Company: NCL
Filing Date: 2025-10-24
Form Type: S-1/A
Source: 0001575872-25-000638
Chunk: 56

Company: Northann Corp.
Filing Date: 2025-10-24
Form: S-1/A
Chunk 56
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because of a position taken by an authority in foreign jurisdictions.

On December 16, 2021,
the PCAOB issued a report on its determinations that it was unable to inspect or investigate completely PCAOB-registered public accounting
firms headquartered in Mainland China and in Hong Kong because of positions taken by PRC and Hong Kong authorities in those jurisdictions.

On August 26, 2022, the PCAOB announced
that it had signed a Statement of Protocol (the “Statement of Protocol”) with the CSRC and the Ministry of Finance of China.
The terms of the Statement of Protocol would grant the PCAOB complete access to audit work papers and other information so that
it may inspect and investigate PCAOB-registered accounting firms headquartered in China and Hong Kong. On December 15, 2022, the
PCAOB announced that it was able to secure complete access to inspect and investigate PCAOB-registered public accounting firms headquartered
in mainland China and Hong Kong completely in 2022. The PCAOB vacated its previous 2021 determinations that the PCAOB was unable to inspect
or investigate completely registered public accounting firms headquartered in mainland China and Hong Kong.

Our current auditor, LAO Professionals, and our previous auditor, WWC,
P.C., both of which are independent registered public accounting firm that issued the audit reports for the fiscal years ended December
31, 2024 and 2023 respectively, included elsewhere in this prospectus, are auditors of companies that are traded publicly in the United
States and are both registered with the PCAOB. LAO Professionals is headquartered in Lagos, Nigeria, and WWC, P.C. is headquartered in
Mateo, CA. Both firms are subject to laws in the United States pursuant to which the PCAOB conducts regular inspections to assess its
compliance with the applicable professional standards. Neither LAO Professionals nor WWC, P.C. are headquartered in China or Hong Kong.
Notwithstanding the foregoing, if the PCAOB determines that it cannot inspect or fully investigate our auditor at such future time,
trading in our common stock will be prohibited under the HFCA Act and NYSE American may determine to delist our common stock.

Moreover, the recent
developments would add uncertainties to the listing of our common stock, and we cannot assure you whether SEC, NYSE American or regulatory
authorities would apply additional and more stringent criteria to us after considering the effectiveness of our auditor’s audit
procedures and quality control procedures, adequacy of