Year-to-Date 2024 Revenue Increases 20.8% YoY to $91.2 Million
New Production, Product and Sales Initiatives Driving Motor Vehicle Growth
GARLAND, Texas, Nov. 15, 2024 /PRNewswire/ -- Massimo Group (NASDAQ: MAMO) ("Massimo"), a manufacturer and distributor of powersports vehicles and pontoon boats, has reported its financial and operational results for the third quarter ended September 30, 2024.
Key Financial Q3 2024 and Subsequent Operational Highlights and Business Updates
($ millions) | Nine Month Comparison | Q3 Comparison | |||||||
9M 2024 | 9M 2023 | $ Change | % Change | Q3 2024 | Q3 2023 | $ Change | % Change | ||
Revenue | $91.2 | $75.5 | $15.7 | 20.8 % | $25.6 | $29.9 | ($4.3) | (14.4 %) | |
Gross Profit | $28.9 | $23.8 | $5.1 | 21.6 % | $7.0 | $10.1 | ($3.1) | (30.9 %) | |
Gross Margin | 31.7 % | 31.5 % | 21 bps | 27.2 % | 33.6 % | (647) bps | |||
Net Income | $3.5 | $6.6 | ($3.1) | (46.9 %) | ($2.5) | $4.0 | ($6.5) | (163.2 %) | |
- 9M 2024 revenue increased 20.8% to $91.2 million compared to $75.5 million in 9M 2023.
- 9M 2024 gross profit increased 21.6% to $28.9 million from $23.8 million in 9M 2023. Gross margin increased 21 basis points to 31.7% in 9M 2024 from 31.5% in 9M 2023.
- 9M 2024 net income decreased 46.9% to $3.5 million, or $0.09 per basic and diluted share, as compared to net income of $6.6 million, or $0.16 per basic and diluted share, in 9M 2023.
- Q3 2024 revenue decreased 14.4% to $25.6 million compared to $29.9 million in Q3 2023.
- Q3 2024 gross profit decreased 30.9% to $7.0 million from $10.1 million in Q3 2023. Gross margin decreased 647 basis points to 27.2% in Q3 2024 from 33.6% in Q3 2023.
- Q3 2024 net income decreased 163.2% to a loss ($2.5) million, or ($0.06) per basic and diluted share, as compared to net income of $4.0 million, or $0.10 per basic and diluted share, in Q3 2023.
- New vehicle launches included:
- T-Boss UTV series for the winter season with cab enclosure built to deliver complete protection from the elements.
- T-Boss 1000 UTV, the best equipped and most value-packed UTV in its class with a perfect blend of utility, performance and capability.
- GKD 350 All-Terrain Go Kart, combining iconic styling with powerful performance in a rugged two-seater go-kart perfect for conquering any terrain.
- Exhibited Massimo Motor vehicles at the Equip Exposition, Mid-States Fall Rendezvous 2024, and Outdoor Power Equipment Hoedown for Mid-States Distributing Company, Inc.
- Announced the adoption of a new automated vehicle assembly robot line to be installed in the third calendar quarter at its 376,000 square foot factory in Garland, Texas to support production of its ATV and UTV vehicles lines.
Management Commentary
"During the third quarter we continued to leverage new product innovation and a strong customer base to drive our strategic business expansion and growth prospects, and solidify our brand's position in key markets," said David Shan, Founder, Chairman & CEO. "The third quarter was marked by industry-wide challenges and pressure on Pontoon boat sales, countered by expansions in motor vehicle production, distribution and products that are supporting revenue momentum. An ongoing cadence of new vehicle launches and marketing efforts across the country are driving adoption from new distribution partners and retailers to expand our national footprint. Following the conservatism principle in accounting, we adopted a cautious approach and recorded a one-time charge of approximately $3.6 million in the third quarter due to ongoing litigation, which is currently under appeal. Should there be any favorable ruling in the future, it will result in gains reversing the charge we took in this period. Without this charge the net income for the quarter would have been positive.
"In the last several months we have launched several exciting new vehicles and vehicle series as we continue to invest in our R&D to further enhance our products, using advanced technology to offer our UTV customers a smoother and more comfortable ride. We launched a new feature-rich T-Boss 1000 UTV for those who are looking for a powerful and versatile UTV that can handle any trip, with some specific features that make it a great choice for ranchers, hunters and more. A new series of T-Boss UTVs is equipped with Cab Enclosure that is built to deliver complete protection from the elements. Made with durable tempered glass, this fully enclosed cabin shields passengers from rain, wind, and snow, providing a comfortable environment for all outdoor tasks. Finally, we introduced the new GKD 350 All-Terrain Go Kart, our new rugged two-seater go-kart perfect for conquering any terrain. Built tough with standard safety features, the GKD 350 delivers both endless fun and a utility-driven experience with a 300cc power plant, 25 inch all terrain tires and easy-to-drive automatic transmission. We are now ramping sales of these new products through our sales network nationwide.
