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PREPAYMENT AND OTHER CURRENT ASSETS (Tables)
 6 Months Ended
Jun. 30, 2026
PREPAYMENT AND OTHER CURRENT ASSETS [Abstract]  
Prepayment and Other Current Assets
Prepayment and other current assets consisted of the following:

   
June 30, 2026
    
December 31, 2025
  
   
(Unaudited)
        
Advance to suppliers
  
$
10,488,794
    
$
9,034,026
  
Deductible input value added tax
    
5,223,250
      
6,303,559
  
Deposit in a third-party regulated collection account

3,930,000


-
  
Loans to third parties (1)
    
1,288,503
      
1,353,975
  
Others
    
852,339
      
1,050,703
  
Less: provision for credit losses
    
(1,572,691
)
    
(1,514,639
)
Less: impairment
    
(2,950,648
)
    
-
  
Prepayment and other current assets, net
    
17,259,547
      
16,227,624
  
Less: prepayment and other current assets, net, held for discontinued operations
    
-
      
(1,214,361
)
Prepayment and other current assets, net, held for continuing operations
  
$
17,259,547
    
$
15,013,263
  
(1)
This represents loans to Guangzhou Changyue New Energy Technology Co., Ltd.(“Changyue”) and Cenntro Electric CICS, S.R.L. (“CICS”).


On October 31, 2025, the Company entered into a working capital loan contract with Changyue to lend principal amount of RMB1,800,000 ($265,287), with an annual interest rate of 3.0% and due on December 30, 2025, and the loan remains past due as of June 30, 2026. Management is actively following up with Changyue regarding repayment and expects to recover the outstanding balance based on the current repayment arrangement.


Multiple interest-free intercompany drawdowns to former group entity CICS totaling $1,023,216 over several prior fiscal years. Full allowance for credit losses was recorded for this balance due to unrecoverability, resulting in no carrying value as of June 30, 2026 and December 31, 2025.
Changes in the Provision for Credit Losses
The changes in the provision for credit losses were as follows:

   
For the Six Months Ended June 30,
  
   
2026
    
2025
  
   
(Unaudited)
    
(Unaudited)
  
Balance at the beginning of the period
  
$
1,514,639
    
$
696,698
  
Additions
    
45,352
      
1,117,190
  
Foreign exchange
    
12,700
      
13,198
  
Balance at the end of the period
    
1,572,691
      
1,827,086
  
Less: balance of held for discontinued operations
     -

   
-

Balance of held for continuing operations
  
$
1,572,691
 
$
1,827,086