Revenue Performance - For the three months ended September 30, 2025, total revenues were $16,990,855, a decrease from $25,602,310 in the same period of 2024, representing a decline of approximately 33.9%[159] - Revenue decreased by $8.6 million, or 33.6%, from $25.6 million in Q3 2024 to $16.9 million in Q3 2025[163] - Revenues decreased by $40.3 million, or 44.3%, from $91.2 million for the nine months ended September 30, 2024, to $50.9 million for the same period in 2025[188] - Revenue from UTVs, ATVs, and e-bikes decreased by $38.6 million, or 43.9%, from $88.0 million in 2024 to $49.4 million in 2025[191] - Revenue from sales of Pontoon Boats decreased by $1.7 million, or 55.5%, from $3.1 million in 2024 to $1.4 million in 2025[194] Profitability - Gross profit for the three months ended September 30, 2025, was $7,134,254, an increase from $6,952,315 in the same period of 2024, reflecting a growth of approximately 2.6%[159] - The company reported a net income of $1,526,407 for the three months ended September 30, 2025, compared to a net loss of $2,502,233 in the same period of 2024[159] - Net income improved to $1.5 million in Q3 2025 from a net loss of $2.5 million in Q3 2024, marking a change of $4.0 million[163] - Income before income taxes increased by $4.9 million, from a loss of $3.1 million in Q3 2024 to a profit of $1.9 million in Q3 2025[183] - Net loss was $0.48 million for the nine months ended September 30, 2025, compared with net income of $3.50 million for the same period last year[210] Expenses - Research and development expenses increased significantly to $786,650 for the three months ended September 30, 2025, compared to $94,771 in the same period of 2024, marking an increase of approximately 728.5%[159] - Selling expenses decreased by $1.4 million, or 55.8%, from $2.6 million in Q3 2024 to $1.2 million in Q3 2025, representing 6.8% of total revenue[175] - General and administrative expenses decreased by $0.5 million, or 12.8%, from $3.9 million in Q3 2024 to $3.4 million in Q3 2025[176] - Research and development expenses increased significantly by $0.7 million, or 730.1%, from $0.1 million in Q3 2024 to $0.8 million in Q3 2025[163] - Selling expenses decreased by $2.7 million, or 34.6%, from $7.9 million in 2024 to $5.2 million in 2025, representing 10.2% of total revenue[200] Cash Flow and Financial Position - Net cash used in operating activities was approximately $4.1 million for the nine months ended September 30, 2025, compared to $2.4 million for the same period in 2024, an increase of $1.7 million[212] - Net cash used in investing activities was $65,361 for the nine months ended September 30, 2025, compared to $262,163 for the same period last year[214] - Net cash used in financing activities was approximately $3.5 million for the nine months ended September 30, 2025, compared to net cash generated of approximately $3.6 million for the same period in 2024[215] - Cash and cash equivalents at the end of the period were approximately $2.6 million as of September 30, 2025, compared to $1.7 million at the end of the same period in 2024[211] Inventory and Accounts Payable - Inventory decreased by approximately $2.2 million during the nine months ended September 30, 2025, compared to an increase of approximately $5.0 million during the same period in 2024[220] - Accounts payable decreased by approximately $4.9 million during the nine months ended September 30, 2025, compared to a decrease of approximately $2.9 million during the same period in 2024[220] Legal and Market Conditions - The company is involved in various legal proceedings and disputes, but believes that any ultimate liability will not have a material adverse effect on its financial position as of September 30, 2025[231] - The company faced challenges due to high interest rates and inflation, impacting consumer spending and demand for discretionary goods[188]
Massimo Group(MAMO) - 2025 Q3 - Quarterly Report