(Exact name of registrant as specified in its charter) |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
c/o Northann Distribution Center Inc. 95624 | ||
(Address of Principal Executive Offices) | (Zip Code) |
( |
(Registrant’s telephone number, including area code) |
N/A |
(Former name, former address and former fiscal year, if changed since last report) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Large accelerated filer | ¨ | Accelerated filer | ¨ |
x | Smaller reporting company | ||
Emerging growth company |
Page | ||||
| i |
As of March 31, | As of December 31, | |||||||
202 5 | 202 4 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash | $ | $ | ||||||
Accounts receivable, net | ||||||||
Inventory, net | ||||||||
Prepayments | ||||||||
Other receivables and other current assets | ||||||||
Total current assets | ||||||||
NON-CURRENT ASSETS | ||||||||
Property, plant and equipment, net | ||||||||
Construction in progress | ||||||||
Land use rights, net | ||||||||
Operating lease right-of-use assets, net | ||||||||
Security deposits | ||||||||
Total non-current assets | ||||||||
TOTAL ASSETS | $ | $ | ||||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||
CURRENT LIABILITIES | ||||||||
Bank borrowings - current | ||||||||
Operating lease liabilities, current | ||||||||
Accounts and other payables and accruals | ||||||||
Taxes payable | ( | ) | ||||||
Amounts due to related parties | ||||||||
Total current liabilities | ||||||||
Bank borrowings – non-current | ||||||||
Operating lease liabilities, – non-current | ||||||||
Total non-current liabilities | ||||||||
TOTAL LIABILITIES | $ | $ | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
STOCKHOLDERS’ EQUITY | ||||||||
Preferred stock – Series A, $ 5 and December 31, 202 4 | ||||||||
Common stock, $ shares issued and outstanding as of March 31, 202 5 and shares issued and outstanding as of December 31, 202 4 | ||||||||
Subscription receivable | ( | ) | ( | ) | ||||
Additional paid-in capital | ||||||||
Accrued compensation expense | ( | ) | ( | ) | ||||
Accumulated deficits | ( | ) | ( | ) | ||||
Accumulated other comprehensive loss | ||||||||
Total stockholders’ equity | ||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | $ | ||||||
| F-1 |
Three Months Ended March 31, | ||||||||
202 5 | 202 4 | |||||||
(Unaudited) | (Unaudited) | |||||||
REVENUES | $ | $ | ||||||
COST OF REVENUES | ||||||||
GROSS PROFIT | ||||||||
OPERATING EXPENSES | ||||||||
Selling expenses | ||||||||
General and administrative expenses | ||||||||
Research and development expenses | ||||||||
Total operating expenses | ||||||||
(LOSS) INCOME FROM OPERATIONS | ( | ) | ||||||
OTHER INCOME (EXPENSE) | ||||||||
Interest expense | ( | ) | ( | ) | ||||
Other expenses | ( | ) | ||||||
Total other expenses | ( | ) | ( | ) | ||||
INCOME BEFORE TAXES | ( | ) | ||||||
Income tax expense | ||||||||
NET (LOSS) INCOME | ( | ) | ||||||
Other comprehensive (loss) income : | ||||||||
Foreign currency translation adjustment | ( | ) | ||||||
Total comprehensive income | ( | ) | ||||||
Basic and diluted （ loss ） earnings per share | ( | ) | $ | |||||
Weighted average number of shares of common stock outstanding – basic | ||||||||
Weighted average number of shares of common stock outstanding – diluted | ||||||||
| F-2 |
Preferred Stock – Series A | Common Stock | |||||||||||||||||||||||||||||||||||
Number of shares | Amount | Number of shares | Amount | Subscription receivable | Additional paid in capital | Accumulated deficits | Accumulated other comprehensive loss | Total | ||||||||||||||||||||||||||||
Balance, December 31, 202 3 | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | $ | |||||||||||||||||||||||
Net income | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Foreign currency translation adjustment | ( | ) | $ | ( | ) | |||||||||||||||||||||||||||||||
Balance, March 31, 202 4 | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | $ | |||||||||||||||||||||||
Preferred Stock – Series A | C ommon Stock | |||||||||||||||||||||||||||||||||||
Number of shares | Amount | Number of shares | Amount | Subscription receivable | Additional paid in capital | Accumulated deficits | Accumulated other comprehensive loss | Total | ||||||||||||||||||||||||||||
Balance, December 31, 202 4 | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | |||||||||||||||||||||||||
Net loss | - | - | - | - | - | - | ( | ) | - | ( | ) | |||||||||||||||||||||||||
Issuance of common stock | - | - | ( | ) | - | - | ||||||||||||||||||||||||||||||
Acccured compensation expense | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Foreign currency translation adjustment | - | - | - | - | - | - | - | ( | ) | ( | ) | |||||||||||||||||||||||||
Balance, March 31, 202 5 | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | |||||||||||||||||||||||||
| F-3 |
Three Months Ended March 31, | ||||||||
202 5 | 202 4 | |||||||
(Unaudited) | (Unaudited) | |||||||
Cash flows from operating activities | ||||||||
Net (loss) income | $ | ( | ) | $ | ||||
Adjustments to reconcile net (loss) income to cash (used in) provided by operating activities: | ||||||||
Allowance for doubtful accounts | ||||||||
Depreciation and amortization | ||||||||
Share-based compensation | ||||||||
Changes in assets and liabilities | ||||||||
Accounts receivable | ( | ) | ||||||
Other receivables | ||||||||
Prepayments | ( | ) | ( | ) | ||||
Inventory | ( | ) | ( | ) | ||||
Right of use assets | ||||||||
Accounts payable | ( | ) | ||||||
Accruals and other payables | ( | ) | ||||||
Unearned revenue | ||||||||
Payroll payable | ( | ) | ( | ) | ||||
Taxes payable | ( | ) | ( | ) | ||||
Accrued interest | ( | ) | ||||||
Operating leases | ( | ) | ( | ) | ||||
Net cash (used in) provided by operating activities | ( | ) | ||||||
Cash flows from investing activities | ||||||||
Payments for construction | ( | ) | ( | ) | ||||
Net cash used in investing activities | ( | ) | ( | ) | ||||
Cash flows from financing activities | ||||||||
Proceeds from (rep ayment ) of b ank Loan | ( | ) | ||||||
Payment of secured borrowing arrangement | ( | ) | ||||||
Amounts (paid to) received from related party | ( | ) | ||||||
Issuance of common shares | ||||||||
Net cash provided by (used in) financing activities | ( | ) | ||||||
Effect of exchange rates on cash | ( | ) | ||||||
Net change in cash and cash equivalents | ( | ) | ||||||
Cash at beginning of period | ||||||||
Cash at end of period | $ | $ | ||||||
Supplemental of cash flow information | ||||||||
Cash paid for interest | $ | $ | ||||||
Cash paid for income taxes | $ | $ | ||||||
| F-4 |
1. | ORGANIZATION AND BUSINESS |
| F-5 |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
| F-6 |
| F-7 |
Balance sheet items, except for equity accounts | ||||||||
March 31, 202 5 | RMB | HKD | ||||||
December 31, 202 4 | RMB | HKD | ||||||
Income statement and cash flows items | ||||||||
For the three months ended March 31, 202 5 | RMB | HKD | ||||||
For the three months ended March 31, 202 4 | RMB | HKD |
| F-8 |
Estimated useful lives (years) | ||||
Office and computer equipment | ||||
Manufacturing equipment | ||||
Estimated useful lives (years) | ||||
Land use right | ||||
| F-9 |
March 31, | ||||||||
202 5 | 202 4 | |||||||
(Unaudited) | ||||||||
Net (loss) income | $ | ( | ) | $ | ||||
Weighted average number of shares of common stock outstanding - basic | * | * | ||||||
Add: potentially dilutive effect of shares issuable upon conversion of notes | ||||||||
Add: potentially dilutive effect of shares issuable upon exercise of warrants | ||||||||
Weighted average number of shares of common stock outstanding - diluted | * | * | ||||||
Basic and diluted (loss) earnings per share | $ | ( | )* | $ | ||||
| F-10 |
| F-11 |
| F-12 |
3 . | ACCOUNTS RECEIVABLE, NET |
March 31, 202 5 | December 31, 202 4 | |||||||
Gross accounts receivable | $ | $ | ||||||
Total | $ | $ | ||||||
4 . | OTHER RECEIVABLES |
March 31, 2025 | December 31, 202 4 | |||||||
Deposit and other assets | ||||||||
Total | $ | $ | ||||||
5 . | INVENTORY, NET |
March 31, 202 5 | December 31, 202 4 | |||||||
Raw materials and components | $ | $ | ||||||
Finished goods | ||||||||
Total | ||||||||
Inventories, net | $ | $ | ||||||
| F-13 |
6 . | EQUIPMENT, NET |
March 31, 202 5 | December 31, 202 4 | |||||||
Manufacturing equipment | $ | 456,138 | $ | 315,845 | ||||
Office equipment | 7,438 | 4,748 | ||||||
less: Accumulated depreciation | 975,670 | 736,159 | ||||||
Total | $ | $ | ||||||
7 . | LAND USE RIGHTS, NET |
March 31, 202 5 | December 31, 202 4 | |||||||
Land use right | $ | 05,071 | $ | 087,291 | ||||
Software | ||||||||
less: Accumulated amortization | 40,640 | 32,459 | ||||||
$ | $ | |||||||
8 . | BANK BORROWINGS |
Bank | Loan period | Interest rate | Balance at March 31, 202 5 | Balance at December 31, 202 4 | ||||||||||||
Industrial and Commercial Bank of China | % | $ | $ | |||||||||||||
Industrial and Commercial Bank of China | % | |||||||||||||||
Jiangnan Rural Commercial Bank | % | |||||||||||||||
Agricultural Bank of China, Changzhou Zhonglou Sub-branch | % | |||||||||||||||
Total | $ | $ | ||||||||||||||
| F-14 |
Bank | Loan period | Interest rate | Balance at March 31, 2024 | Balance at December 31, 202 4 | ||||||||||||
EIDL Loan | From | % | ||||||||||||||
Total | $ | $ | ||||||||||||||
9 . | BALANCES WITH RELATED PARTY |
1) | Related party transactions |
2) | Related party balances |
Accounts | Name of Related Party | Note | March 31, 202 5 | December 31, 202 4 | ||||||||||||
Amount due to related party | Lin Li, Chief Executive Officer and Chairman of the Board | $ | $ | |||||||||||||
1 0 . | EQUITY |
| F-15 |
11. | INCOME TAXES |
| F-16 |
For the three months ended March 31, 2025 | For the three months ended March 31, 2024 | |||||||
Current: | - | - | ||||||
Federal | $ | $ | ||||||
State | ||||||||
Foreign | ||||||||
Total current | $ | $ | ||||||
Deferred: | - | - | ||||||
Federal | $ | $ | ||||||
State | ||||||||
Foreign | ||||||||
Total deferred | $ | $ | ||||||
Total income tax expense | $ | $ | ||||||
For the three months ended March 31, 202 5 | For the three months ended March 31, 202 4 | |||||||
(Loss) i ncome before income tax expense | $ | ( | ) | $ | ||||
Computed tax benefit with statutory tax rate | % | % | ||||||
Income tax expense computed at statutory income tax rate | ( | ) | ||||||
Impact of different tax rates in other jurisdictions | ( | ) | ||||||
Tax effect of non-deductible expenses | ||||||||
Total income tax expense | $ | $ | ||||||
| F-17 |
12. | CHINA CONTRIBUTION PLAN |
13. | OPERATING LEASE |
Assets/liabilities | March 31, 2025 | December 31, 2024 | ||||||
Assets | ||||||||
Operating lease right-of-use assets | $ | $ | ||||||
Liabilities | ||||||||
Operating lease liability - current | $ | $ | ||||||
Operating lease liability - non-current | ||||||||
Total lease liabilities | $ | $ | ||||||
For the three months ended March 31, 2025 | For the three months Ended March 31, 2024 | |||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | $ | ||||||
Right-of-use assets obtained in exchange for new lease obligations: | ||||||||
| F-18 |
Lease Cost | Classification | For the three months ended March 31, 2025 | For the three months ended March 31, 2024 | |||||||||
Operating lease expense | General and administrative expenses | $ | $ | |||||||||
Maturity of Lease Liabilities | Operating Leases | |||
Within one year | ||||
Within a period of more than one year but not more than two years | $ | |||
Within a period of more than two year but not more than three years | ||||
Within a period of more than three year but not more than four years | ||||
Within a period of more than four years but not more than five years | ||||
More than five years | ||||
Total lease commitment | $ | |||
Less: interest | ( | ) | ||
Present value of lease payments | $ | |||
Lease Term and Discount Rate | March 31, 2025 | December 31, 2024 | ||||||
Weighted-average remaining lease term (years) | ||||||||
Operating leases | ||||||||
Weighted-average discount rate (%) | ||||||||
Operating leases | % | % | ||||||
14. | CONCENTRATIONS AND CREDIT RISK |
(a) | Concentrations |
| F-19 |
(b) | Credit risk |
15. | CAPITAL COMMITMENTS |
16. | STOCK SPLIT |
17. | SECURED BORROWING ARRANGEMENT |
18. | SUBSEQUENT EVENT |
| F-20 |
19. | UNRESTRICTED NET ASSETS |
As of March 31, | As of December 31, | |||||||
2025 | 2024 | |||||||
(Unaudited) | ||||||||
Cash | ||||||||
Amounts due from subsidiaries | ||||||||
Total current assets | ||||||||
All other non-current assets | ||||||||
Interests in a subsidiary | ||||||||
Total Assets | ||||||||
Liabilities and Stockholders’ Deficit | ||||||||
All other current liabilities | ||||||||
Amounts due to subsidiaries | ||||||||
Total current liabilities | ||||||||
Non-current liabilities | ||||||||
Total Liabilities | ||||||||
Stockholders’ Equity (Deficit) | ||||||||
Preferred stock – Series A, $ 5 and December 31, 2024 | ||||||||
Common stock, $ | ||||||||
Subscription receivable | ( | ) | ( | ) | ||||
Additional Paid-in Capital | ||||||||
( | ) | ( | ) | |||||
