XML 25 R14.htm IDEA: XBRL DOCUMENT
v3.24.3

LEASES | 9 Months Ended
--- | ---
Sep. 30, 2024
Leases |
LEASES | NOTE 8 — LEASES On August 1, 2018, the Company signed a lease agreement with Miller Creek Holding LLC, a related party owned by the controlling shareholder, to rent the warehouse and office space of total 220,000 square feet for monthly rent of $40,000 used for its operation. The lease expired on July 31, 2021 and was further renewed for another three years and expired on July 31, 2024 with monthly rent of $60,000. On August 1, 2024, the lease was further renewed for another five years and expired on July 31, 2029 with monthly rent of $145,750. On April 29, 2023, the Company signed another lease agreement with Miller Creek Holding LLC, a related party owned by the controlling shareholder, to rent the warehouse and office space of total 66,000 square feet for monthly rent of $35,000 used for its operation. The lease expires on April 30, 2026. On May 1, 2024, the Company signed another two lease agreements with Miller Creek Holding LLC, a related party owned by the controller shareholder, to rent additional warehouse and office space of 60,000 square feet and 30,000 square feet for monthly rent of $33,000 and $16,500 used for its operation, respectively. The leases will expire on August 31, 2029. The Company also had multiple lease agreements for machinery, office equipment and vehicles. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Total operating lease expense for the three months ended September 30, 2024 and 2023 amounted to $624,232 and $311,192, respectively. Amortization of operating lease right-of-use assets amounted to $471,350 and $272,580 for the three months ended September 30, 2024 and 2023, respectively. Total operating lease expense for the nine months ended September 30, 2024 and 2023 amounted to $1,342,402 and $793,577, respectively. Amortization of operating lease right-of-use assets amounted to $1,110,979 and $698,336 for the nine months ended September 30, 2024 and 2023, respectively. Total accretion of finance lease liabilities for the three months ended September 30, 2024 and 2023 amounted to $1,116 and $2,219, respectively. Amortization of finance lease right-of-use assets amounted to $10,379 and $10,380 for the three months ended September 30, 2024 and 2023, respectively. Total accretion of finance lease liabilities for the nine months ended September 30, 2024 and 2023 amounted to $3,672 and $5,610, respectively. Amortization of finance lease right-of-use assets amounted to $31,139 and $31,733 for the nine months ended September 30, 2024 and 2023, respectively. Supplemental balance sheet information related to operating and financing leases was as follows: SCHEDULE OF SUPPLEMENTAL BALANCE INFORMATION Operating leases
|  | September 30, 2024 |  |  | December 31, 2023 |
Operating lease liabilities - current |  | $ | 2,075,541 |  |  | $ | 847,368 |
Operating lease liabilities - non-current |  |  | 8,186,938 |  |  |  | 630,853 |
Total |  | $ | 10,262,479 |  |  | $ | 1,478,221 |
Financing leases
|  | September 30, 2024 |  |  | December 31, 2023 |
Finance lease liabilities - current |  | $ | 42,970 |  |  | $ | 41,647 |
Finance lease liabilities - non-current |  |  | 44,629 |  |  |  | 77,024 |
Total |  | $ | 87,599 |  |  | $ | 118,671 |
MASSIMO GROUP AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) NOTE 8 — LEASES (continued) The following table includes supplemental cash flow and non-cash information related to leases: SCHEDULE OF SUPPLEMENTAL CASH FLOW AND NON-CASH INFORMATION
|  | September 30, 2024 |  |  | December 31, 2023 |
Cash paid of amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |  |
Operating cash flows used in operating leases |  | $ | 1,205,510 |  |  | $ | 1,104,769 |
Financing cash flows used in finance leases |  | $ | 34,744 |  |  | $ | 47,051 |
Right-of-use assets obtained in exchange for lease obligations: |  |  |  |  |  |  |  |
Finance lease liabilities |  | $ | - |  |  | $ | 60,805 |
Operating lease liabilities |  | $ | 9,758,345 |  |  | $ | 1,113,140 |
The weighted average remaining lease terms and discount rates for all of operating lease and finance leases were as follows: SCHEDULE OF WEIGHTED AVERAGE REMAINING LEASE TERMS AND DISCOUNT RATES
|  | September 30, 2024 |  |  | December 31, 2023 |
Weighted-average remaining lease term (years): |  |  |  |  |  |  |  |
Finance lease |  |  | 2.17 years |  |  |  | 2.85 years |
Operating leases |  |  | 4.62 years |  |  |  | 1.82 years |
Weighted average discount rate: |  |  |  |  |  |  |  |
Finance leases |  |  | 4.74 | % |  |  | 4.61 | %
Operating leases |  |  | 7.68 | % |  |  | 8.61 | %
The following is a schedule of maturities of operating and finance lease liabilities as of September 30, 2024: SCHEDULE OF MATURITIES OF OPERATING AND FINANCE LEASE LIABILITIES Operating leases
Twelve months ending September 30, |  |  |  |
Operating leases |  |  |  |
2025 |  | $ | 2,866,655 |
2026 |  |  | 2,629,915 |
2027 |  |  | 2,343,000 |
2028 |  |  | 2,343,000 |
2029 |  |  | 2,002,000 |
Total future minimum lease payments |  |  | 12,184,570 |
Less: imputed interest |  |  | (1,922,091 | )
Present value of operating lease liabilities |  | $ | 10,262,479 |
Finance leases
Twelve months ending September 30, |  |  |  |
Finance leases |  |  |  |
2025 |  | $ | 46,325 |
2026 |  |  | 34,578 |
2027 |  |  | 8,701 |
2028 |  |  | 3,626 |
Total future minimum lease payments |  |  | 93,230 |
Less: imputed interest |  |  | (5,631 | )
Present value of finance lease liabilities |  | $ | 87,599 |
MASSIMO GROUP AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

X
- References No definition available. + Details
Name: | MAMO_DisclosureLeasesAbstract
Namespace Prefix: | MAMO_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration