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RELATED PARTY TRANSACTIONS
 12 Months Ended
Dec. 31, 2024
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

NOTE 13 — RELATED PARTY TRANSACTIONS

 

The relationship of related parties is summarized as follows:

 

Name of Related Party  Relationship to the Company
David Shan  Controlling shareholder of the Company
Miller Creek Holdings LLC  Controlled by David Shan
Vessel Technology Inc.  Controlled by David Shan

 

(a) Loan from a related party

 

Loan from a related party consists of the following:

 

   December 31, 2024   December 31, 2023 
         
Loan from David Shan, opening balance  $7,920,141   $10,984,344 
Repayment   (2,373,593)   (5,264,203)
Capital dividend declared   -    2,200,000 
Loan from David Shan, ending balance   5,546,548    7,920,141 
Non-current   -    (7,920,141)
Current  $5,546,548   $- 

 

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 MidFirst Bank was closed and the Company obtained a new line of credit with Cathay Bank, which did not have no such requirement. The Company made repayment totaling $2,373,593 towards this loan during the year ended December 31, 2024. The Company intends to continue the repayments of the loan from Mr. Shan in the next twelve months. Consequently, the outstanding balance has been reclassified from non-current liabilities to current liabilities as of December 31, 2024.

 

(b) Loan guarantee provided by related parties

 

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

 

(c) Due from a related party

 

 

   December 31, 2024   December 31, 2023 
       
Vessel Technology Inc.  $8,576   $             - 

 

Due from a related party were $8,576 and $nil as of December 31, 2024 and 2023. Balance was in connection with health insurance reimbursement from Vessel Technology Inc.

 

 

MASSIMO GROUP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS