Centro(US:CENN)2025-11-12 21:39Financial Performance - Net revenues for the nine months ended September 30, 2025, were approximately $13.1 million, a decrease of approximately $12.8 million or 49.3% from $25.9 million for the same period in 2024[185]. - The net loss attributable to the company's shareholders for the nine months ended September 30, 2025, was $22.25 million, compared to $27.38 million in 2024[183]. - For the three months ended September 30, 2025, the net loss was approximately $6.7 million, an improvement from a net loss of $9.0 million for the same period in 2024[223]. - Adjusted EBITDA for the nine months ended September 30, 2025 was approximately $(16.6) million, compared to $(23.1) million for the same period in 2024, indicating a reduction in operational losses[223]. - Revenue for the nine months ended September 30, 2025, was $13,510,806, a decrease from $28,443,831 in the same period of 2024, with vehicle sales contributing $12,389,471[271]. Vehicle Sales - Vehicle sales accounted for 91.6% of net revenues in Q3 2025, totaling $4.2 million, compared to 94.9% in Q3 2024, which was $15.4 million[185]. - For the nine months ended September 30, 2025, the company sold 971 ECVs, a decrease of 10.3% from 1,082 ECVs sold in the same period in 2024[187]. - For the three months ended September 30, 2025, the company sold 412 ECVs, a decrease of 49.5% from 817 ECVs sold in the same period in 2024[189]. - Net revenues from vehicle sales in Europe, North America, Asia, and Africa for the nine months ended September 30, 2025, were 71.2%, 9.5%, 19.0%, and 0.3%, respectively, compared to 18.2%, 65.9%, 15.8%, and 0.1% in 2024[191]. Expenses - Total operating expenses for the nine months ended September 30, 2025, were $21.6 million, a decrease from $29.6 million in 2024[183]. - Selling and marketing expenses for the nine months ended September 30, 2025, were approximately $1.8 million, a decrease of approximately 67.4% from $5.6 million in the same period in 2024[201]. - General and administrative expenses for the nine months ended September 30, 2025, were approximately $14.2 million, a decrease of approximately 29.3% from $20.1 million in the same period in 2024[203]. - Research and development expenses for the nine months ended September 30, 2025, were $1.95 million, down from $3.94 million in 2024[183]. Market Performance - Net revenues in the European market for the nine months ended September 30, 2025, were approximately $9.3 million, an increase of approximately $4.6 million from $4.7 million in 2024[185]. - The company reported a significant decline in revenues from the Americas, dropping to $1,250,477 in 2025 from $17,071,721 in 2024, a decrease of 92.7%[272]. - Europe generated $9,732,252 in revenues for the nine months ended September 30, 2025, up 33.9% from $7,260,544 in 2024[272]. Cash Flow and Financing - As of September 30, 2025, cash and cash equivalents were approximately $4.4 million, down from $22.4 million as of September 30, 2024[227]. - The company reported a net cash used in operating activities of approximately $10.8 million for the nine months ended September 30, 2025, compared to $12.9 million for the same period in 2024[237]. - Net cash provided by financing activities for the nine months ended September 30, 2025, was approximately $2.7 million, primarily from bank loans and related parties totaling $1.7 million and $1.0 million respectively[241]. Future Outlook - The company expects to start generating revenue from Bison Motor™, hydrogen-powered heavy-duty vehicles, by 2026[170]. - The company plans to continue the rollout of new ECV models in North America and Europe, and establish local assembly facilities in the U.S. and the EU over the next twelve months[228]. - The company anticipates a decrease in general and administrative expenses over the next two years due to efficiency improvements[177]. Accounting and Compliance - The company is currently assessing the impact of ASU 2025-05 on its consolidated financial statements, which addresses expected credit losses for current accounts receivable[280]. - The company adopted ASU 2023-07 for the year ended December 31, 2024, with no significant impact on its financial statements[277]. - The company does not believe the adoption of ASU 2023-09 will have a material impact on its financial statements and disclosures[278]. - The company has not entered into any off-balance sheet financial guarantees or derivative contracts that are not reflected in the financial statements[252]. Other Financial Metrics - Accounts receivable, net for continuing operations decreased to $1,598,288 as of September 30, 2025, down 51.3% from $3,281,865 as of December 31, 2024[275]. - Contractual liabilities for continuing operations were $3,699,047 as of September 30, 2025, a decrease of 10.2% from $4,121,305 as of December 31, 2024[275]. - The company recognized $1,048,505 in revenue from contractual liabilities for the nine months ended September 30, 2025, compared to $946,071 in 2024, reflecting a growth of 10.8%[274].