Northann Corp: Trading Halt After Auditor Resigns; Financials Deemed Non‑Reliable

What Happened
Northann Corp (NCL) disclosed that trading of its common stock was halted on the NYSE American on June 25, 2026 after the exchange raised concerns about the company’s filing of its 2025 Form 10‑K. The Company’s independent auditor, LAO Professionals, sent a June 8, 2026 letter stating it was resigning and that it had not “issued, signed, authorize[d] or consent[ed]” to the inclusion of an audit report in the 2025 10‑K and that its audit procedures remained in process. In response, Northann formed a Board Oversight Committee (July 1, 2026), retained outside counsel (Lewis Brisbois on July 15, 2026), and said it will engage a new independent registered public accounting firm to perform new audits of the financial statements for the years ended December 31, 2024 and 2025. The Company has advised investors that they should not rely on the 2024 and 2025 financial statements in the 2025 10‑K pending completion of the new audit. The trading halt remained in place as of the August 10, 2026 filing.

Key Details

• Trading halt on NYSE American began June 25, 2026 following Exchange concerns about the 2025 Form 10‑K.
• Auditor resignation: LAO Professionals sent a resignation letter dated June 8, 2026 and disclaimed any audit report or consent included in the 2025 10‑K; audit report referenced was dated April 25, 2026.
• Non‑reliance: Northann concluded investors should not rely on the company’s financial statements for the years ended December 31, 2024 and 2025 included in the 2025 10‑K pending a new audit.
• Corporate governance changes: Oversight Committee formed July 1, 2026; legal counsel retained July 15, 2026; CEO Lin Li rescinded his June 30, 2026 resignation as CEO/President (but resigned as Chairman effective August 10, 2026); independent director Bradley C. Lalonde was elected Chairman. Director Umesh Patel resigned April 14, 2026.

Why It Matters
For investors, the combination of an auditor resignation, a trading halt, and an explicit non‑reliance advisory on recent audited financials creates immediate uncertainty about the company’s reported results (earnings, revenue and related disclosures) and may affect stock liquidity and investor confidence. Northann is pursuing remedial steps—board oversight, new counsel, and a new audit—but the company says it cannot predict the timing or outcome of the Exchange’s review or when trading might resume. Investors should await the results of the new audit and any Exchange notices before relying on Northann’s 2024–2025 financial information.