Retained earnings (accumulated deficit) | ( | ) | ( | ) | ||||
Accumulated other comprehensive income (loss) | ||||||||
Total Stockholders’ Equity (Deficit) | ||||||||
Total Liabilities and Stockholders’ Deficit | ||||||||
| F-21 |
For the three months ended March 31, | For the three months ended March 31, | |||||||
2025 | 2024 | |||||||
(Unaudited) | ||||||||
Revenue | ||||||||
Cost or revenues | ||||||||
Operating expenses | ||||||||
Income taxes | ||||||||
Income (loss) – Parent only | ( | ) | ( | ) | ||||
Income (loss) – Subsidiaries with unrestricted net assets | ( | ) | ||||||
(Loss) – Subsidiaries with restricted net assets | ( | ) | ( | ) | ||||
Net (loss) income – Consolidated | ( | ) | ||||||
For the three months ended March 31, | For the three months ended March 31, | |||||||
2025 | 2024 | |||||||
(Unaudited) | ||||||||
Cash (used in) provided by operating activities | ( | ) | ||||||
Cash (used in) provided by investing activities | ||||||||
Cash (used in) provided by financing activities | ( | ) | ||||||
Effect of exchange rates on cash | ||||||||
Net cash flows | ||||||||
Beginning cash balance | ||||||||
Ending cash balance | ||||||||
(i) | Basis of presentation |
(ii) | Restricted Net Assets |
| F-22 |
Three Months Ended March 31, | ||||||||||||||||
202 5 | 202 4 | |||||||||||||||
Amount | of Revenue | Amount | of Revenue | |||||||||||||
Revenues | 3,437,727 | 100.0 | % | 4,595,531 | 100.0 | % | ||||||||||
Cost of revenues | 3, 047,069 | 88.6 | % | 3,051,541 | 6 6.4 | % | ||||||||||
Gross profit | 390,658 | 11.4 | % | 1,543,990 | 3 3.6 | % | ||||||||||
Operating expenses | ||||||||||||||||
Selling expenses | 1,021,999 | 29.7 | % | 218,375 | 4. 8 | % | ||||||||||
General and administrative expenses | 1,481,255 | 43.1 | % | 485,037 | 10. 6 | % | ||||||||||
Research and development expenses | 462,062 | 1 3.4 | % | 512,597 | 11. 2 | % | ||||||||||
Finance Cost | - | - | - | - | ||||||||||||
(Loss) Income from operations | (2,574,658 | ) | (74.9 | )% | 327,981 | 7.1 | % | |||||||||
Other Income (expenses) | ||||||||||||||||
Interest expense | (56,056 | ) | (1.6 | )% | (267,948 | ) | (5.8 | )% | ||||||||
Other expenses | (15 | ) | 0. 0 | % | - | 0.0 | % | |||||||||
Net (loss) i ncome before taxes | (2,630,729 | ) | (76.5 | )% | 60,033 | 1.3 | % | |||||||||
Income tax benefit (expenses) | - | 0.0 | % | - | 0.0 | % | ||||||||||
Net (loss) income | (2,630,729 | ) | (76.5 | )% | 60,033 | 1.3 | % | |||||||||
Other comprehensive loss | ||||||||||||||||
Foreign currency translation adjustment | (204,395 | ) | (5.9 | )% | 69,702 | 1.5 | % | |||||||||
Total comprehensive income | (2,835,124 | ) | (82.5 | )% | 129,735 | 2.8 | % | |||||||||
| 2 |
March 31, 202 5 | March 31, 202 4 | Fluctuation | ||||||||||||||||||||||
Amount | Proportion | Amount | Proportion | Amount | Proportion | |||||||||||||||||||
Salaries and Social Insurance | 129,319 | 12.7 | % | 83,131 | 38. 1 | % | 46,188 | 55.6 | % | |||||||||||||||
Share-based compensation | 506,250 | 49.5 | % | - | 0.0 | % | 506,250 | 0.0 | % | |||||||||||||||
Freight insurance | 43,004 | 4.2 | % | 18,240 | 8. 4 | % | 24,764 | 135.8 | % | |||||||||||||||
Rent | 150,981 | 14.8 | % | 11,924 | 5. 5 | % | 139,057 | 1166.2 | % | |||||||||||||||
Advertising fee | 154,706 | 15.1 | % | 77,843 | 35.6 | % | 76,863 | 98.7 | % | |||||||||||||||
Travel fee | 37,739 | 3.7 | % | 27,237 | 12. 5 | % | 10,502 | 38.6 | % | |||||||||||||||
Total selling expenses | 1,021,999 | 100.0 | % | 218,375 | 100.0 | % | 803,624 | 368.0 | % | |||||||||||||||
March 31, 202 5 | March 31, 202 4 | Fluctuation | ||||||||||||||||||||||
Amount | Proportion | Amount | Proportion | Amount | Proportion | |||||||||||||||||||
Salary and Social Insurance | 118,544 | 8.0 | % | 41,583 | 8. 6 | % | 76,961 | 185.1 | % | |||||||||||||||
Service fees | 926,406 | 62.5 | % | 286,281 | 59.0 | % | 640,125 | 223.6 | % | |||||||||||||||
Royalty fee | 5, 653 | 0.4 | % | 5,820 | 1.2 | % | (167 | ) | (2.9 | )% | ||||||||||||||
Entertainment expenses | 15,424 | 1.0 | % | 20,928 | 4.3 | % | (5,504 | ) | (26.3 | )% | ||||||||||||||
Taxation | 477 | 0.0 | % | 11 | 0.0 | % | 466 | 4236.4 | % | |||||||||||||||
Depreciation and amortization | 24,584 | 1.7 | % | 24,633 | 5. 1 | % | (49 | ) | (0.2 | )% | ||||||||||||||
Rent | 52,496 | 3.5 | % | 8,954 | 1.8 | % | 43,542 | 486.3 | % | |||||||||||||||
Travel fee | 6,968 | 0.5 | % | 19,689 | 4. 1 | % | (12,721 | ) | (64.6 | )% | ||||||||||||||
Office expenses | 140,593 | 9.5 | % | 35,370 | 7. 3 | % | 105,223 | 297.5 | % | |||||||||||||||
Other | 190,111 | 12.8 | % | 41,768 | 8.6 | % | 148,343 | 355.2 | % | |||||||||||||||
Total general and administrative expenses | 1,481,256 | 100.0 | % | 485,037 | 100.0 | % | 996,219 | 205.4 | % | |||||||||||||||
| 3 |
For the Three Months Ended | ||||||||
March 31, | ||||||||
202 5 | 202 4 | |||||||
Net cash (used in) provided by operating activities | $ | (1,010,467 | ) | $ | 297,897 | |||
Net cash (used in) investing activities | $ | (149,042 | ) | $ | - | |||
Net cash provided by (used in ) financing activities | $ | 3,146,197 | $ | (641,782 | ) | |||
| 4 |
| 5 |
| 6 |
Exhibit No. | Description | |
101.INS | Inline XBRL Instance Document | |
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
* | Filed herewith. |
** | Furnished herewith. This certification is being furnished solely to accompany this report pursuant to 18 U.S.C. Section 1350, and is not being filed for purposes of Section 18 of the Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filings of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing. |
^ | Certain terms have been omitted pursuant to Item 601(b)(2)(ii) of Regulation S-K. The Registrant hereby undertakes to furnish copies of any of the terms upon request by the SEC. |
† | Exhibits and schedules to this Exhibit have been omitted pursuant to Regulation S-K Item 601(a)(5). The Registrant agrees to furnish supplementally a copy of any omitted schedule or exhibit to the SEC upon request. |
| 7 |
Northann Corp. | ||
Date: July 18, 202 5 | By: | /s/ Lin Li |
Name: | Lin Li | |
Title: | Chief Executive Officer | |
(Principal Executive Officer) | ||
Date: July 18, 202 5 | By: | /s/ Sunny S. Prasad |
Name: | Sunny S. Prasad | |
Title: | Interim Chief Financial Officer | |
(Principal Accounting and Financial Officer) | ||
| 8 |
Exhibit 31.1
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
PURSUANT TO RULE 13A-14(A) UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Lin Li, certify that:
1. | I have reviewed this quarterly report on Form 10-Q for the quarterly period ended March 31, 2025 of Northann Corp.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have: |
| a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, is made known to us by others within those entities, particularly during the period in which this report is being prepared; and |
| b) | (Paragraph omitted pursuant to Exchange Act Rules 13a-14(a) and 15d-15(a)); |
| c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
| d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
| a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
| b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: July 18, 2025
| By: | /s/ Lin Li |
|
| Lin Li |
|
| Chief Executive Officer |
|
| (Principal Executive Officer) |
Exhibit 31.2
CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER
PURSUANT TO RULE 13A-14(A) UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Sunny S. Prasad, certify that:
1. | I have reviewed this quarterly report on Form 10-Q for the quarterly period ended March 31, 2025 of Northann Corp.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and internal control over financial reporting for the registrant and have: |
| a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, is made known to us by others within those entities, particularly during the period in which this report is being prepared; and |
| b) | (Paragraph omitted pursuant to Exchange Act Rules 13a-14(a) and 15d-15(a)); |
| c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
| d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
| a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
| b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: July 18, 2025
| By: | /s/ Sunny S. Prasad |
|
| Sunny S. Prasad |
|
| Interim Chief Financial Officer |
|
| (Principal Accounting and Financial Officer) |
Exhibit 32.1
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Northann Corp. (the “Company”) on Form 10-Q for the quarterly period ended March 31, 2025, as filed with the Securities and Exchange Commission (the “Report”), I, Lin Li, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:
| 1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
| 2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Dated: July 18, 2025
| By: | /s/ Lin Li |
|
| Lin Li |
|
| Chief Executive Officer |
|
| (Principal Executive Officer) |
Exhibit 32.2
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Northann Corp. (the “Company”) on Form 10-Q for the quarterly period ended March 31, 2025, as filed with the Securities and Exchange Commission (the “Report”), I, Sunny S. Prasad, Acting Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:
| 1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
| 2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Dated: July 18, 2025
| By: | /s/ Sunny S. Prasad |
|
| Sunny S. Prasad |
|
| Interim Chief Financial Officer |
|
| (Principal Accounting and Financial Officer) |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Mar. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Common stock, par value | $ 0.001 | $ 0.001 |
| Common shares authorized | 400,000,000 | 400,000,000 |
| Common shares issued | 95,464,000 | 55,464,000 |
| Common shares outstanding | 95,464,000 | 55,464,000 |
| Series A Preferred Stock [Member] | ||
| Preferred stock, par value | $ 0.001 | $ 0.001 |
| Preferred shares authorized | 100,000,000 | 100,000,000 |
| Preferred shares issued | 10,000,000 | 10,000,000 |
| Preferred shares outstanding | 10,000,000 | 10,000,000 |
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) |
3 Months Ended | |||
|---|---|---|---|---|
Mar. 31, 2025 |
Mar. 31, 2024 |
|||
| REVENUES | $ 3,437,727 | $ 4,595,531 | ||
| COST OF REVENUES | 3,047,069 | 3,051,541 | ||
| GROSS PROFIT | 390,658 | 1,543,990 | ||
| OPERATING EXPENSES | ||||
| Selling expenses | 1,021,999 | 218,375 | ||
| General and administrative expenses | 1,481,255 | 485,037 | ||
| Research and development expenses | 462,062 | 512,597 | ||
| Total operating expenses | 2,965,315 | 1,216,009 | ||
| (LOSS) INCOME FROM OPERATIONS | (2,574,658) | 327,981 | ||
| OTHER INCOME (EXPENSE) | ||||
| Interest expense | (56,056) | (267,948) | ||
| Other expenses | (15) | 0 | ||
| Total other expenses | (56,070) | (267,948) | ||
| INCOME BEFORE TAXES | (2,630,729) | 60,033 | ||
| Income tax expense | 0 | 0 | ||
| NET (LOSS) INCOME | (2,630,729) | 60,035 | ||
| Other comprehensive (loss) income : | ||||
| Foreign currency translation adjustment | (204,395) | 69,702 | ||
| Total comprehensive income | $ (2,835,124) | $ 129,735 | ||
| Basic loss per share | $ (0.0276) | $ 0.0065 | ||
| Diluted loss per share | $ (0.0276) | $ 0.0065 | ||
| Weighted average number of shares of common stock outstanding – basic | [1] | 95,464,000 | 20,000,000 | |
| Weighted average number of shares of common stock outstanding –diluted | [1] | 95,464,000 | 20,000,000 | |
| ||||
Consolidated Statements of Stockholders' Equity - USD ($) |
Total |
IPO [Member] |
Preferred Stock [Member]
Preferred Stock – Series A [Member]
|
Common Stock [Member] |
Common Stock [Member]
IPO [Member]
|
Subscription receivable [Member] |
Subscription receivable [Member]
IPO [Member]
|
Additional paid in capital [Member] |
Additional paid in capital [Member]
IPO [Member]
|
Accumulated deficits / Retained earnings [Member] |
Accumulated other comprehensive loss [Member] |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Opening Balance (in Shares) at Dec. 31, 2023 | 5,000,000 | 21,380,000 | |||||||||
| Opening Balance at Dec. 31, 2023 | $ 582,612 | $ 5,000 | $ 21,380 | $ (25,000) | $ 6,671,016 | $ (5,313,943) | $ (775,841) | ||||
| Net (loss) income | 60,035 | 60,035 | |||||||||
| Foreign currency translation adjustment | (56,144) | (56,144) | |||||||||
| Closing Balance (in Shares) at Mar. 31, 2024 | 5,000,000 | 21,380,000 | |||||||||
| Closing Balance at Mar. 31, 2024 | 586,503 | $ 5,000 | $ 21,380 | (25,000) | 6,671,016 | (5,253,908) | (831,985) | ||||
| Opening Balance (in Shares) at Dec. 31, 2024 | 5,000,000 | 55,464,000 | |||||||||
| Opening Balance at Dec. 31, 2024 | 2,599,173 | $ 5,000 | $ 55,464 | (1,375,000) | 12,559,915 | (9,693,818) | 1,047,612 | ||||
| Net (loss) income | (2,630,729) | (2,630,729) | |||||||||
| Accrued compensation expense | 816,750 | 816,750 | |||||||||
| Foreign currency translation adjustment | (206,395) | (206,395) | |||||||||
| Issuance of ordinary shares upon the completion of the IPO, shares | 40,000,000 | ||||||||||
| Issuance of ordinary shares upon the completion of the IPO, value | $ 3,332,150 | $ 40,000 | $ (4,800,850) | $ 8,093,000 | |||||||
