------------------  --------------- 
 
Cash flows from operating 
activities: 
Net income                        $       3,495,079  $     6,579,836 
Adjustments to reconcile net 
income to net cash provided by 
operating activities: 
Depreciation                                 98,111          109,765 
Non-cash operating lease 
 expense                                  1,342,402          793,577 
Accretion of finance lease 
 liabilities                                  3,672            5,610 
Amortization of finance lease 
 right-of-use assets                         31,139           31,733 
Written-off of account 
 receivables                                      -          420,967 
Provision of (Reversal of) 
 allowance for excepted credit 
 loss, net                                  223,051        (118,144) 
Gain on disposal of fixed asset            (36,001)                - 
Impairment loss of asset                    772,780                - 
Loss on litigation                        3,573,651                - 
RSU compensation                            426,666                - 
Share-based compensation for 
 services                                   131,699                - 
Deferred tax assets                       (974,691)         (65,158) 
Changes in operating assets 
and liabilities: 
Accounts receivable                     (2,214,339)      (1,631,919) 
Inventories                             (5,002,834)         (36,157) 
Reversal of inventory 
 impairment                               (110,000)                - 
Advance to suppliers                        493,280        (130,580) 
Other current assets                         20,524        (818,397) 
Related party payable                             -          398,700 
Accounts payables                       (2,913,793)        (373,314) 
Other payable, accrued expense 
 and other current liabilities              336,032        (154,530) 
Tax payable                                (89,512)        1,237,709 
Accrued warranty liabilities               (10,469)          205,868 
Accrued return liabilities                (119,610)        (341,317) 
Contract liabilities                      (668,250)          457,936 
Lease liabilities -- operating 
 lease                                  (1,205,510)        (793,577) 
                                     --------------   -------------- 
Net cash (used in) provided by 
 operating activities                   (2,396,923)        5,778,608 
                                     --------------   -------------- 
 
Cash flows from investing 
activities: 
Proceed from sales of property 
 and equipment                              162,001                - 
Acquisition of property and 
 equipment                                (424,164)         (68,871) 
                                     --------------   -------------- 
Net cash used in investing 
 activities                               (262,163)         (68,871) 
                                     --------------   -------------- 
 
Cash flows from financing 
activities: 
Repayment of other loans                  (303,583)      (1,600,000) 
Repayment of finance lease 
 liabilities                               (34,744)         (35,469) 
Proceed from common share 
 issuances                                   80,000                - 
Deferred offering costs                           -        (263,162) 
Proceeds from initial public 
 offering, net of share 
 issuance costs                           4,458,667                - 
Repayment of loan from a 
 related party                          (1,503,616)      (3,982,876) 
Proceeds from subscription 
 deposits                                   920,331          381,841 
                                     --------------   -------------- 
Net cash provided by (used in) 
 financing activities                     3,617,055      (5,499,666) 
                                     --------------   -------------- 
 
Net increase in cash and cash 
 equivalents                                957,969          210,071 
Cash and cash equivalents, 
 beginning of the period                    765,814          947,971 
                                     --------------   -------------- 
Cash and cash equivalents, end 
 of the period                    $       1,723,783  $     1,158,042 
                                     ==============   ============== 
 
SUPPLEMENTAL DISCLOSURES OF 
CASH FLOW INFORMATION: 
Cash paid for interest            $         244,173  $       494,011 
                                     ==============   ============== 
Cash paid for income taxes        $       2,156,731  $        64,000 
                                     ==============   ============== 
 
NON-CASH ACTIVITIES 
Right of use assets obtained in 
 exchange for operating lease 
 obligations                      $       9,758,345  $     1,113,140 
                                     ==============   ============== 
Right of use assets obtained in 
 exchange for finance lease       $               -  $        60,805 
                                     ==============   ============== 
 

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SOURCE Massimo Group

/CONTACT: 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

(END) Dow Jones Newswires

November 15, 2024 08:31 ET (13:31 GMT)