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INVENTORIES
 12 Months Ended
Dec. 31, 2024
Inventory Disclosure [Abstract]  
INVENTORIES

NOTE 4 — INVENTORIES

 

Inventories consist of the following:

 

   December 31, 2024   December 31, 2023 
Products and accessories  $18,001,768   $16,777,928 
Parts   1,113,872    899,188 
Inventories in transit   4,861,016    5,399,964 
Freight and duty   3,751,884    3,163,732 
Inventory, gross   27,728,540    26,240,812 
Less: inventory allowance   (469,900)   (439,900)
Inventories, net  $27,258,640   $25,800,912 

 

 

MASSIMO GROUP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 4 — INVENTORIES (continued)

 

The movement of inventory allowance are as follow:

 

   December 31, 2024   December 31, 2023 
Beginning balance  $439,900   $- 
Addition of provision   30,000    439,900 
Ending balance  $469,900   $439,900 

 

Impairment provision of inventories recorded for lower of cost or net realizable value adjustments were $30,000 and $439,900 for the years ended December 31, 2024 and 2023, respectively.

 

Partial inventories of $21,606,371 and $19,961,227 as of December 31, 2024 and 2023, respectively, were pledged for the Company’s line of credit facility at Cathay Bank and Midfirst Bank respectively (See Note 12).