Company: CENN
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001140361-25-019312
Chunk: 9

Company: Cenntro Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 9
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 long-term, through our supply chain development know-how, we intend to establish supply chain relationships in North America and the European Union to support anticipated manufacturing and assembly needs in these markets, thereby
              reducing the time in transit and potentially other landed costs elements associated with importing our components and spare parts from China. Currently, the majority of our revenues is derived from the sale of ECVs by private label channel
              partners that assemble our vehicle kits in their own facilities. As part of our growth strategy, we plan to expand our channel partner network, and local assembly facilities to regionalize our manufacturing and supply chains to better serve
              our global customers   especially to expand our after-sales-market services offerings.

            We intend to further expand our technology through continued investment in research and development. Since inception in 2013 through March 31, 2025 we
                have spent over approximately $95.2 million in research and development activities related to our operations. We plan to increase our research and development expenditure over the long term as we
                build on our technologies in vehicle development, driving control, cloud-based platforms, and innovations for promoting sustainable energy.

            34

            For our long-term business plan, we plan to fund current and future planned operations mainly through cash on hand, cash flow from operations, lines of credit and
              additional equity and debt financings to the extent available on commercially favorable terms.

Working Capital

            As of March 31, 2025, our working capital was approximately $31.9 million, as compared to a working capital of approximately $36.8 million as of December 31, 2024. The
              approximately $4.9 million decrease in working capital during 2025 was primarily due to (i) the decrease of cash and cash equivalents of approximately $4.0 million, and (ii) the increase in inventories and contractual liabilities of
              approximately $1.3 million and $1.0 million, offset by the decrease in accounts receivables of approximately $0.2 million.

Cash Flow

                  Three Months Ended March 31,

                   2025

                  2024

                  (Expressed in U.S. Dollars)

                  (Unaudited)

                  Net cash used in operating activities

                  $

                  (4,954,514

                  )

                  $

                  (8,864,876

                  )

                  Net cash (used in) provided by investing activities

                  (499,561

                  )

                  306,761