Company: NCL
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001575872-25-000691
Chunk: 27

Company: Northann Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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. OPERATING LEASE The Company has operating leases for its office facilities. The lease is located at 9820 Dino Drive, Suite 110, Elk Grove, California, 95624, which consist of approximately 3,653 square meters. The Company’s leases have remaining terms of approximately 37 months for a lease term commencing on August 1, 2020 and ended on August 31, 2023. The lease was renewed for additional 36 months. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company does not separate non-lease components from the lease components to which they relate, and instead accounts for each separate lease and non-lease component associated with that lease component as a single lease component for all underlying asset classes. The following table provides a summary of leases by balance sheet location as of September 30, 2025 and December 31, 2024: Assets/liabilities September 30,2025    December 31,2024  Assets        Operating lease right-of-use assets $1,559,121  $1,822,266          Liabilities        Operating lease liability - current $375,573  $355,754 Operating lease liability - non-current  1,183,547   1,466,512 Total lease liabilities $1,559,120  $1,822,266  Cash flow information related to operating leases consists of the following:   For the ninemonthsended September30, 2025         For the ninemonthsEnded September30, 2024    Cash paid for amounts included in the measurement of operating lease liabilities $327,142  $59,617 Right-of-use assets obtained in exchange for new lease obligations:  -   1,876,838  The operating lease expenses for the nine months ended September 30, 2025 and 2024 were as follows: Lease Cost Classification  For theninemonthsendedSeptember 30,2025            For theninemonthsendedSeptember 30,2024      Operating lease expense General and administrative expenses  $327,142  $59,617   F-16

  Maturities of