Massimo Group
For the period ended Sep 30, 2025. Filed Nov 7, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 7, 2025
MAMO$0.96-0.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-14.
0001493152-25-011970
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-07.
0001493152-25-021309
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 119 previous paragraphs and 120 current paragraphs.
64 unchanged; 46 reworded; 10 added; 6 removed; 3 previous and 0 current paragraphs rearranged.
Tables are not compared: 13 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
For the Three and Nine Months Ended September 30, 2025 and 2024
Current report
Supported by steady upward sales increase and effective operating expense controls, the Company’s financial performance improved significantly from the first to the third quarter of 2025. The company’s revenue showed an overall upward trend, increasing from $14.9 million in Q1 to $18.9 million in Q2, before slightly edging down to $17.0 million in Q3. The above fluctuation in revenue is primarily attributed to the continued recovery in sales, coupled with a temporary decline in sales volume resulting from a modest price increase implemented in the third quarter.
Current report
From the first to the third quarter of 2025, the Company’s gross profit showed a steady upward trend, increasing from $4.2 million in Q1 to $6.9 million in Q2 and reaching $7.1 million in Q3. This improvement was primarily driven by higher sales prices and enhanced cost control measures on the purchasing side.
Current report
As a result, the Company’s net profit (loss) has been increasing steadily from the first quarter to the third quarter of 2025, the company transitioned from a net loss of 2.1 million in Q1 to turning a profit in Q2 with a net income of 0.07 million. By Q3, profitability strengthened further, with net profit rising to $1.5 million.
Current report
Loss on litigation
Current report
During the three months ended September 30, 2024, we recorded a one-time loss of approximate $3.6 million on legal judgment on lawsuit with Nebula. The Final Judgment on July 8, 2024 awarded Nebula $3.3 million in damages, $1.4 million in attorneys’ fees and other court cost and $1.1 million in interest on balances since September 15, 2020. We have recorded an additional accrual of $3.6 million as of September 30, 2024, bringing the total accrual related to this lawsuit to approximately $5.9 million. Massimo filed its appellant’s brief on January 31, 2025. Nebula filed its appellee’s brief on May 1, 2025. Massimo intends to continue vigorously defending the lawsuit and pursuing its appeal.
Current report
Interest income (expenses)
Current report
We had an increase of $4.9 million in income before income taxes from a loss of $3.1 million in the third quarter of fiscal 2024 to approximately a profit of $1.9 million in the third quarter of fiscal 2025, respectively. The increase was primarily attributable to the fluctuation of gross profits and operating expenses discussed in the foregoing part.
Current report
Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024
Current report
Cost of revenue on Pontoon Boats decreased by $0.7 million, or 22.8%, from $2.6 million for the nine months ended September 30, 2024, to $1.9 million for the nine months ended September 30, 2025, and gross profit almost stayed the same for the nine months ended September 30, 2024 and 2025. Gross margin increased by 4.7%, from 15.6% for the nine months ended September 30, 2024, to 20.3% for the nine months ended September 30, 2025.
Removed paragraphs (6)
Previous report
For the Three and Six Months Ended June 30, 2025 and 2024
Previous report
We had an decrease of $3.5 million in income before income taxes from $3.6 million in the second quarter of fiscal 2024 to approximately $0.1 million in the second quarter of fiscal 2025, respectively. The decrease was primarily attributable to the decrease in gross profit by $4.6 million, which was partly offset by a decrease of operating expenses of approximately $1.2 million in the second quarter of fiscal 2024, as well as other expenses as discussed above.
Previous report
Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024
Previous report
Cost of revenue on Pontoon Boats decreased by $0.5 million, or 22.8%, from $2.1 million for the six months ended June 30, 2024, to $1.6 million for the six months ended June 30, 2025, and gross profit decreased by $0.3 million, or 65.2%, from $0.5 million for the six months ended June 30, 2024, to $0.2 million for the six months ended June 30, 2025. Gross margin decreased by 9.2%, from 18.4% for the six months ended June 30, 2024, to 9.2% for the six months ended June 30, 2025. The decrease in gross margin was primarily because of strategically focusing on clearing to sell Pontoon Boats for the six months ended June 30,2025, compared to the prior year.
Previous report
Interest expenses
Previous report
Our accounts receivable increased from $4.8 million as of December 31, 2024 to $8.1 million as of June 30, 2025. The increase in accounts receivable was primarily attributed to the recovery of our sales in June.
Reworded paragraphs (46)
Previous wording
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our financial statements and the related notes to those statements included elsewhere in this Report and with the audited financial statements and the related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (“fiscal 2024”), as filed with the Securities and Exchange Commission (the “SEC”), on March 26, 2025 and as amended on May 20, 2025. In addition to historical financial information, the following discussion and analysis contains forward-looking statements that involve risks, uncertainties, and assumptions. Some of the numbers included herein have been rounded for the convenience of presentation. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors. See “Cautionary Note Regarding Forward-Looking Statements.”
Current wording
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our financial statements and the related notes to those statements included elsewhere in this Report and with the audited financial statements and the related notes included in our Annual Report on Form 10-K/A for the fiscal year ended December 31, 2024 (“fiscal 2024”), as filed with the Securities and Exchange Commission (the “SEC”), on March 26, 2025 and as amended on May 20, 2025. In addition to historical financial information, the following discussion and analysis contains forward-looking statements that involve risks, uncertainties, and assumptions. Some of the numbers included herein have been rounded for the convenience of presentation. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors. See “Cautionary Note Regarding Forward-Looking Statements.”
Previous wording
We currently generate most of our revenues from the sales of UTVs and ATVs, which represented 93.1% and 96.7% of total revenue for the three months ended June 30, 2025 and 2024, respectively. For the six months ended June 30, 2025 and 2024, revenue from sales of UTVs and ATVs represented 97.7% and 96.0% of total revenue, respectively.
Current wording
We currently generate most of our revenues from the sales of UTVs and ATVs, which represented 96.4% and 98.0% of total revenue for the three months ended September 30, 2025 and 2024, respectively. For the nine months ended September 30, 2025 and 2024, revenue from sales of UTVs and ATVs represented 97.2% and 96.5% of total revenue, respectively.
Previous wording
We also generate revenue from the sales of Pontoon Boats, which represented 6.9% and 3.3% of our revenue for the three months ended June 30, 2025 and 2024, respectively. For the six months ended June 30, 2025 and 2024, revenue from the sales of Pontoon Boats represented 2.3% and 4.0% of our revenue, respectively.
Current wording
We also generate revenue from the sales of Pontoon Boats, which represented 3.6% and 2.0% of our revenue for the three months ended September 30, 2025 and 2024, respectively. For the nine months ended September 30, 2025 and 2024, revenue from the sales of Pontoon Boats represented 2.8% and 3.5% of our revenue, respectively.
Previous wording
The following table summarizes the results of condensed consolidated statements of operations and comprehensive income (unaudited) for the three and six months ended June 30, 2025 and 2024 in U.S. dollars, and provides information regarding the dollar and percentage increase or (decrease) during such periods.
Current wording
The following table summarizes the results of condensed consolidated statements of operations and comprehensive income (unaudited) for the three and nine months ended September 30, 2025 and 2024 in U.S. dollars, and provides information regarding the dollar and percentage increase or (decrease) during such periods.
Previous wording
Revenues decrease by $31.7 million, or 48.4%, from $65.6 million for the six months ended June 30, 2024, to $33.8 million for the six months ended June 30, 2025. The decrease in revenue was primarily due to the contraction of the U.S. economy and reduced consumer spending. New tariffs contributed to rising inflation, with U.S. consumer inflation reported at 2.8% year-over-year in February 2025, and expectations of further increases. This inflationary environment, coupled with high, long-lasting interest rates, led to reduced spending and demand from retail end customers for discretionary goods, particularly luxury items like yachts and pontoon boats. At the same time, the uncertainty surrounding tariffs, trade restrictions, and potential trade barriers stemming from President Trump’s policies, which were further exacerbated in January 2025, caused our major big-box customers to reduce their orders.
Current wording
Revenues decreased by $7.9 million, or 30.7%, from $25.6 million for the three months ended September 30, 2024, to $17.0 million for the three months ended September 30, 2025. The decrease in revenue was primarily due to the contraction of the U.S. economy and reduced consumer spending. New tariffs contributed to rising inflation, with U.S. consumer inflation reported at 2.8% year-over-year in February 2025, and expectations of further increases. This inflationary environment, coupled with high, long-lasting interest rates, led to reduced spending and demand from retail end customers for discretionary goods, particularly luxury items like yachts and pontoon boats. At the same time, the uncertainty surrounding tariffs, trade restrictions, and potential trade barriers stemming from President Trump’s policies, which were further exacerbated in January 2025, caused our major big-box customers to reduce their orders.
Previous wording
Revenue from sales of UTVs, ATVs and electric bikes decreased by $16.6 million, or 48.6%, from $34.2 million for the three months ended June 30, 2024 to $17.6 million for the three months ended June 30, 2025 . The decrease in revenue was primarily attributed to a decline in sales volume from big box stores. Due to the uncertainty surrounding tariffs, trade restrictions, and potential trade barriers , which were further exacerbated in January 2025. These geopolitical factors have created a volatile market environment, leading to reduced confidence among our major retail customers, especially big-box stores that typically place large volume orders.
Current wording
Revenue from sales of UTVs, ATVs and electric bikes decreased by $8.7 million, or 34.7%, from $25.1 million for the three months ended September 30, 2024 to $16.4 million for the three months ended September 30, 2025. The decrease in revenue was primarily attributed to a decline in sales volume from big box stores. Due to the uncertainty surrounding tariffs, trade restrictions, and potential trade barriers stemming from President Trump’s policies, which were further exacerbated in January 2025. These geopolitical factors have created a volatile market environment, leading to reduced confidence among our major retail customers, especially big-box stores that typically place large volume orders.
Previous wording
Revenue from sales of Pontoon Boats increased by $0.1 million, or 11.9%, from $1.2 million for the three months ended June 30, 2024 to $1.3 million for the three months ended June 30, 2025. Although an industry-wide downturn caused by high interest rates and inflation, which have impacted the consumption of non-essential goods. We cleared out our inventory of pontoon boats we maintained for the three months ended June 30, 2025 and there is no rejection from floorplan financing providers such as Northpoint in the second quarter.
Current wording
Revenue from sales of Pontoon Boats increased by $0.1 million, or 0.4%, from $0.5 million for the three months ended September 30, 2024 to $0.6 million for the three months ended September 30, 2025. Although an industry-wide downturn caused by high interest rates and inflation, which have impacted the consumption of non-essential goods. In 2025, we shifted our sales strategy from dealership channels back to direct engagement with retail customers. Through targeted social media campaigns and community-based marketing initiatives, we successfully attracted some local retail customers, resulting in a modest improvement in sales performance.
Previous wording
Our gross profit decrease by $4.46 million, or 40.3%, from $11.5million in the second quarter of fiscal 2024, to $6.9 million in the second quarter of fiscal 2025. The gross profit margin was 36.3% in the second quarter of fiscal 2025, compared with 32.5% in the same period last year. The increase in gross margin was mainly due to an increase in sales compared to the first quarter as recovered to last year’s levels in June, lifting the quarterly average.
Current wording
Our gross profit increased by $0.2 million, or 2.6%, from $7.0million in the third quarter of fiscal 2024, to $7.1 million in the third quarter of fiscal 2025. The gross profit margin was 42.0% in the third quarter of fiscal 2025, compared with 27.2% in the same period last year. The increase in gross margin was mainly due to an increase in sales compared to the first quarter as recovered to last year’s levels in September, lifting the quarterly average and due to the increasing higher sales price compared with the last year’s
Previous wording
The cost of revenue on UTVs, ATVs and e-bikes decreased by $12.0 million, or 52.7%, from $23.0 million in the second quarter of fiscal 2024 to $11.0 million in the second quarter of fiscal 2025, and the gross profit decreased by $4.5 million, or 40.1%, from $11.2 million in the second quarter of fiscal 2024 to $6.7 million in the second quarter of fiscal 2025. The gross margin increase by 5.4%, from 32.8% in the second quarter of fiscal 2024 to 38.2% in the second quarter of fiscal 2025. The decrease in the cost of revenue was primarily due to decreased product purchase cost, resulting from the decrease in sales volume.
Current wording
The cost of revenue on UTVs, ATVs and e-bikes decreased by $8.6 million, or 47.3%, from $18.1 million in the third quarter of fiscal 2024 to $9.6 million in the third quarter of fiscal 2025, and the gross profit decreased by $0.13 million, or 2.0%, from $7.0 million in the third quarter of fiscal 2024 to $6.8 million in the third quarter of fiscal 2025. The gross margin increased by 13.9%, from 27.7% in the third quarter of fiscal 2024 to 41.6% in the third quarter of fiscal 2025. The decrease in the cost of revenue was primarily due to decreased product purchase cost, resulting from the decrease in sales volume. The increase in gross margin was primarily a result of selling some inventory at lower prices at our seasonal promotions in the third quarter of fiscal 2024, while the unit sales price is higher in the same period of fiscal 2025.
Previous wording
The cost of revenue on Pontoon Boats increase by $0.3 million, or 29.6%, from $0.9 million in the second quarter of fiscal 2024 to $1.2 million in the second quarter of fiscal 2025, and the gross profit decreased by $0.1 million, or 49.4%, from $0.3 million in the second quarter of fiscal 2024 to $0.1 million in the second quarter of fiscal 2025. The gross margin decreased by 12.13%, from 22.4% in the second quarter of fiscal 2024 to 10.1% in the second quarter of fiscal 2025. The decrease in gross margin was primarily because of strategically focusing on clearing to sell Pontoon Boats in the second quarter of fiscal 2025 compared to that of fiscal 2024.
Current wording
The cost of revenue on Pontoon Boats decreased by $0.22 million, or 43.4%, from $0.51 million in the third quarter of fiscal 2024 to $0.29 million in the third quarter of fiscal 2025, and the gross profit increased by $0.3 million, or 4,820.4%, from $0.01 million in the third quarter of fiscal 2024 to $0.32 million in the third quarter of fiscal 2025. The gross margin increased by 51.7%, from 1.3% in the third quarter of fiscal 2024 to 53.0% in the third quarter of fiscal 2025. The increase in gross margin was primarily because of strategically focusing on clearing to sell Pontoon Boats in the third of fiscal 2025 compared to that of fiscal 2024.
Previous wording
Our selling expenses mainly include warranty expense, advertising and promotion expense, shipping and handling fee and merchant service fee. These expenses decreased by $0.9 million, or 30.4%, from $3.1 million in the second quarter of fiscal 2024 to $2.2 million in the second quarter of fiscal 2025, representing 11.4% and 8.7% of our total revenue in the second quarter of fiscal 2025 and fiscal 2024, respectively. The decrease was primarily driven by a $0.5 million reduction in warranty expenses, reflecting improvements in quality control and customer service. The launch of a traveling technician team enabled faster and more efficient responses to customer service requests, which helped lower overall repair costs.
Current wording
Our selling expenses mainly include warranty expense, advertising and promotion expense, shipping and handling fee and merchant service fee. These expenses decreased by $1.4 million, or 55.8%, from $2.6 million in the third quarter of fiscal 2024 to $1.2 million in the third quarter of fiscal 2025, representing 10.3% and 6.8% of our total revenue in the third quarter of fiscal 2025 and fiscal 2024, respectively. The decrease was primarily driven by a $0.3 million reduction in warranty expenses, reflecting improvements in quality control and customer service, and by a $0.6 million reduction in shipping and handling fee, reflecting the decrease of sales in the third quarter of fiscal 2025.
Previous wording
Our general and administrative expenses primarily include salaries and benefits, professional fees, office expenses, travel expenses, insurance expenses, rent expense and depreciation expenses. General and administrative expenses increased by $0.3 million, or 8.1%, from $4.1 million in the second quarter of fiscal 2024 to $4.4 million in the second quarter of fiscal 2025. The increase was mainly due to increased salaries and benefits and rent expense, which were partly offset by a decrease in professional and legal fees and impairment loss. Our general and administrative expenses represented 23.4% and 11.6% of our total revenue in the second quarter of fiscal 2025 and the second quarter of fiscal 2024, respectively.
Current wording
Our general and administrative expenses primarily include salaries and benefits, professional fees, office expenses, travel expenses, insurance expenses, rent expense and depreciation expenses. General and administrative expenses decreased by $0.5 million, or 12.8%, from $3.9 million in the third quarter of fiscal 2024 to $3.4 million in the third quarter of fiscal 2025. The decrease was mainly due to increased rent expense, which were partly offset by a decrease in professional and legal fees. Our general and administrative expenses represented 20.7% and 15.2% of our total revenue in the third quarter of fiscal 2025 and the third quarter of fiscal 2024, respectively.
Previous wording
Our salaries and benefits were $1.9 million and $1.7 million, representing 45.1% and 42.3% of our total general and administrative expenses in the second quarter of fiscal 2025 and in the second quarter of fiscal 2024, respectively. The increase in balance was mainly due to one-off salaries compensation paid to an employee as result of employment termination and stock-based compensation expense of $0.2 million recognized on RSUs and stock option grant.
Current wording
Our salaries and benefits were $1.4 million and $1.3 million, representing 38.1% and 39.1% of our total general and administrative expenses in the third quarter of fiscal 2025 and in the third quarter of fiscal 2024, respectively. The slight decrease in balance was mainly due to increase for one-off salaries compensation paid to an employee as result of employment termination and the decrease of basic salaries and benefits due to the employment termination.
Previous wording
Our rent expenses increased by $0.1 million or 17.1%, from $0.5 million in the second quarter of fiscal 2024 to $0.6 million in the second quarter of fiscal 2025, representing 14.0% and 12.9% of our total general and administrative expenses in the second quarter of fiscal 2025 and 2024, respectively. Our rent expense increased due to the higher renewal rent rate and the addition of a new lease agreement in the first quarter of fiscal 2025.
Current wording
Our rent expenses increased by $0.5 million or 95.1%, from $0.6 million in the third quarter of fiscal 2024 to $1.1 million in the third quarter of fiscal 2025, representing 30.1% and 15.4% of our total general and administrative expenses in the third quarter of fiscal 2025 and 2024, respectively. Our rent expense increased due to the higher renewal rent rate and the addition of a new lease agreement in the first quarter of fiscal 2025.
Previous wording
Our professional fees decreased by $0.2 million or 33.0%, from $0.6 million in the second quarter of fiscal 2024 to $0.4 million in the second quarter of fiscal 2025, representing 8.4% and 13.6% of our total general and administrative expenses in the second quarter of fiscal 2025 and 2024, respectively. The decrease was primarily attributable to fewer ongoing lawsuits cases that require legal consulting service in the second quarter of fiscal 2025 when compared with same period in last year.
Current wording
Our professional fees decreased by $0.55 million or 73.5%, from $0.75 million in the third quarter of fiscal 2024 to $0.20 million in the third quarter of fiscal 2025, representing 5.7% and 21.5% of our total general and administrative expenses in the third quarter of fiscal 2025 and 2024, respectively. The decrease was primarily attributable to fewer ongoing lawsuits cases that require legal consulting service in the third quarter of fiscal 2025 when compared with same period in last year.
Previous wording
Our interest expense decreased by $139,547 or 68.3%, from $204,341 for the six months ended June 30, 2024, to $64,794 for the six months ended June 30, 2025. The decrease in interest expense was mainly because we did not have any bank loans during the period.
Current wording
Our interest expense turned from $2,943 in the third quarter of fiscal 2024 to an interest income of $343 in the third quarter of fiscal 2025. The decrease in interest expense was mainly because we did not have any bank loans during this period
Previous wording
Our other income was $26,602 in the second quarter of fiscal 2025, as compared with $132,268 in the second quarter of fiscal 2024, a decrease of $105,295, or 390.4%. The decrease was primarily related to we did not have such writing off a long outstanding negative balance of account receivable compared with the same period of the previous year.
Current wording
Our other income was $147,946 in the third quarter of fiscal 2025, as compared with $210,701 in the third quarter of fiscal 2024, a decrease of $62,755, or 29.8%. The decrease was primarily related to we did not have such writing off a long outstanding negative balance of account receivable compared with the same period of the previous year.
Previous wording
The income tax expense was approximately $0.03 million and $0.8 million for the second quarter of fiscal 2025 and 2024, respectively. The decrease in balance was mainly due to the decrease in taxable income as discussed above.
Current wording
The income tax expense was approximately $0.4 million for the third quarter of fiscal 2025 and the income tax benefits was approximately $0.6 million for the third quarter of fiscal 2024, respectively. The increase in balance was mainly due to the increase in taxable income as discussed above.
