Company: CENN
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001140361-25-030576
Chunk: 33

Company: Cenntro Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part II, Item 8
Chunk 33
---
 loss on an individual basis. Allowance for credit losses balances is written off when receivables are deemed
        uncollectible, following the exhaustion of all collection efforts and a determination that recovery. We expect provision for credit losses to decrease in the future as we shift our sales more to FOB terms, when goods will be delivered only if
        material payment are received.

Other income (expenses)

Interest expense, net

      Interest expense, net, consists of interest on outstanding loans and the convertible promissory notes.

Income(loss) from long-term investments

      Entities over which we have the ability to exercise significant influence but do not have a controlling interest through investment in common shares, or in-substance common
        shares, are accounted for using the equity method. Under the equity method, we initially record our investment at cost and subsequently recognize our proportionate share of each such entity’s net income or loss after the date of investment into the
        statements of operations and comprehensive loss and accordingly adjust the carrying amount of the investment. When our share of losses in the equity of such entity equals or exceeds our interest in the equity of such entity, we do not recognize
        further losses, unless we have incurred obligations or made payments or guarantees on behalf of such entity. An impairment charge is recorded when the carrying amount of the investment exceeds its fair value and this condition is determined to be
        other-than-temporary. The adjusted carrying amount of the assets become new cost basis.

Discontinued operations

      We classify the results of a component (or group of components) to be disposed (“disposal group”) as a discontinued operation when the disposal group meets the held-for-sale
        criteria, is disposed of by sale or is disposed of other than by sale (e.g. abandonment) and when the disposal group represents a strategic shift that has, or will have, a major effect on our operations and our financial results.
       
      We report the operating results related to the disposal group as discontinued operations for all periods presented in our consolidated statements of comprehensive loss,
        respectively.

      28

Key Operating Metrics

      We prepare and analyze operating and financial data to assess the performance of our business and allocate our resources. The following table sets forth our key performance
        indicators for the six months ended June 30, 2025 and 2024.

              Six Months ended June 30,

               2025

              2024

            (Expressed in U.S. Dollars)

            (Unaudited)

            Gross