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LOANS
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
LOANS

NOTE 12 —LOANS

 

Loan balance consists of the following:

 

   December 31, 2024   December 31, 2023 
Bank loan – Cathay Bank (1)/Midfirst (4)   $-   $- 
Other loans - Northpoint (2)   -    205,440 
Other loans – BAC (3)   -    98,143 
Total  $-   $303,583 

 

(1) On May 13, 2024, the Company’s subsidiary Massimo Motor Sports obtained a line of credit from Cathay Bank, pursuant to which the Company has the availability to borrow a maximum $15.0 million out of this line of credit for one year at the U.S. prime rate + 0.75%. Before then, the company had a line of credit of maximum $10.0 million from Midfirst bank, which is cancelled upon the grant of the line of credit from Cathay Bank. As of December 31, 2024 and 2023, the outstanding balance was $nil and $nil.
   
  This line of credit is also personally guaranteed by Mr. David Shan, the controlling shareholder. This line of credit is pledged by the Company’s accounts receivable, deposit accounts, equipment and inventories.
   
(2)

On April 19, 2022, the Company’s subsidiary Massimo Marine obtained a $2.0 million pay as sold line of credit from Northpoint Commercial Finance LLC (“Northpoint”) for acquisition, financing and/or refinancing of inventory. This line of credit is also personally guaranteed by Mr. David Shan, the Controlling Shareholder, and Massimo Motor Sports, an affiliated company. As of December 31, 2024 and 2023, the outstanding balance was $nil and $205,440, respectively.

 

(3) On February 18, 2022, the Company’s subsidiary Massimo Marine obtained a credit facility for Mercury in the amount of $1.75 million from Brunswick Acceptance Company LLC (“BAC”) to finance purchase of inventory. This line of credit is also personally guaranteed by Mr. David Shan. As of December 31, 2024 and 2023, the outstanding balance was $nil and $98,143, respectively.
   
(4) On January 15, 2021, the Company’s subsidiary Massimo Motor Sports obtained a line of credit from Midfirst Bank, pursuant to which the Company has the availability to borrow a maximum $4.0 million out of this line of credit for two years at the U.S. prime rate + 0.25%. On April 18, 2022, this line of credit was further increased to $10.0 million, and on January 3, 2024, the maturity date was renewed to January 3, 2026.
   
  This line of credit was guaranteed by the Massimo Group, and was also personally guaranteed by Mr. David Shan, the controlling shareholder, and Miller Creek Holdings LLC, a related party controlled by Mr. David Shan. This line of credit was pledged by the Company’s accounts receivable and inventories.
   
  On May 13, 2024, the credit facility was closed due to transferring to Cathay Bank (see (1) above), and all guarantees were released and transferred to Cathay Bank.

 

 

MASSIMO GROUP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS