the credit risk related to trade accounts receivable, the Company performs ongoing credit evaluations of its customers and, if necessary, maintains reserves for potential credit losses. Historically, such losses have been within management’s expectations.

17.COMMITMENTS AND CONTINGENCIES

 Capital commitments On July 26, 2021, the Company has contracted Changzhou Wanyuan Construction Engineering Co. to build a second phase of its factory. The amount required in the contract is $5.05 million. Construction is expected to complete in June 2025. As of December 31, 2024, the Group had a commitment for the construction amounted to $4.3 million. Legal proceedings From time to time, the Company may become involved in litigation, claims, and proceedings. The Company evaluates the status of each legal matter and assesses the potential financial exposure. If the potential loss from any legal proceedings or litigation is considered probable and the amount can be reasonably estimated, the Company accrues a liability for the estimated loss. Significant judgment is required to determine the probability of a loss and whether the amount of the loss is reasonably estimated. As of December