SUBSEQUENT EVENT

3 Months Ended

Mar. 31, 2023

SUBSEQUENT EVENT [Abstract]

SUBSEQUENT EVENT

NOTE 16 - SUBSEQUENT EVENT

On April 26, 2023, $6,000,000 of convertible promissory notes were redeemed by the investors.

On April 20, 2023, Zhejiang Cenntro Machinery Co., Ltd. has entered an agreement with Changxing County Bureau of Natural Resources and Planning to purchase its land use right, with an area of 12,206 square meters with a useful life of 50 years and the total consideration of RMB1,530,000 (approximately $222,626).

CAC has entered into a lease agreement with BAL Freeway Associates, LLC, a California limited liability company, for its approximate 64,000 square foot portion of a larger 124,850 square foot industrial building located within the Rancon Centre Ontario. The lease term is for five years, starting from April 1, 2023, and ending on March 31, 2028. The monthly rent is $115,200.

CAC has entered into a lease agreement with Sabatino Abogados S.A.S. for its 2,469.27 square meters warehouse located in Columbia. The lease term starts from May 1, 2023 and ends on April 30, 2025. The monthly rent is COP39,324,371 (approximately $9,602).

On June 21, 2022, CAC entered an agreement with Sabatino Abogados S.A.S to acquire lots No. 59, 60, 61 and 62 in Free Trade Zone Zofia, with total area of 7,931.44 square meters and total consideration of COP 4,362,292,000 (approximately $1,063,271). On April 27, 2023, the public deeds of purchase of lots No. 59, 60, 61 and 62 located in the Zofia Free Trade Zone were signed. On June 23 and June 28, 2023, the certificates of Lot 59 and Lot 61 were registered.

Zhejiang Cenntro Machinery Co., Ltd. signed a series of contracts with Huzhou Linhai Construction Co., Ltd. of renovation of its factory, with the total contracts amount of RMB16,132,000 (approximately $2,349,001). Subsequently through the date of issuance of the condensed consolidated financial statements, RMB14,093,080 (approximately $2,052,111) has been paid to the constructor.

The Company has evaluated subsequent events through the date of issuance of the condensed consolidated financial statements, except for the events mentioned above, there were no other subsequent events with material financial impact on the condensed consolidated financial statements.