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RELATED PARTY TRANSACTIONS
 9 Months Ended
Sep. 30, 2025
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

NOTE 12 — 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
Miller Creek Holdings LLC   Controlled by David Shan
Vessel Technology Inc.   Controlled by David Shan

 

 

(a) Due to shareholder

 

Due to shareholder consists of the following:

 

   September 30, 2025   December 31, 2024 
         
Loan from David Shan, opening balance  $5,546,548   $7,920,141 
Repayment   (3,416,300)   (2,373,593)
Loan from David Shan, ending balance   2,130,248    5,546,548 
Non-current   -    - 
Current  $2,130,248   $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 such requirement. Consequently, the outstanding balance has been reclassified from non-current liabilities to current liabilities as of December 31, 2024. The Company made repayments totaling $3,416,300 and $2,373,593 towards this loan during the nine months ended September 30, 2025 and the year ended December 31, 2024. The Company intends to continue the repayments of the loan from Mr. Shan in the next twelve months.

 

(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.

 

(c) Due from a related party

 

   September 30, 2025   December 31, 2024 
           
Vessel Technology Inc.  $-   $8,576 

 

Due from a related party was nil and $8,576 as of September 30, 2025 and December 31, 2024. Balance was in connection with health insurance reimbursement from Vessel Technology Inc.

 

 

MASSIMO GROUP AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)