Northann’s audit report includes going concern qualification

FORT LAWN, SC - Northann Corp. (NYSE:NCL), a manufacturer of 3D printing technologies for building materials, disclosed Wednesday that its 2024 audit opinion contained a going concern qualification from its independent registered public accounting firm. The company, currently valued at $16 million in market capitalization, has been facing significant financial challenges, with InvestingPro data showing negative EBITDA of $1.03 million and a concerning current ratio of 0.61.

The company made this announcement to comply with NYSE American Company Guide Sections 401(h) and 610(b), which require separate disclosure when receiving an audit opinion containing a going concern qualification.

Northann emphasized that this announcement does not represent any change or amendment to its 2024 audited financial statements or to its annual report on Form 10-K for the fiscal year ended December 31, 2024, which was filed with the Securities and Exchange Commission on July 1 and amended on July 2.

Founded in 2022 and headquartered in Fort Lawn, South Carolina, Northann Corp. operates in the additive manufacturing and 3D printing sector, providing flooring, decking, and other construction products through its Benchwick brand.

The company claims to hold over 60 granted or pending patents related to its technologies.

This information is based on a press release statement issued by the company.

In other recent news, Northann Corp has been notified by NYSE Regulation about potential delisting due to its failure to file the annual report for the fiscal year ending December 31, 2024, by the required deadline. The company cited the need for additional time to ensure the accuracy of its financial statements and plans to submit the overdue report within a six-month cure period. Meanwhile, Northann Corp has completed an $8.13 million equity sale through a private placement involving Oneflow LLC and other investors. This transaction resulted in an increase in outstanding shares to 95,464,400 and shifted the company’s control dynamics. Mr. Lin Li, who previously held a majority stake, now has a 44.3% voting power, and Northann is no longer classified as a "controlled company" under NYSE American rules. The changes in the company’s governance structure could influence its future management and strategic decisions. Northann Corp aims to regain compliance with NYSE listing standards, although there is no certainty of achieving this. These developments are based on recent SEC filings by the company.

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