OTHER NON-CURRENT ASSETS, NET

12 Months Ended

Dec. 31, 2022

OTHER NON-CURRENT ASSETS, NET [Abstract]

OTHER NON-CURRENT ASSETS, NET

NOTE 11 – OTHER NON-CURRENT ASSETS, NET

	December 31, 2022			December 31, 2021
Loan to the third party (1)	$	4,591,717		$	-
Receivable from a third party (2)		-			2,353,827
Long-term prepayment (3)		1,280,974			1,587,693
Deposit		758,038			564,007
Total		6,630,729			4,505,527
Less: provision for loan to the third party and receivable from a third party (1) & (2)		(4,591,717	)		(2,353,827	)
Other non-current assets, net	$	2,039,012		$	2,151,700

(1) The balance represents a 5-year loan in the aggregate principal amount of $4,439,400 (New Zealand Dollar 7,000,000) to the related party, bearing interest of 2.5% annually and maturing in August 2026. As for the resignation of Mr. Justin Davis-Rice in 2022, the controller of Bendon Limited and the former director of CEGL, Bendon Limited was not a related party as of December 31, 2022. The company believes that the possibility of the collection is remote and recorded full provision for the loan.

(2) In 2018, the Company signed an agreement with Anhua Automotive Co. Ltd., (“Anhua”) and paid an initial non-refundable deposit to participate in Anhua’s bankruptcy recombination process to develop further production capacity in China. However, due to the irrecoverable deterioration of Anhua’s business and Cenntro’s focus on Europe and America markets, Cenntro declined to further participate in the recombination process. Therefore, Cenntro recorded full provision for the deposit. The balance was written off for the year ended December 31, 2022.

(3) The balance mainly represented a six-year period liability insurance for the existing officers and directors in connection with the closing of the Combination.