, /PRNewswire/ --Â Massimo Group (NASDAQ: MAMO), a manufacturer and distributor of powersports vehicles and products, today announced an expansion of its UTV lineup with the addition of the Buck 450 4WD UTV and the T-Boss 900L Crew UTV, further strengthening relationships with key retail partners nationwide. This expansion underscores Massimo's commitment to innovation, value, and continuous investment in its product offerings, giving customers more choices across both entry-level and premium categories. Ma ...

Group 1 - Canadian Solar E Storage has signed agreements in Ontario to deliver 420 megawatts of new battery storage capacity, totaling 2,122 megawatt hours [1] - These projects are among the largest in Ontario, enhancing the province's position in large-scale energy storage and fostering collaborations across North America [2] - Wallbox will install 180 kW Supernova DC fast chargers at up to 24 sites in Alberta and British Columbia, supported by over $5 million in funding, to expand fast charging infrastructure in Western Canada [2] Group 2 - Sun Hydrogen has partnered with GTI Energy for safety review and integration support for its hydrogen production pilot, deploying 16 solar to hydrogen reactors in a scalable array [3] - This six-month project marks Sun Hydrogen's first outdoor multi-panel system, aimed at generating data to advance commercialization and larger deployments [3] - Masimo Group has launched its 2026 MVR Golf Cart, the first electric cart in its class with standard heating and air conditioning, featuring a 5 kW motor and a range of 45 miles [4]

Accessibility StatementSkip Navigation MVR Cargo Max offers expanded utility with a cargo-ready design for maintenance, construction, and security use GARLAND, Texas, Sept. 30, 2025 /PRNewswire/ -- Massimo Group (NASDAQ: MAMO) today announced the launch of its 2026 MVR Series, featuring the MVR HVAC Golf Cart and MVR Cargo Max Electric Utility Cart—the first fully enclosed electric carts in their class to come standard with integrated heating and air conditioning. Continue Reading Massimo MVR Series - H ...

Core Insights - Massimo Group integrates Claude AI into its Oracle NetSuite ERP systems to enhance operational efficiency and customer engagement, aiming for long-term shareholder value [1][2][3] Company Overview - Massimo Group is a manufacturer and distributor of powersports vehicles, including UTVs, ATVs, and mini bikes, headquartered in Texas [4] Strategic Initiative - The integration of Claude AI with Oracle NetSuite is expected to streamline workflows, enhance decision-making, and optimize collaboration across various departments such as sales, supply chain, finance, marketing, and customer service [2][3] - This initiative is part of Massimo's strategy to leverage advanced technology to improve productivity and customer experiences, positioning the company for growth into 2026 and beyond [3] Expected Outcomes - The deployment of AI is anticipated to accelerate product development cycles, improve supply chain coordination, and provide more responsive customer support, thereby enhancing operational performance [3]

Accessibility StatementSkip Navigation About Massimo Group (NASDAQ: MAMO)Massimo Group is a manufacturer and distributor of powersports products. Headquartered in Texas, the company offers a full lineup of UTVs, ATVs, and mini bikes built for outdoor adventure. Massimo Group is dedicated to providing high-performance, reliable, and affordable vehicles for consumers across the United States. Forward-Looking StatementsThis press release contains certain forward-looking statements within the meaning of the fe ...

Core Insights - Massimo Group has completed a comprehensive sales and product training session with the largest farm and ranch retailer in the U.S., highlighting the strength of their strategic relationship and commitment to delivering value and innovation [1][3] - The company currently has its products available in over 1,200 locations of this retailer, with plans to expand into an additional 100+ stores [2] - Massimo is focused on broadening its product lineup, including the T-Boss 900L UTV and expansions within its ATV and go-kart offerings [2][3] - The CEO of Massimo Group emphasized the importance of this retail partnership as a cornerstone of their growth strategy, aiming to provide the best vehicles, value, and service to customers [3] - Massimo continues to invest in new product development to meet customer demand and strengthen retail partnerships, positioning itself for growth through 2026 and beyond [3] Company Overview - Massimo Group is a manufacturer and distributor of powersports products, headquartered in Texas, offering a full lineup of UTVs, ATVs, and mini bikes [4] - The company is dedicated to providing high-performance, reliable, and affordable vehicles for consumers across the United States [4]

Core Insights - Massimo Group successfully participated in the Mid-States 2025 Rendezvous, which serves as a key platform for collaboration and strategy development [1][2][3] Company Overview - Massimo Group is a manufacturer and distributor of powersports products, including UTVs, ATVs, and mini bikes, dedicated to providing high-performance and reliable vehicles [5] Strategic Partnerships - The company has partnered with Mid-States for over six years, utilizing the annual show to strengthen relationships and discuss growth opportunities [2][3] Product Launches - At the event, Massimo introduced several upcoming product launches, including the HVAC Sentinel Series and the T-Boss 900L Crew UTV, aimed at expanding its product portfolio [3][4] Market Positioning - By leveraging its relationship with Mid-States and showcasing a robust pipeline of new products, Massimo is well positioned to capture market momentum in Q4 2025 [4]

Core Insights - Massimo Group has launched the 2026 T-Boss 900L Crew, a versatile utility terrain vehicle aimed at farmers, ranchers, and outdoor enthusiasts, with preorders already secured [1][3] Product Features - The T-Boss 900L Crew is powered by an 812cc Chery SQR372 DOHC 3-cylinder engine, producing 39 kW (52 HP) at 6,000 RPM and 70 N•m of torque at 3,500–4,000 RPM, making it a leader in the industry [2] - It features comfortable bench seating for multiple passengers, a 10-inch touchscreen interface with GPS navigation, and a comprehensive standard equipment package, enhancing its utility for various tasks [2] Strategic Positioning - The introduction of the T-Boss 900L Crew expands Massimo Group's UTV offerings, providing a range from single-row models to high-performance units, thus catering to both utility and recreational needs [3] - The CEO of Massimo Group emphasized that the T-Boss 900L Crew is a cornerstone of their 2026 lineup, highlighting its performance, comfort, and reliability [4] Company Overview - Massimo Group is a manufacturer and distributor of powersports products, headquartered in Texas, offering a full lineup of UTVs, ATVs, and mini bikes designed for outdoor adventures [4]

