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 UNITED
STATES

 SECURITIES
AND EXCHANGE COMMISSION

 Washington,
D.C. 20549

 FORM

 (Mark
One)

 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

 For
the fiscal year ended December 31, 2024

 or

 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

 For
the transition period from ____ to ____

 Commission
file number: 001-41994

Group

 (Exact
name of registrant as specified in its charter)

 Nevada

 92-0790263

 (State
 or other jurisdiction

 of
 incorporation or organization)

 (I.R.S.
 Employer

 Identification
 No.)

 3101
 W Miller Road

 Garland,
 TX

 75041

 (Address
 of principal executive offices)

 (Zip
 Code)

 Registrant's
telephone number, including area code: (877) 881-6376

 Securities
registered pursuant to Section 12(b) of the Act:

 Title
 of each class:

 Trading
 Symbol(s)

 Name
 of each exchange on which registered:

 Common
 stock, par value $0.001 per share

 MAMO

 The
 Nasdaq Stock Market LLC

 Securities
registered pursuant to Section 12(g) of the Act: None

by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No

by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes
 No

by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days. Yes No

by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule
405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant
was required to submit such files). Yes No

by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer, "smaller
reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 Large
 accelerated filer

 Accelerated
 filer

 Non-accelerated
 filer

 Smaller
 reporting company

 Emerging
 growth company

 If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness
of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered
public accounting firm that prepared or issued its audit report.

by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

 If
securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant
included in the filing reflect the correction of an error to previously issued financial statements.

by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation
received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b).

 As
of June 28, 2024 (the last business day of the registrant's most recently completed second fiscal quarter), the aggregate
market value of the registrant's common shares held by non-affiliates of the registrant was approximately $ 35,010,068.15,
based on the closing price on that date as reported on the Nasdaq Stock Market.

 As
of March 24, 2025 there were 41,546,700 shares of common stock, par value $ 0.001 per share of
the registrant issued and outstanding.

 TABLE
OF CONTENTS

 PAGE

 Item
 1.

 Business.

 Item
 1A.

 Risk Factors.

 Item
 1B.

 Unresolved Staff Comments.

 Item
 1C.

 Cybersecurity.

 Item
 2.

 Properties.

 Item
 3.

 Legal Proceedings.

 Item
 4.

 Mine Safety Disclosures.

 Item
 5.

 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

 Item
 6.

 [Reserved]

 Item
 7.

 Management's Discussion and Analysis of Financial Condition and Results of Operations.

 Item
 7A.

 Quantitative and Qualitative Disclosures About Market Risk.

 Item
 8.

 Financial Statements and Supplementary Data.

 Item
 9.

 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

 Item
 9A.

 Controls and Procedures.

 Item
 9B.

 Other Information.

 Item
 9C.

 Disclosure Regarding Foreign Jurisdictions that Prevent Inspections.

 Item
 10.

 Directors, Executive Officers and Corporate Governance.

 Item
 11.

 Executive Compensation.

 Item
 12.

 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 Item
 13.

 Certain Relationships and Related Transactions, and Director Independence.

 Item
 14.

 Principal Accountant Fees and Services.

 Item
 15.

 Exhibit and Financial Statement Schedules.

 Item
 16.

 Form 10-K Summary.

 Unless
otherwise stated in this Annual Report on Form 10-K (this "Report"), references to "we," "us," "our,"
"Company" or "our Company" are to Massimo Group, a Nevada corporation.

 CAUTIONARY
NOTE REGARDING FORWARD-LOOKING STATEMENTS

 This
Report contains forward-looking statements about us and our industry that involve substantial risks and uncertainties. All
statements contained in this Report other than statements of historical fact, including statements regarding our future results of
operations and financial position, our business strategy and plans, projected costs and our objectives for future operations, are
forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as
"believe," "may," "will," "estimate," "continue,"
"anticipate," "should," "shall," "intend," "goal,"
"objective," "seek," "expect," and similar expressions or the negative of these words or other
similar terms or expressions that concern our expectations, strategy, plans, or intentions. We have based these forward-looking
statements largely on our current expectations and projections about future events and trends that we believe may affect our
financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and
financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including but not
limited to: our limited operating history on which to judge our performance and assess our prospects for future success, risks
related to our reliance on a network of independent dealers and distributors to manage the retail distribution of many of our
products, our reliance on third-party manufacturers and supplies for our products, risks related to the fact that the majority of
the products we purchase are manufactured by suppliers in China and their operations are subject to risks associated with business
operations in China including tariffs, the inexperience of our principal shareholder and senior management in operating a publicly
traded company, economic conditions that impact consumer spending may have a material adverse effect on our business, or results of
operations or financial condition, intense competition in all product lines, including from some competitors that have greater
financial and marketing resources, to our ability to attract and retain key personnel, potential harm caused by misappropriation of
our data and compromises in cybersecurity, changes in laws, regulatory requirements, governmental incentives and fuel and energy
prices, litigation, regulatory proceedings, complaints, product liability claims and/or adverse publicity, the inability of our
dealers, customers and distributors to secure adequate access to capital or financing, failure to develop brand name and reputation,
significant product repair and/or replacement due to product warranty claims or product recalls, the impact of health epidemics,
including the COVID-19 pandemic, on our business, other risks and uncertainties we face and the actions we may take in response
thereto described in this Report, including those described in the " Risk
Factors " section. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time
to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or
the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any
forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends
discussed in this Report may not occur and actual results could differ materially and adversely from those anticipated or implied in
the forward-looking statements.

