Company: CENN
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001140361-25-019312
Chunk: 8

Company: Cenntro Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 8
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’s operations. Cash is required primarily to purchase raw materials, repay debts and pay salaries, office expenses and other operating
              expenses.

            As of March 31, 2025 we had approximately $8.5 million in cash and cash equivalents and approximately $3.1 million of accounts receivables as compared to approximately
              $20.2 million in cash and cash equivalents and $2.5 million in accounts receivable as of March 31, 2024. For the three months ended March 31, 2025 and 2024, net cash used in operating activities was approximately $5.0 million and $8.9
              million, respectively.

Short-Term Liquidity Requirements

            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 our annual report. Our current business strategy for the next twelve months includes (i) the continued rollout of our new ECV models and green energy related products in
                North America and Europe, as applicable and (ii) the establishment and development of local distribution channels in the United States and the European Union. 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;

    •

                  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;

    •

                  Revenues received from sales of our ECVs;

    •

                  The costs of additional general and administrative personnel, including accounting and finance, legal and human resources, as well as costs related to litigation, investigations, or settlements;

    •

                  Our ability to collect future revenues; and

    •

                  Other risks discussed in the section titled “Risk Factors.”

            For the twelve months from the date hereof, we also plan to continue implementing measures to increase revenues and control operating costs and expenses, implementing
              comprehensive budget controls and operational assessments, implementing enhanced vendor review and selection processes as well as enhancing internal controls.

Long-Term Liquidity Requirements

            In the long-term, we plan to regionalize the manufacturing and supply chain relating to certain components of our ECVs in the geographic markets in which our ECVs are
              sold. In the