Previous wording
We had net income of $0.08 million and $2.8 million in the second quarter of fiscal 2025 and 2024, respectively. The decrease was primarily due to decreased revenues and gross profit, offset by a decrease in operating expenses as discussed above.
Current wording
We had net income of $1.5 million in the third quarter of fiscal 2025 compared to a net loss of $2.5 million in the third quarter of fiscal 2024, respectively. The increase was primarily due to fluctuation of revenues and gross profit, offset by a decrease in operating expenses as discussed above.
Previous wording
Revenues decreased by $16.5 million, or 46.6%, from $35.4 million for the six months ended June 30, 2024, to $18.9 million for the six months ended June 30, 2025. The decrease in revenue was primarily due to the contraction of the U.S. economy and reduced consumer spending. New tariffs contributed to rising inflation, with U.S. consumer inflation reported at 2.8% year-over-year in February 2025, and expectations of further increases. This uncertainty in the economic environment, coupled with high, long-lasting interest rates, led to reduced spending and demand from retail end customers for discretionary goods, particularly luxury items like yachts and pontoon boats. At the same time, the uncertainty surrounding tariffs, trade restrictions, and potential trade barriers, may have contributed to the reduced order sizes from our major big-box customers.
Current wording
Revenues decreased by $40.3 million, or 44.3%, from $91.2 million for the nine months ended September 30, 2024, to $50.9 million for the nine months ended September 30, 2025. The decrease in revenue was primarily due to the contraction of the U.S. economy and reduced consumer spending. New tariffs contributed to rising inflation, with U.S. consumer inflation reported at 2.8% year-over-year in February 2025, and expectations of further increases. This inflationary environment, coupled with high, long-lasting interest rates, led to reduced spending and demand from retail end customers for discretionary goods, particularly luxury items like yachts and pontoon boats. At the same time, the uncertainty surrounding tariffs, trade restrictions, and potential trade barriers stemming from President Trump’s policies, which were further exacerbated in January 2025, caused our major big-box customers to reduce their orders.
Previous wording
Revenue from sales of UTVs, ATVs and e-bikes decreased by $29.9 million, or 47.5%, from $62.9 million for the six months ended June 30, 2024 to $33.0 million for the six months ended June 30, 2025. The decrease in revenue was primarily attributed to a decline in sales volume from big box stores. Due to the uncertainty surrounding tariffs, trade restrictions, and potential trade barriers stemming from President Trump’s policies, which were further exacerbated in January 2025. These geopolitical factors have created a volatile market environment, leading to reduced confidence among our major retail customers, especially big-box stores that typically place large volume orders.
Current wording
Revenue from sales of UTVs, ATVs and e-bikes decreased by $38.6 million, or 43.9%, from $88.0 million for the nine months ended September 30, 2024 to $49.4 million for the nine months ended September 30, 2025. The decrease in revenue was primarily attributed to a decline in sales volume from big box stores. Due to the uncertainty surrounding tariffs, trade restrictions, and potential trade barriers stemming from President Trump’s policies, which were further exacerbated in January 2025. These geopolitical factors have created a volatile market environment, leading to reduced confidence among our major retail customers, especially big-box stores that typically place large volume orders.
Previous wording
Revenue from sales of Pontoon Boats decrease by $0.8 million, or 30.7%, from $2.6 million for the six months ended June 30, 2024 to $1.8 million for the six months ended June 30, 2025. The decrease was primarily driven by an industry-wide downturn caused by high interest rates and inflation, which have impacted the consumption of non-essential goods. In addition, high rejection rates from floorplan financing providers such as Northpoint have directly affected the inventory level that dealers can maintain, thereby reducing our sales in this category. This trend aligns with broader industry challenges. Ongoing economic uncertainty in the U.S. has further reduced discretionary spending on luxury boats, negatively affecting sales of high-end models such as our yacht.
Current wording
Revenue from sales of Pontoon Boats decrease by $1.7 million, or 55.5%, from $3.1 million for the nine months ended September 30, 2024 to $1.4 million for the nine months ended September 30, 2025. The decrease was primarily driven by an industry-wide downturn caused by high interest rates and inflation, which have impacted the consumption of non-essential goods. In addition, high rejection rates from floorplan financing providers such as Northpoint have directly affected the inventory level that dealers can maintain, thereby reducing our sales in this category. This trend aligns with broader industry challenges. Ongoing economic uncertainty in the U.S. has further reduced discretionary spending on luxury boats, negatively affecting sales of high-end models such as our yacht.
Previous wording
Our gross profit decreased by $10.9 million, or 49.5%, from $22.0 million for the six months ended June 30, 2024 to $11.1 million for the six months ended June 30, 2025. Gross profit margin was 32.8% for the six months ended June 30, 2025, compared with 33.5% in the same period last year. The decrease in gross margin was mainly due to an increase in freight absorbed in cost of sales.
Current wording
Our gross profit decreased by $10.7 million, or 36.9%, from $28.9 million for the nine months ended September 30, 2024 to $18.2 million for the nine months ended September 30, 2025. Gross profit margin was 35.9% for the nine months ended September 30, 2025, compared with 31.7% in the same period last year. The decrease in gross margin was mainly due to an increase in freight absorbed in cost of sales.
