Company: NCL
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001575872-25-000540
Chunk: 114

Company: Northann Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 114
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  (4.1)%Other income  -   -%  250,248   2.9%Other expense  (15)  -%  -   -%Net (loss) before taxes  (4,892,287)  (95.1)%  (934,663)  (11.1)%Income tax benefit (expenses)  -   -%  (2,799)  -%Net (loss)   (4,892,287)  (95.1)%  (937,462)  (11.1)%Other comprehensive loss            Foreign currency translation adjustment  1,315,952   25.6%  162,251   1.9%Total comprehensive income  (3,576,335)  (69.5)%  (775,211)  (9.2)%

Revenues. Our revenues were $5,143,948 for the six months ended June 30, 2025, representing a decrease of $3,340,476 or 39.4% from $8,484,424 for the six months ended June 30, 2024. The decrease was mainly due to decrease in customer demand and our sales volume in the six months ended June 30, 2025 as compared to the same period in 2024. 

Cost of revenues. Our cost of revenues was $5,667,098 for the six months ended June 30, 2025, compared to $6,039,807 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 $320,921 during the six months ended June 30, 2025, and $139,447 during the six months ended June 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 -$523,150 for the six months ended June 30, 2025, compared with a gross profit of $2,444,617 for the same period in 2024. Gross margin decreased from 28.8% for the six months ended June 30, 2024 to -10.2%