Revenue Performance - Revenues for the three months ended September 30, 2025, were $3,545,412, an increase of $987,827 or 38.6% from $2,557,585 in the same period of 2024[122] - Revenues for the nine months ended September 30, 2025, were $8,689,360, a decrease of $2,352,649 or 21.3% from $11,042,009 in 2024, attributed to reduced customer demand[131] Cost and Expenses - Cost of revenues increased to $4,986,401 for the three months ended September 30, 2025, compared to $929,002 for the same period in 2024, with tariffs paid rising from $57,613 to $251,728[123] - Cost of revenues for the nine months ended September 30, 2025, was $10,653,499, compared to $6,968,809 in 2024, with tariffs increasing from $197,060 to $572,649[132] - Selling expenses surged to $6,362,313 for the three months ended September 30, 2025, up from $159,368 in 2024, primarily due to a $5,929,200 increase in share-based compensation[125] - Selling expenses for the nine months ended September 30, 2025, rose to $7,901,900 from $564,805 in 2024, largely due to a $6,745,950 increase in share-based compensation[134] - General and administrative expenses increased by $127,965 to $2,649,905 for the nine months ended September 30, 2025, primarily due to a $573,715 increase in service fees and a $415,183 increase in share-based compensation[136] - Research and development expenses decreased to $1,007,783 for the nine months ended September 30, 2025, down from $1,272,257 for the same period in 2024[137] - The company’s operating lease expenses were $327,142 for the nine months ended September 30, 2025, compared to $59,617 for the same period in 2024[151] Profitability - Gross profit for the three months ended September 30, 2025, was -$1,440,989, a significant decline from a gross profit of $1,628,583 in 2024, resulting in a gross margin decrease from 63.7% to -40.6%[124] - Gross profit for the nine months ended September 30, 2025, was -$1,964,139, down from $4,073,200 in 2024, leading to a gross margin decline from 36.9% to -22.6%[133] - Net loss for the three months ended September 30, 2025, was $8,799,313, compared to a net income of $496,565 for the same period in 2024, driven by decreased gross profit and increased operating expenses[128] - For the nine months ended September 30, 2025, the company reported a net loss of $13,691,600, compared to a net loss of $440,897 for the same period in 2024, indicating a significant increase in losses[138] Cash Flow - Net cash used in operating activities was $3,845,524 for the nine months ended September 30, 2025, primarily due to the net loss adjusted for non-cash items[144] - The company had cash of $40,883 as of September 30, 2025, down from $245,164 as of December 31, 2024[139] - Net cash provided by financing activities was $3,777,759 for the nine months ended September 30, 2025, mainly from the issuance of 120,000,000 common stock[148] - The increase in cash used in operating activities was attributed to a net increase of $2,726,683 in operating assets and liabilities[144] Future Outlook - The company may need additional cash resources in the future for investments, acquisitions, or strategic cooperation[140]
Northann (NCL) - 2025 Q3 - Quarterly Report