"To support these new products and our full lineup of rugged, versatile vehicles, we showcased our vehicles to hundreds of thousands of potential customers at several flagship expos and events around the country. We engaged with several potential new dealers, discussing opportunities that could enhance our distribution network and increase market penetration. These events also serve as an excellent opportunity for us to engage with store partners and discuss potential collaborations, which we believe lays the foundation for future revenue growth.
"Several production initiatives during the quarter are positioning us to further expand output levels each month. A new expansion has added 90,000 sq. ft. to our manufacturing facility in Garland, Texas to support increased production across motor and marine product verticals. At this facility we are also launching a new automated vehicle assembly robot line that are being installed as expected. This automation is expected to improve efficiency by 50% and enhance safety for production of ATV and UTV vehicles lines.
"Looking ahead, we are committed to delivering value as we scale operations and broaden our reach in domestic and international markets. We continue to build manufacturing capacity aimed at enhancing flexibility and increasing annual production, including an automated vehicle assembly robot line and the Armlogi partnership, which are expected to allow us to meet the growing demand of our products. We believe with increased operating efficiencies we can further improve margins while continuing to grow our revenue and expand our product line with new models. We are focusing on driving sales across our existing and new diversified product portfolio. With positive feedback on our new vehicles, we are confident in the growth prospects for the first half of 2025 as the introduction of new products and distribution relationships is expected to present significant opportunities for us to build market share and deliver long-term value to our shareholders," concluded Mr. Shan.
Third Quarter 2024 Financial Results
For the three months ended September 30, 2024, revenues decreased by $4.3 million, or 14.4%, to $25.6 million, compared to $29.9 million in the prior year period. The decrease in revenue was primarily due to a significant drop in Pontoon boat sales, and a slight decrease in sales of UTV, ATV and e-bikes.
Revenue from sales of UTVs, ATVs and e-bikes decreased by $1.9 million, or 6.9%, from $27.0 million in the third quarter of fiscal 2023, to $25.1 million in the third quarter of fiscal 2024. The decrease in revenue was partially driven by the slow industry-wide trend, and partially by the seasonal promotions we offered in the third quarter of fiscal 2024.
Revenue from sales of Pontoon Boats decreased by $2.4 million, or 82.5%, from $3.0 million in the third quarter of fiscal 2023, to $0.5 million in the third quarter of fiscal 2024. The decrease in revenue was primarily attributable to the significant industry-wide downturn due to the impact of the high interest rates and inflation as demonstrated in the high rejection rates dealers have encountered from floorplan financing providers such as Northpoint. This trend aligns with the industry-wide challenges that intensified in the third quarter of fiscal 2024. Additionally, economic uncertainty in the U.S. has led to reduced spending on luxury boats, further constraining our Pontoon Boat sales.
Gross profit decreased by $3.1 million, or 30.9%, from $10.1 million in the third quarter of fiscal 2023, to $7.0 million in the third quarter of fiscal 2024. The gross profit margin was 27.2% in the third quarter of fiscal 2024, compared with 33.6% in the same period last year. The decrease of 6.5% in the gross profit margin is consistent with (i) reduced sale prices aimed at clearing slow-moving inventory, and (ii) the decline in sales of Pontoon Boats, without a corresponding reduction in fixed overhead costs, such as rent and salaries.
The cost of revenue on UTVs, ATVs and e-bikes increased by $0.6 million, or 3.7%, from $17.5 million in the third quarter of fiscal 2023 to $18.1 million in the third quarter of fiscal 2024, and gross profit decreased by $2.5 million, or 26.5%, from $9.4 million in the third quarter of fiscal 2023 to $6.9 million in the third quarter of fiscal 2024. The gross margin decreased by 7.4%, from 35.1% in the third quarter of fiscal 2023 to 27.7% in the third quarter of fiscal 2024. The increase in the cost of revenue was largely due to higher overhead costs, mainly from research and design input and the additional rent expense as we expand our warehouse space in fiscal 2024. The slight decrease in gross margin was primarily a result of selling some inventory at lower price at our seasonal promotions in the third quarter of fiscal 2024.
