Company: NCL
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001575872-25-000540
Chunk: 92

Company: Northann Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 92
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HKD7.8259 to $1          Income statement and cash flows items        For the three months ended June 30, 2025  RMB7.2526 to $1   HKD7.7774 to $1 For the three months ended June 30, 2024  RMB7.1028 to $1   HKD7.8199 to $1  Cash consist of cash on hand and at banks and highly liquid investments, which are unrestricted from withdrawal or use, and which have original maturities of three months or less when purchased. Accounts Receivable, Net Accounts receivable is stated at the historical carrying amount net of allowance for doubtful accounts. The Company determines the allowance for doubtful accounts on an individual basis taking into consideration various factors including but not limited to historical collection experience and creditworthiness of the debtors as well as the age of the individual receivables balance. Additionally, the Company would make specific bad debt provisions based on any specific knowledge the Company has acquired that might indicate that an account is uncollectible. The facts and circumstances of each account may require the Company to use judgment in assessing its collectability. There was no allowance for doubtful accounts recorded as of June 30, 2025 and December 31, 2024. Long-Lived Assets Long-lived assets consist primarily of equipment and intangible assets.  F-8

  Equipment Equipment is recorded at cost less accumulated depreciation and accumulated impairment. Depreciation is computed using the straight-line method over the estimated useful lives of the assets.   Estimated usefullives (years) Office and computer equipment  3-5 Manufacturing equipment  10-20  Expenditure for maintenance and repairs is expensed as incurred. The gain or loss on the disposal of equipment is the difference between the net sales proceeds and the lower of the carrying value or fair value less cost to sell the relevant assets and is recognized in general and administrative expenses in the consolidated statements of comprehensive loss. Land Use Rights, Net Land use rights are a form of intangible assets in the PRC. They are recorded at cost less accumulated amortization with no residual value. Amortization of land use rights are computed using the straight-line method over their estimated useful lives. The estimated useful lives of the Company’s land use rights are as listed below:   Estimated useful lives (years) Land