Company: CENN
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001140361-25-030576
Chunk: 20

Company: Cenntro Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part II, Item 8
Chunk 20
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 taxes for continuing operations

            $
          
            13,578,703  

            $
          
           15,475,560 

      15

          CENNTRO INC.
          NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 14 - LEASES

    The Company leases offices space under non-cancellable operating leases. The Company considers those renewal or termination options that are reasonably certain to be exercised in the determination of the lease term and
      initial measurement of right of use assets and lease liabilities. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheets.

    The Company determines whether a contract is or contains a lease at inception of the contract and whether that lease meets the classification criteria of a finance or operating lease.

    The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

    A summary of lease cost of continuing operations recognized in the Company’s unaudited condensed consolidated statements of operations and comprehensive loss were as follows:

            For the Six Months Ended June 30,

             2025

            2024

             (Unaudited)

             (Unaudited)

            Operating leases cost excluding short-term lease expenses

            $
          
           1,703,582 

            $
          
           2,235,290 

            Short-term lease expenses

           70,559 

           183,679 

            Total

            $
          
           1,774,141 

            $
          
           2,418,969 

    A summary of supplemental information related to operating leases held for continuing operations were as follows:

           June 30, 2025 (Unaudited)       June 30, 2024  (Unaudited)       Cash paid for amounts included in the measurement of lease liabilities     $   754,386       $   1,531,851       Weighted average remaining lease term     4.03 years       5.99 years       Weighted average discount rate       7.35   %       6.36   %   

    The Company’s lease agreements do not have a discount rate that is readily determinable. The incremental borrowing rate is determined at lease commencement or lease modification and