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RELATED PARTY TRANSACTIONS
 9 Months Ended
Sep. 30, 2024
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

NOTE 13 — RELATED PARTY TRANSACTIONS

 

The relationship of related parties is summarized as follow:

  

Name of Related Party   Relationship to the Company
David Shan   Controlling shareholder of the Company
Custom Van Living   Controlled by David Shan
Miller Creek Holdings LLC   Controlled by David Shan
SUNL Technology LLC   Controlled by David Shan
Asia International Securities Exchange Co Ltd   Principal shareholder of the Company

 

 

MASSIMO GROUP AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

 

NOTE 13 — RELATED PARTY TRANSACTIONS (continued)

 

(a) Loan from a related party

 

Loan from a related party consists of the following:

  

   September 30, 2024   December 31, 2023 
         
Loan from David Shan, opening balance  $7,920,141   $10,984,344 
Repayment    (1,503,616)   (5,264,203)
Capital dividend declared   -    2,200,000 
Loan from David Shan, ending balance   6,416,525    7,920,141 
Non-current   -    (7,920,141)
Current  $6,416,525   $- 

 

On January 3, 2024, the Company entered into an unsecured loan agreement with Mr. David Shan, the Chairman of the Board and CEO, to change the payment term from due on demand to due on January 3, 2029. This unsecured loan was required by MidFirst Bank when the Company renewed the line of credit on January 3, 2024. On May 13, 2024, the line of credit with MdFirst Bank was closed and the Company obtained a new line of credit with Cathay Bank, which did not have no such requirement. As a result, the Company made repayment totaling $1,503,616 towards this loan during the nine months ended September 30, 2024. The Company intends to continue repayments over of the loan from Mr. Shan for the next twelve months. Consequently, the outstanding balance has been reclassified from non-current liabilities to current liabilities as of September 30, 2024.

 

(b) Loan guarantee provided by related parties

 

In connection with the Company’s bank borrowing, Mr. David Shan, the controlling shareholder, Miller Creek Holdings LLC and Massimo Group, the holding company of Massimo Motor provided unlimited guarantee to the Company’s loan (See Note 12).

 

 

MASSIMO GROUP AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)