Revenue Performance - Total revenue decreased by 3.8million,or3.3115.0 million in fiscal 2023 to 111.2millioninfiscal2024[244].−RevenuefromUTVs,ATVs,ande−bikesincreasedby4.1 million, or 4.0%, from 103.3millioninfiscal2023to107.5 million in fiscal 2024, representing 96.6% of total revenue in 2024[247]. - Revenue from sales of Pontoon Boats decreased by 7.9million,or68.011.7 million in fiscal 2023 to 3.8millioninfiscal2024,representing3.41.6 million, or 4.4%, from 35.9millioninfiscal2023to34.3 million in fiscal 2024, with a gross margin of 30.9% in 2024[249]. - Income from operations decreased by 6.1million,or47.312.92 million in fiscal 2023 to 6.81millioninfiscal2024[242].−Netincomedecreasedby7.26 million, or 69.7%, from 10.42millioninfiscal2023to3.15 million in fiscal 2024[242]. Operating Expenses - Operating expenses increased by 4.5million,or19.822.99 million in fiscal 2023 to 27.53millioninfiscal2024[242].−Generalandadministrativeexpensesincreasedby3.4 million, or 25.6%, from 13.2millioninfiscal2023to16.6 million in fiscal 2024, representing 14.9% of total revenue[254]. Cash Flow and Financing - Net cash provided by operating activities was approximately 6.7millioninfiscal2024,adecreaseof4.2 million compared to fiscal 2023[265]. - Net cash provided by financing activities was approximately 3.0millioninfiscal2024,comparedtonetcashusedofapproximately11.0 million in fiscal 2023, primarily due to net proceeds from IPO[266]. - As of December 31, 2024, the company had cash and cash equivalents of approximately 10.2millionandpositiveworkingcapitalof19.2 million[270]. Legal and Other Liabilities - The company recorded a one-time loss of approximately 3.6milliononlegaljudgmentrelatedtoalawsuit,bringingtotalaccrualrelatedtothislawsuittoapproximately6.0 million[259]. - The company recorded an additional accrual of 3,645,092relatedtoalawsuit,bringingthetotalaccrualtoapproximately5,988,961 as of December 31, 2024[287]. - Warranty liabilities decreased from 619,113in2023to503,553 in 2024, with warranty expenses of 1,274,037in2024comparedto1,924,203 in 2023[282]. Inventory and Provisions - Inventory provision increased slightly from 439,900in2023to469,900 in 2024, with impairment provision of 30,000in2024comparedto439,900 in 2023[285]. - The allowance for credit loss was recorded at 0.5millionfor2024,downfrom0.6 million in 2023[284]. - Sales return liabilities were recorded at 261,588for2024,downfrom283,276 in 2023, with sales returns of 1,061,694and3,355,112 for the respective years[281]. Business Strategy and Risks - The company expanded its distribution network through large retail stores in the U.S., focusing on in-store sales to enhance market penetration[244]. - The company is facing risks from intense competition, economic changes in China, and fluctuations in raw material costs, which could adversely affect its financial condition[240][241]. - The company has initiated research and development expenses amounting to 343,493infiscal2024,reflectingafocusoninnovation[242].CapitalExpenditures−CapitalexpendituresforFiscal2024amountedtoapproximately387,876, a substantial increase from 134,662in2023,reflectingbusinessgrowth[276].−Thecompany′sleasecommitmentstotal11,549,277, with 2,904,205duewithinoneyear[277].OtherIncome−Otherincomeincreasedby1.0 million, or 688.6%, from 0.1millioninfiscal2023to1.1 million in fiscal 2024, primarily due to write-offs and additional insurance claims[261]. Debt and Loans - As of December 31, 2024, the total loan balance was 0,comparedto303,583 in 2023, indicating a significant reduction in outstanding loans[272][275]. - There were no off-balance sheet arrangements that could materially affect the financial condition or results of operations for the years ended December 31, 2024 and 2023[278].
