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Cenntro Inc. (CENN-4.13%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in net revenues to $16,731,340 from $5,762,831 in the same quarter the previous year. The increase is attributed to higher vehicle sales and spare-part sales.
Cost of goods sold for the quarter was $12,688,393, representing 76% of sales, compared to 88% in the same quarter of the previous year. This decrease in cost ratio is due to improved sales volume and average selling price.
The company reported a gross profit of $4,042,947 for the quarter, compared to $717,467 in the previous year, with the improvement attributed to increased vehicle sales.
Selling and marketing expenses increased to $5,027,864 from $2,626,829, primarily due to higher marketing expenses and professional fees.
General and administrative expenses decreased to $7,934,755 from $9,071,910, reflecting reduced legal and professional fees.
Research and development expenses decreased to $1,476,684 from $1,634,796, primarily due to reduced design and testing material expenditures.
Net loss for the quarter was $8,981,587, compared to $16,103,199 in the previous year. After adjustments, the adjusted EBITDA was reported as a loss of $7,453,645.
Cash used in operating activities was $12,912,011, while cash provided by investing and financing activities was $4,858,042 and $1,243,068, respectively.
Cenntro had a working capital of $53,335,920 as of September 30, 2024. The company continues to focus on expanding its market presence in North America and Europe.
The filing also details various legal proceedings, including ongoing litigation with Sevic Systems SE and other parties.
Cenntro does not anticipate cash dividend payments to common stockholders in the near future.
The company identified a material weakness in its internal controls over financial reporting and is implementing a remediation plan.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Cenntro Inc. quarterly 10-Q report dated November 12, 2024. To report an error, please email earnings@qz.com.