| Closing Balance (in Shares) at Mar. 31, 2025 | 5,000,000 | 95,464,000 | |||||||||
| Closing Balance at Mar. 31, 2025 | $ 3,910,949 | $ 5,000 | $ 95,464 | $ (6,175,850) | $ 21,469,665 | $ (12,324,547) | $ 841,217 |
Organization And Business |
3 Months Ended | |||
|---|---|---|---|---|
Mar. 31, 2025 | ||||
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
| Organization And Business |
The Company commenced operations in August 2013 with the establishment of Northann Building Solutions LLC. (“NBS”) in Delaware. In December 2013, Northann (Changzhou) Construction Products Ltd (“NCP”) was established in China. All of its products were manufactured through NCP. In March 2014, Benchwich Construction Products Ltd (“Benchwick”) was established in Hong Kong. All wholesales to distributors are conducted through Benchwick. In April 2014, Changzhou Macro Merit International Trading Co., Ltd. (“MARCO”) was established in China. All the import/export of our products are conducted through MARCO. In February 2016, Northann Distribution Center Inc. (“NDC”) was established in California. NDC is a distribution center in the United States and maintains a small inventory for retail sales. In September 2017, Changzhou Ringold International Trading Co., Ltd. (“Ringold”) was established in China. All of the raw material are procured from third parties through Ringold. In September 2018, Crazy Industry (Changzhou) Industry Technology Co., Ltd. (“Crazy Industry”) was established in China. Crazy Industry is the research and development hub. In June 2020, Dotfloor Inc. (“Dotfloor”) was established in California. Dotfloor operates dotfloor.com, the online store that offers our vinyl flooring products to retail customers in the United States. In March 2022, Northann Corp. (“Northann”), the current ultimate holding company, was incorporated in Nevada as part of the restructuring transactions in contemplation of our initial public offering. In connection with its incorporation, in April 2022, we completed a share swap transaction and issued common stock and Series A Preferred Stock of Northann to the then existing shareholders of NBS, based on their then respective equity interests held in NBS. NBS then became our wholly owned subsidiary. In accordance to ASC 805-50-30-5 and ASC 805-50-45-1 through 45-5, the series of restructuring transactions have been accounted for as transactions between entities under common control; accordingly, the Company’s historical capital structure has been retroactively restated to the first period presented. On October 23, 2023, the Company consummated the initial public offering (the “IPO”) of 1,200,000 shares of common stock, par value $0.001 per share at an offering price of $5.00 per share. On October 25, 2023, the underwriters of the IPO fully exercised the over-allotment option granted by the Company and purchased additional 180,000 shares of Common Stock at $5.00 per share. The closing of the Over-Allotment Option took place on October 26, 2023. In October and November 2024, the Company acquired Cedar Modern Limited and Raleigh Industries Limited, respectively. Going Concern The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As of March 31, 202 5 , the Company had a working capital deficit of $ 2,517,988 and net cash used in operating activities of $ 1,010,467 for the three months ended March 31, 202 5 . The Company may not have adequate liquidity to remain solvent and settle its obligations when payment become due; these factors gave rise to substantial doubt that the Company would continue as a going concern. Management is closely monitoring its financial position, especially its working capital and cash position, as well as its gross profit margins where its positive results of operations will allow the Company to continue as going concern. The company’s foremost plan is to boost revenue and improve profitability. These financial statements do not include any adjustments that might result from the outcome of this uncertainly. |
Summary of Significant Accounting Policies |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Significant Accounting Policies |
Basis of Presentation The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”), and include the assets, liabilities, revenues, expenses and cash flows of all subsidiaries. All significant inter-company transactions and balances between the Company and its subsidiaries are eliminated upon consolidation. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors. Use of Estimates The preparation of these consolidation financial statements requires management of the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, costs and expenses, and related disclosures. On an on-going basis, the Company evaluates its estimates based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Identified below are the accounting policies that reflect the Company’s most significant estimates and judgments, and those that the Company believes are the most critical to fully understanding and evaluating its consolidated financial statements. Basis of Consolidation The consolidated financial statements include the financial statements of the Company. Revenue Recognition The Company recognizes revenues when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. The Company recognizes revenues following the five-step model prescribed under ASU No. 2014-09: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) the Company satisfies the performance obligation. Revenue for sales of products which are primarily comprised of hardwood floors and three-dimensional printed flooring are recognized at the time of delivery of the products set forth in contracts with customers. At the time of delivery, physical and legal control of the asset is passed from the Company to its customer, at which time the Company believes it has satisfied the single performance obligation to complete a sales transaction in order to recognize revenue. The Company’s contracts do not allow for returns, refunds, or warranties; however, it is customary in the industry to manufacturers to ship a small portion of extra product to allow for product quality issues. Also, as matter of good business practice, under very specific situations, the Company has historically agreed to provide minor discounts to customers who made complaints on products purchased. The Company has recorded these costs as period expenses when incurred as the Company is not able to reliably estimate such future expenses. Revenues are recognized when control of the promised goods or services is transferred to our customers, which may occur at a point in time or over time depending on the terms and conditions of the agreement, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Practical expedients and exemption The Company has not occurred any costs to obtain contracts and does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. The Company typically enters into agreements with its customers where its set forth the product to be sold, the price, payment terms, and any antecedent terms such as shipping and delivery specifications; these terms and conditions are most typically specified in purchase order issued by its customers to the Company. The Company typically recognizes revenue at point in time, which is when physical possession and legal title are transferred to the customer, this may be a shipping port or a specified destination; at this point the Company reasonably expect to paid for the product, or in the event where it was paid advance, the Company’s performance obligations have been satisfied and those funds are considered earned by the Company. If the Company sells products on account to customers, they are typically paid within 90 days. Any funds received in advance for the products yet to be transferred to its customer are contract liabilities that are recorded as unearned revenue on the Company’s consolidated balance sheets. $ nil and $ 1,573,969 were recognized as revenue from unearned revenue during the three months ended March 31, 202 5 and 202 4 . The Company accounts for income taxes using an asset and liability approach which allows for the recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will either expire before the Company is able to realize their benefits, or that future deductibility is uncertain.Under ASC 740, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The evaluation of a tax position is a two-step process. The first step is to determine whether it is more-likely-than-not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigations based on the technical merits of that position. The second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer met. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the year incurred. GAAP also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosures and transition. On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was enacted by the U.S. government which included a wide range of tax reform affecting businesses including the corporate tax rates, international tax provisions, tax credits and deduction with majority of the tax provision effective after December 31, 2017. Certain activities conducted in foreign jurisdictions may result in the imposition of U.S. corporate income taxes on the Company when its subsidiaries, controlled foreign corporations (“CFCs”), generate income that is subject to Subpart F or GILTI under the U.S. Internal Revenue Code beginning after December 31, 2017. The Coronavirus Aid, Relief and Economy Security (CARES) Act (“the CARES Act, H.R. 748”) was signed into law on 27 March 2020. The CARES Act temporarily eliminates the 80% taxable income limitation (as enacted under the Tax Cuts and Jobs Act of 2017) for NOL deductions for 2018-2020 tax years and reinstated NOL carry backs for the 2018-2020 tax years. Moreover, the CARES Act also temporarily increases the business interest deduction limitations from 30% to 50% of adjusted taxable income for the 2019 and 2020 taxable year. Lastly, the Tax Act technical correction classifies qualified improvement property as 15-year recovery period, allowing the bonus depreciation deduction to be claimed for such property retroactively as if it was included in the Tax Act at the time of enactment. The Company does not anticipate a material impact on its financial statements as of March 31, 202 5 and December 31, 202 4 due to the recent enactment. The Company accounts for an unrecognized tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the tax authorities. The Company considers and estimates interest and penalties related to the gross unrecognized tax benefits and includes as part of its income tax provision based on the applicable income tax regulations. The Company did not accrue any liability, interest or penalties related to uncertain tax positions in the provision for income taxes line of the consolidated statements of operations for the three months ended March 31, 202 5 . The Company had no uncertain tax position for the three months ended March 31, 202 5 and March 31, 202 4 . Foreign Currency and Foreign Currency Translation The functional currency of the Company is the Chinese Yuan (“RMB”), as their functional currencies. An entity’s functional currency is the currency of the primary economic environment in which it operates, normally that is the currency of the environment in which the entity primarily generates and expends cash. Management’s judgment is essential to determine the functional currency by assessing various indicators, such as cash flows, sales price and market, expenses, financing and inter-company transactions and arrangements. Foreign currency transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are re-measured at the applicable rates of exchange in effect at that date. Gains and losses resulting from foreign currency re-measurement are included in the statements of comprehensive loss. The consolidated financial statements are presented in U.S. dollars. Assets and liabilities are translated into U.S. dollars at the current exchange rate in effect at the balance sheet date, and revenues and expenses are translated at the average of the exchange rates in effect during the reporting period. Stockholders’ equity accounts are translated using the historical exchange rates at the date the entry to stockholders’ equity was recorded, except for the change in retained earnings during the period, which is translated using the historical exchange rates used to translate each period’s income statement. Differences resulting from translating functional currencies to the reporting currency are recorded in accumulated other comprehensive income in the consolidated balance sheets. Translation of amounts from RMB and HKD into U.S. dollars has been made at the following exchange rates:
Cash 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 March 31, 202 5 and December 31, 202 4 . Long-Lived Assets Long-lived assets consist primarily of equipment and intangible assets. 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.