[Cover Page Information](index=1&type=section&id=Cover%20Page%20Information) This section provides key filing details for Massimo Group's Form 10-Q, including its Nasdaq listing, filer status, and outstanding common shares - Massimo Group filed its Form 10-Q for the quarterly period ended June 30, 2025[1](index=1&type=chunk) - The company's common stock trades on The Nasdaq Stock Market LLC under the symbol **MAMO**[3](index=3&type=chunk) - As of August 11, 2025, there were **41,640,950** shares of the Company's common stock issued and outstanding[5](index=5&type=chunk) Filer Status | Filer Status | | | :--- | :--- | | Large accelerated filer | ☐ | | Accelerated filer | ☐ | | Non-accelerated filer | ☒ | | Smaller reporting company | ☒ | | Emerging growth company | ☒ | [Cautionary Note Regarding Forward-Looking Statements](index=4&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section highlights that the report contains forward-looking statements subject to significant risks and uncertainties, with no obligation to update them - The report contains forward-looking statements subject to substantial risks and uncertainties, including future results, financial position, business strategy, and plans[10](index=10&type=chunk) - Key risks include limited operating history, reliance on independent dealers and Chinese manufacturers, economic conditions impacting consumer spending, intense competition, and potential need for additional capital[10](index=10&type=chunk) - The company does not guarantee future results and undertakes no duty to update forward-looking statements after the report date, except as required by law[12](index=12&type=chunk) [PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This part presents the company's unaudited condensed consolidated financial statements, management's discussion and analysis, market risk disclosures, and controls and procedures [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements of Massimo Group for the periods ended June 30, 2025 and 2024, and as of December 31, 2024. It includes the balance sheets, statements of operations and comprehensive income (loss), statements of changes in shareholders' equity, statements of cash flows, and detailed notes to these financial statements, providing a comprehensive view of the company's financial position and performance [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20as%20of%20June%2030,%202025%20(unaudited)%20and%20December%2031,%202024%20(audited)) This section presents the company's financial position, detailing changes in assets, liabilities, and equity between June 30, 2025, and December 31, 2024 Condensed Consolidated Balance Sheets (June 30, 2025 vs. December 31, 2024) | ASSETS | June 30, 2025 (unaudited) | December 31, 2024 (restated) | | :--- | :--- | :--- | | **CURRENT ASSETS** | | | | Cash and cash equivalents | $2.44 million | $10.21 million | | Accounts receivable, net | $8.13 million | $4.83 million | | Inventories, net | $23.41 million | $27.26 million | | Total current assets | $35.28 million | $43.62 million | | **NON-CURRENT ASSETS** | | | | Total non-current assets | $10.66 million | $11.27 million | | **TOTAL ASSETS** | $45.94 million | $54.89 million | | **LIABILITIES AND EQUITY** | | | | **CURRENT LIABILITIES** | | | | Accounts payable | $6.24 million | $9.57 million | | Due to a shareholder | $2.53 million | $5.55 million | | Total current liabilities | $19.39 million | $25.74 million | | **NON-CURRENT LIABILITIES** | | | | Total non-current liabilities | $6.39 million | $7.45 million | | **TOTAL LIABILITIES** | $25.78 million | $33.19 million | | **EQUITY** | | | | Total equity | $20.16 million | $21.70 million | | **TOTAL LIABILITIES AND EQUITY** | $45.94 million | $54.89 million | - Total assets decreased by **$8.95 million (16.3%)** from $54.89 million at December 31, 2024, to $45.94 million at June 30, 2025[18](index=18&type=chunk) - Cash and cash equivalents significantly decreased by **$7.77 million (76.1%)** from $10.21 million to $2.44 million[18](index=18&type=chunk) - Total liabilities decreased by **$7.4 million (22.3%)** from $33.19 million to $25.78 million, primarily due to a reduction in accounts payable and amounts due to a shareholder[18](index=18&type=chunk) [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)%20for%20the%20Six%20Months%20Ended%20June%2030,%202025%20and%202024%20(unaudited)) This section outlines the company's financial performance, including revenues, costs, operating expenses, and net income or loss for the three and six months ended June 30, 2025 and 2024 Condensed Consolidated Statements of Operations (Three Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Revenues | $18.92 million | $35.40 million | | Cost of revenues | $12.05 million | $23.90 million | | Gross profit | $6.87 million | $11.50 million | | Total operating expenses | $6.72 million | $7.93 million | | Income from operations | $0.14 million | $3.56 million | | Net income and comprehensive income | $0.08 million | $2.82 million | | Earnings per Share – basic | $0.00 | $0.07 | Condensed Consolidated Statements of Operations (Six Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Revenues | $33.82 million | $65.55 million | | Cost of revenues | $22.73 million | $43.60 million | | Gross profit | $11.09 million | $21.95 million | | Total operating expenses | $13.66 million | $14.41 million | | Income from operations | $(2.56) million | $7.54 million | | Net income and comprehensive income | $(2.01) million | $6.00 million | | Earnings per Share – basic | $(0.05) | $0.15 | - For the three months ended June 30, 2025, revenues decreased by **46.6% YoY**, and net income decreased by **97.2% YoY**[20](index=20&type=chunk)[155](index=155&type=chunk)[156](index=156&type=chunk) - For the six months ended June 30, 2025, revenues decreased by **48.4% YoY**, and the company reported a net loss of **$2.01 million** compared to a net income of $6.00 million in the prior year[20](index=20&type=chunk)[181](index=181&type=chunk) [Condensed Consolidated Statements of Changes in Shareholders' Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity%20for%20the%20Six%20Months%20Ended%20June%2030,%202025%20and%202024%20(unaudited)) This section details the changes in shareholders' equity, including common shares, additional paid-in capital, and retained earnings, for the six months ended June 30, 2025 and 2024 Changes in Shareholders' Equity (June 30, 2025 vs. June 30, 2024) | Equity Component | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Common Shares (Amount) | $41,640 | $41,322 | | Additional Paid-in Capital | $7.08 million | $5.39 million | | Retained Earnings | $13.04 million | $19.28 million | | Total Equity | $20.16 million | $24.72 million | - Total equity decreased from **$24.72 million** at June 30, 2024, to **$20.16 million** at June 30, 2025, primarily due to a decrease in retained earnings[22](index=22&type=chunk) - Additional paid-in capital increased due to stock-based compensation and amortization of share-based compensation related to RSU