Quarterly report pursuant to Section 13 or 15(d)

INVENTORY, NET

v3.22.2
INVENTORY, NET
6 Months Ended
Jun. 30, 2022
Inventory Disclosure [Abstract]  
INVENTORY, NET

NOTE 6. INVENTORY, NET

 

Inventory consisted of the following:

 

                 
    June 30,     December 31,  
    2022     2021  
Raw materials   $ 936,880     $ 3,481,614  
Work-in-progress     447,255       51,441  
Finished goods     669,556       210,982  
Total   $ 2,053,691     $ 3,744,037  

 

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.