Q2 2024 Revenue Increases 32% YoY to
$35.4 Million
Q2 2024 Net Income Increases 36% YoY to
$2.8 Million
New Production, Distribution and Product
Initiatives Fueling Rapid Growth
GARLAND,
Texas, Aug. 12, 2024 /PRNewswire/ -- Massimo
Group (NASDAQ: MAMO) ("Massimo"), a manufacturer and
distributor of powersports vehicles and pontoon boats, has reported
its financial and operational results for the second quarter ended
June 30, 2024.
Key Financial Q2 2024 and Subsequent Operational Highlights
and Business Updates
($
millions)
|
Q2
Comparison
|
|
Q2
2024
|
Q2
2023
|
$ Change
YoY
|
% Change
YoY
|
Revenue
|
$35.4
|
$26.7
|
$8.7
|
32 %
|
Gross Profit
|
$11.5
|
$8.1
|
$3.4
|
42 %
|
Gross Margin
|
32.5 %
|
30.3 %
|
--
|
217
bps
|
Net Income
|
$2.8
|
$2.1
|
$0.7
|
36 %
|
- Revenue increased 32% to $35.4
million in Q2 2024 compared to $26.7
million in Q2 2023.
- Gross profit increased 42% to $11.5
million in Q2 2024 from $8.1
million in Q2 2023. Gross margin increased 217 basis points
to 32.5% in Q2 2024 from 30.3% in Q2 2023.
- Net income increased 36% to $2.8
million in Q2 2024, or $0.07
per basic and diluted share, as compared to net income of
$2.1 million, or $0.05 per basic and diluted share, in Q2
2023.
- 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.
- 90,000 sq. ft. expansion of its manufacturing facility in
Garland, Texas, to support
increased production across its motor and marine product
verticals.
- Entered into strategic partnership agreement with Armlogi
Holding Corp ("Armlogi"), a U.S.-based warehousing and logistics
service provider, to provide access to Armlogi warehousing
facilities and tailored logistics services for fast order
fulfillment of UTVS, ATVs, Go-Karts and Golf Carts.
- Entered into an ongoing national agreement with a global
omnichannel retailer for its youth series Mini Tractor and Mini 125
Go Karts to be sold in stores.
- Entered into an ongoing agreement with Fleet Farm, a retailer
serving active, outdoor, suburban and farm communities in the
Midwest U.S., for its UTV, ATV, and youth series product lines to
be sold in stores.
- Launched new 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 Outdoor Power Equipment
Hoedown for Mid-States Distributing Company, Inc., held at the
Gaylord Opryland in Nashville,
TN.
- Closed $5.85 million initial
public offering, listing on Nasdaq Capital Market under the ticker
symbol "MAMO" on April 4, 2024.
- Company rang the closing bell at the Nasdaq MarketSite in Times
Square, New York on Monday, July 15, 2024.
Management Commentary
"During the second quarter we focused on strategic expansions in
production, distribution and products to support ongoing revenue
momentum," said David Shan, Founder,
Chairman & CEO. "With significant top and bottom-line growth on
strong sales and margin improvement, we continue to build
manufacturing capacity aimed at enhancing flexibility and
increasing annual production. We continued to add new distribution
partners and retailers to increase our national footprint and drive
sales across our existing and new diversified product
portfolio.
"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 expected to be installed in the coming weeks.
This automation is expected to improve efficiency by 50% and
enhance safety for production of ATV and UTV vehicles lines.
"In addition to our facility expansion projects to accommodate
growth initiatives, during the quarter we partnered with Armlogi, a
U.S.-based warehousing and logistics service provider, to provide
access to Armlogi warehousing facilities and tailored logistics
services for fast order fulfillment of our UTVS, ATVs, Go-Karts and
Golf Carts. Armlogi will receive containers of Massimo vehicle kits
arriving from Asian suppliers at our warehouses in Savannah, GA, Edison, NJ, and Walnut, CA. We will provide vehicle assembly
at the warehouses, and Armlogi will supply inventory management,
storage services, logistics, and delivery to final order
destinations. This partnership will enhance our operational
capabilities and efficiencies by putting delivery of vehicle
components, assembly and shipping closer to order destinations.
"In-store distribution channels also grew during the quarter
with new agreements with Tractor Supply, Fleet Farm and a global
omnichannel retailer. Building on the success of our current
agreement with Tractor Supply providing our full Massimo Motor
product lineup online and in stores.
We signed an ongoing national agreement with a
global omnichannel retailer for the youth series Mini Tractor
and Mini 125 Go Kart to be sold in stores. The retailer's online
marketplace currently features over 100 Massimo products, and with
the expanded partnership, the two products have been eligible to be
stocked at over 1,300 stores in 13 states since May 2024. We also entered into an ongoing
agreement with Fleet Farm for six UTV, ATV, and youth series
products to be sold in stores and featured on the retailer's online
marketplace. These national in-store opportunities with retailers
position us for accelerating sales across the U.S.
"Looking ahead, our expanding production capabilities, including
an automated vehicle assembly robot line and the Armlogi
partnership, are expected to allow Massimo to meet the growing
demand of our products. We believe with increased operating
efficiencies we can further enhance margins while continuing to
grow our revenue and expand our product line with new models and
capabilities like our new GKD 350 All-Terrain Go Kart. We continue
to focus on new distribution channels and additional products with
existing partners, which now stands at over 2,800 retail locations
promoting our brand in 48 states. Taken together, we are rapidly
leveraging our position to build market share and deliver long-term
value to our shareholders," concluded Mr. Shan.
Second Quarter 2024 Financial Results
For the three months ended June 30,
2024, revenues increased by $8.7
million, or 32.4%, to $35.4
million, compared to $26.7
million in the prior year period. The increase in revenue
was primarily due to the combined effect of rising demand in the
U.S. ATV and UTV market and a modified sales strategy.
Revenue from sales of UTVs, ATVs and e-bikes increased by
$11.9 million, or 53.3%, from
$22.3 million in the second quarter
of fiscal 2023, to $34.2 million in
the second quarter of fiscal 2024. The increase in revenue was
attributable to the expansion into more large retail stores in the
US and to a shift in sales strategy, focusing mostly on in-store
sales, which generally involve larger volumes and fewer
returns.
Revenue from sales of pontoon boats decreased by $3.2 million, or 73.5%, from $4.4 million in the second quarter of fiscal
2023, to $1.2 million in the second
quarter of fiscal 2024. The decrease in revenue was primarily
attributable to the fact that the company shifted from retailing to
dealer sales starting in fiscal 2024 and the dealers have
experienced high rejection rates at the floorplan financing
providers such as Northpoint. This is consistent with the
industry-wide trend.
Gross profit increased by $3.4
million, or 41.9%, from $8.1
million in the second quarter of fiscal 2023, to
$11.5 million in the second quarter
of fiscal 2024. Gross profit margin was 32.5% in the second quarter
of fiscal 2024, compared with 30.3% in the same period last year.
The increase in the gross profit margin was primarily attributable
to higher net sales partly due to decreased return, which was
partly offset by higher cost of sales due to increased freight
costs in the second quarter of fiscal 2023 as compared to last
year.
The cost of revenue on UTVs, ATVs and e-bikes increased by
$8.2 million, or 55.7%, from
$14.8 million in the second quarter
of fiscal 2023 to $23.0 million in
the second quarter of fiscal 2024, and the gross profit increased
by $3.6 million, or 48.6%, from
$7.6 million in the second quarter of
fiscal 2023 to $11.2 million in the
second quarter of fiscal 2024. The gross margin decreased by 1.1%,
from 33.9% in the second quarter of fiscal 2023 to 32.8% in the
second quarter of fiscal 2024. The increase in the cost of revenue
was in line with the increase in sales. The slight decrease in
gross margin was mainly due to a rise in global container freight
in the second quarter of fiscal 2024. Freight costs increased in
the second quarter of fiscal 2024 when compared with last year.
The cost of revenue on pontoon boats decreased by $3.0 million, or 76.5%, from $3.9 million in the second quarter of fiscal 2023
to $0.9 million in the second quarter
of fiscal 2024, and the gross profit decreased by $0.3 million, or 51.6%, from $0.5 million in the second quarter of fiscal 2023
to $0.3 million in the second quarter
of fiscal 2024. Gross margin increased from 12.3% in the second
quarter of fiscal 2023 to 22.4% in the second quarter of fiscal
2024. The increase in gross margin was primarily because of
strategically focusing on selling higher-margin models of pontoon
boats.
Selling and marketing expenses increased by $0.6 million, or 24.6%, from $2.5 million in the second quarter of fiscal 2023
to $3.1 million in the second quarter
of fiscal 2024. The increase in selling expenses was mainly due to
an increase in shipping and handling fees.
General and administrative expenses increased by $0.8 million, or 22.7%, from $3.3 million in the second quarter of fiscal 2023
to $4.1 million in the second quarter
of fiscal 2024. The increase was mainly due to increased salaries
and benefits, a one-time impairment loss, and rent expense, which
were partly offset by a decrease in professional and legal
fees.
Total operating expenses increased 36.2% to $7.9 million for the three months ended
June 30, 2024, compared to
$5.8 million in the prior year second
quarter.
Net income for the three months ended June 30, 2024, was $2.8
million, or $0.07 per basic
and diluted share, as compared to net income of $2.1 million, or $0.05 per basic and diluted share, in the three
months ended June 30, 2023.
Cash and cash equivalents totaled $1.3
million at June 30, 2024, as
compared to $0.8 million at
December 31, 2023. On April 24, 2024, Massimo closed its initial public
offering with aggregate gross proceeds, before deducting
underwriting discounts and commissions and other offering expenses
payable by Massimo, of $5.85
million.
Net cash used by operating activities was $7.1 million for the six months ended
June 30, 2024, compared to net cash
provided of $2.7 million in the six
months ended June 30, 2023, primarily
due to increases in accounts receivable and inventory of
$1.9 million and $5.0 million, respectively, and a decrease in
accounts payable of $4.5 million.
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 Annual Report on Form 10-K for the fiscal year ended
December 31, 2023 filed with the
Securities and Exchange Commission (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.
Company
Dr. Yunhao
Chen
Chief Financial Officer
Massimo Group
ir@massimomotor.com
Investor Relations
Chris Tyson
Executive Vice President
MZ North America
Direct: 949-491-8235
MAMO@mzgroup.us
MASSIMO GROUP AND
SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
As of
|
|
|
|
June 30,
2024
(unaudited)
|
|
|
December 31,
2023
(audited)
|
|
ASSETS
|
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,277,878
|
|
|
$
|
765,814
|
|
Accounts receivable,
net
|
|
|
11,466,849
|
|
|
|
9,566,445
|
|
Inventories,
net
|
|
|
30,831,548
|
|
|
|
25,800,912
|
|
Advance to
suppliers
|
|
|
902,234
|
|
|
|
1,589,328
|
|
Other current
assets
|
|
|
762,675
|
|
|
|
637,509
|
|
Total current
assets
|
|
|
45,241,184
|
|
|
|
38,360,008
|
|
|
|
|
|
|
|
|
|
|
NON-CURRENT
ASSETS
|
|
|
|
|
|
|
|
|
Property and equipment
at cost, net
|
|
|
548,849
|
|
|
|
399,981
|
|
Right of use operating
lease assets, net
|
|
|
3,492,910
|
|
|
|
1,478,221
|
|
Right of use financing
lease assets, net
|
|
|
92,790
|
|
|
|
113,549
|
|
Deferred offering
assets
|
|
|
-
|
|
|
|
1,457,119
|
|
Other non-current
assets
|
|
|
49,500
|
|
|
|
-
|
|
Deferred tax
assets
|
|
|
431,845
|
|
|
|
134,601
|
|
Total non-current
assets
|
|
|
4,615,894
|
|
|
|
3,583,471
|
|
TOTAL
ASSETS
|
|
$
|
49,857,078
|
|
|
$
|
41,943,479
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
|
Short-term
loans
|
|
$
|
2,668,762
|
|
|
$
|
303,583
|
|
Accounts
payable
|
|
|
8,213,379
|
|
|
|
12,678,077
|
|
Other payable, accrued
expenses and other current liabilities
|
|
|
70,601
|
|
|
|
98,097
|
|
Accrued return
liabilities
|
|
|
202,273
|
|
|
|
283,276
|
|
Accrued warranty
liabilities
|
|
|
732,565
|
|
|
|
619,113
|
|
Contract
liabilities
|
|
|
1,205,431
|
|
|
|
1,835,411
|
|
Current portion of
obligations under operating leases
|
|
|
908,584
|
|
|
|
847,368
|
|
Current portion of
obligations under financing leases
|
|
|
42,524
|
|
|
|
41,647
|
|
Income tax
payable
|
|
|
4,079,950
|
|
|
|
2,121,083
|
|
Total current
liabilities
|
|
|
18,124,069
|
|
|
|
18,827,655
|
|
|
|
|
|
|
|
|
|
|
NON-CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
|
Obligations under
operating leases, non-current
|
|
|
2,643,681
|
|
|
|
630,853
|
|
Obligations under
financing leases, non-current
|
|
|
55,540
|
|
|
|
77,024
|
|
Loan from a
shareholder
|
|
|
4,316,525
|
|
|
|
7,920,141
|
|
Total non-current
liabilities
|
|
|
7,015,746
|
|
|
|
8,628,018
|
|
TOTAL
LIABILITIES
|
|
$
|
25,139,815
|
|
|
$
|
27,455,673
|
|
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
|
Common shares, $0.001
par value, 100,000,000 shares authorized,
41,322,485 and 40,000,000 issued and outstanding as of June 30,
2024 and December 31, 2023, respectively
|
|
|
41,322
|
|
|
|
40,000
|
|
Preferred shares, $0.01
par value, 5,000,000 preferred shares
authorized, no shares were issued and outstanding as of June 30,
2024
and December 31, 2023, respectively
|
|
|
-
|
|
|
|
-
|
|
Subscription
receivable
|
|
|
-
|
|
|
|
(832,159)
|
|
Additional
paid-in-capital
|
|
|
5,392,664
|
|
|
|
1,994,000
|
|
Retained
earnings
|
|
|
19,283,277
|
|
|
|
13,285,965
|
|
Total
equity
|
|
|
24,717,263
|
|
|
|
14,487,806
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
$
|
49,857,078
|
|
|
$
|
41,943,479
|
|
MASSIMO GROUP AND
SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE
INCOME
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
|
June
30,
|
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
35,402,653
|
|
|
$
|
26,735,699
|
|
|
$
|
65,554,330
|
|
|
$
|
45,576,114
|
|
Cost of
revenues
|
|
|
23,903,396
|
|
|
|
18,633,003
|
|
|
|
43,603,686
|
|
|
|
31,856,424
|
|
Gross
profit
|
|
|
11,499,257
|
|
|
|
8,102,696
|
|
|
|
21,950,644
|
|
|
|
13,719,690
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
expense
|
|
|
3,097,362
|
|
|
|
2,486,454
|
|
|
|
5,307,846
|
|
|
|
4,436,739
|
|
General and
administrative
|
|
|
4,094,737
|
|
|
|
3,337,493
|
|
|
|
8,201,642
|
|
|
|
6,321,755
|
|
Impairment loss on
supplier deposit due to lawsuit
|
|
|
742,897
|
|
|
|
-
|
|
|
|
742,897
|
|
|
|
-
|
|
Research and
development
|
|
|
-
|
|
|
|
-
|
|
|
|
162,250
|
|
|
|
-
|
|
Total operating
expenses
|
|
|
7,934,996
|
|
|
|
5,823,947
|
|
|
|
14,414,635
|
|
|
|
10,758,494
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
|
3,564,261
|
|
|
|
2,278,749
|
|
|
|
7,536,009
|
|
|
|
2,961,196
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
|
|
132,268
|
|
|
|
26,973
|
|
|
|
379,837
|
|
|
|
71,868
|
|
Interest
expense
|
|
|
(66,647)
|
|
|
|
(125,012)
|
|
|
|
(204,341)
|
|
|
|
(280,110)
|
|
Total other income
(expense), net
|
|
|
65,621
|
|
|
|
(98,039)
|
|
|
|
175,496
|
|
|
|
(208,242)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
|
3,629,882
|
|
|
|
2,180,710
|
|
|
|
7,711,505
|
|
|
|
2,752,954
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
|
813,852
|
|
|
|
106,426
|
|
|
|
1,714,193
|
|
|
|
130,505
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income and
comprehensive income
|
|
$
|
2,816,030
|
|
|
$
|
2,074,284
|
|
|
$
|
5,997,312
|
|
|
$
|
2,622,449
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Share –
basic and diluted
|
|
$
|
0.07
|
|
|
$
|
0.05
|
|
|
$
|
0.15
|
|
|
$
|
0.07
|
|
Weighted average shares
outstanding –
basic and diluted*
|
|
|
40,629,807
|
|
|
|
40,000,000
|
|
|
|
40,629,807
|
|
|
|
40,000,000
|
|
|
|
*
|
Retroactively restated
for effect of reorganization
|
Pro Forma
information Statement for Income Tax Provision For the Three Months
and Six Months ended
June 30, 2023 as a C Corporation upon Reorganization
|
|
Income before income
taxes
|
|
$
|
2,180,710
|
|
|
$
|
2,752,954
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
|
457,949
|
|
|
|
578,120
|
|
|
|
|
|
|
|
|
|
|
Net income and
comprehensive income
|
|
|
1,722,761
|
|
|
|
2,174,834
|
|
|
|
|
|
|
|
|
|
|
Earnings per share –
basic and diluted
|
|
$
|
0.04
|
|
|
$
|
0.05
|
|
Weighted average number
of shares of common stock outstanding – basic
and diluted
|
|
|
40,000,000
|
|
|
|
40,000,000
|
|
MASSIMO GROUP AND
SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
2024
|
|
|
2023
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
5,997,312
|
|
|
$
|
2,622,449
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
66,984
|
|
|
|
70,292
|
|
Non-cash operating
lease expense
|
|
|
639,629
|
|
|
|
425,756
|
|
Accretion of finance
lease liabilities
|
|
|
2,555
|
|
|
|
4,069
|
|
Amortization of finance
lease right-of-use assets
|
|
|
20,759
|
|
|
|
21,353
|
|
Gain on disposal of
fixed asset
|
|
|
(36,001)
|
|
|
|
-
|
|
Provision for expected
credit loss, net
|
|
|
250,780
|
|
|
|
56,087
|
|
Impairment loss of
advances to supplier due to lawsuit
|
|
|
742,897
|
|
|
|
-
|
|
Stock based
compensation
|
|
|
230,266
|
|
|
|
-
|
|
Deferred tax
assets
|
|
|
(297,244)
|
|
|
|
(12,101)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(2,151,184)
|
|
|
|
(3,055,820)
|
|
Inventories
|
|
|
(5,030,636)
|
|
|
|
2,899,217
|
|
Advance to
suppliers
|
|
|
(55,803)
|
|
|
|
(561,105)
|
|
Other assets
|
|
|
(174,666)
|
|
|
|
9,459
|
|
Related party
payable
|
|
|
-
|
|
|
|
(20,000)
|
|
Accounts
payables
|
|
|
(4,464,698)
|
|
|
|
(112,935)
|
|
Other payable, accrued
expense and other current liabilities
|
|
|
(27,496)
|
|
|
|
19,578
|
|
Tax payable
|
|
|
1,958,867
|
|
|
|
78,606
|
|
Accrued warranty
liabilities
|
|
|
113,452
|
|
|
|
294,242
|
|
Accrued return
liabilities
|
|
|
(81,003)
|
|
|
|
25,768
|
|
Contract
liabilities
|
|
|
(629,980)
|
|
|
|
399,447
|
|
Due to
shareholder
|
|
|
(3,603,616)
|
|
|
|
-
|
|
Lease liabilities –
operating lease
|
|
|
(580,274)
|
|
|
|
(425,755)
|
|
Net cash (used in)
provided by operating activities
|
|
|
(7,109,100)
|
|
|
|
2,738,607
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Proceed from sales of
property and equipment
|
|
|
162,001
|
|
|
|
-
|
|
Acquisition of property
and equipment
|
|
|
(341,852)
|
|
|
|
(24,661)
|
|
Net cash used in
investing activities
|
|
|
(179,851)
|
|
|
|
(24,661)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Net proceeds from bank
loan
|
|
|
2,668,762
|
|
|
|
(100,000)
|
|
Repayment of other
loans
|
|
|
(303,583)
|
|
|
|
-
|
|
Repayment of finance
lease liabilities
|
|
|
(23,162)
|
|
|
|
(23,886)
|
|
Proceed from common
share issuances
|
|
|
80,000
|
|
|
|
-
|
|
Proceeds from initial
public offering, net of share issuance costs
|
|
|
4,458,667
|
|
|
|
-
|
|
Due to
shareholder
|
|
|
-
|
|
|
|
(2,626,164)
|
|
Proceeds from
subscription deposits
|
|
|
920,331
|
|
|
|
20,000
|
|
Net cash provided by
(used in) financing activities
|
|
|
7,801,015
|
|
|
|
(2,730,050)
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease)
in cash and cash equivalents
|
|
|
512,064
|
|
|
|
(16,104)
|
|
Cash and cash
equivalents, beginning of the period
|
|
|
765,814
|
|
|
|
947,971
|
|
Cash and cash
equivalents, end of the period
|
|
$
|
1,277,878
|
|
|
$
|
931,867
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL
DISCLOSURES OF CASH FLOW INFORMATION:
|
|
|
|
|
|
|
|
|
Cash paid for
interest
|
|
$
|
137,694
|
|
|
$
|
477,742
|
|
Cash paid for income
taxes
|
|
$
|
52,570
|
|
|
$
|
64,000
|
|
|
|
|
|
|
|
|
|
|
NON-CASH
ACTIVITIES
|
|
|
|
|
|
|
|
|
Right of use assets
obtained in exchange for operating lease obligations
|
|
$
|
2,654,318
|
|
|
$
|
1,113,140
|
|
Right of use assets
obtained in exchange for finance lease
|
|
$
|
-
|
|
|
$
|
60,805
|
|
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SOURCE Massimo Group