Northann Corp. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company achieved revenues of $2.56 million for the three months ended September 30, 2024, marking an 18% increase from $2.16 million in the same period of 2023. For the nine months ended September 30, 2024, total revenues reached $11.04 million, up 17% from $9.44 million in the prior year. This growth was attributed to increased sales orders driven by enhanced marketing efforts and customer demand.

The company's gross profit for the third quarter of 2024 was $1.63 million, a substantial increase from a loss of $1.26 million in the same quarter of 2023. The gross margin improved to 64%, compared to a negative margin of 58.5% in the prior year. For the nine-month period, gross profit surged to $4.07 million, up 357% from $889,668 in 2023, reflecting a gross margin increase from 9% to 37%.

Operating income for the third quarter was reported at $553,465, a turnaround from an operating loss of $1.91 million in the same quarter of 2023. However, for the nine months ended September 30, 2024, the company still reported an operating loss of $285,802, although this was an improvement from a loss of $1.35 million in the previous year. The net loss for the third quarter narrowed to $496,565 from a loss of $2.92 million in the same period of 2023, while the nine-month net loss decreased to $440,897 from $3.43 million.

On the balance sheet, total assets increased to $14.56 million as of September 30, 2024, up from $13.62 million at the end of 2023. Total stockholders' equity rose significantly to $1.39 million from $582,612, indicating improved financial health. Current liabilities decreased to $11.49 million, down from $12.86 million, while total liabilities slightly increased to $13.17 million from $13.04 million.

Strategically, Northann Corp. has been active in its capital structure, issuing shares to independent directors and entering into share purchase agreements for acquisitions, including Cedar Modern Limited and Raleigh Industries Limited. The company also rescinded 5 million shares of Series A Preferred Stock, reducing Lin Li's holdings. Despite these positive developments, Northann Corp. faces a working capital deficit of $5.27 million and has expressed substantial doubt about its ability to continue as a going concern, prompting management to focus on boosting revenue and profitability to address these challenges.