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Northann Corp. (NCL+0.38%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in revenues to $2,557,585 from $2,160,258 in the same quarter the previous year. The increase is attributed to marketing efforts and increased customer demand.
Cost of revenues for the quarter decreased to $929,002, representing 36% of sales, compared to 158% in the same quarter of the previous year. This decrease is due to a reduction in the purchase price of inventories.
The company reported a gross profit of $1,628,583 for the quarter, compared to a loss of $1,263,037 in the previous year, with the improvement attributed to decreased costs and increased sales.
Selling expenses decreased to $159,368 from $193,236, primarily due to reduced advertising expenditures.
General and administrative expenses increased to $575,678 from $354,902, mainly due to higher professional service fees.
Research and development expenses increased to $340,072 from $99,161, reflecting increased investment in new materials and products.
Net income for the quarter was $496,563, compared to a loss of $2,921,613 in the previous year.
Cash provided by operating activities was $345,402, while cash used in investing and financing activities was $348,795 and $1,076,360, respectively.
Northann had a working capital deficit of $5,272,085 as of September 30, 2024. The company acknowledges its need to increase revenue and improve profitability to address liquidity concerns.
The filing also details various financial agreements, including secured borrowings and share-based compensation transactions.
Northann does not anticipate cash dividend payments to common stockholders in the near future.
The company continues to focus on expanding its product offerings and improving operational efficiencies.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Northann Corp. quarterly 10-Q report dated November 19, 2024. To report an error, please email earnings@qz.com.