Company: CENN
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001140361-25-041657
Chunk: 56

Company: Cenntro Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 56
---
,888,046

        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 nine months ended September 30, 2025 and 2024, the Company recognized $1,048,505 and $946,071 revenue that was included in
          contractual liabilities as of January 1, 2025 and 2024, respectively.

          41

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

                September 30,
                2025

                December 31,
                2024

                (Unaudited)

                (Unaudited)

                Accounts receivable, net

                $

                2,874,308

                $

                4,688,322

                Less: accounts receivable, net, held for discontinued operation

                (1,276,020

                )

                (1,406,457

                )

                Accounts receivable, net, held for continuing operation

              1,598,288

                3,281,865

                Contractual liabilities

                $
              
              3,783,681

                $

                4,202,001

                Less: contractual liabilities, held for discontinued operation

                (84,634

                )

                (80,696

                )

                Contractual liabilities, held for continuing operation

                3,699,047

                4,121,305

        Recently issued accounting standards pronouncement

        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