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:
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 for the three months ended March 31, 202 5 and March 31 , 202 4. Net earnings per share of common stock The Company has adopted ASC Topic 260, “Earnings per Share,” (“EPS”) which requires presentation of basic EPS on the face of the income statement for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation. In the accompanying consolidation financial statements, basic earnings (loss) per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period.
* Retrospectively restated for the effect of 2-for-1 reverse stock split. (Note 1 6 ) Segments The Company evaluates a reporting unit by first identifying its operating segments, and then evaluates each operating segment to determine if it includes one or more components that constitute a business. If there are components within an operating segment that meets the definition of a business, the Company evaluates those components to determine if they must be aggregated into one or more reporting units. If applicable, when determining if it is appropriate to aggregate different operating segments, the Company determines if the segments are economically similar and, if so, the operating segments are aggregated. The Company has only one major reportable segment in the periods presented. The Company’s chief operation decision maker is the Company’s Chief Executive Officer. Shipping and Handling Costs Outbound shipping and handling costs are expenses as incurred and charged to the selling expense. Inbound shipping and freight are charged for raw material and components are accounted for as cost of revenues. Fair Value of Financial Instruments U.S. GAAP establishes a three-tier hierarchy to prioritize the inputs used in the valuation methodologies in measuring the fair value of financial instruments. This hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three-tier fair value hierarchy is: Level 1 – observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 – include other inputs that are directly or indirectly observable in the market place. Level 3 – unobservable inputs which are supported by little or no market activity. The carrying value of the Company’s financial instruments, including cash, accounts and other receivables, other current assets, accounts and other payables, and other short-term liabilities approximate their fair value due to their short maturities. In accordance with ASC 825, for investments in financial instruments with a variable interest rate indexed to performance of underlying assets, the Company elected the fair value method at the date of initial recognition and carried these investments at fair value. Changes in the fair value are reflected in the accompanying consolidated statements of operations and comprehensive loss as other income (expense). To estimate fair value, the Company refers to the quoted rate of return provided by banks at the end of each period using the discounted cash flow method. The Company classifies the valuation techniques that use these inputs as Level 2 of fair value measurements. As of March 31, 202 5 and December 31, 202 4 , the Company had no investments in financial instruments. Leases In February 2016, the FASB issued ASU 2016-12, Leases (ASC Topic 842), which amends the leases requirements in ASC Topic 840, Leases. Under the new lease accounting standard, a lessee will be required to recognize a right-of-use asset and lease liability for most leases on the balance sheet. The new standard also modifies the classification criteria and accounting for sales-type and direct financing leases, and enhances the disclosure requirements. Leases will continue to be classified as either finance or operating leases. The Company adopted ASC Topic 842 using the modified retrospective transition method effective January 1, 2019. There was no cumulative effect of initially applying ASC Topic 842 that required an adjustment to the opening retained earnings on the adoption date nor revision of the balances in comparative periods. As a result of the adoption, the Company recognized a lease liability and right-of-use asset for each of the existing lease arrangement. The adoption of the new lease standard does not have a material impact on the consolidated income statements or the consolidated statements of cash flows. The Company determines if an arrangement is a lease at inception. The lease payments under the lease arrangements are fixed. Non-lease components include payments for building management, utilities and property tax. It separates the non-lease components from the lease components to which they relate. Lease assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value of the future lease payments is the Company’s incremental borrowing rate, because the interest rate implicit in the leases is not readily determinable. The incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. The lease terms include periods under options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company generally uses the base, non-cancelable, lease term when determining the lease assets and liabilities. R ecently adopted accounting pronouncements In November 2023, the FASB issued ASU 2023-07. The amendments improve reportable segment disclosure requirements. Main provisions include: (1) significant segment expenses — public entities are required to disclose significant segment expenses by reportable segment if they are regularly provided to the CODM and included in each reported measure of segment profit or loss; (2) other segment items — public entities are required to disclose other segment items by reportable segment. Such a disclosure would constitute the difference between reported segment revenues less the significant segment expenses (disclosed) less reported segment profit or loss; (3) multiple measures of a segment ’ s profit or loss — public entities may disclose more than one measure of segment profit or loss used by the CODM, provided that at least one of the reported measures includes the segment profit or loss measure that is most consistent with GAAP measurement principles; (4) CODM-related disclosures — disclosure of the CODM ’ s title and position is required on an annual basis, as well as an explanation of how the CODM uses the reported measure(s) and other disclosures; (5) entities with a single reportable segment — public entities must apply all of the ASU ’ s disclosure requirements, as well as all existing segment disclosure and reconciliation requirements in ASC Topic 280, Segment Reporting; (6) recasting of prior-period segment information to conform to current-period segment information — recasting is required if segment information regularly provided to the CODM is changed in a manner that causes the identification of significant segment expenses to change. The amendments in ASU 2023-07 are effective for all public entities for fiscal years beginning after December 15, 2023. Early adoption is permitted. A public entity should apply the amendments in this update retrospectively to all prior periods presented in the financial statements. The Company adopted this update beginning January 1, 2024. Recently issued accounting pronouncements not yet adopted In December 2023, the FASB issued ASU 2023-09, which establishes new income tax disclosure requirements in addition to modifying and eliminating certain existing requirements. The ASU amends ASC 740-10-50-12 to require public business entities ( “ PBEs ” ) to disclose a reconciliation between the amount of reported income tax expense (or benefit) from continuing operations and the amount computed by multiplying the income (or loss) from continuing operations before income taxes by the applicable statutory federal (national) income tax rate of the jurisdiction (country) of domicile. If PBE is not domiciled in the United States, the federal (national) income tax rate in such entity ’ s jurisdiction (country) of domicile shall normally be used in the rate reconciliation. The amendments prohibit the use of different income tax rates for subsidiaries or segments. Further, PBEs that use an income tax rate in the rate reconciliation that is other than the U.S. income tax rate must disclose the rate used and the basis for using it. The ASU also adds ASC 740-10-50-12A, which requires entities to annually disaggregate the income tax rate reconciliation between the following eight categories by both percentages and reporting currency amounts: (1) State and local income tax, net of federal (national) income tax effect; (2) Foreign tax effects; (3) Effect of changes in tax laws or rates enacted in the current period; (4) Effect of cross-border tax laws; (5) Tax credits; (6) Changes in valuation allowances; (7) Nontaxable or nondeductible items; (8) Changes in unrecognized tax benefits. PBEs must apply the ASU ’ s guidance to annual periods beginning after December 15, 2024 (2025 for calendar-year-end PBEs). Early adoption is permitted. Entities may apply the amendments prospectively or may elect retrospective application. The Company is currently evaluating the impact from the adoption of this ASU on its consolidated financial statements. In November 2024, the FASB issued ASU 2024-03 “ Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40) ” . The amendments in this update intend to improve the disclosures about a public business entity ’ s expenses and address requests from investors for more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation, amortization, and depletion) in commonly presented expense captions (such as cost of sales, selling, general and administrative expenses, and research and development). ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027. The Company is currently evaluating the impact from the adoption of this ASU on its consolidated financial statements. |
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Accounts Receivable, Net |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2025 | ||||||||||||||||||||||||||||||||||||||||
| Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||
| Accounts Receivable, Net |
Accounts receivable consist of the following:
There was no allowance for doubtful accounts recorded as of March 31, 202 5 and December 31, 202 4 . |
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Other Receivables |
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Mar. 31, 2025 | ||||||||||||||||||||||||||||||||||||||||
| Other Receivables And Other Current Assets [Abstract] | ||||||||||||||||||||||||||||||||||||||||
| Other Receivables |
Other receivables consist of the following:
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Inventory, Net |
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Mar. 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventory, Net |
Inventories, net, consist of the following:
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Equipment, Net |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Public Utilities, Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equipment, Net |
Equipment, net consist of the following:
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Land Use Rights, Net |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Land Use Rights, Net |
The Company has pledged its land use rights at No. 199, Newtag, Wujin District, Changzhou, Jiangsu Province, China, 213000 to Industrial and Commercial Bank of China Limited as a collateral for securing its loans. |
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Bank Borrowings |
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Mar. 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bank Borrowings |
Current Short-term loans as of March 31, 202 5 and December 31, 202 4 represents bank borrowings of $ 4,778,357 and $4,699,080 , respectively obtained from financial institutions in the PRC. The short-term bank borrowings were secured by land use right. The weighted average interest rate for the short-term loans for the three months ended March 31, 2025 and 202 4 was approximately 5.72 % and 4.71%, respectively.
The loan from Bank of America is secured by the Company’s inventory. Non-current
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Balances with Related Party |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balances with Related Party |
For the three months ended March 31, 202 5 and 202 4 , the Company’s related party provided working capital to support the Company’s operations when needed. The borrowings were unsecured, due on demand, and interest free. The following table summarizes the balances with the Company’s related party.
