Company: CENN
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001140361-25-041657
Chunk: 110

Company: Cenntro Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part II, Item 8
Chunk 110
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 EBITDA may not be comparable to similar
          measures disclosed by our competitors because not all companies and analysts calculate Adjusted EBITDA in the same manner. Adjusted EBITDA has limitations as an analytical tool, and should not be considered in isolation, or as an alternative to,
          or a substitute for net income or other financial statement data presented in our financial statements as indicators of financial performance. Some of the limitations are:

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                such measures do not reflect our cash expenditures;

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                such measures do not reflect changes in, or cash requirements for, our working capital needs;

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                although depreciation and amortization are recurring, non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and such measures do not reflect any cash
                  requirements for such replacements; and

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                the exclusion of stock-based compensation expense, which has been a significant recurring expense and will continue to constitute a significant recurring expense for the foreseeable future, as equity awards are
                  expected to continue to be an important component of our compensation strategy.

        Due to these limitations, Adjusted EBITDA should not be considered as a measure of discretionary cash available to us to invest in the growth of our business. We compensate
          for these limitations by relying primarily on our GAAP results and using these non-GAAP measures only supplementally. As noted in the table below, Adjusted EBITDA includes adjustments to exclude the impact of stock-based compensation expense and
          material infrequent items. It is reasonable to expect that these items will occur in future periods. However, we believe these adjustments are appropriate because the amounts recognized can vary significantly from period to period, do not
          directly relate to the ongoing operations of our business and may complicate comparisons of our internal operating results and operating results of other companies over time. In addition, Adjusted EBITDA may include adjustments for other items
          that we do not expect to regularly occur in future reporting periods. Each of the normal recurring adjustments and other adjustments described in this paragraph and in the reconciliation table below helps management with a measure of our core
          operating performance over time by removing items that are not related to day-to-day operations.

        The following table reconciles Adjusted EBITDA to the most directly comparable GAAP financial performance measure, which is net loss:

                Three Months ended September 30,

                Nine Months ended September 30,

                 2025

                202