Company: CENN
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001140361-25-030576
Chunk: 43

Company: Cenntro Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part II, Item 8
Chunk 43
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            )

            $

            (15,676,388

            )

      37

B. Liquidity and Capital Resources

      We have historically funded working capital and other capital requirements primarily through bank loans, equity financings and short-term loans. Also, the reverse
        recapitalization we have completed at the end of December 2021 provided significant funding for the Company’s operations. Our Cash is required primarily to purchase raw materials, and pay salaries, office expenses and other operating expenses.
       
      As of June 30, 2025, we had approximately $6.0 million in cash and cash equivalents, approximately $3.2 million of accounts receivables, and approximately $25.4 million of
        inventory as compared to approximately $12.5 million in cash and cash equivalents, $3.3 million in accounts receivable, and $24.0 million in inventory as of December 31, 2024. For the six months ended June 30, 2025 and 2024, net cash used in
        operating activities was approximately $9.4 million and $12.7 million, respectively.

Short-Term Liquidity Requirements

      We are looking at measures to generate operating efficiency as well as increasing the inventory turns in containing the growth of working
          capital for reducing negative net cash used in operating activities. With the cash improvement initiatives, we believe our cash and cash equivalents will be sufficient for us to continue to execute our business strategy over the twelve months
          period following the date of issuance of this 10Q. Our current business strategy for the next twelve months includes (i) the continued rollout of our new ECV models in North America and Europe, as
          applicable, (ii) the establishment of local assembly facilities in the United States and the European Union and (iii) additional plants and equipment for the expansion of our Changxing factory1. Actual results could vary materially as a result of a number of factors, including:

          •
          
            The costs of bringing our new facilities into operation;

          •
          
            The timing and costs involved in rolling out new ECV models to market;

        1 NTD: Company to provide any additional business plans requiring material capital over the next twelve months.

      38

          •
          
            Our ability to manage the costs of manufacturing our ECVs;

          •
          
            The costs of maintaining, expanding and protecting our intellectual property portfolio, including potential litigation costs and liabilities;

          •