grants[22](index=22&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20Six%20months%20Ended%20June%2030,%202025%20and%202024%20(unaudited)) This section presents the company's cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024 Condensed Consolidated Statements of Cash Flows (Six Months Ended June 30) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(4.73) million | $(7.11) million | | Net cash used in investing activities | $- | $(0.18) million | | Net cash provided by (used in) financing activities | $(3.04) million | $7.80 million | | Net increase (decrease) in cash and cash equivalents | $(7.77) million | $0.51 million | | Cash and cash equivalents, end of the period | $2.44 million | $1.28 million | - Net cash used in operating activities decreased by **$2.38 million**, from $7.11 million in 2024 to $4.73 million in 2025[24](index=24&type=chunk)[205](index=205&type=chunk) - Net cash used in financing activities was **$3.04 million** in 2025, a significant change from $7.80 million provided in 2024, primarily due to repayment of shareholder loans[24](index=24&type=chunk)[208](index=208&type=chunk) - Cash and cash equivalents at the end of the period decreased by **$7.77 million** to $2.44 million in 2025, compared to an increase of $0.51 million to $1.28 million in 2024[24](index=24&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements, covering accounting policies, specific accounts, and contingencies [NOTE 1 — ORGANIZATION AND BUSINESS DESCRIPTION](index=12&type=section&id=NOTE%201%20%E2%80%94%20ORGANIZATION%20AND%20BUSINESS%20DESCRIPTION) This note describes Massimo Group's formation, business activities in UTVs, ATVs, and Pontoon Boats, and its IPO and controlling shareholder - Massimo Group, a Nevada holding company established October 10, 2022, manufactures and sells UTVs, ATVs, and Pontoon Boats through its subsidiaries Massimo Motor Sports, LLC and Massimo Marine, LLC[26](index=26&type=chunk)[29](index=29&type=chunk) - The company completed an IPO on April 4, 2024, listing common shares on Nasdaq under 'MAMO', raising approximately **$5.85 million** gross proceeds[26](index=26&type=chunk) - Mr. David Shan, Chairman and CEO, is the controlling shareholder, owning **77.2% equity interest** as of June 30, 2025[26](index=26&type=chunk) [NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=13&type=section&id=NOTE%202%20%E2%80%94%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note outlines the company's accounting principles, revenue recognition, segment reporting, and significant concentrations of credit and market risks - Financial statements are prepared in conformity with U.S. GAAP, with all intercompany balances and transactions eliminated in consolidation[31](index=31&type=chunk) - Revenue is primarily generated from sales of UTVs, ATVs, e-bikes, and Pontoon Boats, recognized when control is transferred to customers upon goods delivery and acceptance[45](index=45&type=chunk) - The company identifies two reportable segments based on product type (UTVs, ATVs, e-bikes and Pontoon Boats) for resource allocation and performance assessment[64](index=64&type=chunk) - Significant concentrations of credit risk exist with cash and cash equivalents, accounts receivable, and other receivables. One customer accounted for **66% of total revenues** for the six months ended June 30, 2025, and **77% of total accounts receivable** as of June 30, 2025[65](index=65&type=chunk)[70](index=70&type=chunk) - The company is exposed to foreign exchange risk due to raw material imports from China, interest rate risk from leases and borrowings, and liquidity risk, though it does not use derivative financial instruments for hedging[67](index=67&type=chunk)[68](index=68&type=chunk)[69](index=69&type=chunk) [NOTE 3 — ACCOUNTS RECEIVABLE, NET](index=22&type=section&id=NOTE%203%20%E2%80%94%20ACCOUNTS%20RECEIVABLE,%20NET) This note details the composition and changes in net accounts receivable, including the allowance for credit loss and pledged balances Accounts Receivable, Net | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Accounts receivable – third parties | $8.49 million | $5.21 million | | Less: allowance for credit loss | $(0.36) million | $(0.38) million | | Accounts receivable, net | $8.13 million | $4.83 million | - Net accounts receivable increased by **$3.30 million (68.3%)** from $4.83 million at December 31, 2024, to $8.13 million at June 30, 2025[80](index=80&type=chunk) - The allowance for credit loss decreased by **$25,465** for the six months ended June 30, 2025, reflecting a reversal of allowance[81](index=81&type=chunk)[82](index=82&type=chunk) - Accounts receivable balances as of June 30, 2025, and December 31, 2024, are pledged for the company's line of credit facility at Cathay Bank[82](index=82&type=chunk) [NOTE 4 — INVENTORIES](index=22&type=section&id=NOTE%204%20%E2%80%94%20INVENTORIES) This note provides a breakdown of inventories, net, including products, parts, and in-transit items, and details changes and pledges Inventories, Net | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Products | $13.65 million | $18.00 million | | Parts and accessories | $1.75 million | $1.11 million | | Inventories in transit | $4.93 million | $4.86 million | | Freight and duty | $3.55 million | $3.75 million | | Less: inventory allowance | $(0.47) million | $(0.47) million | | Inventories, net | $23.41 million | $27.26 million | - Net inventories decreased by **$3.85 million (14.1%)** from $27.26 million at December 31, 2024, to $23.41 million at June 30, 2025[83](index=83&type=chunk) - No impairment provision of inventories was recorded for the three and six months ended June 30, 2025 and 2024[83](index=83&type=chunk)[84](index=84&type=chunk) - Partial inventories of **$18.73 million** (June 30, 2025) and **$21.61 million** (December 31, 2024) were pledged for the company's line of credit facility at Cathay Bank[85](index=85&type=chunk) [NOTE 5 — ADVANCE TO SUPPLIERS](index=24&type=section&id=NOTE%205%20%E2%80%94%20ADVANCE%20TO%20SUPPLIERS) This note explains the changes in advance to suppliers, net, including an impairment loss allowance due to an irrecoverable prepayment Advance to Suppliers, Net | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Advance to suppliers | $0.34 million | $0.87 million | | Less: impairment loss allowance due to irrecoverable prepayment | $- | $(0.77) million | | Advance to suppliers, net | $0.34 million | $99,076 | - Advance to suppliers, net, increased by **$242,702** from $99,076 at December 31, 2024, to $0.34 million at June 30, 2025[87](index=87&type=chunk) - In June 2024, the company wrote off **$0.77 million** of advance to suppliers due to a settlement agreement with a supplier, reducing the advance from $1.09 million to $0.31 million[88](index=88&type=chunk) [NOTE 6 — PREPAID AND CURRENT ASSETS](index=24&type=section&id=NOTE%206%20%E2%80%94%20PREPAID%20AND%20CURRENT%20ASSETS) This note details the components of prepaid and other current assets, including prepayments and other receivables, and their changes Prepaid and Other