XML 53 R29.htm IDEA: XBRL DOCUMENT
v3.24.1.u1

Unrestricted Net Assets | 12 Months Ended
--- | ---
Dec. 31, 2023
Restrictions for Consolidated and Unconsolidated Subsidiaries [Abstract] |
Unrestricted Net Assets |
19. | UNRESTRICTED NET ASSETS
The following presents condensed financial information of Northann Corp: Condensed Financial Information on Financial Position
|  | As of December 31, |
|  | 202 3 |  |  | 202 2 |
Cash |  |  | 370 |  |  |  | 224 |
Amounts due from subsidiaries |  |  | 5,504,920 |  |  |  | 713,500 |
Total current assets |  |  | 5,505,2 90 |  |  |  | 713,724 |
All other non-current assets |  |  | - |  |  |  | 218,354 |
Interests in a subsidiary |  |  | 9,948,890 |  |  |  | 13,477,384 |
Total Assets |  |  | 15,454,180 |  |  |  | 14,409,462 |
Liabilities and Stockholders’ Deficit |  |  |  |  |  |  |  |
All other current liabilities |  |  | 599,664 |  |  |  | - |
Amounts due to subsidiaries |  |  | 10,660,508 |  |  |  | 12,122,024 |
Total current liabilities |  |  | 11,260,172 |  |  |  | 12,122,024 |
Non-current liabilities |  |  | 1,950,000 |  |  |  | 313,699 |
Total Liabilities |  |  | 13,210,172 |  |  |  | 12,435,723 |
Stockholders’ Equity (Deficit) |  |  |  |  |  |  |  |
Preferred stock ,100,000,000 shares authorized – Series A, $0.001 par value, 20,000,000 shares designated , 5,000,000 shares issued and outstanding as of December 31, 202 3 and 202 2 * |  |  | 5,000 |  |  |  | 5,000 |
Common stock, $0.001 par value, 400,000,000 shares authorized, 21,380,000 and 20,000,000 shares issued and outstanding as of December 31, 202 3 and 202 2 , respectively* |  |  | 21,380 |  |  |  | 20,000 |
Subscription receivable |  |  | (25,000 | ) |  |  | (25,000 | )
Additional Paid-in Capital |  |  | 6,671,016 |  |  |  | 925,000 |
(Accumulated deficit) re tained earnings |  |  | (3,652,547 | ) |  |  | 1,818,630 |
Accumulated other comprehensive loss |  |  | (775,841 | ) |  |  | (769,891 | )
Total Stockholders’ Equity |  |  | 2,244,008 |  |  |  | 1,973,739 |
Total Liabilities and Stockholders’ Deficit |  |  | 15,454,180 |  |  |  | 14,409,462 |
| * | Retrospectively restated for the effect of 2-for-1 reverse stock split. (Note 18)
Condensed Financial Information on Results of Operations
|  | For the years ended December 31, |
|  | 202 3 |  |  | 202 2 |
Revenue |  |  | 43,251 |  |  |  | - |
Cost or revenues |  |  | - |  |  |  | - |
Operating expenses |  |  | 3,381,482 |  |  |  | 313,699 |
Income taxes |  |  | 12,919 |  |  |  | - |
L oss – Parent only |  |  | (3,351,150 | ) |  |  | (313,699 | )
( Lo ss) income – Subsidiaries with unrestricted net assets |  |  | (2,117,498 | ) |  |  | 1,471,361 |
(Loss) income – Subsidiaries with restricted net assets |  |  | (2,529 | ) |  |  | (228,603 | )
Net (loss) income – Consolidated |  |  | (5,471,177 | ) |  |  | 929,059 |
Condensed Financial Information on Cash Flows
|  | For the years ended December 31, |
|  | 202 3 |  |  | 202 2 |
Cash used in operating activities |  |  | (5,965,604 | ) |  |  | (5,026 | )
Cash used in investing activities |  |  | - |  |  |  | (926,828 | )
Cash provided by financing activities |  |  | 5,965,750 |  |  |  | 932,078 |
Net cash flows |  |  | 146 |  |  |  | 224 |
Beginning cash balance |  |  | 224 |  |  |  | - |
Ending cash balance |  |  | 370 |  |  |  | 224 |
| (i) | Basis of presentation
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, and throughout the four years ended December 31, 202 3 .
| (ii) | Restricted Net Assets
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 December 31, 202 3 and 202 2 , 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.

X
- Definition The entire disclosure for assets that are restricted in their use, generally by contractual agreements or regulatory requirements. This would include, but not limited to, a description of the restricted assets and the terms of the restriction. + References No definition available. + Details
Name: | us-gaap_RestrictedAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_RestrictionsForConsolidatedAndUnconsolidatedSubsidiariesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration