Company: NCL
Filing Date: 2025-11-18
Form Type: 424B3
Source: 0001575872-25-000699
Chunk: 14

Company: Northann Corp.
Filing Date: 2025-11-18
Form: 424B3
Chunk 14
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 Company to use judgment in assessing its collectability.

There was no allowance for doubtful accounts recorded
as of September 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 useful lives (years) |
| Office and computer equipment |     |                            3-5 |
| Manufacturing equipment       |     |                          10-20 |
| Automobile                    |     |                              5 |

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 use right |     |                             50 |

Impairment of Long-lived Assets

In accordance with ASC 360-10-35, the Company
reviews the carrying values of long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying
value of an asset may not be recoverable. Based on the existence of one or more indicators of impairment, the Company measures any impairment
of long-lived assets using the projected discounted cash flow method at the asset group level. The estimation of future cash flows requires
significant management judgment based on the Company’s historical results and anticipated results and is subject to many factors.
The discount rate that is commensurate with the risk inherent in the Company’s business model is determined by its management. An
impairment loss would be recorded if the Company determined that the carrying value of long-lived assets may not be recoverable. The impairment
to be recognized is measured by the amount by which the carrying values of the assets exceed the fair value of the assets. No impairment
has been recorded by the Company