Current Assets | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Prepayment | $0.81 million | $1.10 million | | Other receivables | $141,519 | $124,049 | | Total | $0.95 million | $1.22 million | - Total prepaid and other current assets decreased by **$266,460 (21.8%)** from $1.22 million at December 31, 2024, to $0.95 million at June 30, 2025[89](index=89&type=chunk) [NOTE 7 — PROPERTY AND EQUIPMENT, NET](index=24&type=section&id=NOTE%207%20%E2%80%94%20PROPERTY%20AND%20EQUIPMENT,%20NET) This note presents the net property and equipment, detailing cost, accumulated depreciation, and changes over the period Property and Equipment, Net | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Subtotal (cost) | $1.09 million | $1.09 million | | Less: accumulated depreciation and amortization | $(0.62) million | $(0.55) million | | Property and equipment, net | $0.47 million | $0.53 million | - Net property and equipment decreased by **$67,005 (12.6%)** from $532,259 at December 31, 2024, to $0.47 million at June 30, 2025[90](index=90&type=chunk) - Depreciation expense for the six months ended June 30, 2025, was **$67,005**, consistent with $66,984 in the prior year[90](index=90&type=chunk) - No impairment loss was recorded for property and equipment for the three and six months ended June 30, 2025 and 2024[92](index=92&type=chunk) [NOTE 8 — LEASES](index=25&type=section&id=NOTE%208%20%E2%80%94%20LEASES) This note describes the company's lease agreements, including operating and finance leases, and their associated liabilities and expenses - The company has multiple lease agreements, primarily for warehouse and office space with a related party (Miller Creek Holding LLC, controlled by David Shan), and for machinery, office equipment, and vehicles[93](index=93&type=chunk) - Total operating lease expense for the six months ended June 30, 2025, was **$1.43 million**, an increase from $0.72 million in the prior year[95](index=95&type=chunk) - The weighted-average remaining lease term for operating leases is **3.95 years** (June 30, 2025) and for finance leases is **1.56 years**[100](index=100&type=chunk) Operating and Finance Lease Liabilities (June 30, 2025 vs. December 31, 2024) | Lease Type | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Operating lease liabilities - current | $2.12 million | $2.12 million | | Operating lease liabilities - non-current | $6.37 million | $7.41 million | | **Total Operating Lease Liabilities** | **$8.49 million** | **$9.53 million** | | Finance lease liabilities - current | $39,652 | $43,421 | | Finance lease liabilities - non-current | $15,889 | $33,602 | | **Total Finance Lease Liabilities** | **$55,541** | **$77,023** | [NOTE 9 — RETURN LIABILITIES](index=27&type=section&id=NOTE%209%20%E2%80%94RETURN%20LIABILITIES) This note details the accrued return liabilities, including actual recognized product returns and accruals for future returns Accrued Return Liabilities | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Balance as of beginning | $261,588 | $283,276 | | Actual recognized products return | $(1.49) million | $(1.06) million | | Accruals for product return liabilities | $1.20 million | $1.04 million | | Ending balance | $31,645 | $261,588 | - Accrued return liabilities decreased significantly from **$261,588** at December 31, 2024, to **$31,645** at June 30, 2025[102](index=102&type=chunk) - For the six months ended June 30, 2025, accruals for product return liabilities were **$1.20 million**, compared to $1.04 million in the prior year[102](index=102&type=chunk) [NOTE 10 — WARRANTY LIABILITIES](index=27&type=section&id=NOTE%2010%20%E2%80%94%20WARRANTY%20LIABILITIES) This note outlines the accrued warranty liabilities, including claims paid and accruals for product warranties Accrued Warranty Liabilities | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Balance as of beginning | $503,553 | $619,113 | | Cost of warranty claims | $(0.33) million | $(1.27) million | | Accruals for product warranty | $125,419 | $1.16 million | | Ending balance | $301,645 | $503,553 | - Accrued warranty liabilities decreased from **$503,553** at December 31, 2024, to **$301,645** at June 30, 2025[103](index=103&type=chunk) - For the six months ended June 30, 2025, accruals for product warranty were **$125,419**, a significant decrease from $1.16 million in the prior year, reflecting improvements in quality control and customer service[103](index=103&type=chunk)[170](index=170&type=chunk)[193](index=193&type=chunk) [NOTE 11 — OTHER PAYABLE, ACCRUED EXPENSE AND OTHER CURRENT LIABILITY](index=27&type=section&id=NOTE%2011%20%E2%80%94%20OTHER%20PAYABLE,%20ACCRUED%20EXPENSE%20AND%20OTHER%20CURRENT%20LIABILITY) This note details other payable, accrued expenses, and other current liabilities, primarily including an accrual for litigation Other Payable, Accrued Expense and Other Current Liabilities | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Credit card liabilities | $- | $13,792 | | Sales Tax payable | $25,976 | $27,129 | | Other current liabilities | $103,650 | $- | | Payroll liabilities | $29,078 | $139,311 | | Accrual on litigation (a) | $6.03 million | $5.99 million | | Total | $6.19 million | $6.17 million | - Total other payable, accrued expense, and other current liabilities remained stable at **$6.19 million** at June 30, 2025, compared to $6.17 million at December 31, 2024[104](index=104&type=chunk) - The balance mainly includes a **$6.03 million** accrual for litigation in connection with Nebula[104](index=104&type=chunk) [NOTE 12 — RELATED PARTY TRANSACTIONS](index=28&type=section&id=NOTE%2012%20%E2%80%94%20RELATED%20PARTY%20TRANSACTIONS) This note describes transactions and balances with related parties, including loans from the controlling shareholder and guarantees - Related parties include David Shan (Controlling Shareholder), Miller Creek Holdings LLC (controlled by David Shan), and Vessel Technology Inc. (controlled by David Shan)[106](index=106&type=chunk) - The company made repayments totaling **$3.02 million** towards the loan from Mr. David Shan during the six months ended June 30, 2025[107](index=107&type=chunk) - Mr. David Shan and Massimo Group provide an unlimited guarantee to the Company's bank borrowings[108](index=108&type=chunk) Due to Shareholder (David Shan) | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Loan from David Shan, opening balance | $5.55 million | $7.92 million | | Repayment | $(3.02) million | $(2.37) million | | Loan from David Shan, ending balance | $2.53 million | $5.55 million | | Current | $2.53 million | $5.55 million | [NOTE 13 — TAXES](index=29&type=section&id=NOTE%2013%20%E2%80%94%20TAXES) This note details the company's income tax provision, effective tax rates, and deferred tax recovery for the reporting periods - Massimo Motor and Massimo Marine are subject to a statutory income tax rate of **21%**[110](index=110&type=chunk) - The company's effective tax rate for the six months ended June 30, 2025, was **22.42%**, compared to 22.23% in 2024[111](index=111&type=chunk) - For