Previous wording
Cost of revenue on UTVs, ATVs and e-bikes decreased by $19.6 million, or 47.3%, from $41.5 million for the six months ended June 30, 2024, to $21.9 million for the six months ended June 30, 2025 and gross profit decreased by $10.3 million, or 47.9%, from $21.5million for the six months ended June 30, 2024, to $11.2 million for the six months ended June 30, 2025. Gross margin slightly decreased by 0.3%, from 34.1% for the six months ended June 30, 2024 to 33.8% for the six months ended June 30, 2025. The decrease in the cost of revenue was primarily due to decreased product purchase cost, resulting from the decrease in sales volume. The decline in gross margin was primarily driven by higher freight costs compared to the prior year.
Current wording
Cost of revenue on UTVs, ATVs and e-bikes decreased by $28.2 million, or 47.3%, from $59.6 million for the nine months ended September 30, 2024, to $31.4 million for the nine months ended September 30, 2025 and gross profit decreased by $10.4 million, or 36.7%, from $28.4million for the nine months ended September 30, 2024, to $18.0 million for the nine months ended September 30, 2025. Gross margin slightly increased by 4.1%, from 32.3% for the nine months ended September 30, 2024 to 36.4% for the nine months ended September 30, 2025. The decrease in the cost of revenue was primarily due to decreased product purchase cost, resulting from the decrease in sales volume. The increase in gross margin was primarily a result of selling some inventory at lower price at our seasonal promotions in the third quarter of fiscal 2024, while the unit sales price is higher in the same period of fiscal 2025.
Previous wording
Our selling expenses mainly include warranty expense, advertising and promotion expense, shipping and handling fee and merchant service fee. They decreased by $1.3 million, or 24.2%, from $5.3 million for the six months ended June 30, 2024, to $4.0 million for the six months ended June 30, 2025, representing 11.9% and 8.1% of our total revenue for the six months ended June 30, 2025 and 2024, respectively. The decrease was primarily driven by a $0.7 million reduction in warranty expenses, reflecting improvements in quality control and customer service. The launch of a traveling technician team enabled faster and more efficient responses to customer service requests, which helped lower overall repair costs. The advertising fee decreased for $0.1 million which is consist with the decrease in sales.
Current wording
Our selling expenses mainly include warranty expense, advertising and promotion expense, shipping and handling fee and merchant service fee. They decreased by $2.7 million, or 34.6%, from $7.9 million for the nine months ended September 30, 2024, to $5.2 million for the nine months ended September 30, 2025, representing 10.2% and 8.7% of our total revenue for the nine months ended September 30, 2025 and 2024, respectively. The decrease was primarily driven by a $1.0 million reduction in warranty expenses, reflecting improvements in quality control and customer service and the decrease of sales volume. The launch of a traveling technician team enabled faster and more efficient responses to customer service requests, which helped lower overall repair costs. The shipping and handling fees decreased for $1.5 million which is consist with the decrease in sales.
Previous wording
Our general and administrative expenses primarily include salaries and benefits, professional fees, office expenses, travel expenses, insurance expenses, rent expense and depreciation expenses. General and administrative expenses increased by $0.4 million, or 5.4%, from $8.2 million for the six months ended June 30, 2024, to $8.6 million for the six months ended June 30, 2025. The increase was mainly due to increased salaries and benefit, insurance expense and professional fees that are related to being a public company, partly offset by a decrease in legal fee. Our general and administrative expenses represented 25.6% and 12.5% of our total revenue for the six months ended June 30, 2025 and 2024, respectively.
Current wording
Our general and administrative expenses primarily include salaries and benefits, professional fees, office expenses, travel expenses, insurance expenses, rent expense and depreciation expenses. General and administrative expenses decreased from $12.1 million, for the nine months ended September 30, 2024, to $12.0 million for the nine months ended September 30, 2025. The increase was mainly due to increased salaries and benefit and rent expense, partly offset by a decrease in professional fees. Our general and administrative expenses represented 23.7% and 13.3% of our total revenue for the nine months ended September 30, 2025 and 2024, respectively.
Previous wording
Our salaries and benefits were $3.3 million and $2.8 million, representing 38.6% and 34.5% of our total general and administrative expenses for the six months ended June 30, 2025 and 2024, respectively. The increase in the balance was mainly due to a severance package of $0.5 million paid to an employee as result of employment termination and the stock-based compensation expense of $0.2 million recognized on RSUs and stock option grants.
Current wording
Our salaries and benefits were $4.7 million and $4.2 million, representing 38.5% and 34.8% of our total general and administrative expenses for the nine months ended September 30, 2025 and 2024, respectively. The increase in the balance was mainly due to a severance package of $0.5 million paid to an employee as result of employment termination.
Previous wording
Our rent expenses increased by $0.3 million or 23.7%, from $1.2 million for the six months ended June 30, 2024, to $1.5 million for the six months ended June 30, 2025, representing 17.6% and 15.0% of our total general and administrative expenses for the six months ended June 30, 2025 and 2024, respectively. Our rent expense increased due to the higher renewal rent rate and the addition of a new lease agreement for the six months ended Jun30, 2025, compared to the same period last year.
