|6 Months Ended|
Jun. 30, 2022
|Inventory Disclosure [Abstract]|
NOTE 6. INVENTORY, NET
Inventory consisted of the following:
SCHEDULE OF INVENTORY
For the three months ended June 30, 2022 and 2021, depreciation recorded for fleet inventory was $23,883 and $23,886, and for the six months ended June 30, 2022 and 2021, was $47,775 and $47,772 respectively. The Company determined that testing of obsolescence was required for inventory due to the quality of certain purchased components from Cenntro’s lithium-ion line (“NCM”). 17 vehicles tested in the second quarter of 2022 were determined to have 49 unique failures. An inspection of the remaining NCM units discovered a 100% failure rate. As a result, all inventory associated with Cenntro’s NCM line was written off to cost of goods sold for $1,317,289.
The entire disclosure for inventory. Includes, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the classes of inventory, and the nature of the cost elements included in inventory.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef