Massimo Group Reports Fiscal Year End 2024 Financial Results

, /PRNewswire/ -- Massimo Group (NASDAQ: MAMO) ("Massimo" or the "Company"), a manufacturer and distributor of powersports vehicles and pontoon boats, today released its financial results for the fourth quarter and the year ended Dec. 31, 2024, noting revenue from sales of UTVs, ATVs and electric bikes increased by $4.1 million, or 4.0%, from $103.3 million in fiscal 2023 to $107.5 million in fiscal 2024. As of Dec. 31, 2024, Massimo reported a positive working capital of $19.2 million, with an increase in net cash and cash equivalents of $9.4 million for the year ended Dec. 31, 2024. The increase in revenue was primarily attributed to Massimo's expansion of product sales into large retail stores in the U.S., along with a shift in the Company's sales strategy. Massimo Group, through its subsidiaries Massimo Motor Sports and Massimo Marine LLC, manufactures, imports and distributes a diversified and competitive portfolio of products including UTVs, ATVs, motorcycles, scooters, golf carts, tractors and recreational pontoon boats among other product lines designed for outdoor enthusiasts. David Shan, CEO of Massimo Group, emphasized operational highlights including the below. Relocation of its MVR Golf Cart series production to its state of the art facility located in Garland, Texas. A new robotic assembly line, which increases efficiency, enhances quality control and improves worker safety in Garland. Massimo's nationwide distribution network now includes six strategically located centers: Edison, New Jersey; City of Industry, California; Port Wentworth, Georgia; Houston, Texas; Garland, Texas; and Edwardsville, Illinois. The Company continues to deepen its relationships with key retail partners through active engagement at major industry events. The company plans to expand into AI Application Robotic Products, partnering with manufacturers to distribute AI-powered companions and utility assistants, transforming the business beyond traditional powersports into high-tech, AI-driven applications. MASSIMO GROUP AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2024 AND 2023 As of December 31, 2024 2023 ASSETS CURRENT ASSETS Cash and cash equivalents $ 10,210,084 $ 765,814 Accounts receivable, net 6,589,038 9,566,445 Inventories, net 27,258,640 25,800,912 Advance to suppliers 99,076 1,589,328 Due from a related party 8,576 - Prepaid and other current assets 1,220,432 637,509 Total current assets 45,385,846 38,360,008 NON-CURRENT ASSETS Property and equipment at cost, net 532,259 399,981 Right of use operating lease assets, net 9,485,899 1,478,221 Right of use financing lease assets, net 71,801 113,549 Deferred offering costs - 1,457,119 Other non-current assets 49,500 - Deferred tax assets 1,166,451 134,601 Total non-current assets 11,305,910 3,583,471 TOTAL ASSETS $ 56,691,756 $ 41,943,479 LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term loans $ - $ 303,583 Accounts payable 9,572,444 10,334,208 Other payable, accrued expenses and other current liabilities 6,169,193 2,441,966 Accrued return liabilities 261,588 283,276 Accrued warranty liabilities 503,553 619,113 Contract liabilities 449,999 1,835,411 Current portion of obligations under operating leases 2,119,894 847,368 Current portion of obligations under financing leases 43,421 41,647 Income tax payable 1,482,203 2,121,083 Loan from a related party 5,546,548 - Total current liabilities 26,148,843 18,827,655 NON-CURRENT LIABILITIES Obligations under operating leases, non-current 7,412,693 630,853 Obligations under financing leases, non-current 33,602 77,024 Loan from a related party - 7,920,141 Total non-current liabilities 7,446,295 8,628,018 TOTAL LIABILITIES $ 33,595,138 $ 27,455,673 Commitments and Contingencies EQUITY Common shares, $0.001 par value, 100,000,000 shares authorized, 41,539,950 and40,000,000 issued and outstanding as of December 31, 2024 and 2023, respectively 41,539 40,000 Subscription receivable - (832,159) Additional paid-in-capital 6,614,907 1,994,000 Retained earnings 16,440,172 13,285,965 Total equity 23,096,618 14,487,806 TOTAL LIABILITIES AND EQUITY $ 56,691,756 $ 41,943,479 MASSIMO GROUP AND SUBSIDIARIES CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 For the Years Ended December 31, 2024 2023 Revenues $ 111,209,142 $ 115,037,544 Cost of revenues 76,865,803 79,126,454 Gross profit 34,343,339 35,911,090 Operating expenses: Selling expense 9,804,547 9,761,090 General and administrative 16,610,528 13,227,106 Impairment of advance to suppliers 772,780 - Research and development 343,493 - Total operating expenses 27,531,348 22,988,196 Income from operations 6,811,991 12,922,894 Other income (expense): Other income, net 1,110,837 140,866 Loss on litigation (3,645,092) - Interest expense (98,667) (518,731) Total other (expense) income, net (2,632,922) (377,865) Income before income taxes 4,179,069 12,545,029 Provision for income taxes 1,024,862 2,129,804 Net income and comprehensive income $ 3,154,207 $ 10,415,225 Earnings per Share – basic $ 0.08 $ 0.26 Weighted average shares outstanding – basic 41,010,654 40,000,000 Earnings per Share – diluted $ 0.08 $ 0.26 Weighted average shares outstanding – diluted 41,161,849 40,000,000 MASSIMO GROUP AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 Year Ended December 31, 2024 2023 Cash flows from operating activities: Net income $ 3,154,207 $ 10,415,225 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 129,598 151,512 Non-cash operating lease expense 1,580,173 974,973 Amortization of finance lease right-of-use assets 41,748 42,113 Write-off of accounts receivable - 598,434 (Reversal of) provision of allowance for expected credit loss (52,169) 203,301 Gain on disposal of property and equipment (36,001) (15,777) Addition of inventories reserve, net 30,000 439,900 Impairment of advance to suppliers 772,780 Loss on litigation 3,645,092 – Amortization of share-based compensation related to options granted 224,190 – Amortization of share-based compensation related to RSU granted 922,399 – Common stock issued for services 48,444 Deferred income tax recovery (1,031,850) (134,601) Changes in operating assets and liabilities: Accounts receivable 3,029,576 (3,536,449) Inventories (1,487,728) (2,477,862) Advance to suppliers 717,472 1,388,084 Prepaid and other current assets (632,423) (566,370) Due from a related party (8,576) – Accounts payables (761,764) 1,356,453 Other payable, accrued expense and other current liabilities 82,135 (303,959) Tax payable (638,880) 2,121,083 Accrued warranty liabilities (115,560) 358,582 Accrued return liabilities (21,688) (273,262) Contract liabilities (1,385,412) 1,139,137 Lease liabilities – operating lease (1,533,485) (974,973) Net cash provided by operating activities 6,672,278 10,905,544 Cash flows from investing activities: Proceed from sales of property and equipment 162,001 13,500 Acquisition of property and equipment (387,876) (134,662) Net cash used in investing activities (225,875) (121,162) Cash flows from financing activities: Proceeds from bank loan - 3,150,000 Repayment of bank loan - (8,750,000) (Repayment of) proceeds from other loans (303,583) 303,583 Repayment of finance lease liabilities (41,648) (40,003) Repayment to related party - (142,427) Deferred offering costs (246,890) (825,330) Repayment of shareholder advance, net (2,373,593) (5,264,203) Proceeds from initial public offering, net of share issuance costs 5,043,250 - Proceeds from subscription deposits 920,331 601,841 Net cash provided by (used in) financing activities 2,997,867 (10,966,539) Net increase (decrease) in cash and cash equivalents 9,444,270 (182,157) Cash and cash equivalents, beginning of the year 765,814 947,971 Cash and cash equivalents, end of the year $ 10,210,084 $ 765,814 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid for interest $ 98,667 $ 518,731 Cash paid for income taxes $ 2,695,591 $ 143,322 NON-CASH ACTIVITIES Right of use assets obtained in exchange for operating lease obligations $ 9,587,851 $ 1,113,140 Right of use assets obtained in exchange for finance lease $ - $ 60,805 Common shares cancellation $ 31,556 $ - 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 minibikes. Founded in 2020, Massimo Marine manufactures and sells Pontoon and Tritoon boats with a dedication to innovative design, quality craftsmanship, and great customer service. Massimo Group is also developing electric versions of UTVs, golf carts and pontoon boats, all of which are currently available for sale. 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 and massimomarine.com. Forward-Looking Statements This press release contains statements that constitute "forward-looking statements." 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, market positions, business plans and future financial results; and any other statements that are not historical facts, although not all forward-looking statements contain such identifying words. Forward-looking statements may include, for example, statements about the Company's ability to enhance its distribution network; entering into partnership with new retail partners, reductions to fulfilment times; the future financial and operational performance of Massimo; competitive position; Massimo's financial position, including estimated revenues, profitability, margins, losses and expenses; new products; operational efficiency; expansion into new markets; acquisitions; the establishment of an R&D department; and other plans and objectives of management. In making these statements, we rely upon assumptions and analysis based on our experience and perception of historical trends, current conditions, and expected future developments, as well as other factors we consider appropriate under the circumstances. We believe these judgments are reasonable, but these statements are not guarantees of any future events or financial results. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond our control. 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 Annual Report on Form 10-K for the year ended Dec. 31, 2024, as updated by Massimo's subsequent filings, 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. CompanyDr. Yunhao ChenChief Financial OfficerMassimo Group[email protected] Corporate CommunicationsIBNAustin, Texaswww.InvestorBrandNetwork.com 512.354.7000[email protected] SOURCE Massimo Group WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Massimo Group Reports Fiscal Year End 2024 Financial Results

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