the six months ended June 30, 2025, the company recognized a deferred income tax recovery of **$0.5 million** due to a net loss position and temporary differences[202](index=202&type=chunk) Income Tax Provision (Six Months Ended June 30) | | 2025 | 2024 | | :--- | :--- | :--- | | Income tax provision – current | $8,998 | $2.01 million | | Income tax (recovery) - deferred | $(0.52) million | $(0.30) million | | Income tax provision | $(0.51) million | $1.71 million | [NOTE 14 — SHAREHOLDERS' EQUITY](index=30&type=section&id=NOTE%2014%20%E2%80%94%20SHAREHOLDERS'%20EQUITY) This note outlines changes in shareholders' equity, including common shares outstanding, the impact of the IPO, and representative's warrants - As of June 30, 2025, **41,640,950** common shares were issued and outstanding, compared to 41,539,950 at December 31, 2024[115](index=115&type=chunk) - The company closed its IPO on April 4, 2024, issuing **1,300,000 shares** at $4.50 per share, generating approximately **$5.0 million** net proceeds[117](index=117&type=chunk) - The company issued Representative's Warrants to purchase **87,100 shares** of common stock, exercisable at $5.63 per share, with a fair value of **$0.22 million** recorded as a direct IPO cost[119](index=119&type=chunk)[120](index=120&type=chunk) [NOTE 15 — EARNINGS (LOSS) PER SHARE](index=31&type=section&id=NOTE%2015%20%E2%80%94%20EARNINGS%20(LOSS)%20PER%20SHARE) This note presents the calculation of basic and diluted earnings or loss per share, considering net income/loss and weighted average shares Earnings Per Share (Six Months Ended June 30) | | 2025 | 2024 | | :--- | :--- | :--- | | Net income attributable to the Company | $(2.01) million | $6.00 million | | Weighted average number of common shares outstanding – basic | 41,566,110 | 40,629,807 | | Dilutive securities – unvested RSU | - | 63,614 | | Weighted average number of common shares outstanding – diluted | 41,566,110 | 40,693,421 | | Earnings per share – basic | $(0.05) | $0.15 | | Earnings per share – diluted | $(0.05) | $0.15 | - For the six months ended June 30, 2025, the company reported a diluted loss per share of **$(0.05)**, compared to diluted earnings per share of $0.15 in the prior year[126](index=126&type=chunk) - Potential common shares were excluded from diluted EPS calculation for the six months ended June 30, 2025, due to the net loss position, making their inclusion anti-dilutive[123](index=123&type=chunk) [NOTE 16 — EMPLOYEE STOCK PLANS](index=33&type=section&id=NOTE%2016%20%E2%80%94%20EMPLOYEE%20STOCK%20PLANS) This note details the company's equity incentive plan, stock-based compensation expense, and outstanding stock options and RSUs - The company's 2024 Equity Incentive Plan authorizes awards of stock options and RSUs to employees and directors[127](index=127&type=chunk) - Stock-based compensation expense for RSUs was **$307,379** for the six months ended June 30, 2025, compared to $170,321 in the prior year[128](index=128&type=chunk) - Options to purchase **350,000 common shares** were granted to the CEO and two other executives in May 2024, with exercise prices of $4.268 (ISO) and $4.00 (NSO)[129](index=129&type=chunk)[130](index=130&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk) - As of June 30, 2025, **175,000 options** were exercisable, and the total unrecognized compensation cost related to outstanding stock options was **$121,460**, to be recognized over 0.89 years[134](index=134&type=chunk) [NOTE 17 — COMMITMENTS AND CONTINGENCIES](index=34&type=section&id=NOTE%2017%20%E2%80%94%20COMMITMENTS%20AND%20CONTINGENCIES) This note describes the company's legal proceedings and other contingencies, assessing their potential financial impact - The company is involved in legal proceedings, including a lawsuit by Taizhou Nebula Power Co. Ltd. for **$2.34 million** for products shipped from 2017-2019, where the trial court generally found for Nebula in June 2024, and Massimo is appealing[136](index=136&type=chunk) - Another lawsuit by Zhejiang Qunying Vehicle Co., Ltd. alleges **$6.0 million** in damages for unpaid products; the company denies purchasing from Zhejiang and considers a negative outcome remote[137](index=137&type=chunk) - The company believes that any ultimate liability from these proceedings will not have a material adverse effect on its financial position or results of operations, except for the two discussed[135](index=135&type=chunk) [NOTE 18 — SEGMENT REPORTING](index=36&type=section&id=NOTE%2018%20%E2%80%94%20SEGMENT%20REPORTING) This note provides financial information by reportable segments, detailing revenue contributions from UTVs, ATVs, e-bikes, and Pontoon Boats - The company operates and manages its business as two reportable segments: UTVs, ATVs, and e-bikes, and Pontoon Boats[139](index=139&type=chunk) - For the six months ended June 30, 2025, UTVs, ATVs, and e-bikes accounted for **97.7% of total revenue**, while Pontoon Boats accounted for **2.3%**[146](index=146&type=chunk)[147](index=147&type=chunk) Revenue by Product Categories (Six Months Ended June 30) | Product Category | 2025 | 2024 | | :--- | :--- | :--- | | UTVs, ATVs and e-bikes | $33.03 million | $62.93 million | | Pontoon Boats | $0.79 million | $2.63 million | | Total | $33.82 million | $65.55 million | [NOTE 19 — SUBSEQUENT EVENTS](index=36&type=section&id=NOTE%2019%20%E2%80%94%20SUBSEQUENT%20EVENTS) This note confirms the evaluation of events after the reporting period, with no material subsequent events requiring disclosure - The company evaluated all events and transactions after June 30, 2025, up to the financial statement issuance date, and found no material subsequent events requiring disclosure[141](index=141&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.](index=37&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) This section provides management's perspective on the company's financial condition and operational performance for the three and six months ended June 30, 2025, compared to the same periods in 2024. It discusses key factors affecting results, detailed analysis of revenues, expenses, and net income, as well as cash flows, liquidity, capital resources, and critical accounting policies. The company experienced significant revenue and net income declines due to economic contraction, reduced consumer spending, and tariff uncertainties [Overview of Company](index=37&type=section&id=Overview%20of%20Company) This section provides an overview of Massimo Group's business, legal structure, and primary revenue-generating product categories - Massimo Group, a Nevada holding company, manufactures and sells UTVs, ATVs, and Pontoon Boats through its subsidiaries[143](index=143&type=chunk) - The company's legal structure was reorganized on June 1, 2023, consolidating Massimo Motor Sports and Massimo Marine under Massimo Group, controlled by David Shan[144](index=144&type=chunk)[145](index=145&type=chunk) - UTVs and ATVs are the primary revenue drivers, accounting for **97.7% of total revenue** for the six months ended June 30, 2025[146](index=146&type=chunk) [Trends and Key Factors that Affect Operating Results](index=37&type=section&id=Trends%20and%20Key%20Factors%20that%20Affect%20Operating%20Results) This section discusses key trends and factors, including competition, economic conditions, tariffs, and capital availability, affecting the company's operating results - The company faces intense competition in the powersports vehicles and boats industry, with competitors having greater financial and marketing resources[148](index=148&type=chunk) - Significant risks include economic and policy changes in China (where most products are imported from), unavailability of additional capital for growth, and uncertainty in raw material costs[150](index=150&type=chunk) - Recent U.S. tariff policies, including increased tariffs on Chinese imports (up to **145%** by April 9, 2025, then reduced to **30%** during a 90-day truce), have created significant uncertainty, impacting costs, supply chains, and customer ordering behavior[149](index=149&type=chunk)[150](index=150&type=chunk)[151](index=151&type=chunk)[152](index=152&type=chunk)[153](index=153&type=chunk) - Inflationary pressures and high interest rates have reduced consumer spending on discretionary goods, affecting sales of UTVs, ATVs, and Pontoon Boats[150](index=150&type=chunk) [Results of Operations](index=40&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, detailing revenues, costs, and profitability for the three and six months ended June 30, 2025 and 2024 [Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024](index=40&type=section&id=Three%20Months%20Ended%20June%2030,%202025%20Compared%20to%20Three%20Months%20Ended%20June%2030,%202024) This section compares the company's financial performance for the three months ended June 30, 2025, against the same period in 2024, highlighting key changes in revenues and profitability Key Financials (Three Months Ended June 30) | Metric | 2025 | 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenues | $18.92 million | $35.40 million | $(16.49) million | (46.6)% | | Gross profit | $6.87 million | $11.50 million | $(4.63) million | (40.3)% | | Gross profit margin | 36.3% | 32.5% | 3.8% | 11.7% | | Total operating expenses | $6.72 million | $7.93 million | $(1.21) million | (15.3)% | | Income from operations | $0.14 million | $3.56 million | $(3.42) million | (96.0)% | | Net income | $0.08 million | $2.82 million | $(2.74) million | (97.2)% | - Revenue decreased by **$16.49 million (46.6%)** due to U.S. economic contraction, reduced consumer spending, and uncertainty from new tariffs, which led to reduced order sizes from major big-box customers[157](index=157&type=chunk)[161](index=161&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk) - Gross profit decreased by **$4.63 million (40.3%)**, but gross profit margin increased to **36.3%** from 32.5%, mainly due to a recovery in sales in June[165](index=165&type=chunk) - Selling expenses decreased by **$0.9 million (30.4%)**, primarily due to a **$0.5 million** reduction in warranty expenses, reflecting improved quality control and customer service[170](index=170&type=chunk) - Net income decreased by **97.2%** to **$0.08 million**, primarily driven by decreased revenues and gross profit, partially offset by lower operating expenses[180](index=180&type=chunk) [Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024](index=45&type=section&id=Six%20Months%20Ended%20June%2030,%202025%20Compared%20to%20Six%20Months%20Ended%20June%2030,%202024) This section compares the company's financial performance for the six months ended June 30, 2025, against the same period in 2024, detailing significant declines in revenue and net income Key Financials (Six Months Ended June 30) | Metric | 2025 | 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Sales | $33.82 million | $65.55 million | $(31.74) million | (48.4)% | | Gross profit | $11.09 million | $21.95 million | $(10.86) million | (49.5)% | | Gross profit margin | 32.8% | 33.5% | (0.7)% | (2.1)% | | Total operating expenses | $13.66 million | $14.41 million | $(0.76) million | (5.3)% | | Income from operations | $(2.56) million | $7.54 million | $(10.10) million | (134.0)% | | Net income | $(2.01) million | $6.00 million | $(8.01) million | (133.5)% | - Revenue decreased by **$31.74 million (48.4%)** due to U.S. economic contraction, reduced consumer spending, and uncertainty from tariffs, leading to reduced orders from big-box customers[182](index=182&type=chunk)[185](index=185&type=chunk)[186](index=186&type=chunk)[187](index=187&type=chunk) - Net loss was **$2.01 million**, a significant decline from net income of $6.00 million in the prior year, primarily due to decreased revenues and gross profit[203](index=203&type=chunk) - Pontoon Boat sales decreased by **$0.8 million (30.7%)** due to an industry-wide downturn, high interest rates, inflation, and high rejection rates from floorplan financing providers[188](index=188&type=chunk) - Selling expenses decreased by **$1.3 million (24.2%)**, driven by a **$0.7 million** reduction in warranty expenses due to improved quality control and a traveling technician team[193](index=193&type=chunk) [Cash Flows](index=49&type=section&id=Cash%20Flows) This section analyzes the company's cash flows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024 [Operating Activities](index=49&type=section&id=Operating%20Activities) This section details net cash flows from operating activities, explaining changes driven by net income/loss and non-cash adjustments Net Cash (Used in) Provided by Operating Activities (Six Months Ended June 30) | | 2025 | 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(4.73) million | $(7.11) million | - Net cash used in operating activities decreased by **$2.38 million**, from $7.11 million in 2024 to $4.73 million in 2025, primarily due to a net loss of $2.0 million in 2025 compared to a net income of $6.0 million in 2024[205](index=205&type=chunk) - Non-cash items adjusted for net income were approximately **$1.0 million** during the six months ended June 30, 2025, compared to approximately $1.6 million during the same period in 2024[206](index=206&type=chunk) - Inventory increased by approximately **$3.8 million** during the six months ended June 30, 2025[214](index=214&type=chunk) [Investing Activities](index=51&type=section&id=Investing%20Activities) This section outlines net cash flows from investing activities, primarily related to fixed deposits and capital expenditures Net Cash Used in Investing Activities (Six Months Ended June 30) | | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in investing activities | $- | $(0.18) million | - Net cash used in investing activities was **nil** for the six months ended June 30, 2025, compared to $0.18 million used in the prior year[207](index=207&type=chunk) - In 2025, the company made and then received proceeds from a **$3.0 million** fixed deposit, resulting in no net cash flow from investing[207](index=207&type=chunk) [Financing Activities](index=51&type=section&id=Financing%20Activities) This