Wed, Aug 14, 9:38 PM (153 days ago)
Northann Corp. reported a significant decline in financial performance for Q2 2024 compared to Q2 2023, with revenues decreasing by 14.4% to $3,889,000, attributed to economic slowdown and reduced customer demand. Despite a decrease in cost of revenues by 17.9%, gross profit remained nearly unchanged at $901,000, resulting in a gross margin of 23%. Operating expenses surged, particularly general and administrative costs, which jumped 280% due to share-based compensation and increased compliance costs as a public company. The net loss widened to $997,000 from $697,000 year-over-year, exacerbated by one-time costs and increased operational expenses. Cash flow showed improvement, with net cash provided by operating activities at $176,000, contrasting with a significant outflow of $1,063,000 in the prior year. The company continues to face liquidity challenges, reflected in a working capital deficit of $6.37 million. Future operations may be impacted by the need for additional financing to support ongoing expenses and potential growth initiatives. Overall, Northann's financial health shows signs of strain, necessitating strategic adjustments to enhance profitability and cash flow stability.