Company: NCL
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001575872-25-000540
Chunk: 38

Company: Northann Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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 (6,308)  -13.0%Rent  18,885   0.95%  17,613   0.90%  1,272   7.2%Travel fee  18,859   0.95%  31,418   1.61%  (12,559)  -40.0%Office expenses  225,311   11.34%  70,612   3.63%  154,699   219.1%Other  199,946   10.06%  62,287   3.20%  137,659   221.0%Total general and administrative expenses  1,987,578   100.00%  1,946,262   100.00%  41,316   2.1%

5

Research and development expenses. Our research 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