Centro(US:CENN)2024-08-13 10:02Financial Performance - Net revenues for the six months ended June 30, 2024, were $11,712,491, compared to $7,708,064 for the same period in 2023, representing a 52% increase [123]. - Net revenues for the six months ended June 30, 2024 were approximately $11.7 million, an increase of approximately $4.0 million or 52.0% from approximately $7.7 million for the same period in 2023 [125]. - Vehicle sales contributed $9.6 million to net revenues for the six months ended June 30, 2024, representing an increase of approximately $2.4 million due to improved sales volume and average selling price from approximately $19,797 to $22,882 [125]. - The company sold 420 ECVs for the six months ended June 30, 2024, compared to 364 ECVs for the same period in 2023, with significant sales in the U.S. market increasing from nil to 65 ECVs [127]. - Revenue from Europe reached $5,763,387, a substantial increase from $96,702 in the prior year, while revenue from Asia decreased to $3,654,430 from $5,531,486 [198]. Expenses and Losses - Total operating expenses for the six months ended June 30, 2024, were $19,450,046, a decrease from $24,968,200 in the same period of 2023, reflecting a 22% reduction [123]. - Loss from operations for the six months ended June 30, 2024, was $18,210,905, compared to a loss of $23,626,211 for the same period in 2023, indicating a 23% improvement [123]. - Net loss attributable to shareholders of the Company for the six months ended June 30, 2024, was $18,412,978, compared to $25,032,433 for the same period in 2023, a reduction of 26% [123]. - The company reported a net loss of approximately $(18.42) million for the six months ended June 30, 2024, compared to $(25.19) million for the same period in 2023 [156]. - The net loss for the six months ended June 30, 2024 was approximately $18.4 million, adjusted for non-cash items totaling approximately $7.1 million [167]. Research and Development - Research and development expenses for the six months ended June 30, 2024, were $2,815,469, down from $3,712,989 in the same period of 2023, a reduction of 24% [123]. - The Company continues to invest in research and development for new ECV models and related technologies, indicating a commitment to innovation [114]. - The company plans to increase research and development expenditures over the long term, having spent approximately $92.8 million since inception in 2013 through June 30, 2024 [162]. - Research and development expenses for the six months ended June 30, 2024, were approximately $2.8 million, a decrease of approximately 24.2% from $3.7 million for the same period in 2023 [142]. Cash Flow and Financial Position - As of June 30, 2024, the company had approximately $16.2 million in cash and cash equivalents, compared to $29.4 million as of December 31, 2023 [157]. - Working capital as of June 30, 2024, was approximately $60.6 million, a decrease of approximately $15.0 million from $75.6 million as of December 31, 2023 [163]. - Net cash used in operating activities for the six months ended June 30, 2024 was approximately $12.7 million, a decrease from $35.6 million for the same period in 2023 [166]. - Cash and cash equivalents at the end of the period were $16.4 million, down from $60.5 million at the end of June 30, 2023 [164]. - The company experienced a net decrease in cash of approximately $13.1 million for the six months ended June 30, 2024, compared to a decrease of $93.6 million in the same period of 2023 [164]. Operating Expenses - Selling and marketing expenses decreased significantly to $2,623,441 for the six months ended June 30, 2024, from $4,611,734 in the same period of 2023, a 43% decrease [123]. - General and administrative expenses for the six months ended June 30, 2024 were approximately $14.0 million, a decrease of approximately $2.6 million or 15.8% from approximately $16.6 million for the same period in 2023 [139]. - The Company anticipates that selling and marketing expenses will not increase in 2024 as it shifts strategy towards strengthening existing market developments [115]. - General and administrative expenses are expected to remain stable in 2024 as the Company focuses on improving operational efficiency [116]. Revenue Recognition and Accounting Policies - The Company utilizes a five-step analysis for revenue recognition, ensuring that revenue reflects the consideration expected to be received [195]. - Significant judgment is required to estimate return allowances, which could materially impact net revenues recognized [196]. - The Company has adopted the fair value option for certain financial instruments, including convertible promissory notes and currency-cross swaps [190]. - The current economic environment has increased uncertainty in estimates and assumptions used in financial reporting [185]. - The Company recognized $923,815 in revenue from contract liabilities for the six months ended June 30, 2024, compared to $479,499 in the same period of 2023 [199]. Other Financial Information - Net interest expense for the six months ended June 30, 2024, was approximately $0.02 million, representing a decrease of approximately 53.8% compared to $0.05 million in the same period in 2023 [143]. - Other expense, net for the six months ended June 30, 2024, was approximately $0.6 million, a decrease of approximately 25% from $0.8 million for the same period in 2023 [144]. - Contract liabilities as of June 30, 2024, were $5,476,006, compared to $3,394,044 as of June 30, 2023, indicating a growing obligation to deliver goods or services [201]. - Accounts receivable increased to $7,871,086 from $6,530,801, reflecting higher revenue recognized but not yet collected [201]. - A gain in the change in fair value of equity securities for the three months ended June 30, 2024, was approximately $0.3 million, an increase of approximately 200% compared to $0.1 million for the same period in 2023 [149].