Northann Corp. (NYSE American: NCL) received a formal notice from NYSE American on December 11 2025 that it is not in compliance with Section 1003(a)(i) of the NYSE American Company Guide. The notice cites the company’s stockholders’ equity of approximately $1.8 million—below the $2 million threshold required for companies that have reported losses in two of their last three fiscal years—as the primary reason for non‑compliance.
The equity shortfall follows a pattern of sustained losses: Northann reported net income of –$7.12 million in 2023 and –$4.38 million in 2024, while revenue grew from $13.97 million to $15.35 million over the same period. In the first quarter of 2024, revenue rose 68 % to $4.6 million, yet net income fell to $60,035 from $185,466 in Q1 2023, reflecting higher operating and R&D expenses that have eroded profitability. A working‑capital deficit of $5.27 million as of September 30 2024 further underscores the company’s liquidity strain.
To address the notice, Northann has committed to pay an outstanding fee of $60,000 and to submit a detailed plan of actions by January 7 2026. The plan must demonstrate how the company will restore stockholders’ equity to the required level and maintain compliance through June 8 2027. While the notice does not alter the company’s SEC reporting obligations, it does impose a significant regulatory hurdle that could erode investor confidence and liquidity if not resolved.
The market reacted negatively to the announcement, with investors weighing the risk of a potential delisting. As a result, Northann’s shares will trade under the symbol “NCL.BC” to signal the below‑compliance status, but the company remains listed on NYSE American for the time being.
Headwinds for Northann include the looming delisting risk, ongoing liquidity concerns, and the need to reverse a multi‑year loss trend. Tailwinds are the company’s growing revenue base, a robust patent portfolio in additive manufacturing, and continued investment in R&D that could unlock future profitability. Management’s focus on cost control and strategic capital allocation will be critical to meeting the compliance deadlines and restoring investor confidence.
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