Northann Corp. Leases Disclosure
13. | OPERATING LEASE |
Assets/liabilities | December 31, 2025 | December 31, 2024 | ||||||
Assets | ||||||||
Operating lease right-of-use assets | $ | 1,466,512 | $ | 1,822,266 | ||||
Liabilities | ||||||||
Operating lease liability - current | $ | 374,585 | $ | 355,754 | ||||
Operating lease liability - non-current | 1,091,927 | 1,466,512 | ||||||
Total lease liabilities | $ | 1,466,512 | $ | 1,822,266 | ||||
Lease Cost | Classification | December 31, 2025 | December 31, 2024 | |||||||||
Operating lease expense | General and administrative expenses | $ | 438,854 | $ | 438,854 | |||||||
Maturity of Lease Liabilities | Operating Leases | |||
Within one year | $ | 439,278 | ||
Within a period of more than one year but not more than two years | 428,376 | |||
Within a period of more than two year but not more than three years | 441,227 | |||
Within a period of more than three year but not more than four years | 299,976 | |||
Within a period of more than four years but not more than five years | - | |||
More than five years | - | |||
Total lease commitment | $ | 1,608,857 | ||
Less: interest | (142,345 | ) | ||
Present value of lease payments | $ | 1,466,512 | ||
Lease Term and Discount Rate | December 31, 2025 | December 31, 2024 | ||||||
Weighted-average remaining lease term (years) | ||||||||
Operating leases | 3.62 | 4.57 | ||||||
Weighted-average discount rate (%) | ||||||||
Operating leases | 5 | % | 5 | % | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Apr 14, 2026 | Showing above |
| 2024 | Jul 1, 2025 | |
| 2023 | Apr 16, 2024 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.