Company: CENN
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001140361-25-041657
Chunk: 80

Company: Cenntro Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part II, Item 8
Chunk 80
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/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.

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

              September 30,
              2025

              December 31,
              2024

              (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 

        (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 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements

          to Reportable Segment Disclosures”, which is intended to improve