Centro(US:CENN)2025-05-15 20:45Financial Performance - Net revenues for the three months ended March 31, 2025, were approximately $2.14 million, a decrease of approximately $0.2 million or 8.5% from $2.34 million for the same period in 2024[168]. - The net loss from continuing operations for Q1 2025 was $5.36 million, compared to a net loss of $7.76 million in Q1 2024[168]. - Adjusted EBITDA from continuing operations for the three months ended March 31, 2025 was approximately $(3.96) million, an improvement from $(6.44) million in the same period of 2024[188]. - For the three months ended March 31, 2025, the company's net revenues from continuing operations were $2,143,058, a decrease of 8.5% compared to $2,342,918 for the same period in 2024[236]. Vehicle Sales and Revenue Breakdown - Vehicle sales accounted for $1.81 million or 84.5% of total net revenues in Q1 2025, compared to $1.52 million or 65.0% in Q1 2024[170]. - Vehicle sales for the three months ended March 31, 2025, were $1,837,054, down 27% from $2,514,777 in 2024[236]. - Spare-parts sales decreased significantly to $242,276 in 2025 from $828,785 in 2024, representing a decline of approximately 70.8%[236]. - The company's revenue from Asia increased to $1,174,031 in 2025, up 6.3% from $1,104,475 in 2024, while revenue from Europe and America decreased significantly[237]. Operating Expenses - Total operating expenses for Q1 2025 were $6.50 million, down from $8.04 million in Q1 2024, reflecting a reduction in research and development expenses[168]. - Selling and marketing expenses increased by approximately $0.2 million or 25.7% to approximately $0.8 million for the three months ended March 31, 2025, primarily due to increased freight costs[178]. - General and administrative expenses decreased by approximately $1.0 million or 16.6% to approximately $4.9 million for the three months ended March 31, 2025, attributed to reductions in various operational costs[179]. - Research and development expenses for Q1 2025 were $784,178, a significant decrease from $1.51 million in Q1 2024[168]. Cash Flow and Liquidity - Net cash used in operating activities was approximately $5.0 million for the three months ended March 31, 2025, compared to $8.9 million in the same period of 2024[191]. - As of March 31, 2025, the company had approximately $8.5 million in cash and cash equivalents, down from $20.2 million as of March 31, 2024[191]. - Net cash used in investing activities was approximately $0.5 million, primarily for the purchase of property, plant, and equipment[202]. - Net cash provided by financing activities was approximately $1.2 million, mainly from loans proceeds of approximately $1.0 million from related parties and $0.6 million from third parties, offset by $0.4 million repayment[203]. Contracts and Liabilities - Contractual liabilities for continuing operations rose to $5,102,793 as of March 31, 2025, compared to $4,121,305 as of December 31, 2024, indicating an increase of 23.8%[240]. - Accounts receivable for continuing operations decreased to $3,096,130 as of March 31, 2025, down from $3,281,865 as of December 31, 2024, a decline of 5.6%[240]. - The company recognized $374,384 in revenue from contractual liabilities for the three months ended March 31, 2025, compared to $890,646 in 2024, reflecting a decrease of 57.9%[239]. Future Outlook and Plans - The company plans to continue the rollout of new ECV models and green energy products in North America and Europe over the next twelve months[192]. - The company has invested over approximately $95.2 million in research and development activities since its inception in 2013, with plans to increase R&D expenditure in the long term[195]. - The company expects a decrease in provision for credit losses as sales shift more to FOB terms[161]. - General and administrative expenses are anticipated to decrease over the next two years due to efficiency improvements[160]. Leasing and Facilities - The total annual base rent for two operating lease agreements in Hangzhou, China is $186,866 for the term ending May 2023 and $167,521 for the term ending May 2024[204]. - The lease for a facility in Dusseldorf, Germany has a total annual base rent of approximately $373,630 for the lease term[205]. - A new operating lease agreement in Colombia commenced on May 1, 2023, with a monthly rent of approximately $11,224.92[206]. - The first annual base rent for a facility in Howell, New Jersey is $493,920, with a 3% annual increase[210]. - The monthly rent for a facility in Ontario, California is $115,200 for the first year, increasing to $134,767.71 in the fifth year[209]. Accounting and Financial Reporting - The company is currently assessing the impact of the recently issued ASU No. 2024-03 on its consolidated financial statements, which will improve disclosures about types of expenses[241]. - Shipping and handling costs are recorded as sales and marketing expenses rather than separate performance obligations[235]. - The company has not experienced material costs for quality assurance historically, leading to no accrual for these costs being deemed necessary[235]. - The company has not entered into any off-balance sheet financial guarantees or derivative contracts that are not reflected in the financial statements[214].