Company: CENN
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001140361-25-030576
Chunk: 13

Company: Cenntro Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part II, Item 8
Chunk 13
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 partnership matters and material matters must be agreed upon by all partners. The Company has the ability to exercise significant influence over Entropy Yu.   

      (2)  On March 22, 2022, CAE invested EUR100,000 (approximately $117,700) in Able 2rent GmbH (DEU) to acquire 50% of its equity interest. The Company accounts for the investment under the equity method. The Company accounts for the investment under the equity method because it does not have control over Able 2rent GmbH (DEU) as the Company does not participate in its operation and does not serve as member of board of directors.   

          (b)
          
            Equity investment without readily determinable fair values, net

    Equity investments without readily determinable fair values, net consisted of the following:

             June 30, 2025

            December 31, 2024

            (Unaudited)

            HW Electro Co., Ltd. (1)

            $
          
           1,000,000 

            $
          
           1,000,000 

            Total equity investment without readily determinable fair values, net

           1,000,000 

           1,000,000 

            Less: equity investment without readily determinable fair values, net, held for discontinued operations

           - 

           - 

            Equity investment without readily determinable fair values, net, held for continuing operations

            $
          
           1,000,000 

            $
          
           1,000,000 

      (1)  On January 31, 2023, the Company entered into a debt convention agreement with HW Electro Co., Ltd., to convert the loan principal of $1,000,000 into HW Electro Co., Ltd.’s shares. The Company held 1,143,860 shares of HW Electro Co., Ltd.’s for a total of 3.00% of its equity interest as of June 30, 2025.   

          (c)
          
            Debt security investments

    On July 24, 2023, the Company purchased a $1,000,000 convertible note (the “Convertible Note”) from third party Acton, Inc. (the “Issuer”), with the interest rate of 5% per annum and due in June 2024. At any time on or after the maturity date, the convertible loan will convert into shares equal to the quotient obtained by dividing the outstanding principal balance and unpaid accrued interest of the