The cost of revenue on Pontoon Boats decreased by $1.9 million, or 78.3%, from $2.4 million in the third quarter of fiscal 2023 to $0.5 million in the third quarter of fiscal 2024, and gross profit decreased by $0.6 million, or 98.9%, from $0.6 million in the third quarter of fiscal 2023 to $6,619 in the third quarter of fiscal 2024. The gross margin decreased by 19.1%, from 20.4% in the third quarter of fiscal 2023 to 1.3% in the third quarter of fiscal 2024. The decrease in gross margin was primarily a result of a decline in sales of Pontoon Boats, without a corresponding reduction in fixed overhead costs, such as rent, utilities, and salaries.
Selling expenses increased by $0.5 million, or 24.9%, from $2.1 million in the third quarter of fiscal 2023 to $2.6 million in the third quarter of fiscal 2024. The increase in selling expenses was mainly due to an increase in shipping and handling fees. The increase was partly offset by a decrease in warranty expense of approximately $0.4 million, due to enhanced quality control and customer service measures. The adoption of a traveling technician team has enabled timely responses to customer requests, reducing repair costs.
General and administrative expenses increased by $1.2 million, or 43.4%, from $2.7 million in the third quarter of fiscal 2023 to $3.9 million in the third quarter of fiscal 2024. The increase was mainly due to increased salaries and benefits, travel expense and rent expense.
Total operating expenses increased 37.9% to $6.6 million for the three months ended September 30, 2024, compared to $4.8 million in the prior year third quarter.
Net loss for the three months ended September 30, 2024, was ($2.5) million, or ($0.06) per basic and diluted share, as compared to net income of $4.0 million, or $0.10 per basic and diluted share, in the three months ended September 30, 2023. Without the one-time charge of approximately $3.6 million due to litigation, net income for the quarter would have been positive.
Nine Months 2024 Financial Results
Revenues increased by $15.7 million, or 20.8%, from $75.5 million for the nine months ended September 30, 2023, to $91.2 million for the nine months ended September 30, 2024. The increase in revenue was primarily due to combined effects of rising demand in the U.S. ATV and UTV market and our modified sales strategy. In 2024, we continued to expand our distribution network with various retailers to increase our products' market penetration. We strategically focused our efforts on large retail stores in the U.S. (the "big box stores") that offer their own financing plans, while moving away from retailers that have liberal return policies.
Revenue from sales of UTVs, ATVs and e-bikes increased by $22.2 million, or 33.8%, from $65.8 million for the nine months ended September 30, 2023 to $88.0 million for the nine months ended September 30, 2024. The increase in revenue was primarily attributed to the expansion into more big box stores. This surge is consistent with the increasing ranch/farm-work utilization of UTVs across the 1.89 million farms in the U.S. with an average size of 464 acres and the new customer's rural lifestyle focus. The increase in sales is also due to a shift in our sales strategy, focusing mostly on in-store sales to this retail chain store customer, which generally involve larger volumes and no returns. In addition, sales to this new customer consist of high-turnover inventory products that are of high quality and have a strong customer reputation. This enhances the efficiency of our capital utilization.
Revenue from sales of Pontoon Boats decreased by $6.6 million, or 67.6%, from $9.7 million for the nine months ended September 30, 2023 to $3.1 million for the nine months ended September 30, 2024. The revenue decrease was primarily due to an industry-wide downturn driven by high interest rates and inflation, which are impacting the consumption of non-essential goods. In addition, the fact that the dealers have experienced high rejection rates at the floorplan financing providers such as Northpoint has directly affected the inventory level the dealers maintain and therefore our sales in this category. This is consistent with the industry-wide trend. The challenging economic environment and economic uncertainty in the U.S. has led to reduced spending on luxury boats directly impacting the sales of luxury boats such as our yacht.
Gross profit increased by $5.1 million, or 21.6%, from $23.8 million for the nine months ended September 30, 2023 to $28.9 million for the nine months ended September 30, 2024. Gross margin was 31.7% for the nine months ended September 30, 2024, compared with 31.5% in the same period last year. Our gross margin for the nine months ended September 30, 2024 remained constant when compared with the same period in 2023.
