Company: CENN
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001140361-25-030576
Chunk: 3

Company: Cenntro Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part II, Item 8
Chunk 3
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ating capital and managerial resources to accelerate growth in its core markets of North America and Asia.

      As a result of this strategic shift, three European subsidiaries: CEGE, Automotive Europe GmbH (“CAE”), and Cenntro EV Center Italy S.R. (“the disposal group”) were scheduled for structured
        dissolution.

      Accordingly, the unaudited condensed consolidated financial statements and notes to the unaudited condensed consolidated financial statements reflect the results the disposal group as a discontinued operation for the
        periods presented in accordance with ASC 210-05, Discontinued Operations represented the disposal group a strategic shift that had a major effect on the Company’s operations and financial results. Further, the related current and non-current assets
        and liabilities associated with the disposal group are reflected as held for sale in the unaudited condensed consolidated balance sheets as of June 30, 2025 and December 31, 2024. The numbers in all of the relevant footnote disclosures are also
        adjusted for the current year and comparative periods. No loss was recognized on the initial measurement of the disposal group as held for sale.

      The carrying amounts of the major classes of assets and liabilities of CEGE, CAE and Cenntro EV Center Italy S.R.L. included in assets and liabilities of discontinued operations were as follows:

             June 30,

            December 31,

             2025

            2024

            (Unaudited)

            Cash and cash equivalents

            $
          
           5,520 

            $
          
           140,029 

            Accounts receivable, net

           1,139,219 

           1,406,457 

            Inventories

           2,662,177 

           4,983,432 

            Prepayment and other current assets

           1,275,302 

           1,035,486 

            Long-term investment

           108,646 

           89,533 

            Other non-current assets

           - 

           54,032 

            Total assets classified as held for sale

           5,190,864 

           7,708,969 

            Accounts payable

            $
          
           1,463,462 

            $
          
           1,534,467 

            Accrued expenses and other current liabilities

           576,908 

           809,773 

            Contractual liabilities

           149,916 

           80,696 

            Operating lease