Company: CENN
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001140361-25-041657
Chunk: 100

Company: Cenntro Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part II, Item 8
Chunk 100
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 adjusted to reflect the effects of those differences in current conditions and forecasted changes. We measured the expected credit losses of accounts receivable on a collective basis. When an accounts receivable does not share risk
          characteristics with other accounts receivables, we will evaluate such accounts receivable for expected credit 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.

          26

        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

        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 nine months ended September 30, 2025 and 2024.

                Nine Months ended September 30,

                 2025

                2024

                (Expressed in U.S. Dollars)

                (Unaudited)

                Gross margin of vehicle sales

                1.15

                %

                33.06

                %

        Gross margin of vehicle sales. Gross margin of vehicle sales is defined as gross profit of vehicle sales divided by total revenue of vehicle sales.

          27

        Results of Operations

        The following table sets forth a summary of our statements of operations for the periods indicated:

                Three Months ended September 30,

                Nine Months ended September 30,

                 2025

                2024

                2025

                2024

                (Expressed in U.S. Dollars)

                (Unaudited)

                (Un