Company: NCL
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001575872-25-000691
Chunk: 38

Company: Northann Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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1,834   -%  250,248   2.3%Net (loss) before taxes  (13,691,600)  (157.6)%  (438,100)  (4.0)%Income tax benefit (expenses)  -   -%  (2,797)  -%Net (loss)   (13,691,600)  (157.6)%  (440,897)  (4.0)%Other comprehensive loss            Foreign currency translation adjustment  1,235,766   14.2%  64,946   0.6%Total comprehensive income $ (12,455,834)  (143.3)% $ (375,951)  (3.4)%

Revenues. Our revenues were $8,689,360 for the nine months ended September 30, 2025, representing a decrease of $2,352,649 or 21.3% from $11,042,009 for the nine months ended September 30, 2024. The decrease was mainly due to decrease in customer demand and our sales volume in the nine months ended September 30, 2025 as compared to the same period in 2024 as a result of the new US tariff. 

Cost of revenues. Our cost of revenues was $10,653,499 for the nine months ended September 30, 2025, compared to $6,968,809 for the same period in 2024. Cost of revenues refers to the cost of material and labor cost; the percentage of direct material was over 90% of the total cost of revenues. We paid tariffs of $572,649 during the nine months ended September 30, 2025, and $197,060 during the nine months ended September 30, 2024. The increase in tariff was mainly due to the new higher US tariff against goods imported from China.. 

Gross profit and gross margin. Our gross profit was -$1,964,139 for the nine months ended September 30, 2025, compared with a gross profit of $4,073,200 for the same period in 2024. Gross margin decreased from 36.9% for the nine months ended September 30, 2024 to -22.6% for the nine months ended September 30, 2025 due