All the above balances are due on demand, interest-free and unsecured. The Company used the funds for its operations. |
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Equity |
3 Months Ended | |||
|---|---|---|---|---|
Mar. 31, 2025 | ||||
| Stockholders' Equity Note [Abstract] | ||||
| Equity |
Preferred Stock The Company is authorized to issue 500,000,000 shares of capital stock, consisting of 400,000,000 shares of common stock, par value US$0.001 per share, and 100,000,000 shares of preferred stock, par value US$0.001 per share. 20,000,000 shares were designated to be series A preferred stock (the “Series A Preferred Stock”) out of the 100,000,000 shares of blank check preferred stock. Each share of common stock is entitled to one vote and each share of Series A Preferred Stock is entitled to ten votes on any matter on which action of the stockholders of the corporation is sought. The Series A Preferred Stock will vote together with the common stock. Common stock and Series A Preferred Stock are not convertible into each other. Holders of Series A Preferred Stock are not entitled to receive dividends. The Series A Preferred Stock does not have liquidation preference over the Company’s Common Stock, and therefore ranks pari passu with the Common Stock in the event of liquidation. Common Stock The Company is authorized to issue 400,000,000 shares of common stock with par value of US$0.001 per share. Each share of common stock entitles the holder to one vote. For the sake of comparability, the share structure as of the date of this report has been carried back in the Company’s statement of stockholders’ equity as if they had been issued and outstanding from the beginning of the first period presented. |
Income Taxes |
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| Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Taxes |
United States of America The Coronavirus Aid, Relief and Economy Security (CARES) Act (“the CARES Act, H.R. 748”) was signed into law on March 27, 2020. The CARES Act temporarily eliminates the 80% taxable income limitation (as enacted under the Tax Cuts and Jobs Act of 2017) for NOL deductions for 2018-2020 tax years and reinstated NOL carrybacks for the 2018-2020 tax years. Moreover, the CARES Act also temporarily increases the business interest deduction limitations from 30% to 50% of adjusted taxable income for the 2019 and 2020 taxable year. Lastly, the Tax Act technical correction classifies qualified improvement property as 15-year recovery period, allowing the bonus depreciation deduction to be claimed for such property retroactively as if it was included in the Tax Act at the time of enactment. The Company does not anticipate a material impact on its financial statements as of March 31, 2025 and December 31, 2024 due to the recent enactment. Hong Kong Two-tier Profits Tax Rates The two-tier profits tax rates system was introduced under the Inland Revenue (Amendment)(No.3) Ordinance 2018 (the “Ordinance”) of Hong Kong became effective for the assessment year 2018/2019. Under the two-tier profit tax rates regime, the profits tax rate for the first HKD 2 million (approximately $257,868) of assessable profits of a corporation will be subject to the lowered tax rate, 8.25% while the remaining assessable profits will be subject to the legacy tax rate, 16.5%. The Ordinance only allows one entity within a group of “connected entities” is eligible for the two-tier tax rate benefit. An entity is a connected entity of another entity if (1) one of them has control over the other; (2) both of them are under the control (more than 50% of the issued share capital) of the same entity; (3) in the case of the first entity being a natural person carrying on a sole proprietorship business-the other entity is the same person carrying on another sole proprietorship business. Since Benchwick is wholly owned and under the control of Northann, it is a connected entity. Under the Ordinance, it is an entity’s election to nominate the entity that will be subject to the two-tier profits tax rates on its profits tax return. The election is irrevocable. The Company elected Benchwick to be subject to the two-tier profits tax rates. The provision for current income and deferred taxes of Benchwick has been calculated by applying the new tax rate of 8.25%. PRC In accordance with the relevant tax laws and regulations of the PRC, a company registered in the PRC is subject to income taxes within the PRC at the applicable tax rate on taxable income. All the PRC subsidiaries that are not entitled to any tax holiday were subject to income tax at a rate of 25% for the three months ended March 31, 2025 and 2024. According to PRC tax regulations, the PRC net operating loss can generally carry forward for no longer than five years starting from the year subsequent to the year in which the loss was incurred. Carry back of losses is not permitted. If not utilized, the PRC net operating loss will expire in 2026. The income tax expense was $ nil and $nil for the three months ended March 31, 2025 and 2024, respectively, related primarily to the Company’s subsidiaries located outside of the U.S. The income before provision for income taxes for the three months ended March 31, 2025 and 2024 was as follows: The income tax provision consists of the following components:
A reconciliation between the Company’s actual provision for income taxes and the provision at the United States statutory rate is as follow:
The effective tax rate were nil% and nil% for the three months ended March 31, 2025 and 2024, respectively. Uncertain tax positions The Company did not have any uncertain tax positions during the three months ended March 31, 2025 and 2024. The Company files tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, the Company is subject to examination by the respective jurisdictions, where applicable. The statute of limitations for the tax returns varies by jurisdictions. The amounts of uncertain tax liabilities listed above are based on the recognition and measurement criteria of ASC Topic 740, and the balance is presented as current liability in the consolidated financial statements as of December 31, 2023. The Company anticipated that the settlements with the taxing authority are remitted within one year. Our policy is to include interest and penalty charges related to uncertain tax liabilities as necessary in the provision for income taxes. The Company has a liability for accrued interest of $nil and $nil as of March 31, 2025 and 2024, respectively. The statute of limitations for the Internal Revenue Services to assess the income tax returns on a taxpayer expires three years from the due date of the profits tax return or the date on which it was filed, whichever is later. In accordance with the Hong Kong profits tax regulations, a tax assessment by the IRD may be initiated within six years after the relevant year of assessment, but extendable to 10 years in the case of potential willful underpayment or evasion. In accordance with PRC Tax Administration Law on the Levying and Collection of Taxes, the PRC tax authorities generally have up to five years to assess underpaid tax plus penalties and interest for PRC entities’ tax filings. In the case of tax evasion, which is not clearly defined in the law, there is no limitation on the tax years open for investigation. Accordingly, the PRC entities remain subject to examination by the tax authorities based on the above. |
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China Contribution Plan |
3 Months Ended | |||
|---|---|---|---|---|
Mar. 31, 2025 | ||||
| Retirement Benefits [Abstract] | ||||
| China Contribution Plan |
The Company participates in a government-mandated multi-employer defined contribution plan pursuant to which certain retirement, medical and other welfare benefits are provided to employees. Chinese labor regulations require the Company to pay to the local labor bureau a monthly contribution at a stated contribution rate based on the monthly compensation of qualified employees. The relevant local labor bureau is responsible for meeting all retirement benefit obligations; the Company has no further commitments beyond their monthly contributions. For the three months ended March 31, 2025 and 2024, the Company contributed a total of $15,005 and $15,889, respectively, to these funds. |
Operating Lease |
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| Lessee Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 March 31, 2025 and December 31, 2024:
Cash flow information related to operating leases consists of the following:
The operating lease expenses for the three months ended March 31, 2025 and 2024 were as follows:
Maturities of operating lease liabilities as of March 31, 2025 were as follows:
Lease liabilities include lease and non-lease component such as management fee.
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Concentrations and Credit Risk |
3 Months Ended | |||||||
|---|---|---|---|---|---|---|---|---|
Mar. 31, 2025 | ||||||||
| Risks and Uncertainties [Abstract] | ||||||||
| Concentrations and Credit Risk |
During the three months ended March 31, 2025, two customers accounted for nearly 74% of the Company’s revenues. During the three months ended March 31, 2024, two customers accounted for nearly 81% of the Company’s revenues. No other customer accounts for more than 10% of the Company’s revenue in the three months ended March 31, 2025 and 2024. As of March 31, 2025, five customers accounted for 41% of the Company’s accounts receivable. As of December 31, 2024, five customers accounted for 84% of the Company’s accounts receivable. No other customer accounts for more than 10% of the Company’s accounts receivable for the three months ended March 31, 2025 and for the year ended December 31, 2024. During the three months ended March 31, 2025, no supplier accounts for over 10% of the Company’s cost of revenues. During the three months ended March 31, 2025, five suppliers accounted for a total of 73% of the Company’s cost of revenues. No other supplier accounts for over 10% of the Company’s cost of revenues. As of March 31, 2025, no supplier accounted for over 10% of the Company’s accounts payable. As of December 31, 2024, no supplier accounted for 10% of the Company’s accounts payable.
Financial instruments that potentially subject the Company to a significant concentration of credit risk consist primarily of cash. As of March 31, 2025 and December 31, 2024, substantially all of the Company’s cash were held by major financial institutions located in the PRC, Hong Kong, and the United States, which management believes are of high credit quality. Deposits in the United States up to $250,000 are insured by the Federal Depository Insurance Corporation. For the credit risk related to trade accounts receivable, the Company performs ongoing credit evaluations of its customers and, if necessary, maintains reserves for potential credit losses. Historically, such losses have been within management’s expectations. |
Capital Commitments |
3 Months Ended | |||
|---|---|---|---|---|
Mar. 31, 2025 | ||||
| Other Commitments [Abstract] | ||||
| Capital Commitments |
On July 26, 2021, the Company has contracted Changzhou Wanyuan Construction Engineering Co. to build a second phase of its factory. The amount required in the contract is $10 million. Construction is expected to take approximately one and half year, and the second phase of the factory will be approximately 250,000 square feet. |
Stock Split |
3 Months Ended | |||
|---|---|---|---|---|
Mar. 31, 2025 | ||||
| Disclosure Of The Reverse Stock Split Arrangement [Abstract] | ||||
| Stock Split |
Effective on July 6, 2023, the Company implemented a reverse stock split of the issued and outstanding shares. Under the reverse split, every two shares of outstanding shares issued and outstanding were automatically converted into one share of ordinary share, with a par value of US$ 0.001 each. Except as otherwise indicated, all information in the consolidated financial statements concerning share and per share data gives retroactive effect to the reverse stock split. The total number of outstanding common shares immediately before the reverse split was 40,000,000 and immediately after the reverse split was 20,000,000. The total number of outstanding preferred shares immediately before the reverse split was 10,000,000 and immediately after the reverse split was 5,000,000. |
Secured Borrowing Arrangement |
3 Months Ended | |||
|---|---|---|---|---|
Mar. 31, 2025 | ||||
| Debt Instruments [Abstract] | ||||
| Secured Borrowing Arrangement |
In July 2023, the Company signed a secured borrowing agreement with a financial institution in the United States, in which the Company borrowed $1,000,000 secured by its accounts receivable amounted $1,491,000. It is scheduled under the agreement that the Company pays $49,700 per week for thirty weeks to the financial institution to repay the loan. On January 21, 2025, 3D PRINTING entered into an EB-5 loan agreement with 3DFLOR Chairman and controlling shareholder, Lin Li (“3DFLOR”), pursuant to which 3DFLOR agreed to provide 3D PRINTING a loan, with an initial maximum principal amount of $24,000,000 at an interest rate of 1.00% per year. |
Subsequent Event |
3 Months Ended | |||
|---|---|---|---|---|
Mar. 31, 2025 | ||||
| Subsequent Events [Abstract] | ||||
| Subsequent Event |
The Company has analyzed its operations subsequent to March 31 , 2025 and up through July 16, 2025 which is the date these consolidation financial statements were issued, except as disclosed herein, there is no material subsequent events to disclose in these consolidated financial statements. |
Unrestricted Net Assets |
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| Restrictions for Consolidated and Unconsolidated Subsidiaries [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unrestricted Net Assets |
The following presents condensed financial information of Northann Corp: Condensed Financial Information on Financial Position
* Retrospectively restated for the effect of 2-for-1 reverse stock split. (Note 16)Condensed Financial Information on Results of Operations
Condensed Financial Information on Cash Flows
The condensed financial information reflects the accounts of the Company. The condensed financial information should be read in connection with the consolidated financial statements and notes thereto. The condensed financial information is presented as if the incorporation of the Company were in effect since January 1, 2020.
Schedule I of Rule 5-04 of Regulation S-X requires the condensed financial information of registrant shall be filed when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. For purposes of the above test, restricted net assets of consolidated subsidiaries shall mean that amount of the registrant’s proportionate share of net assets of consolidated subsidiaries (after intercompany eliminations) which as of the end of the most recent fiscal year may not be transferred to the parent company by subsidiaries in the form of loans, advances or cash dividends without the consent of a third party (i.e., lender, regulatory agency, foreign government, etc.). The Company’s only assets are its equity interests in its subsidiaries. Unrestricted net assets are held in the Company’s subsidiaries located in the US and Hong Kong. The Company does maintain substantial assets and operating subsidiaries in China; therefore, the ability for operating subsidiaries to pay dividends or transfer assets to the Company may be restricted due to the foreign exchange control policies and availability of cash balances of the Chinese operating subsidiaries. As of March 31, 2024, there were no material contingencies, significant provisions of long-term obligations, mandatory dividend or redemption requirements of redeemable stocks or guarantees of the Company, except for those which have been separately disclosed in the Consolidated Financial Statements, if any. |
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Summary of Significant Accounting Policies (Policies) |
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| Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basis of Presentation | Basis of Presentation The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”), and include the assets, liabilities, revenues, expenses and cash flows of all subsidiaries. All significant inter-company transactions and balances between the Company and its subsidiaries are eliminated upon consolidation. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors. |
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| Use of Estimates | Use of Estimates The preparation of these consolidation financial statements requires management of the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, costs and expenses, and related disclosures. On an on-going basis, the Company evaluates its estimates based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Identified below are the accounting policies that reflect the Company’s most significant estimates and judgments, and those that the Company believes are the most critical to fully understanding and evaluating its consolidated financial statements. |
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| Basis of Consolidation | Basis of Consolidation The consolidated financial statements include the financial statements of the Company. |
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| Revenue Recognition | Revenue Recognition The Company recognizes revenues when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. The Company recognizes revenues following the five-step model prescribed under ASU No. 2014-09: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) the Company satisfies the performance obligation. Revenue for sales of products which are primarily comprised of hardwood floors and three-dimensional printed flooring are recognized at the time of delivery of the products set forth in contracts with customers. At the time of delivery, physical and legal control of the asset is passed from the Company to its customer, at which time the Company believes it has satisfied the single performance obligation to complete a sales transaction in order to recognize revenue. The Company’s contracts do not allow for returns, refunds, or warranties; however, it is customary in the industry to manufacturers to ship a small portion of extra product to allow for product quality issues. Also, as matter of good business practice, under very specific situations, the Company has historically agreed to provide minor discounts to customers who made complaints on products purchased. The Company has recorded these costs as period expenses when incurred as the Company is not able to reliably estimate such future expenses. Revenues are recognized when control of the promised goods or services is transferred to our customers, which may occur at a point in time or over time depending on the terms and conditions of the agreement, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Practical expedients and exemption The Company has not occurred any costs to obtain contracts and does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. The Company typically enters into agreements with its customers where its set forth the product to be sold, the price, payment terms, and any antecedent terms such as shipping and delivery specifications; these terms and conditions are most typically specified in purchase order issued by its customers to the Company. The Company typically recognizes revenue at point in time, which is when physical possession and legal title are transferred to the customer, this may be a shipping port or a specified destination; at this point the Company reasonably expect to paid for the product, or in the event where it was paid advance, the Company’s performance obligations have been satisfied and those funds are considered earned by the Company. If the Company sells products on account to customers, they are typically paid within 90 days. Any funds received in advance for the products yet to be transferred to its customer are contract liabilities that are recorded as unearned revenue on the Company’s consolidated balance sheets. $ nil and $ 1,573,969 were recognized as revenue from unearned revenue during the three months ended March 31, 202 5 and 202 4 . The Company accounts for income taxes using an asset and liability approach which allows for the recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will either expire before the Company is able to realize their benefits, or that future deductibility is uncertain.Under ASC 740, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The evaluation of a tax position is a two-step process. The first step is to determine whether it is more-likely-than-not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigations based on the technical merits of that position. The second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer met. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the year incurred. GAAP also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosures and transition. On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was enacted by the U.S. government which included a wide range of tax reform affecting businesses including the corporate tax rates, international tax provisions, tax credits and deduction with majority of the tax provision effective after December 31, 2017. Certain activities conducted in foreign jurisdictions may result in the imposition of U.S. corporate income taxes on the Company when its subsidiaries, controlled foreign corporations (“CFCs”), generate income that is subject to Subpart F or GILTI under the U.S. Internal Revenue Code beginning after December 31, 2017. The Coronavirus Aid, Relief and Economy Security (CARES) Act (“the CARES Act, H.R. 748”) was signed into law on 27 March 2020. The CARES Act temporarily eliminates the 80% taxable income limitation (as enacted under the Tax Cuts and Jobs Act of 2017) for NOL deductions for 2018-2020 tax years and reinstated NOL carry backs for the 2018-2020 tax years. Moreover, the CARES Act also temporarily increases the business interest deduction limitations from 30% to 50% of adjusted taxable income for the 2019 and 2020 taxable year. Lastly, the Tax Act technical correction classifies qualified improvement property as 15-year recovery period, allowing the bonus depreciation deduction to be claimed for such property retroactively as if it was included in the Tax Act at the time of enactment. The Company does not anticipate a material impact on its financial statements as of March 31, 202 5 and December 31, 202 4 due to the recent enactment. The Company accounts for an unrecognized tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the tax authorities. The Company considers and estimates interest and penalties related to the gross unrecognized tax benefits and includes as part of its income tax provision based on the applicable income tax regulations. The Company did not accrue any liability, interest or penalties related to uncertain tax positions in the provision for income taxes line of the consolidated statements of operations for the three months ended March 31, 202 5 . The Company had no uncertain tax position for the three months ended March 31, 202 5 and March 31, 202 4 . |
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| Foreign Currency and Foreign Currency Translation | Foreign Currency and Foreign Currency Translation The functional currency of the Company is the Chinese Yuan (“RMB”), as their functional currencies. An entity’s functional currency is the currency of the primary economic environment in which it operates, normally that is the currency of the environment in which the entity primarily generates and expends cash. Management’s judgment is essential to determine the functional currency by assessing various indicators, such as cash flows, sales price and market, expenses, financing and inter-company transactions and arrangements. Foreign currency transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are re-measured at the applicable rates of exchange in effect at that date. Gains and losses resulting from foreign currency re-measurement are included in the statements of comprehensive loss. The consolidated financial statements are presented in U.S. dollars. Assets and liabilities are translated into U.S. dollars at the current exchange rate in effect at the balance sheet date, and revenues and expenses are translated at the average of the exchange rates in effect during the reporting period. Stockholders’ equity accounts are translated using the historical exchange rates at the date the entry to stockholders’ equity was recorded, except for the change in retained earnings during the period, which is translated using the historical exchange rates used to translate each period’s income statement. Differences resulting from translating functional currencies to the reporting currency are recorded in accumulated other comprehensive income in the consolidated balance sheets. Translation of amounts from RMB and HKD into U.S. dollars has been made at the following exchange rates:
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| Cash | Cash 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. |
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| Accounts Receivable, Net | 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 March 31, 202 5 and December 31, 202 4 . |
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| Long-Lived Assets | Long-Lived Assets Long-lived assets consist primarily of equipment and intangible assets. |
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| Equipment | 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.
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. |
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| Land Use Rights, Net | 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:
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| Impairment of Long-lived Assets | 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 for the three months ended March 31, 202 5 and March 31 , 202 4. |
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| Net earnings per share of common stock | Net earnings per share of common stock The Company has adopted ASC Topic 260, “Earnings per Share,” (“EPS”) which requires presentation of basic EPS on the face of the income statement for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation. In the accompanying consolidation financial statements, basic earnings (loss) per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period.
* Retrospectively restated for the effect of 2-for-1 reverse stock split. (Note 1 6 ) |
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| Segments | Segments The Company evaluates a reporting unit by first identifying its operating segments, and then evaluates each operating segment to determine if it includes one or more components that constitute a business. If there are components within an operating segment that meets the definition of a business, the Company evaluates those components to determine if they must be aggregated into one or more reporting units. If applicable, when determining if it is appropriate to aggregate different operating segments, the Company determines if the segments are economically similar and, if so, the operating segments are aggregated. The Company has only one major reportable segment in the periods presented. The Company’s chief operation decision maker is the Company’s Chief Executive Officer. |
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| Shipping and Handling Costs | Shipping and Handling Costs Outbound shipping and handling costs are expenses as incurred and charged to the selling expense. Inbound shipping and freight are charged for raw material and components are accounted for as cost of revenues. |
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| Fair Value of Financial Instruments | Fair Value of Financial Instruments U.S. GAAP establishes a three-tier hierarchy to prioritize the inputs used in the valuation methodologies in measuring the fair value of financial instruments. This hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three-tier fair value hierarchy is: Level 1 – observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 – include other inputs that are directly or indirectly observable in the market place. Level 3 – unobservable inputs which are supported by little or no market activity. The carrying value of the Company’s financial instruments, including cash, accounts and other receivables, other current assets, accounts and other payables, and other short-term liabilities approximate their fair value due to their short maturities. In accordance with ASC 825, for investments in financial instruments with a variable interest rate indexed to performance of underlying assets, the Company elected the fair value method at the date of initial recognition and carried these investments at fair value. Changes in the fair value are reflected in the accompanying consolidated statements of operations and comprehensive loss as other income (expense). To estimate fair value, the Company refers to the quoted rate of return provided by banks at the end of each period using the discounted cash flow method. The Company classifies the valuation techniques that use these inputs as Level 2 of fair value measurements. As of March 31, 202 5 and December 31, 202 4 , the Company had no investments in financial instruments. |
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| Leases | Leases In February 2016, the FASB issued ASU 2016-12, Leases (ASC Topic 842), which amends the leases requirements in ASC Topic 840, Leases. Under the new lease accounting standard, a lessee will be required to recognize a right-of-use asset and lease liability for most leases on the balance sheet. The new standard also modifies the classification criteria and accounting for sales-type and direct financing leases, and enhances the disclosure requirements. Leases will continue to be classified as either finance or operating leases. The Company adopted ASC Topic 842 using the modified retrospective transition method effective January 1, 2019. There was no cumulative effect of initially applying ASC Topic 842 that required an adjustment to the opening retained earnings on the adoption date nor revision of the balances in comparative periods. As a result of the adoption, the Company recognized a lease liability and right-of-use asset for each of the existing lease arrangement. The adoption of the new lease standard does not have a material impact on the consolidated income statements or the consolidated statements of cash flows. The Company determines if an arrangement is a lease at inception. The lease payments under the lease arrangements are fixed. Non-lease components include payments for building management, utilities and property tax. It separates the non-lease components from the lease components to which they relate. Lease assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value of the future lease payments is the Company’s incremental borrowing rate, because the interest rate implicit in the leases is not readily determinable. The incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. The lease terms include periods under options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company generally uses the base, non-cancelable, lease term when determining the lease assets and liabilities. |
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| Recently Adopted Accounting Standards | R ecently adopted accounting pronouncements In November 2023, the FASB issued ASU 2023-07. The amendments improve reportable segment disclosure requirements. Main provisions include: (1) significant segment expenses — public entities are required to disclose significant segment expenses by reportable segment if they are regularly provided to the CODM and included in each reported measure of segment profit or loss; (2) other segment items — public entities are required to disclose other segment items by reportable segment. Such a disclosure would constitute the difference between reported segment revenues less the significant segment expenses (disclosed) less reported segment profit or loss; (3) multiple measures of a segment ’ s profit or loss — public entities may disclose more than one measure of segment profit or loss used by the CODM, provided that at least one of the reported measures includes the segment profit or loss measure that is most consistent with GAAP measurement principles; (4) CODM-related disclosures — disclosure of the CODM ’ s title and position is required on an annual basis, as well as an explanation of how the CODM uses the reported measure(s) and other disclosures; (5) entities with a single reportable segment — public entities must apply all of the ASU ’ s disclosure requirements, as well as all existing segment disclosure and reconciliation requirements in ASC Topic 280, Segment Reporting; (6) recasting of prior-period segment information to conform to current-period segment information — recasting is required if segment information regularly provided to the CODM is changed in a manner that causes the identification of significant segment expenses to change. The amendments in ASU 2023-07 are effective for all public entities for fiscal years beginning after December 15, 2023. Early adoption is permitted. A public entity should apply the amendments in this update retrospectively to all prior periods presented in the financial statements. The Company adopted this update beginning January 1, 2024. |
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| Accounting Pronouncements Issued But Not Yet Adopted | Recently issued accounting pronouncements not yet adopted In December 2023, the FASB issued ASU 2023-09, which establishes new income tax disclosure requirements in addition to modifying and eliminating certain existing requirements. The ASU amends ASC 740-10-50-12 to require public business entities ( “ PBEs ” ) to disclose a reconciliation between the amount of reported income tax expense (or benefit) from continuing operations and the amount computed by multiplying the income (or loss) from continuing operations before income taxes by the applicable statutory federal (national) income tax rate of the jurisdiction (country) of domicile. If PBE is not domiciled in the United States, the federal (national) income tax rate in such entity ’ s jurisdiction (country) of domicile shall normally be used in the rate reconciliation. The amendments prohibit the use of different income tax rates for subsidiaries or segments. Further, PBEs that use an income tax rate in the rate reconciliation that is other than the U.S. income tax rate must disclose the rate used and the basis for using it. The ASU also adds ASC 740-10-50-12A, which requires entities to annually disaggregate the income tax rate reconciliation between the following eight categories by both percentages and reporting currency amounts: (1) State and local income tax, net of federal (national) income tax effect; (2) Foreign tax effects; (3) Effect of changes in tax laws or rates enacted in the current period; (4) Effect of cross-border tax laws; (5) Tax credits; (6) Changes in valuation allowances; (7) Nontaxable or nondeductible items; (8) Changes in unrecognized tax benefits. PBEs must apply the ASU ’ s guidance to annual periods beginning after December 15, 2024 (2025 for calendar-year-end PBEs). Early adoption is permitted. Entities may apply the amendments prospectively or may elect retrospective application. The Company is currently evaluating the impact from the adoption of this ASU on its consolidated financial statements. In November 2024, the FASB issued ASU 2024-03 “ Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40) ” . The amendments in this update intend to improve the disclosures about a public business entity ’ s expenses and address requests from investors for more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation, amortization, and depletion) in commonly presented expense captions (such as cost of sales, selling, general and administrative expenses, and research and development). ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027. The Company is currently evaluating the impact from the adoption of this ASU on its consolidated financial statements. |
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Summary of Significant Accounting Policies (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Translation of Amounts Exchange Rates | Translation of amounts from RMB and HKD into U.S. dollars has been made at the following exchange rates:
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| Schedule of Estimated Useful Lives of Property Plant and 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.
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| Schedule of Estimated Useful Lives of The Company's Land Use Rights | The estimated useful lives of the Company’s land use rights are as listed below:
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| Schedule of Earnings Per Share, Basic and Diluted | The Company has adopted ASC Topic 260, “Earnings per Share,” (“EPS”) which requires presentation of basic EPS on the face of the income statement for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation. In the accompanying consolidation financial statements, basic earnings (loss) per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period.
