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EMPLOYEE STOCK PLANS | 9 Months Ended
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Sep. 30, 2025
Retirement Benefits [Abstract] |
EMPLOYEE STOCK PLANS | NOTE 16 — EMPLOYEE STOCK PLANS Equity Incentive Plans On May 22, 2024, the Company’s Board approved the 2024 Equity Inventive Plan (“2024 Plan”) and Restricted Stock Units (“RSUs”) Agreements. The 2024 Plan and RSUs Agreement authorized the award of stock options, RSUs to employees and directors. The Company recorded nil, $307,379, $256,345 and $426,666 stock-based compensation expense in connection with RSUs for three and nine months ended September 30, 2025 and 2024, respectively. The following table summarized the Company’s RSU activity: SUMMARY OF RESTRICTED STOCK UNIT ACTIVITY
|  | Number of RSUs |  |  | Weighted Average Grant Date Fair Value |  |  | Weighted Average Remaining Life in Years |
Unvested at December 31, 2024 |  |  | 101,000 |  |  | $ | 3.88 |  |  |  | 0.37 |
Vested |  |  | (101,000 | ) |  |  | 3.88 |  |  |  | - |
Unvested at September 30, 2025 |  |  | - |  |  | $ | - |  |  |  | - |
Options On May 22, 2024, the Company signed a stock option agreement with Mr. David Shan, the Chief Executive Officer and two other executives of the Company, in connection with the 2024 Plan. As part of the compensation, the Company agrees to grant Mr. Shan options to purchase up to 46,860 common shares under Incentive Stock Option (“ISO”) plan, at an exercise price of $4.268 per share. The options were granted on May 22, 2024, and the options vest at a rate of 23,430 per year for two years, effective on May 22, 2024. The aggregate fair value of the options granted to Mr. Shan was $73,000. The fair value has been estimated using the Black-Scholes pricing model with the following weighted-average assumptions: market value of underlying common shares at time of grant of $3.88; risk free rate of 5.0% and 4.65%; expected term of 5 years; exercise price of the options of $4.268; volatility of 88.8%; and expected future dividends of nil. These options will expire on May 21, 2029. The Company also granted Mr. Shan options to purchase up to 103,140 common shares, at an exercise price of $4.0 per share under Nonqualified Stock Option (“NSO”) plan. The options were granted on May 22, 2024, and vest at a rate of 51,570 shares per year for two years, effective on May 22, 2024. The aggregate fair value of the options granted to Mr. Shan was $160,000. The fair value has been estimated using the Black-Scholes pricing model with the following weighted-average assumptions: market value of underlying common shares at time of grant of $3.88; risk free rate of 5.0% and 4.65%; expected term of 10 years; exercise price of the options of $4.0; volatility of 88.8%; and expected future dividends of nil. These options will expire on May 21, 2034. The Company also granted two executives options to purchase up to 200,000 common shares, at an exercise price of $4.0 per share under ISO and NSO plans. The options were granted on May 22, 2024, and vest at a rate of 100,000 shares per year for two years, effective on May 22, 2024. The aggregate fair value of the options granted to these two executives was $272,000. The fair value has been estimated using the Black-Scholes pricing model with the following weighted-average assumptions: market value of underlying common shares of $3.88; risk free rate of 5.0% and 4.65%; expected term of 10 years; exercise price of the options of $4.0; volatility of 88.8%; and expected future dividends of nil. These options will expire on May 21, 2034. As of September 30, 2025, intrinsic value of the options is nil. The Company recorded $34,278, $191,566, $71,754 and $131,699 stock-based compensation expense in connection with options for three and nine months ended September 30, 2025 and 2024, respectively. The following table summarized the Company’s share option activity: SCHEDULE OF SHARE OPTION ACTIVITY
|  | Number of Options |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Life in Years |
Unvested balance, December 31, 2024 |  |  | 350,000 |  |  | $ | 4.04 |  |  |  | 8.72 |
Exercisable, December 31, 2024 |  |  | - |  |  |  | - |  |  |  |  |
Granted |  |  | - |  |  |  | - |  |  |  | - |
Cancelled |  |  | - |  |  |  | - |  |  |  | - |
Vested |  |  | - |  |  |  | - |  |  |  | - |
Unvested balance, September 30, 2025 |  |  | 350,000 |  |  | $ | 4.04 |  |  |  | 8.06 |
Exercisable, September 30, 2025 |  |  | 175,000 |  |  | $ | 4.04 |  |  |  | 8.06 |
As of September 30, 2025, the total unrecognized compensation cost related to outstanding RSUs and stock options was nil and $121,460, which the Company expects to recognize over a weighted-average period of nil and 0.89 year. MASSIMO GROUP AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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- Definition The entire disclosure for an entity's employee compensation and benefit plans, including, but not limited to, postemployment and postretirement benefit plans, defined benefit pension plans, defined contribution plans, non-qualified and supplemental benefit plans, deferred compensation, share-based compensation, life insurance, severance, health care, unemployment and other benefit plans. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 715 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/715/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 712 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/712/tableOfContent Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 710 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/710/tableOfContent Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/718/tableOfContent + Details
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