Cost of revenue on UTVs, ATVs and e-bikes increased by $16.1 million, or 36.9%, from $43.5 million for the nine months ended September 30, 2023, to $59.6 million for the nine months ended September 30, 2024 and gross profit increased by $6.2 million, or 27.9%, from $22.2 million for the nine months ended September 30, 2023, to $28.4 million for the nine months ended September 30, 2024. Gross margin slightly decreased by 1.5%, from 33.8% for the nine months ended September 30, 2023 to 32.3% for the nine months ended September 30, 2024. The increase in the cost of revenue was in line with the increase in sales. The slight decrease in gross profit margin was mainly due to reduced sales prices to clear out slow-moving inventory in the recent quarter.
Cost of revenue on Pontoon Boats decreased by $5.5 million, or 67.5%, from $8.2 million for the nine months ended September 30, 2023, to $2.7 million for the nine months ended September 30, 2024, and gross profit decreased by $1.1 million, or 68.5%, from $1.6 million for the nine months ended September 30, 2023, to $0.5 million for the nine months ended September 30, 2024. Gross margin decreased by 0.4%, from 16.0% for the nine months ended September 30, 2023, to 15.6% for the nine months ended September 30, 2024. Our gross margin for the nine months ended September 30, 2024 remained constant compared to the nine months ended September 30, 2023.
Selling expenses increased by $1.4 million, or 21.3%, from $6.5 million for the nine months ended September 30, 2023, to $7.9 million for the nine months ended September 30, 2024, representing 8.7% and 8.7% of total revenue in both periods. The increase was mainly due to higher shipping and handling fees, partly offset by a reduction in warranty expense of approximately $0.5 million, due to enhanced quality control and customer service.
General and administrative expenses increased by $3.1 million, or 33.8%, from $9.0 million for the nine months ended September 30, 2023, to $12.1 million for the nine months ended September 30, 2024. The increase was mainly due to higher rent expense, salaries and benefit, and insurance expense.
Total operating expenses increased 35.2% to $21.1 million for the nine months ended September 30, 2024, compared to $15.6 million in the prior year period.
Net income for the nine months ended September 30, 2024, was $3.5 million, or $0.09 per basic and diluted share, as compared to net income of $6.6 million, or $0.16 per basic and diluted share, in the nine months ended September 30, 2023.
Cash and cash equivalents totaled $1.7 million at September 30, 2024, as compared to $1.2 million at September 30, 2023.
Net cash used in operating activities was approximately $2.4 million during the nine months ended September 30, 2024, compared to net cash provided by operating activities of approximately $5.8 million during the nine months ended September 30, 2023, representing an increase in the net cash used in operating activities of $8.2 million during the nine months ended September 30, 2024 compared with the same period in 2023. This is consistent with the Company using part of the IPO proceeds as working capital to grow sales.
About Massimo Group
Massimo Group (NASDAQ: MAMO) is a manufacturer and distributor of powersports vehicles and pontoon boats. Founded in 2009, Massimo Motor believes it offers some of the most value packed UTV's, off-road, and on-road vehicles in the industry. The company's product lines include a wide selection of farm and ranch tested utility UTVs, recreational ATVs, and Americana style mini-bikes. Massimo Marine manufacturers and sells Pontoon and Tritoon boats with a dedication to innovative design, quality craftsmanship, and great customer service. Massimo is also developing electric versions of UTVs, golf-carts and pontoon boats. The company's 376,000 square foot factory is in the heart of the Dallas / Fort Worth area of Texas in the city of Garland. For more information, visit massimomotor.com, massimomarine.com and www.massimoelectric.com.
Forward-Looking Statements
This press release contains statements that constitute "forward-looking statements," including with respect to the initial public offering and the use of proceeds thereof. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "predict," "project," "target," "potential," "seek," "will," "would," "could," "should," "continue," "contemplate," "plan," and other words and terms of similar meaning. These forward-looking statements include information concerning statements regarding future cash needs, future operations, business plans and future financial results; and any other statements that are not historical facts. No assurance can be given that the proceeds of the offering will be used as indicated. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of Massimo, including those set forth in the "Risk Factors" section of Massimo's Registration Statement on Form S-1 for the initial public offering filed with the SEC. Copies are available on the SEC's website, www.sec.gov. Massimo undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.