* Retrospectively restated for the effect of 2-for-1 reverse stock split. (Note 1 6 ) |
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Accounts Receivable, Net (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2025 | |||||||||||||||||||||||||||||||||||||
| Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||
| Schedule of Accounts Receivable | Accounts receivable consist of the following:
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Other Receivables (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||
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Mar. 31, 2025 | |||||||||||||||||||||||||||||||||||||
| Other Receivables And Other Current Assets [Abstract] | |||||||||||||||||||||||||||||||||||||
| Schedule Of Other Receivables And Other Current Assets | Other receivables consist of the following:
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Inventory, Net (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Inventory, Net | Inventories, net, consist of the following:
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Equipment, Net (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Equipment, Net | Equipment, net consist of the following:
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Land Use Rights, Net (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Land Use Rights, Net |
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Bank Borrowings (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Weighted Average Interest Rate for the Short-Term Loan |
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| Schedule of Bank Loan | The loan from Bank of America is secured by the Company’s inventory. Non-current
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Balances with Related Party (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Borrowing Transactions | The following table summarizes the balances with the Company’s related party.
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Income Taxes (Tables) |
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Mar. 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Income Tax Provision | The income tax provision consists of the following components:
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| Schedule of Reconciliation Between Actual and Statutory Provision for Income Taxes | A reconciliation between the Company’s actual provision for income taxes and the provision at the United States statutory rate is as follow:
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Operating Lease (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lessee Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Leases by Balance Sheet Location | The following table provides a summary of leases by balance sheet location as of March 31, 2025 and December 31, 2024:
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| Schedule of information related to operating leases | Cash flow information related to operating leases consists of the following:
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| Schedule of Operating Lease Expenses | The operating lease expenses for the three months ended March 31, 2025 and 2024 were as follows:
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| Schedule of Operating Lease Liabilities | Maturities of operating lease liabilities as of March 31, 2025 were as follows:
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| Schedule of Lease Term and Discount Rate |
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Unrestricted Net Assets (Tables) |
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Mar. 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restrictions for Consolidated and Unconsolidated Subsidiaries [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Condensed Financial Information on Financial Position | The following presents condensed financial information of Northann Corp: Condensed Financial Information on Financial Position
* Retrospectively restated for the effect of 2-for-1 reverse stock split. (Note 16) |
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| Schedule of Condensed Financial Information on Results of Operations | Condensed Financial Information on Results of Operations
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| Schedule of Condensed Financial Information on Cash Flows | Condensed Financial Information on Cash Flows
The condensed financial information reflects the accounts of the Company. The condensed financial information should be read in connection with the consolidated financial statements and notes thereto. The condensed financial information is presented as if the incorporation of the Company were in effect since January 1, 2020.
Schedule I of Rule 5-04 of Regulation S-X requires the condensed financial information of registrant shall be filed when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. For purposes of the above test, restricted net assets of consolidated subsidiaries shall mean that amount of the registrant’s proportionate share of net assets of consolidated subsidiaries (after intercompany eliminations) which as of the end of the most recent fiscal year may not be transferred to the parent company by subsidiaries in the form of loans, advances or cash dividends without the consent of a third party (i.e., lender, regulatory agency, foreign government, etc.). The Company’s only assets are its equity interests in its subsidiaries. Unrestricted net assets are held in the Company’s subsidiaries located in the US and Hong Kong. The Company does maintain substantial assets and operating subsidiaries in China; therefore, the ability for operating subsidiaries to pay dividends or transfer assets to the Company may be restricted due to the foreign exchange control policies and availability of cash balances of the Chinese operating subsidiaries. As of March 31, 2024, there were no material contingencies, significant provisions of long-term obligations, mandatory dividend or redemption requirements of redeemable stocks or guarantees of the Company, except for those which have been separately disclosed in the Consolidated Financial Statements, if any. |
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Organization And Business - Additional Information (Detail) - USD ($) |
3 Months Ended | ||
|---|---|---|---|
Mar. 31, 2025 |
Dec. 31, 2024 |
Oct. 23, 2023 |
|
| Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
| Working capital deficit | $ 2,517,988 | ||
| Net cash used in operating activities | $ 1,010,467 | ||
| Common shares outstanding | 95,464,000 | 55,464,000 | |
| Common stock, par value | $ 0.001 | $ 0.001 | |
| IPO [Member] | |||
| Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
| Common shares outstanding | 1,200,000 | ||
| Common stock, par value | $ 0.001 | ||
| Common stock offering price per share | $ 5 | ||
| Over-Allotment Option [Member] | |||
| Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
| Common shares outstanding | 180,000 | ||
| Common stock offering price per share | $ 5 |
Summary of Significant Accounting Policies - Schedule of Translation of Amounts Exchange Rates (Detail) |
3 Months Ended | ||
|---|---|---|---|
Mar. 31, 2025 |
Mar. 31, 2024 |
Dec. 31, 2024 |
|
| Foreign Currency Translation Rate [Line Items] | |||
| Foreign currency exchange rate, translation | 1 | 1 | |
| Foreign current translation rate income and expenses | 1 | 1 | |
| CNY [Member] | |||
| Foreign Currency Translation Rate [Line Items] | |||
| Foreign currency exchange rate, translation | 7.1782 | 7.095 | |
| Foreign current translation rate income and expenses | 7.1723 | 7.1028 | |
| HKD [Member] | |||
| Foreign Currency Translation Rate [Line Items] | |||
| Foreign currency exchange rate, translation | 7.7787 | 7.8259 | |
| Foreign current translation rate income and expenses | 7.7774 | 7.8199 | |
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) |
3 Months Ended | ||
|---|---|---|---|
Mar. 31, 2025 |
Mar. 31, 2024 |
Dec. 31, 2024 |
|
| Summary Of Significant Accounting Policies [Line Items] | |||
| Revenue from unearned revenue | $ 0 | $ 1,573,969 | |
| Percentage of taxable income temporarily eliminates net operating loss deductions | 80.00% | ||
| Unrecognized tax benefits income tax penalties and interest accrued | $ 0 | ||
| Uncertain tax position | 0 | 0 | |
| Investments | 0 | $ 0 | |
| Impairment of Property, plant and equipment | 0 | $ 0 | |
| Allowance for doubtful accounts premiums and other receivables | $ 0 | $ 0 | |
| Maximum [Member] | |||
| Summary Of Significant Accounting Policies [Line Items] | |||
| Percentage of increase in interest deduction limitations to adjust taxable income | 50.00% | ||
| Minimum [Member] | |||
| Summary Of Significant Accounting Policies [Line Items] | |||
| Percentage of increase in interest deduction limitations to adjust taxable income | 30.00% | ||
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Property Plant and Equipment (Detail) |
Mar. 31, 2025 |
|---|---|
| Office and computer equipment [Member] | Maximum [Member] | |
| Schedule Of Estimated Useful Lives Of Property Plant And Equipment [Line Items] | |
| Estimated useful lives (years) | 5 years |
| Office and computer equipment [Member] | Minimum [Member] | |
| Schedule Of Estimated Useful Lives Of Property Plant And Equipment [Line Items] | |
| Estimated useful lives (years) | 3 years |
| Manufacturing equipment [Member] | Maximum [Member] | |
| Schedule Of Estimated Useful Lives Of Property Plant And Equipment [Line Items] | |
| Estimated useful lives (years) | 20 years |
| Manufacturing equipment [Member] | Minimum [Member] | |
| Schedule Of Estimated Useful Lives Of Property Plant And Equipment [Line Items] | |
| Estimated useful lives (years) | 10 years |
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of The Company's Land Use Rights (Detail) |
Mar. 31, 2025 |
|---|---|
| Use Rights [Member] | |
| Schedule Of Estimated Useful Lives Of Finite Lived Intangible Assets [Line Items] | |
| Land use right | 50 years |
Summary of Significant Accounting Policies - Schedule of Earnings Per Share, Basic and Diluted (Detail) - USD ($) |
3 Months Ended | |||
|---|---|---|---|---|
Mar. 31, 2025 |
Mar. 31, 2024 |
|||
| Earnings Per Share [Abstract] | ||||
| Net (loss) income | [1] | $ (2,630,729) | $ 60,035 | |
| Weighted average number of shares of common stock outstanding - basic | [1] | 95,464,000 | 20,000,000 | |
| Weighted average number of shares of common stock outstanding - diluted | [1] | 95,464,000 | 20,000,000 | |
| Basic Earnings Per Share | [1] | $ (0.028) | $ 0.003 | |
| Diluted Earnings Per Share | [1] | $ (0.028) | $ 0.003 | |
| ||||
Summary of Significant Accounting Policies - Schedule of Earnings Per Share, Basic and Diluted (Parenthetical) (Detail) |
3 Months Ended |
|---|---|
Mar. 31, 2025 | |
| Earnings Per Share [Abstract] | |
| Stockholders' equity, reverse stock split | 2-for-1 |
Accounts Receivable, Net - Schedule of Accounts Receivable (Detail) - USD ($) |
Mar. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Receivables [Abstract] | ||
| Gross accounts receivable | $ 3,747,662 | $ 3,106,561 |
| Total | $ 3,747,662 | $ 3,106,561 |
Accounts Receivable, Net - Additional Information (Detail) - USD ($) |
Mar. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Receivables [Abstract] | ||
| Allowance for doubtful accounts | $ 0 | $ 0 |
Other Receivables - Schedule Of Other Receivables And Other Current Assets (Detail) - USD ($) |
Mar. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Other Receivables And Other Current Assets [Abstract] | ||
| Deposit and other receivables | $ 29,255 | $ 74,984 |
| Total | $ 29,255 | $ 74,984 |
Inventory, Net - Schedule of Inventory, Net (Detail) - USD ($) |
Mar. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Inventory Disclosure [Abstract] | ||
| Raw materials and components | $ 1,806,220 | $ 1,517,698 |
| Finished goods | 534,729 | 477,913 |
| Total | 2,340,949 | 1,995,611 |
| Inventories, net | $ 2,340,949 | $ 1,995,611 |
Equipment, Net - Schedule of Equipment, Net (Detail) - USD ($) |
Mar. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Property, Plant and Equipment [Line Items] | ||
| less: Accumulated depreciation | $ 4 | $ 4 |
| Total | 3,797,906 | 3,894,434 |
| Manufacturing Equipment [Member] | ||
| Property, Plant and Equipment [Line Items] | ||
| Property, Plant and Equipment, Gross | 8 | 8 |
| Office Equipment [Member] | ||
| Property, Plant and Equipment [Line Items] | ||
