INVENTORY, NET

12 Months Ended

Dec. 31, 2022

Inventory Disclosure [Abstract]

INVENTORY, NET

NOTE 6. INVENTORY, NET

Inventory, net consisted of the following:

	December 31,		December 31,
	2022		2021
Raw materials	$	330,931	$	3,481,614
Work-in-progress		-		51,441
Finished goods		639,450		210,982
	$	970,381	$	3,744,037

For the years ended December 31, 2022 and 2021, depreciation recorded for fleet inventory was $87,586 and $95,544. 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 Club Car Discount during the years ended December 31, 2022 required a $413,561 net realizable value adjustment, necessitating the value of inventory to be written down, spare inventory for the 411x was written off, net with the inventory reserve of $124,375.