Current wording
Our rent expenses increased by $0.8 million or 45.5%, from $1.7 million for the nine months ended September 30, 2024, to $2.5 million for the nine months ended September 30, 2025, representing 21.2% and 14.6% of our total general and administrative expenses for the nine months ended September 30, 2025 and 2024, respectively. Our rent expense increased due to the higher renewal rent rate and the addition of a new lease agreement for the nine months ended September 30, 2025, compared to the same period last year.
Previous wording
Our professional and legal fees decreased by $0.4 million or 28.5%, from $1.3 million for the six months ended June 30, 2024, to $0.9 million for the six months ended June 30, 2025, representing 10.9% and 16.1% of our total general and administrative expenses for the six months ended June 30, 2025 and 2024, respectively. The decrease was primarily attributable to fewer ongoing lawsuits cases that require legal consulting service for the six months ended June 30, 2025 when compared with same period in last year, partly offset by increased in professional fee that are related to being a public company.
Current wording
Our professional and legal fees decreased by $0.9 million or 44.8%, from $2.1 million for the nine months ended September 30, 2024, to $1.2 million for the nine months ended September 30, 2025, representing 9.4% and 17.1% of our total general and administrative expenses for the nine months ended September 30, 2025 and 2024, respectively. The decrease was primarily attributable to fewer ongoing lawsuits cases that require legal consulting service for the nine months ended September 30, 2025 when compared with same period in last year, partly offset by increased in professional fee that are related to being a public company.
Previous wording
During the three months ended June 30, 2024, we recorded a one-time impairment loss of approximately $0.7 million on advanced deposit to one supplier. In June 2024, we reached a tentative agreement regarding general settlement terms with one suppler who would pay approximately $342,000 including interest to resolve the claim. Our prepayment of $1.1 million would be considered irrecoverable. Therefore, we wrote off the approximately $742,000 of prepayment to the supplier during the three months ended June 30, 2024. During the three months ended June 30, 2025, we had no impairment loss of prepayment.
Current wording
During the nine months ended September 30, 2024, we recorded a one-time impairment loss of approximately $0.7 million on advanced deposit to one supplier. In September 2024, we reached a tentative agreement regarding general settlement terms with one suppler who would pay approximately $342,000 including interest to resolve the claim. Our prepayment of $1.1 million would be considered irrecoverable. Therefore, we wrote off the approximately $742,000 of prepayment to the supplier during the three months ended September 30, 2024. During the nine months ended September 30, 2025, we had no impairment loss of prepayment.
Previous wording
Our interest expense decreased by $2,943 or 4.4%, from $66,647 in the second quarter of fiscal 2024 to $63,704 in the second quarter of fiscal 2025. The decrease in interest expense was mainly because we did not have any bank loans during the period but we recorded a bank charge $50,409 to establish a letter of credit.
Current wording
Our interest expense decreased by $0.2 million or 76.0%, from $268,803 for the nine months ended September 30, 2024, to $64,421 for the nine months ended September 30, 2025. The decrease in interest expense was mainly because we did not have any bank loans during the period but we recorded a bank charge $50,409 to establish a letter of credit.
Previous wording
Our other income of $105,300 for the six months ended June 30, 2025, compared with $379,837 for the six months ended June 30, 2024, decreased by $274,537, or 72.3%. We wrote off a vendor’s account payable balance by $177,147 as a result of a settlement between the vendor and the Company for the six months ended June 30, 2024, which was one-off income. However, we did not have such income in the current same period.
Current wording
Our other income of $253,246 for the nine months ended September 30, 2025, compared with $590,538 for the nine months ended September 30, 2024, decreased by $337,292, or 57.1%. We wrote off a vendor’s account payable balance as a result of a settlement between the vendor and the Company for the nine months ended September 30, 2024, which was one-off income. However, we did not have such income in the current same period.
Previous wording
We had an decrease of $10.2 million in income before income taxes from $7.7 million for the six months ended June 30, 2024, to approximately $2.5 million for the six months ended June 30, 2025. The decrease was primarily attributable to a decrease of $10.9 million in gross profit, partly offset by an decrease of $0.8 million in operating expenses as discussed above.
Current wording
We had an decrease of $5.2 million in income (loss) before income taxes from a $4.6 million income for the nine months ended September 30, 2024, to approximately a loss of $0.6 million for the nine months ended September 30, 2025. The decrease was primarily attributable to the fluctuation of gross profits and operating expenses discuss in the foregoing part.
Previous wording
We did not have current income tax for the six months ended June 30, 2025 due to net loss position and we recognized a deferred income tax recovery of $0.5 million due to temporary differences recognized and net operating loss carried forward. For the six months ended June 30, 2024, we had current income tax of $1.7 million arising from net assessable income.
Current wording
We did not have current income tax for the nine months ended September 30, 2025 due to net loss position and we recognized a deferred income tax recovery of $0.10 million due to temporary differences recognized and net operating loss carried forward. For the nine months ended September 30, 2024, we had income tax of $1.1 million arising from net assessable income and the change of deferred tax assets.
Previous wording
Net loss was $2.0 million for the six months ended June 30, 2025, compared with net income of $6.0 million for the same period last year. The decrease was primarily due to decreased revenues and gross profit, offset by an decrease in operating expenses, as discussed above.
Current wording
Net loss was $0.48 million for the nine months ended September 30, 2025, compared with net income of $3.50 million for the same period last year. The decrease was primarily due to fluctuation of revenues and gross profit, offset by a decrease in operating expenses as discussed above.