MASSIMO GROUP AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||
September 30, 2024 (Unaudited) | December 31, 2023 (Audited) | |||||||
As of | ||||||||
September 30, 2024 (Unaudited) | December 31, 2023 (Audited) | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 1,723,783 | $ | 765,814 | ||||
Accounts receivable, net | 11,557,733 | 9,566,445 | ||||||
Inventories, net | 30,913,746 | 25,800,912 | ||||||
Advance to suppliers | 323,268 | 1,589,328 | ||||||
Other current assets | 567,485 | 637,509 | ||||||
Total current assets | 45,086,015 | 38,360,008 | ||||||
NON-CURRENT ASSETS | ||||||||
Property and equipment at cost, net | 600,034 | 399,981 | ||||||
Right of use operating lease assets, net | 10,125,587 | 1,478,221 | ||||||
Right of use financing lease assets, net | 82,410 | 113,549 | ||||||
Deferred offering assets | - | 1,457,119 | ||||||
Other non-current assets | 49,500 | - | ||||||
Deferred tax assets | 1,109,292 | 134,601 | ||||||
Total non-current assets | 11,966,823 | 3,583,471 | ||||||
TOTAL ASSETS | $ | 57,052,838 | $ | 41,943,479 | ||||
LIABILITIES AND EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Short-term loans | $ | - | $ | 303,583 | ||||
Accounts payable | 9,764,284 | 12,678,077 | ||||||
Other payable, accrued expenses and other current liabilities | 4,007,780 | 98,097 | ||||||
Accrued return liabilities | 163,666 | 283,276 | ||||||
Accrued warranty liabilities | 608,644 | 619,113 | ||||||
Contract liabilities | 1,167,161 | 1,835,411 | ||||||
Current portion of obligations under operating leases | 2,075,541 | 847,368 | ||||||
Current portion of obligations under financing leases | 42,970 | 41,647 | ||||||
Income tax payable | 2,031,571 | 2,121,083 | ||||||
Loan from a related party | 6,416,525 | - | ||||||
Total current liabilities | 26,278,142 | 18,827,655 | ||||||
NON-CURRENT LIABILITIES | ||||||||
Obligations under operating leases, non-current | 8,186,938 | 630,853 | ||||||
Obligations under financing leases, non-current | 44,629 | 77,024 | ||||||
Loan from a related party | - | 7,920,141 | ||||||
Total non-current liabilities | 8,231,567 | 8,628,018 | ||||||
TOTAL LIABILITIES | $ | 34,509,709 | $ | 27,455,673 | ||||
Commitments and Contingencies | ||||||||
EQUITY | ||||||||
Common shares, $0.001 par value, 100,000,000 shares authorized, | 41,329 | 40,000 | ||||||
Preferred shares, $0.01 par value, 5,000,000 preferred shares | - | - | ||||||
Subscription receivable | - | (832,159) | ||||||
Additional paid-in-capital | 5,720,756 | 1,994,000 | ||||||
Retained earnings | 16,781,044 | 13,285,965 | ||||||
Total equity | 22,543,129 | 14,487,806 | ||||||
TOTAL LIABILITIES AND EQUITY | $ | 57,052,838 | $ | 41,943,479 | ||||
MASSIMO GROUP AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHESIVE INCOME (UNAUDITED) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Revenues | $ | 25,602,310 | $ | 29,907,697 | $ | 91,156,640 | $ | 75,483,811 | ||||||||
Cost of revenues | 18,649,995 | 19,850,258 | 62,253,681 | 51,706,682 | ||||||||||||
Gross profit | 6,952,315 | 10,057,439 | 28,902,959 | 23,777,129 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling expense | 2,628,915 | 2,104,505 | 7,936,761 | 6,541,244 | ||||||||||||
General and administrative | 3,895,232 | 2,716,733 | 12,096,874 | 9,038,488 | ||||||||||||
Impairment loss on supplier deposit | 29,883 | - | 772,780 | - | ||||||||||||
Research and development | 94,771 | - | 257,021 | - | ||||||||||||
Total operating expenses | 6,648,801 | 4,821,238 | 21,063,436 | 15,579,732 | ||||||||||||
Income from operations | 303,514 | 5,236,201 | 7,839,523 | 8,197,397 | ||||||||||||
Other income (expense): | ||||||||||||||||
Other income, net | 210,701 | 41,133 | 590,538 | 113,001 | ||||||||||||
Loss on litigation | (3,573,651) | - | (3,573,651) | - | ||||||||||||
Interest expense | (64,462) | (213,901) | (268,803) | (494,011) | ||||||||||||
Total other (expense) income, net | (3,427,412) | (172,768) | (3,251,916) | (381,010) | ||||||||||||
(Loss) income before income taxes | (3,123,898) | 5,063,433 | 4,587,607 | 7,816,387 | ||||||||||||
(Recovery of) provision for income | (621,665) | 1,106,046 | 1,092,528 | 1,236,551 | ||||||||||||
Net (loss) income and comprehensive | $ | (2,502,233) | $ | 3,957,387 | $ | 3,495,079 | $ | 6,579,836 | ||||||||
(Loss) Earnings per Share - basic | $ | (0.06) | $ | 0.10 | $ | 0.09 | $ | 0.16 | ||||||||
Weighted average shares outstanding - | 41,325,388 | 40,000,000 | 40,863,370 | 40,000,000 | ||||||||||||
(Loss) Earnings per Share -diluted | $ | (0.06) | $ | 0.10 | $ | 0.09 | $ | 0.16 | ||||||||
Weighted average shares outstanding - | 41,325,388 | 40,000,000 | 41,005,556 | 40,000,000 | ||||||||||||
* Retroactively restated for effect of reorganization | ||||||||||||||||
MASSIMO GROUP AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||||||
Nine Months Ended September 30, | ||||||||
2024 | 2023 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 3,495,079 | $ | 6,579,836 | ||||
Adjustments to reconcile net income to net cash provided by | ||||||||
Depreciation | 98,111 | 109,765 | ||||||
Non-cash operating lease expense | 1,342,402 | 793,577 | ||||||
Accretion of finance lease liabilities | 3,672 | 5,610 | ||||||
Amortization of finance lease right-of-use assets | 31,139 | 31,733 | ||||||
Written-off of account receivables | - | 420,967 | ||||||
Provision of (Reversal of) allowance for excepted credit loss, net | 223,051 | (118,144) | ||||||
Gain on disposal of fixed asset | (36,001) | - | ||||||
Impairment loss of asset | 772,780 | - | ||||||
Loss on litigation | 3,573,651 | - | ||||||
RSU compensation | 426,666 | - | ||||||
Share-based compensation for services | 131,699 | - | ||||||
Deferred tax assets | (974,691) | (65,158) | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (2,214,339) | (1,631,919) | ||||||
Inventories | (5,002,834) | (36,157) | ||||||
Reversal of inventory impairment | (110,000) | - | ||||||
Advance to suppliers | 493,280 | (130,580) | ||||||
Other current assets | 20,524 | (818,397) | ||||||
Related party payable | - | 398,700 | ||||||
Accounts payables | (2,913,793) | (373,314) | ||||||
Other payable, accrued expense and other current liabilities | 336,032 | (154,530) | ||||||
Tax payable | (89,512) | 1,237,709 | ||||||
Accrued warranty liabilities | (10,469) | 205,868 | ||||||
Accrued return liabilities | (119,610) | (341,317) | ||||||
Contract liabilities | (668,250) | 457,936 | ||||||
Lease liabilities - operating lease | (1,205,510) | (793,577) | ||||||
Net cash (used in) provided by operating activities | (2,396,923) | 5,778,608 | ||||||
Cash flows from investing activities: | ||||||||
Proceed from sales of property and equipment | 162,001 | - | ||||||
Acquisition of property and equipment | (424,164) | (68,871) | ||||||
Net cash used in investing activities | (262,163) | (68,871) | ||||||
Cash flows from financing activities: | ||||||||
Repayment of other loans | (303,583) | (1,600,000) | ||||||
Repayment of finance lease liabilities | (34,744) | (35,469) | ||||||
Proceed from common share issuances | 80,000 | - | ||||||
Deferred offering costs | - | (263,162) | ||||||
Proceeds from initial public offering, net of share issuance costs | 4,458,667 | - | ||||||
Repayment of loan from a related party | (1,503,616) | (3,982,876) | ||||||
Proceeds from subscription deposits | 920,331 | 381,841 | ||||||
Net cash provided by (used in) financing activities | 3,617,055 | (5,499,666) | ||||||
Net increase in cash and cash equivalents | 957,969 | 210,071 | ||||||
Cash and cash equivalents, beginning of the period | 765,814 | 947,971 | ||||||
Cash and cash equivalents, end of the period | $ | 1,723,783 | $ | 1,158,042 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW | ||||||||
Cash paid for interest | $ | 244,173 | $ | 494,011 | ||||
Cash paid for income taxes | $ | 2,156,731 | $ | 64,000 | ||||
NON-CASH ACTIVITIES | ||||||||
Right of use assets obtained in exchange for operating lease | $ | 9,758,345 | $ | 1,113,140 | ||||
Right of use assets obtained in exchange for finance lease | $ | - | $ | 60,805 | ||||
SOURCE Massimo Group
