This communication contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts. Such statements may be, but need not be, identified by words such as "may," "believe," "anticipate," "could," "should," "intend," "plan," "will," "aim(s)," "can," "would," "expect(s)," "estimate(s)," "project(s)," "forecast(s)," "positioned," "approximately," "potential," "goal," "strategy," "outlook" and similar expressions. Examples of forward-looking statements include, among other things, statements regarding assembly and distribution capabilities, decentralized production, and fully digitalized autonomous driving solutions. All such forward-looking statements are based on management's current beliefs, expectations and assumptions, and are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the results expressed or implied in this communication. For additional risks and uncertainties that could impact Cenntro's forward-looking statements, please see disclosures contained in Cenntro's public filings with the SEC, including the "Risk Factors" in Cenntro's Annual Report on Form 10-K filed with the Securities and Exchange Commission on April 1, 2024 and which may be viewed at www.sec.gov.
CENNTRO INC.
CONSOLIDATED BALANCE SHEETS
(Expressed in U.S. dollars, except for the number of shares)
December 31, December 31,
2023 2022
------------- -------------
ASSETS
Current assets:
Cash and cash equivalents $ 29,375,727 $ 153,966,777
Restricted cash 196,170 130,024
Short-term investment 4,236,588 -
Accounts receivable, net 6,530,801 565,398
Inventories 43,909,564 31,843,371
Prepayment and other current
assets 20,391,150 16,138,330
Amounts due from related
parties - current 287,439 366,936
------------ ------------
Total current assets 104,927,439 203,010,836
Non-current assets:
Long-term investments 4,685,984 5,325,741
Investment in equity
securities 26,158,474 29,759,195
Property, plant and equipment,
net 20,401,521 14,962,591
Goodwill 223,494 -
Intangible assets, net 6,873,781 4,563,792
Right-of-use assets 20,039,625 8,187,149
Other non-current assets, net 2,227,672 2,039,012
------------ ------------
Total non-current assets 80,610,551 64,837,480
Total Assets $ 185,537,990 $ 267,848,316
============ ============
LIABILITIES AND EQUITY
LIABILITIES
Current liabilities:
Accounts payable $ 6,797,852 $ 3,383,021
Accrued expenses and other
current liabilities 4,263,887 5,048,641
Contractual liabilities 3,394,044 2,388,480
Operating lease liabilities,
current 4,741,599 1,313,334
Convertible promissory notes 9,956,000 57,372,827
Contingent liabilities 26,669 -
Deferred government grant,
current 108,717 26,533
Amounts due to related parties 10,468 716,372
------------ ------------
Total current liabilities 29,299,236 70,249,208
Non-current liabilities:
Contingent liabilities
non-current 230,063 -
Deferred tax liabilities 228,086 -
Deferred government grant,
non-current 1,929,733 497,484
Derivative liability -
investor warrant 12,189,508 14,334,104
Derivative liability -
placement agent warrant 3,456,578 3,456,404
Operating lease liabilities,
non-current 16,339,619 7,421,582
------------ ------------
Total non-current liabilities 34,373,587 25,709,574
Total Liabilities $ 63,672,823 $ 95,958,782
============ ============
Commitments and
contingencies
EQUITY
Ordinary shares (No par
value; 30,828,778 and
30,084,200 shares issued
and outstanding as of
December 31, 2023 and 2022,
respectively) - -
Additional paid in capital 402,337,393 397,497,817
Accumulated deficit (274,023,501) (219,824,176)
Accumulated other
comprehensive loss (6,444,485) (5,306,972)
------------ ------------
Total equity attributable to
shareholders 121,869,407 172,366,669
Non-controlling interests (4,240) (477,135)
------------ ------------
Total Equity $ 121,865,167 $ 171,889,534
------------ ------------
Total Liabilities and Equity $ 185,537,990 $ 267,848,316
============ ============
CENNTRO INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Expressed in U.S. dollars, except for number of shares)
For the Years Ended December 31,
-----------------------------------------
2023 2022
------------------- --------------------
Net revenues $ 22,079,905 $ 8,941,835
Cost of goods sold (19,821,645) (9,455,805)
----------- ------------
Gross profit (loss) 2,258,260 (513,970)
OPERATING
EXPENSES:
Selling and marketing
expenses (7,868,773) (6,525,255)
General and
administrative
expenses (35,768,786) (32,822,709)
Research and
development expenses (8,469,241) (6,362,770)
Provision for doubtful
accounts - (5,986,308)
Impairment loss of
right-of-use assets - (371,695)
Impairment loss of
intangible assets - (2,995,440)
Reverse of deferred
tax liabilities - 898,632
Impairment loss of
property, plant and
equipment (431,319) (550,402)
----------- ------------
Total operating
expenses (52,538,119) (54,715,947)
----------- ------------
Loss from operations (50,279,859) (55,229,917)
OTHER EXPENSE:
Interest
(income)/expense,
net 402,414 (844,231)
Gain (loss) on
redemption of
convertible
promissory notes 12,507 (7,435)
(Loss) income from
long-term
investments (1,377,760) (12,651)
Change in fair value
of convertible
promissory notes and
derivative liability 75,341 (37,774,928)
Change in fair value
of equity securities (2,600,721) (240,805)
Convertible bond
issuance cost - (5,589,336)
Foreign currency
exchange loss, net (848,781) (409,207)
Impairment loss of
goodwill - (11,111,886)
Loss from acquisition
of Antric (136,302) -
Loss on exercise of
warrants (228,903) -
Gain from
cross-currency swaps 8,664 -
Other income/
(expense), net 621,633 (924,867)
----------- ------------
Loss before income
taxes (54,351,767) (112,145,263)
Income tax expense (8,988) -
----------- ------------
Net loss (54,360,755) (112,145,263)
----------- ------------
Less: net loss
attributable to
non-controlling
interests (161,430) (2,057,022)
----------- ------------
Net loss attributable
to the Company's
shareholders $(54,199,325) $(110,088,241)
=========== ============
OTHER
COMPREHENSIVE
LOSS
Foreign currency
translation
adjustment (1,162,080) (3,889,706)
----------- ------------
Total comprehensive
loss (55,522,835) (116,034,969)
Less: total
comprehensive loss
attributable to
non-controlling
interests (185,997) (2,032,455)
----------- ------------
Total comprehensive
loss to the Company's
shareholders $(55,336,838) $(114,002,514)
=========== ============
Weighted average
number of shares
outstanding, basic
and diluted * 30,424,686 26,332,324
Loss per share, basic
and diluted (1.78) (4.18)
CENNTRO INC.
CONSOLIDATED STATEMENTS OF CASH FLOW
(Expressed in U.S. dollars, except for number of shares)
For the Year Ended December 31,
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