Previous wording
Net cash used in operating activities was approximately $4.7 million during the six months ended June 30, 2025, compared to net cash provided by operating activities of approximately $7.1 million during the six months ended June 30, 2024, representing an increase in the net cash used in operating activities of $2.4 million during the six months ended June 30, 2025 compared with the same period in 2024. The decrease is primarily due to the following:
Current wording
Net cash used in operating activities was approximately $4.1 million during the nine months ended September 30, 2025, compared to net cash used in operating activities of approximately $2.4 million during the nine months ended September 30, 2024, representing an increase in the net cash used in operating activities of $1.7 million during the nine months ended September 30, 2025 compared with the same period in 2024. The decrease is primarily due to the following:
Previous wording
Net cash used in investing activities was nil for the six months ended June 30, 2025 compared to net cash used in investing activities of $179,851 for the same period last year. We made a fixed deposit of $3.0 million with a bank in the first quarter of fiscal 2025 and had a proceed from the bank in the second quarter of fiscal 2025. During the same period in fiscal 2024, we had purchased and equipment of $0.3 million offsetting by a proceed of $0.2 million from sale of property and equipment during the six months ended June 30, 2024.
Current wording
Net cash used in investing activities was $65,361 for the nine months ended September 30, 2025 compared to net cash used in investing activities of $262,163 for the same period last year. We made a fixed deposit of $3.0 million with a bank in the first quarter of fiscal 2025 and had a proceed from the bank in the second quarter of fiscal 2025. During the same period in fiscal 2024, we had purchased and equipment of $0.4 million offsetting by a proceed of $0.16 million from sale of property and equipment during the nine months ended September 30, 2024.
Previous wording
Net cash provided by financing activities was approximately $3.0 million during the six months ended June 30, 2025, compared to net cash used in financing activities of approximately $7.8 million during the six months ended June 30, 2024. We made a repayment of shareholder withdrawal of $3.0 million during the six months ended June 30, 2025 compared with we had a proceed from bank loan of $2.7 million and a net proceed from IPO of $4.5 million.
Current wording
Net cash used in financing activities was approximately $3.5 million during the nine months ended September 30, 2025, compared to net cash generated from financing activities of approximately $3.6 million during the nine months ended September 30, 2024. We made a repayment of shareholder withdrawal totaling $3.4 million during the nine months ended September 30, 2025 compared to a repayment of related party of $1.5 million and a net proceed from IPO of $4.5 million during the comparable period.
Previous wording
As of June 30, 2025, we had cash and cash equivalents of approximately $2.4 million. Our current assets were approximately $35.3 million, including approximately $8.2 million accounts receivable, approximately $23.4 million inventory, approximately $0.3 million advance to suppliers and approximately $1.0 million prepayment deposit and other receivables, and our current liabilities were approximately $19.4 million, including $6.2 million accounts payable to suppliers, $6.2 million other payable, accrued expenses and other current liabilities, $0.9 million contract liabilities, $1.1 million income tax payable, $2.5 million loan from a related party and $2.1 million liabilities from obligations under operating and financing leases, which resulted in a positive working capital of $15.9 million.
Current wording
As of September 30, 2025, we had cash and cash equivalents of approximately $2.6 million. Our current assets were approximately $34.5 million, including approximately $5.3 million accounts receivable, approximately $25.1 million inventory, approximately $0.3 million advance to suppliers and approximately $1.2 million prepayment deposit and other receivables, and our current liabilities were approximately $16.7 million, including $4.7 million accounts payable to suppliers, $6.1 million other payable, accrued expenses and other current liabilities, $0.4 million contract liabilities, $1.1 million income tax payable, $2.1 million loan from a related party and $2.1 million liabilities from obligations under operating and financing leases, which resulted in a positive working capital of $17.8 million.
Previous wording
Our primary source of cash is currently generated from our business and bank borrowings. In the coming years, we will be looking to other sources, such as raising additional capital by issuing shares of stock, to meet our cash needs. While facing uncertainties regarding the size and timing of capital raise, we are confident that we can continue to meet operational needs solely by utilizing cash flow generated from our operating activities.
Current wording
Our primary source of cash is currently generated from our business and bank borrowings. In the coming years, we will be looking to other sources, such as raising additional capital by issuing shares of stock, to meet our cash needs. While facing uncertainties regarding the size and timing of capital raise, we are confident that we can continue to meet operational needs solely by utilizing cash flows generated from our operating activities.
Showing the first 40 of 46 pairs. Open the source sections for the rest.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
Our sales were nearly stagnant in April and May for the three months ended June 30 ,2025, but recovered to last year’s levels in June, lifting the quarterly average.
Previous report — wording carried elsewhere
Impairment loss on supplier deposit due to lawsuit
Previous report — wording carried elsewhere
During the three months ended June 30, 2024, we recorded a one-time impairment loss of approximately $0.7 million on advanced deposit to one supplier. In June 2024, we reached a tentative agreement regarding general settlement terms with one suppler who would pay approximately $342,000 including interest to resolve the claim. Our prepayment of $1.1 million would be considered irrecoverable. Therefore, we wrote off the approximately $742,000 of prepayment to the supplier during the three months ended June 30, 2024. During the three months ended June 30, 2025, we had no impairment loss of prepayment.