| Property, Plant and Equipment, Gross | $ 31 | $ 31 |
Equipment, Net - Additional Information (Detail) - USD ($) |
3 Months Ended | |
|---|---|---|
Mar. 31, 2025 |
Mar. 31, 2024 |
|
| Property, Plant and Equipment [Abstract] | ||
| Depreciation expenses | $ 239,511 | $ 127,076 |
Land Use Rights, Net - Schedule of Land Use Rights, Net (Detail) - USD ($) |
Mar. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Finite-Lived Intangible Assets [Line Items] | ||
| less: Accumulated amortization | $ 1 | $ 1 |
| Total land use right | 987,975 | 977,986 |
| Use Rights [Member] | ||
| Finite-Lived Intangible Assets [Line Items] | ||
| Land use right | 11 | 1 |
| Software | 11 | 1 |
| Software [Member] | ||
| Finite-Lived Intangible Assets [Line Items] | ||
| Land use right | 23,544 | 23,154 |
| Software | $ 23,544 | $ 23,154 |
Bank Borrowings - Schedule of Bank Loan (Detail) - USD ($) |
3 Months Ended | ||
|---|---|---|---|
Mar. 31, 2025 |
Dec. 31, 2024 |
Mar. 31, 2024 |
|
| Debt Instrument [Line Items] | |||
| Loans Payable to Bank | $ 136,947 | $ 136,947 | $ 136,947 |
| EIDL Loan [Member] | |||
| Debt Instrument [Line Items] | |||
| Loan period - Date of Issuance | Jun. 26, 2020 | ||
| Loan period - Date of maturity | Jun. 25, 2050 | ||
| Interest rate | 3.75% | ||
| Loans Payable to Bank | $ 136,947 | $ 136,947 |
Bank Borrowings - Additional Information (Detail) - USD ($) |
Mar. 31, 2025 |
Dec. 31, 2024 |
Mar. 31, 2024 |
|---|---|---|---|
| Short-Term Debt [Line Items] | |||
| Short-term loans | $ 4,778,357 | $ 4,699,080 | |
| Interest rate | 5.72% | 4.71% |
Balances with Related Party - Schedule of Borrowing Transactions (Detail) - USD ($) |
Mar. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Lin Li, Chief Executive Officer and Chairman of the Board [Member] | ||
| Related Party Transaction [Line Items] | ||
| Amount due to related party | $ 1,153,203 | $ 1,416,432 |
Equity - Additional Information (Detail) - $ / shares |
3 Months Ended | |
|---|---|---|
Mar. 31, 2025 |
Dec. 31, 2024 |
|
| Class of Stock [Line Items] | ||
| Shares authorized | 500,000,000 | |
| Common shares authorized | 400,000,000 | 400,000,000 |
| Common stock, par value | $ 0.001 | $ 0.001 |
| Description of voting rights of preferred stock | one vote | |
| Series A Preferred Stock [Member] | ||
| Class of Stock [Line Items] | ||
| Preferred shares authorized | 100,000,000 | 100,000,000 |
| Preferred stock, par value | $ 0.001 | $ 0.001 |
| Description of voting rights of preferred stock | ten votes | |
| Designated Series A Preferred Stock [Member] | ||
| Class of Stock [Line Items] | ||
| Preferred shares authorized | 20,000,000 |
Income Taxes - Additional Information (Detail) $ in Millions |
3 Months Ended | |||
|---|---|---|---|---|
|
Mar. 31, 2025
USD ($)
|
Mar. 31, 2025
HKD ($)
|
Mar. 31, 2024
USD ($)
|
Mar. 27, 2020 |
|
| Income Tax Disclosure [Line Items] | ||||
| Income before income tax expense | $ (2,630,729) | $ 60,033 | ||
| Statutory tax rate | 29.84% | 29.84% | 29.84% | |
| Income tax expense | $ 0 | $ 0 | ||
| Effective income tax rate | 0.00% | 0.00% | 0.00% | |
| Unrecognized tax benefits, period increase (decrease) | $ 0 | $ 0 | ||
| Liability for accrued interest | $ 0 | $ 0 | ||
| UNITED STATES | ||||
| Income Tax Disclosure [Line Items] | ||||
| Percentage of taxable income limitation | 80.00% | |||
| Percentage of business interest deduction limitations | 30.00% | |||
| Percentage of business interest deduction limitations post Coronavirus aid, relief and economy security act | 50.00% | |||
| Income tax examination, description | taxpayer expires three years from the due date of the profits tax return or the date on which it was filed, whichever is later. | taxpayer expires three years from the due date of the profits tax return or the date on which it was filed, whichever is later. | ||
| HONG KONG | ||||
| Income Tax Disclosure [Line Items] | ||||
| Connected entities minimum percentage of holding over other entity | 50.00% | |||
| Income tax examination, description | a tax assessment by the IRD may be initiated within six years after the relevant year of assessment, but extendable to 10 years in the case of potential willful underpayment or evasion. | a tax assessment by the IRD may be initiated within six years after the relevant year of assessment, but extendable to 10 years in the case of potential willful underpayment or evasion. | ||
| HONG KONG | Benchwick [Member] | ||||
| Income Tax Disclosure [Line Items] | ||||
| Statutory tax rate | 8.25% | 8.25% | ||
| HONG KONG | Two Tier Tax Rate Slab One [Member] | ||||
| Income Tax Disclosure [Line Items] | ||||
| Income before income tax expense | $ 257,868 | $ 2 | ||
| Statutory tax rate | 8.25% | 8.25% | ||
| HONG KONG | Two Tier Tax Rate Slab Two [Member] | ||||
| Income Tax Disclosure [Line Items] | ||||
| Statutory tax rate | 16.50% | 16.50% | ||
| CHINA | ||||
| Income Tax Disclosure [Line Items] | ||||
| Statutory tax rate | 25.00% | 25.00% | 25.00% | |
| Income tax examination, description | PRC tax authorities generally have up to five years to assess underpaid tax plus penalties and interest for PRC entities’ tax filings. | PRC tax authorities generally have up to five years to assess underpaid tax plus penalties and interest for PRC entities’ tax filings. | ||
Income Taxes - Schedule of Income Tax Provision (Detail) - USD ($) |
3 Months Ended | |
|---|---|---|
Mar. 31, 2025 |
Mar. 31, 2024 |
|
| Current: | ||
| Federal | $ 0 | $ 0 |
| State | 0 | 0 |
| Foreign | 0 | 0 |
| Total current | 0 | 0 |
| Deferred: | ||
| Federal | 0 | 0 |
| State | 0 | 0 |
| Foreign | 0 | 0 |
| Total deferred | 0 | 0 |
| Total income tax expense | $ 0 | $ 0 |
Income Taxes - Schedule of Reconciliation Between Actual and Statutory Provision for Income Taxes (Detail) - USD ($) |
3 Months Ended | |
|---|---|---|
Mar. 31, 2025 |
Mar. 31, 2024 |
|
| Income Tax Disclosure [Abstract] | ||
| Loss before income tax expense | $ (2,630,729) | $ 60,033 |
| Computed tax benefit with statutory tax rate | 29.84% | 29.84% |
| Income tax expense computed at statutory income tax rate | $ (785,009) | $ 17,914 |
| Impact of different tax rates in other jurisdictions | 711,098 | (58,145) |
| Tax effect of non-deductible expenses | 73,911 | 40,231 |
| Total income tax expense | $ 0 | $ 0 |
China Contribution Plan - Additional Information (Detail) - USD ($) |
3 Months Ended | |
|---|---|---|
Mar. 31, 2025 |
Mar. 31, 2024 |
|
| Retirement Benefits [Abstract] | ||
| Contribution to china contribution plan | $ 15,005 | $ 15,889 |
Operating Lease - Additional Information (Detail) |
3 Months Ended |
|---|---|
|
Mar. 31, 2025
m²
| |
| Lessee Disclosure [Abstract] | |
| Area of a real estate property | 3,653 |
| Term of lessee's operating lease | 37 months |
| Lease expiration date | Aug. 31, 2023 |
Operating Lease - Schedule of Leases by Balance Sheet Location (Detail) - USD ($) |
Mar. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Assets | ||
| Operating lease right-of-use assets | $ 1,735,972 | $ 1,822,266 |
| Liabilities | ||
| Operating lease liability - current | 363,230 | 355,754 |
| Operating lease liability - non-current | 1,372,742 | 1,466,512 |
| Total lease liabilities | $ 1,735,972 | $ 1,822,266 |
Operating Lease - Schedule of information related to operating leases (Detail) - USD ($) |
3 Months Ended | |
|---|---|---|
Mar. 31, 2025 |
Mar. 31, 2024 |
|
| Leases [Abstract] | ||
| Cash paid for amounts included in the measurement of operating lease liabilities | $ 108,714 | $ 8,767 |
| Right-of-use assets obtained in exchange for new lease obligations: | $ 0 | $ 0 |
Operating Lease - Schedule of Operating Lease Expenses (Detail) - USD ($) |
3 Months Ended | 12 Months Ended |
|---|---|---|
Mar. 31, 2024 |
Dec. 31, 2024 |
|
| Lease, Cost [Abstract] | ||
| Operating lease expense | $ 8,767 | $ 108,714 |
Operating Lease - Schedule of Operating Lease Liabilities (Detail) |
Mar. 31, 2025
USD ($)
|
|---|---|
| Within one year | $ 441,853 |
| Within a period of more than one year but not more than two years | 433,599 |
| Within a period of more than two year but not more than three years | 431,557 |
| Within a period of more than three year but not more than four years | 444,504 |
| Within a period of more than four years but not more than five years | 187,485 |
| More than five years | 0 |
| Total lease commitment | 1,938,998 |
| Less: interest | (203,026) |
| Present value of lease payments | $ 1,735,972 |
Operating Lease - Schedule of Lease Term and Discount Rate (Detail) |
Mar. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Leases [Abstract] | ||
| Operating leases | 4 years 3 months 29 days | 4 years 6 months 25 days |
| Operating leases | 5.00% | 5.00% |
Capital Commitments - Additional Information (Detail) $ in Millions |
Jul. 26, 2021
USD ($)
ft²
|
|---|---|
| Other Commitments [Abstract] | |
| Capital commitments | $ | $ 10 |
| Area of construction | ft² | 250,000 |
Stock Split - Additional Information (Detail) |
Jul. 06, 2023
$ / shares
shares
|
Mar. 31, 2025
$ / shares
shares
|
Dec. 31, 2024
$ / shares
shares
|
Jul. 05, 2023
shares
|
|---|---|---|---|---|
| Disclosure Of The Reverse Stock Split Arrangement [Line Items] | ||||
| Description of the reverse stock split arrangement | 0.5 | |||
| Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | ||
| Common shares outstanding | 95,464,000 | 55,464,000 | ||
| Reverse Split [Member] | ||||
| Disclosure Of The Reverse Stock Split Arrangement [Line Items] | ||||
| Common stock, par value | $ / shares | $ 0.001 | |||
| Common shares outstanding | 20,000,000 | 40,000,000 | ||
| Preferred shares outstanding | 5,000,000 | 10,000,000 |
Secured Borrowing Arrangement - Additional Information (Detail) - USD ($) |
1 Months Ended | |
|---|---|---|
Jan. 21, 2025 |
Jul. 31, 2023 |
|
| Debt Instrument [Line Items] | ||
| Debt instrument, face amount | $ 24,000,000 | |
| Maximum principal amount | $ 24,000,000 | |
| Debt instrument, interest rate during period | 1.00% | |
| Secured Borrowing Arrangement [Member] | ||
| Debt Instrument [Line Items] | ||
| Debt instrument, face amount | $ 1,000,000 | |
| Amount of accounts receivable pledged to secure a debt instrument | 1,491,000 | |
| Debt instrument, periodic payment | 49,700 | |
| Maximum principal amount | $ 1,000,000 |
Subsequent Event - Additional Information (Detail) |
Apr. 01, 2025 |
|---|---|
| Subsequent Event [Member] | |
| Subsequent Event [Line Items] | |
| Subsequent Event, Description | no |
Unrestricted Net Assets - Condensed Financial Information on Results of Operations (Detail) - USD ($) |
3 Months Ended | |
|---|---|---|
Mar. 31, 2025 |
Mar. 31, 2024 |
|
| Condensed Financial Information on Results of Operations [Line Items] | ||
| Revenue | $ 3,437,727 | $ 4,595,531 |
| Cost or revenues | 3,047,069 | 3,051,541 |
| Operating expenses | 2,965,315 | 1,216,009 |
| Income taxes | 0 | 0 |
| Net (loss) income – Consolidated | (2,630,729) | 60,035 |
| Northann Corp [Member] | ||
| Condensed Financial Information on Results of Operations [Line Items] | ||
| Revenue | 0 | 0 |
| Cost or revenues | 0 | 0 |
| Operating expenses | 708,858 | 372,865 |
| Income taxes | 0 | 0 |
| Income (loss) – Parent only | (708,858) | (372,865) |
| Income (loss) – Subsidiaries with unrestricted net assets | (1,162,876) | 577,523 |
| (Loss) – Subsidiaries with restricted net assets | (686,994) | (144,623) |
| Net (loss) income – Consolidated | $ (2,630,728) | $ 60,035 |
Unrestricted Net Assets - Condensed Financial Information on Cash Flows (Detail) - USD ($) |
3 Months Ended | |
|---|---|---|
Mar. 31, 2025 |
Mar. 31, 2024 |
|
| Condensed Financial Information on Cash Flows [Line Items] | ||
| Cash used in operating activities | $ (1,010,467) | $ 297,897 |
| Cash used in investing activities | (149,042) | (270,242) |
| Cash provided by financing activities | 3,148,197 | (641,782) |
| Effect of exchange rates on cash | (367,548) | 102,847 |
| Net cash flows | 1,621,140 | (511,280) |
| Cash at beginning of period | 245,164 | 1,105,214 |
| Cash at end of period | 1,866,304 | 593,934 |
| Northann Corp [Member] | ||
| Condensed Financial Information on Cash Flows [Line Items] | ||
| Cash used in operating activities | (780,858) | 528,867 |
| Cash used in investing activities | ||
| Cash provided by financing activities | 780,858 | (528,495) |
| Effect of exchange rates on cash | 0 | 0 |
| Net cash flows | 0 | 372 |
| Cash at beginning of period | 0 | 370 |
| Cash at end of period | $ 0 | $ 742 |
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