Company: CENN
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001140361-25-030576
Chunk: 11

Company: Cenntro Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part II, Item 8
Chunk 11
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657,747 

    Contract Balances

    Timing of revenue recognition was once the Company has determined that the customer has obtained control over the product. Accounts receivable represent revenue recognized for the amounts invoiced and/or prior to
      invoicing when the Company has satisfied its performance obligation and has an unconditional right to the payment.

    Contractual liabilities primarily represent the Company’s obligation to transfer additional goods or services to a customer for which the Company has received consideration. The consideration received remains a contractual liability until goods or services have been provided to the customer. For the six months ended June 30, 2025 and 2024, the Company recognized $568,035 and $923,815 revenue that was included in contractual liabilities as of January 1, 2025 and 2024, respectively.

    The following table provided information about receivables and contractual liabilities from contracts with customers:

             June 30,
            2025

            December 31,
            2024

            (Unaudited)

            Accounts receivable, net

            $
          
           4,375,966 

            $
          
           4,688,322 

            Less: accounts receivable, net, held for discontinued operation

           (1,139,219 
          
            )

           (1,406,457 
          
            )

            Accounts receivable, net, held for continuing operation

           3,236,747 

           3,281,865 

            Contractual liabilities

            $
          
           4,904,249 

            $
          
           4,202,001 

            Less: contractual liabilities, held for discontinued operation

           (149,916 
          
            )

           (80,696 
          
            )

            Contractual liabilities, held for continuing operation

           4,754,333 

           4,121,305 

      (e)  Recently issued accounting standards pronouncements   

    The Company is an “emerging growth company” (“EGC”) as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, EGC can delay adopting new or revised accounting standards issued
      subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. As a result, the Company’s operating results and financial statements may not be comparable to the operating results and financial statements
      of other companies who have adopted the new or revised accounting standards.

    In November