Revenue Performance - Revenues for the three months ended June 30, 2025, were $1,706,221, a decrease of $2,182,672 or 56.1% from $3,888,893 in the same period of 2024[122]. - Revenues for the six months ended June 30, 2025, were $5,143,948, a decrease of $3,340,476 or 39.4% from $8,484,424 in the same period of 2024[131]. Cost of Revenues - Cost of revenues was $2,620,029 for the three months ended June 30, 2025, compared to $2,988,266 for the same period in 2024, with tariffs increasing to $215,933 from $50,057 due to higher US tariffs on imports from China[123]. - Cost of revenues for the six months ended June 30, 2025, was $5,667,098, compared to $6,039,807 in 2024, with tariffs increasing to $320,921 from $139,447[132]. Gross Profit and Margin - Gross profit was -$913,808 for the three months ended June 30, 2025, compared to a gross profit of $900,627 for the same period in 2024, resulting in a gross margin decrease from 23.2% to -53.6%[124]. - Gross profit for the six months ended June 30, 2025, was -$523,150, compared to a gross profit of $2,444,617 in 2024, leading to a gross margin decrease from 28.8% to -10.2%[133]. Expenses - Selling expenses increased to $517,588 for the three months ended June 30, 2025, from $187,062 in 2024, primarily due to a $310,500 increase in share-based compensation[125]. - Selling expenses for the six months ended June 30, 2025, increased to $1,539,587 from $405,437 in 2024, driven by a significant rise in share-based compensation and rent expenses[134]. - General and administrative expenses decreased to $506,322 for the three months ended June 30, 2025, from $1,461,225 in 2024, mainly due to a reduction in salary and social insurance[127]. - Total general and administrative expenses increased by 2.1% to $1,987,578 for the six months ended June 30, 2025, compared to $1,946,262 in 2024[136]. - Research and development expenses decreased to $718,238 for the six months ended June 30, 2025, down from $932,185 in the same period of 2024[137]. Net Loss - Net loss for the three months ended June 30, 2025, was $2,261,558, compared to a net loss of $997,495 for the same period in 2024, reflecting a significant increase in losses[129]. - The net loss for the six months ended June 30, 2025, was $4,892,287, significantly higher than the net loss of $937,462 for the same period in 2024[138]. Cash Flow and Balance - Cash balance increased to $1,062,038 as of June 30, 2025, compared to $245,164 as of December 31, 2024[139]. - Net cash used in operating activities was $3,829,935 for the six months ended June 30, 2025, compared to net cash provided of $175,674 in 2024[141]. - Net cash used in investing activities was $785,240 for the six months ended June 30, 2025, compared to $326,829 in 2024[144]. - Net cash provided by financing activities was $4,450,938 for the six months ended June 30, 2025, primarily from the issuance of 40,000,000 common stock[145]. - Operating lease expenses increased to $173,672 for the six months ended June 30, 2025, compared to $17,534 in 2024[148]. - The company anticipates that its current cash levels will be sufficient for at least the next twelve months but may seek additional funding for future investments or acquisitions[140]. Accruals and Payables - The company reported a significant increase in accruals and other payables, contributing to the changes in operating assets and liabilities[142].
Northann (NCL) - 2025 Q2 - Quarterly Report