section describes net cash flows from financing activities, including shareholder loan repayments and proceeds from bank loans and IPO Net Cash Provided by (Used in) Financing Activities (Six Months Ended June 30) | | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) financing activities | $(3.04) million | $7.80 million | - Net cash used in financing activities was **$3.04 million** in 2025, a significant change from $7.80 million provided in 2024[208](index=208&type=chunk) - The primary use of cash in 2025 was a **$3.0 million** repayment of shareholder withdrawal[208](index=208&type=chunk) - In 2024, financing activities included **$2.7 million** from bank loans and **$4.5 million** net proceeds from the IPO[208](index=208&type=chunk) [Liquidity and Capital Resources](index=51&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's ability to meet short-term and long-term obligations, its capital management strategy, and working capital position [Overview](index=51&type=section&id=Overview) This section outlines the company's capital management strategy, focusing on operational capacity, stakeholder benefits, and return on investment - The company's capital management strategy focuses on preserving operational capacity, providing stakeholder benefits, and ensuring adequate return on investment[209](index=209&type=chunk) - The capital structure is adjusted based on economic environment and asset risks, and the company is not subject to externally imposed capital requirements[210](index=210&type=chunk) [Working Capital](index=51&type=section&id=Working%20Capital) This section details the company's working capital position, including cash, receivables, inventory, and current liabilities, and future capital needs - As of June 30, 2025, the company had a positive working capital of **$15.9 million**[211](index=211&type=chunk) - Accounts receivable increased from $4.8 million at December 31, 2024, to **$8.1 million** at June 30, 2025, due to sales recovery in June[212](index=212&type=chunk) - The company expects to meet operational needs through cash flow from operating activities but may seek additional capital by issuing shares[213](index=213&type=chunk) Working Capital Components (June 30, 2025) | Component | Amount | | :--- | :--- | | Cash and cash equivalents | $2.4 million | | Accounts receivable | $8.2 million | | Inventory | $23.4 million | | Total current assets | $35.3 million | | Total current liabilities | $19.4 million | [Capital Expenditures](index=52&type=section&id=Capital%20Expenditures) This section reports on capital expenditures, primarily for fixed assets and equipment leases, and their changes year-over-year - Capital expenditures were **nil** for the six months ended June 30, 2025, compared to **$0.34 million** in the prior year[215](index=215&type=chunk) - Capital expenditures primarily consist of purchases of fixed assets and equipment leases, driven by business growth[215](index=215&type=chunk) [Contractual Commitments](index=52&type=section&id=Contractual%20Commitments) This section outlines the company's contractual obligations, specifically lease commitments, and their payment schedule - Total lease commitments as of June 30, 2025, amounted to **$10.09 million**, with **$2.80 million** due within one year[216](index=216&type=chunk) Contractual Obligations (as of June 30, 2025) | Contractual Obligations | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | | :--- | :--- | :--- | :--- | :--- | :--- | | Lease commitment | $10.09 million | $2.80 million | $4.70 million | $2.59 million | $- | [Off-balance Sheet Commitments and Arrangements](index=52&type=section&id=Off-balance%20Sheet%20Commitments%20and%20Arrangements) This section confirms the absence of material off-balance sheet arrangements impacting the company's financial condition or results of operations - There were no off-balance sheet arrangements for the six months ended June 30, 2025 and 2024, that had a material effect on financial condition or results of operations[217](index=217&type=chunk) [Critical Accounting Policies and Estimates](index=52&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section highlights the company's critical accounting policies and estimates, which involve significant judgment and impact financial reporting [Sales returns](index=52&type=section&id=Sales%20returns) This section details the accounting policy and estimated liability for sales returns based on historical data - Sales return liabilities were **$31,645** as of June 30, 2025, based on historical sales returns[220](index=220&type=chunk) [Warranty](index=52&type=section&id=Warranty) This section describes the accounting policy and estimated liability for product warranties based on historical experience and repair costs - Product warranty liabilities were **$301,645** as of June 30, 2025, estimated based on historical experience and repair costs[221](index=221&type=chunk) [Allowance for credit loss](index=53&type=section&id=Allowance%20for%20credit%20loss) This section explains the accounting policy and estimated allowance for credit losses on accounts receivable - Allowance for credit loss was **$0.4 million** as of June 30, 2025, determined using a loss rate method considering customer financial condition and economic forecasts[223](index=223&type=chunk) [Inventory provision](index=53&type=section&id=Inventory%20provision) This section details the accounting policy and provision for inventory, valued at the lower of cost or net realizable value - Inventory provision was **$469,900** as of June 30, 2025, based on the lower of cost or net realizable value, with no impairment recorded for the period[224](index=224&type=chunk) [Contingencies](index=53&type=section&id=Contingencies) This section outlines the accounting policy for contingencies, assessing probable and estimable losses from legal proceedings - The company assesses contingencies for probable and estimable losses, believing current legal proceedings will not have a material adverse effect on its financial position or results, except for the two discussed in Note 17[225](index=225&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk.](index=53&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) As a smaller reporting company, Massimo Group is not required to provide quantitative and qualitative disclosures about market risk in this report - The company is exempt from providing quantitative and qualitative disclosures about market risk as it is a smaller reporting company[226](index=226&type=chunk) [Item 4. Controls and Procedures.](index=53&type=section&id=Item%204.