Financial Performance - Revenues for the three months ended September 30, 2024, were $2,557,585, a 18.4% increase compared to $2,160,258 for the same period in 2023[5] - Gross profit for the nine months ended September 30, 2024, was $4,073,200, significantly up from $889,668 in the same period of 2023, indicating a substantial improvement in profitability[5] - Net income for the three months ended September 30, 2024, was $496,565, compared to a net loss of $2,921,613 for the same period in 2023, marking a turnaround in financial performance[5] - The company reported a net loss of $440,897 for the nine months ended September 30, 2024, compared to a net loss of $3,433,234 for the same period in 2023, indicating a significant improvement[8] - Net loss decreased to $572,851 for the nine months ended September 30, 2024, from $3,433,234 for the same period in 2023, primarily due to increased revenue and decreased expenses[63] Assets and Liabilities - Total assets increased to $14,559,321 as of September 30, 2024, up from $13,618,710 as of December 31, 2023, representing a growth of approximately 6.9%[4] - Total current liabilities decreased to $11,490,524 as of September 30, 2024, down from $12,855,226 as of December 31, 2023, reflecting improved financial management[4] - Total non-current assets increased to $8,524,687 as of September 30, 2024, from $6,813,835 as of December 31, 2023, reflecting ongoing investments in long-term assets[4] - Total liabilities as of September 30, 2024, were $13,170,164, slightly decreased from $13,210,172 as of December 31, 2023[52] - As of September 30, 2024, the company had a working capital deficit of $5,272,085, raising concerns about its liquidity and ability to meet obligations[10] Equity and Capital - Total stockholders' equity rose to $1,389,157 as of September 30, 2024, up from $582,612 as of December 31, 2023, indicating a strengthening balance sheet[4] - The total additional paid-in capital as of September 30, 2024, was $7,850,526, reflecting the capital raised through the IPO[7] - The company completed its initial public offering (IPO) on October 23, 2023, issuing 1,200,000 shares at an offering price of $5.00 per share, with an additional 180,000 shares sold under the over-allotment option[10] Cash Flow - The company generated net cash provided by operating activities of $345,402 for the nine months ended September 30, 2024, compared to a cash outflow of $1,447,563 for the same period in 2023[8] - Cash from operating activities for the nine months ended September 30, 2024, was $217,000, compared to $333,000 in 2023[54] - Ending cash balance as of September 30, 2024, was $587,000, up from $557,000 in the previous year[54] - Net cash used in investing activities was $348,795 for the nine months ended September 30, 2024, compared to $7,642 for the same period in 2023[64] - Net cash used in financing activities was $1,076,360 for the nine months ended September 30, 2024, compared to net cash provided of $1,291,788 for the same period in 2023[64] Expenses - Research and development expenses increased to $1,272,257 for the nine months ended September 30, 2024, compared to $609,476 in the same period of 2023, highlighting a focus on innovation[5] - Operating expenses for the nine months ended September 30, 2024, were $1,709,858, up from $819,446 in the same period of 2023[53] - General and administrative expenses rose by 130% or $1,427,712 to $2,521,940 for the nine months ended September 30, 2024, largely due to share-based compensation and higher professional service fees[61] - Operating lease expenses for the nine months ended September 30, 2024, were $59,617, significantly higher than $21,506 for the same period in 2023[44] Revenue Recognition - Revenue recognized from unearned revenue during the nine months ended September 30, 2024, was $966,158, compared to $1,178,805 for the same period in 2023[15] - Two customers accounted for 66% of the Company's revenues during the nine months ended September 30, 2024, compared to one customer accounting for 54% in 2023[45] - Revenues increased by 17% or $1,605,128 to $11,042,009 for the nine months ended September 30, 2024, compared to $9,436,881 for the same period in 2023[60] Tax and Compliance - The income tax expense for the nine months ended September 30, 2024, was $2,797, a decrease from $5,769 for the same period in 2023[39] - The effective tax rates were (0.64)% for the nine months ended September 30, 2024, compared to (0.20)% for the same period in 2023[39] - The Company did not accrue any liability, interest, or penalties related to uncertain tax positions for the nine months ended September 30, 2024[16] Other Financial Information - The company has only one major reportable segment in the periods presented[21] - The Company has no investments in financial instruments as of September 30, 2024, and December 31, 2023[23] - The Company is currently assessing the impact of new accounting standards issued by the FASB, including ASU 2023-07 and ASU 2023-09, but does not expect a material impact on consolidated financial statements[25]
Northann (NCL) - 2024 Q3 - Quarterly Report