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Unrestricted Net Assets | 6 Months Ended
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Jun. 30, 2024
Restrictions for Consolidated and Unconsolidated Subsidiaries [Abstract] |
Unrestricted Net Assets |
| 2 2 . | UNRESTRICTED NET ASSETS
The following presents condensed financial information of Northann Corp: Condensed Financial Information on Financial Position
|  | As of June 3 0 , |  |  | As of December 31, |
|  | 2024 |  |  | 2023 |
|  | (Unaudited) |  |  |  |
Cash |  |  | 119 |  |  |  | 370 |
Amounts due from subsidiaries |  |  | 4,577,188 |  |  |  | 5,504,920 |
Total current assets |  |  | 4,577,307 |  |  |  | 5,505,290 |
Interests in a subsidiary |  |  | 8,562,799 |  |  |  | 9,948,890 |
Total Assets |  |  | 13,140,106 |  |  |  | 15,454,180 |
Liabilities and Stockholders’ Deficit |  |  |  |  |  |  |  |
All other current liabilities |  |  | 71,169 |  |  |  | 599,664 |
Amounts due to subsidiaries |  |  | 10,149,940 |  |  |  | 10,660,508 |
Total current liabilities |  |  | 10,221,109 |  |  |  | 11,260,172 |
Non-current liabilities |  |  | 1,950,000 |  |  |  | 1,950,000 |
Total Liabilities |  |  | 12,171,109 |  |  |  | 13,210,172 |
Stockholders’ Equity (Deficit) |  |  |  |  |  |  |  |
Preferred stock – Series A, $0.001 par value, 100,000,000 shares authorized, 20,000,000 shares designated, 10,000,000 and 5,000,000 shares issued and outstanding as of June 30, 2024 and December 31, 2023 * |  |  | 10,000 |  |  |  | 5,000 |
Common stock, $0.001 par value, 400,000,000 shares authorized, 24,240,000 and 21,380,000 shares issued and outstanding as of June 30, 2024 and December 31, 2023 * |  |  | 24,240 |  |  |  | 21,380 |
Subscription receivable |  |  | (30,000 | ) |  |  | (25,000 | )
Additional Paid-in Capital |  |  | 7,829,752 |  |  |  | 6,671,016 |
Acc umulated deficit |  |  | (6,251,405 | ) |  |  | (3,652,547 | )
Accumulated other comprehensive income (loss) |  |  | (613,590 | ) |  |  | (775,841 | )
Total Stockholders’ Equity (Deficit) |  |  | 968,997 |  |  |  | 2,244,008 |
Total Liabilities and Stockholders’ Deficit |  |  | 13,140,106 |  |  |  | 15,454,180 |
* Retrospectively restated for the effect of 2-for-1 reverse stock split. (Note 18) Condensed Financial Information on Results of Operations
|  | For the six months ended June 3 0 , |  |  | For the six months ended June 3 0 , |
|  | 2024 |  |  | 2023 |
|  | (Unaudited) |
Revenue |  |  | - |  |  |  | - |
Cost or revenues |  |  | - |  |  |  | - |
Operating expenses |  |  | 1,598,981 |  |  |  | 934,973 |
Income taxes |  |  | 933 |  |  |  | - |
L oss – Parent only |  |  | (1,599,915 | ) |  |  | (934,973 | )
Income – Subsidiaries with unrestricted net assets |  |  | 662,163 |  |  |  | 670,492 |
I ncome( l oss) – Subsidiaries with restricted net assets |  |  | 290 |  |  |  | (247,140 | )
Net loss – Consolidated |  |  | (937,462 | ) |  |  | (511,621 | )
Condensed Financial Information on Cash Flows
|  | For the six months ended June 3 0 , |  |  | For the six months ended June 3 0 , |
|  | 2024 |  |  | 2023 |
|  | (Unaudited) |
Cash from operating activities |  |  | (251 | ) |  |  | 291 |
Cash used in investing activities |  |  | - |  |  |  | - |
Cash from financing activities |  |  | - |  |  |  | - |
Effect of exchange rates on cash |  |  | - |  |  |  | - |
Net cash flows |  |  | (251 | ) |  |  | 290 |
Beginning cash balance |  |  | 370 |  |  |  | 224 |
Ending cash balance |  |  | 119 |  |  |  | 514 |
| (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 4 .
| (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, 2023 and 2022, 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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