%20Controls%20and%20Procedures.) This section details the evaluation of the company's disclosure controls and procedures, identifying a material weakness related to ineffective controls over information and communication and period-end financial disclosure and reporting processes. Management is actively implementing remediation plans, including new approval procedures, additional monitoring controls, and improved communication between departments, but these weaknesses are not yet considered remediated [Evaluation of Disclosure Controls and Procedures](index=53&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This section details the evaluation of the company's disclosure controls and procedures, identifying a material weakness as of June 30, 2025 - Management identified a **material weakness** in disclosure controls and procedures as of June 30, 2025[229](index=229&type=chunk) - The material weakness is related to ineffective controls over information and communication and period-end financial disclosure and reporting processes, including internal and external communication gaps and lack of effective controls over accurate accounting and financial reporting[229](index=229&type=chunk) [Remediated Material Weaknesses](index=54&type=section&id=Remediated%20Material%20Weaknesses) This section outlines management's remediation plans for identified material weaknesses in disclosure controls and procedures - Management is developing and implementing remediation plans, including new approval procedures for product offerings, additional monitoring controls for revenue streams, and improved communication between sales and accounting departments[230](index=230&type=chunk)[232](index=232&type=chunk) - These material weaknesses will not be considered remediated until the controls operate effectively for a sufficient period and are tested[230](index=230&type=chunk) [Changes in Internal Control over Financial Reporting](index=54&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) This section reports on any changes in internal control over financial reporting during the quarter ended June 30, 2025 - Other than the material weaknesses discussed, there have been no changes to internal control over financial reporting during the quarter ended June 30, 2025, that materially affected or are reasonably likely to materially affect it[231](index=231&type=chunk) [PART II. OTHER INFORMATION](index=55&type=section&id=PART%20II.%20OTHER%20INFORMATION) This part covers legal proceedings, risk factors, equity sales, defaults, mine safety, other information, and exhibits, providing additional disclosures [Item 1. Legal Proceedings.](index=55&type=section&id=Item%201.%20Legal%20Proceedings.) This section details the company's ongoing legal proceedings, including a breach of contract lawsuit by Taizhou Nebula Power Co. Ltd. for $2.34 million, which the company is appealing after an unfavorable trial court judgment. It also mentions a $6.0 million damages claim by Zhejiang Qunying Vehicle Co., Ltd., which the company intends to vigorously defend, denying any product purchases from them. The company acknowledges past litigation but does not believe it will have a material adverse effect on current operations - Taizhou Nebula Power Co. Ltd. sued the company for **$2.34 million** for products shipped from 2017-2019; the trial court found for Nebula in June 2024, and Massimo is appealing[234](index=234&type=chunk) - Zhejiang Qunying Vehicle Co., Ltd. filed a **$6.0 million** damages claim, alleging unpaid products; the company denies purchasing from Zhejiang and plans to vigorously defend the lawsuit, with trial scheduled for March 2026[235](index=235&type=chunk) - The company has been subject to over fifty past legal proceedings, but does not believe they will have a material adverse effect on its business, operating results, financial condition, or cash flows[236](index=236&type=chunk) [Item 1A. Risk Factors.](index=55&type=section&id=Item%201A.%20Risk%20Factors.) This section states that there have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024. It reiterates that any of these factors could significantly impact the company's operations or financial condition - No material changes to risk factors have occurred since the Annual Report on Form 10-K for fiscal year ended December 31, 2024[237](index=237&type=chunk) - Existing risk factors could still result in a significant or material adverse effect on the company's results of operations or financial condition[237](index=237&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.](index=55&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) This section reports that there were no unregistered sales of equity securities during the period - There were no unregistered sales of equity securities during the reporting period[238](index=238&type=chunk) [Item 3. Defaults Upon Senior Securities.](index=55&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities.) This section confirms that there were no defaults upon senior securities during the reporting period - There were no defaults upon senior securities during the reporting period[239](index=239&type=chunk) [Item 4. Mine Safety Disclosures.](index=55&type=section&id=Item%204.%20Mine%20Safety%20Disclosures.) This item is not applicable to the company - Mine Safety Disclosures are not applicable to the company[240](index=240&type=chunk) [Item 5. Other Information.](index=55&type=section&id=Item%205.%20Other%20Information.) This section states that no directors or officers adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarterly period ended June 30, 2025 - No directors or officers adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter ended June 30, 2025[241](index=241&type=chunk) [Item 6. Exhibits.](index=56&type=section&id=Item%206.%20Exhibits.) This section lists the exhibits filed as part of the Form 10-Q report, including certifications from the Principal Executive Officer and Principal Financial Officer, and Inline XBRL documents - The report includes certifications from the Principal Executive Officer and Principal Financial Officer (Exhibits 31.1, 31.2, 32.1, 32.2)[244](index=244&type=chunk) - Inline XBRL Instance Document and Taxonomy Extension Documents are filed as Exhibits 101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE, and 104[244](index=244&type=chunk) [Signatures](index=57&type=section&id=Signatures) This section contains the signatures of the Chief Executive Officer, David Shan, and Chief Financial Officer, Yunhao Chen, certifying the filing of the report on August 14, 2025 - The report was signed by David Shan, Chief Executive Officer, and Yunhao Chen, Chief Financial Officer, on August 14, 2025[247](index=247&type=chunk)

Company Expansion - Massimo Motor has obtained licensing to launch sales in Oregon and Arkansas, adding over 100 new retail locations [1][2] - The expansion is expected to significantly boost sales during the holiday season based on initial stocking and re-order trends [2] - CEO David Shan emphasized that this expansion strengthens retail presence and positions the company for sustained growth [2][3] Operational Enhancements - Massimo has made strategic enhancements to its global sourcing and logistics model, including expanded factory partnerships in Vietnam [2] - These improvements have led to reduced lead times, improved product flow, and increased operational flexibility [2] - The company is well-positioned to meet market needs during the peak sales cycle in Q3 and Q4 [3]