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Massimo Group (MAMO+1.32%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in revenues to $25,602,310 from $29,907,697 in the same quarter the previous year. The decrease is attributed to a significant drop in Pontoon boat sales due to high interest rates and inflation affecting consumer spending.
Cost of revenues for the quarter was $18,649,995, representing 72.8% of sales, compared to 66.4% in the same quarter of the previous year. This increase in cost ratio is due to reduced sale prices aimed at clearing slow-moving inventory.
The company reported a gross profit of $6,952,315 for the quarter, compared to $10,057,439 in the previous year, with the decline attributed to decreased sales and increased costs.
Operating expenses increased to $6,648,801 from $4,821,238, primarily due to higher shipping and handling fees and increased salaries and benefits.
Net loss for the quarter was $2,502,233, down from a net income of $3,957,387 in the previous year. The loss is primarily due to a $3.6 million loss on litigation.
Cash used in operating activities was $2,396,923, while cash used in investing activities was $262,163. Cash provided by financing activities was $3,617,055, primarily from IPO proceeds.
Massimo Group had a working capital of $18,807,873 as of September 30, 2024. The company highlights its dependence on cash flows from operations and potential financing to meet future obligations.
The filing also details a new line of credit from Cathay Bank for $15 million, replacing a previous line from Midfirst Bank.
The company identified a material weakness in its internal controls over financial reporting related to the classification of related party payables.
Massimo Group continues to focus on expanding its distribution network and enhancing its product offerings in the UTV and ATV market.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Massimo Group quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.