 You
should not rely upon forward-looking statements as predictions of future events. The events and circumstances reflected in the forward-looking
statements may not be achieved or occur. Although we believe that the expectations reflected in the forward-looking statements are reasonable,
we cannot guarantee future results, levels of activity, performance, or achievements. Except as required by applicable law, we undertake
no duty to update any of these forward-looking statements after the date of this Report or to conform these statements to actual results
or revised expectations.

 In
addition, statements that "we believe" and similar statements reflect our beliefs and opinions on the relevant subject. These
statements are based upon information available to us as of the date of this Report, and while we believe such information forms a reasonable
basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have
conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain,
and you are cautioned not to unduly rely upon these statements.

 You
should read this Report and the documents that we reference in this Report and have filed as exhibits to the registration statement,
of which this Report is a part, completely and with the understanding that our actual future results may be materially different from
what we expect. We qualify all of the forward-looking statements in this Report by these cautionary statements.

 PART
I

 Item
1. Business.

 Overview

 We
believe we are a leading company in the Mid-Tier Band of the powersports vehicles and boats industry in the United States, which includes
the All-Terrain Vehicle ("ATV"), Utility-Terrain Vehicle ("UTV"), and pontoon and tritoon boats ("Pontoon
Boats") subsectors (the "Powersports Vehicles and Boats Industry"). "Mid-Tier Band" means the mid-tier
band of the Powersports Vehicles and Boats Industry, which our management considers to be those manufacturers that produce a wide range
of products that cater to customer needs but do not yet have the international operations and market share of the Top-Tier Band (as defined
below) of the Powersports Vehicles and Boats Industry. "Top-Tier Band" means the top-tier band of the Powersports Vehicles
and Boats Industry, which our management considers to include companies such as Polaris, Bombardier Recreational Products (BRP), Honda, and Yamaha with international operations and large market shares.

 We
manufacture, import and distribute a diversified portfolio of products divided into two main lines: (1) UTVs, ATVs, motorcycles,
scooters, golf carts and a juvenile line from go karts to balance bikes and tractors among other products; and (2) recreational
Pontoon Boats. In 2024, we released an all-new line of All-Weather UTVs with enclosures, heaters, and AC units. We
plan to offer All-Weather options for all UTVs in the future. We have also been developing new product lines, such as electric
vehicle ("EV") chargers and electric Pontoon Boats, all of which are currently available for sale. In addition to
distributing our products, we aim to provide unparalleled customer service, which includes over 600 motor vehicles and 5,500
marine third-party service providers across the United States, 24-hour customer support and an approximately 40,000 sq. ft. parts
facility which enables us to fulfill most parts orders within 48 hours.

 We are headquartered in a 376,000 sq. ft. facility of which 280,000 sq.
ft. is dedicated to Massimo Motor Sports LLC ("Massimo Motor
Sports") and 96,000 sq. ft. to Massimo Marine LLC ("Massimo Marine"). Our facility
is adjacent to seven acres for boat storage in Dallas, Texas, which houses a design center, two manual assembly lines. including an automated vehicle assembly robot line, our parts department, a test track, dyno and over 30 loading docks. Our products are sold
directly by us in the e-commerce marketplace and through a network of dealerships, distributors, and chain stores. We have a significant
in-store UTV retail partnership with Tractor Supply Co.

 We
manufacture and assemble our products in our Dallas facility and rely upon an international network of strategic global partnerships
to supply us with parts and components. In 2017, we began a partnership with Linhai Yamaha Motor Co., located in Shanghai, China which
allowed us to rapidly expand our product line and increase the performance of our vehicles. Further, we partnered with Kubota, Japan
to enter the diesel UTV market in 2019.

 On
June 11, 2024, we entered into a strategic partnership agreement with Armlogi Holding Corp ("Armlogi"), a U.S.-based warehousing
and logistics service provider, to gain access to Armlogi's warehousing facilities and tailored logistics services for fast order
fulfillment of UTVS, ATVs, Go-Karts and Golf Carts. Pursuant to the agreement Armlogi will receive containers of our vehicle kits arriving
from Asian suppliers at its warehouses in Savannah, GA, Edison, NJ, and Walnut, CA. Massimo will provide vehicle assembly at the warehouses,
and Armlogi will supply inventory management, storage services, logistics, and delivery to final order destinations.

 Corporate
History

Motor Sports was initially formed as a limited liability company in Texas on June 30, 2009. Massimo Marine was formed as a limited liability
company in Texas on January 6, 2020. At the time of the respective formations, Mr. David Shan had held one hundred percent (100%) of
the issued and outstanding membership interests of Massimo Motor Sports and Massimo Marine.

 On
October 10, 2022, Massimo was formed, with Mr. David Shan as the sole stockholder. On June 1, 2023,
the Company effectuated an internal reorganization whereby (i) Asian International Securities Exchange Co., Ltd. ("AISE")
entered into two separate contribution agreements with Massimo Marine and Massimo Motor Sports, respectively, whereby AISE contributed
$1,000,000 to Massimo Marine and $1,000,000 to Massimo Motor Sports in exchange for fifteen percent (15%) of membership interests in
both entities, and (ii) simultaneously, on the same date, Mr. David Shan and AISE contributed their membership interests in Massimo Marine
and Massimo Motor Sports, which was eighty-five percent (85%) and fifteen percent (15%) respectively, to Massimo in exchange for
shares of common stock, par value $0.001 ("common stock") of Massimo, the end result being that Mr. David Shan and
AISE owned eighty-five percent (85%) and fifteen percent (15%) of Massimo (the "Reorganization") prior to our initial public offering.

 Listing

 Our
common stock began trading on April 2, 2024 on The Nasdaq Capital Market ("Nasdaq") under the symbol "MAMO."

 Competitive
Strengths

 The following strengths have enabled
us to achieve our growth to date, and we believe will contribute to our ongoing growth:

 Diversified
and Comprehensive Product Portfolio

 We
have a robust portfolio of products, including UTVs and ATVs, golf carts, motorcycles, scooters, Pontoon Boats, tractors, snow equipment
and a line of accessories for the outdoor enthusiast including electric coolers, power stations and portable solar panels. Our products
provide enthusiasts with a variety of exhilarating, stylish and powerful vehicles for year-round use on a variety of terrains. The diversity
of our products reduces our exposure to changes in consumer behavior in any single category and provides us with multiple avenues for
continued growth. Furthermore, certain product lines are sold in offsetting seasons, reducing the overall seasonality of our sales and
lowering cash flow influx risk.

 In
addition to its appeal to consumers, our broad product portfolio provides a compelling value proposition to our dealers and distributors
and allows dealers to reduce seasonality, increase operational efficiency and facilitate inventory management.

 Multiple
Distribution Channels

 We
have established multiple distribution channels for our products, including our own e-commerce platforms, leading marketplace accounts,
an extensive network of independent dealers and distributors, and relationships with some of the largest retailers in the United States,
including Tractor Supply Co., Lowes, Walmart, Costco, Sam's Club, Home Depot, Fleet Farm, Rural King, and more. Our multiple channels
for distribution and large dealer network provide multiple avenues through which we can engage and communicate with consumers.

 Strategic
Partnerships with Leading Suppliers of High-Quality Products

 We
benefit from cordial relationships with leading suppliers throughout the world. We have ongoing relationships with leading
manufacturers which enable us to offer our customers reliable leading-edge high-quality products at prices which represent great
value. For example, since 2017 we have partnered with Linhai Yamaha Motor Co., a supplier located in Shanghai, China, which has
allowed us to increase our vehicles performance and expand our product lines. These relationships also enable us to cut costs while
maintaining quality standards and plan shipments to control our inventory levels. Many of our manufacturing partners'
facilities are located in China, which has historically enabled them to offer lower cost manufacturing and rapid lead-times for
end-market distribution in the United States.

 Dedicated
Customer Support Team

 We
have over 600 third-party motor sports service providers across the United States, more than 5,500 third-party marine boat service centers to
service our Pontoon Boats and a dedicated staff of full-time employees including trained technicians to provide online and telephone
support to our customers and dealers. This is a value-added service we provide, albeit we have not historically generated revenue from
providing maintenance services. We carry full lines of parts, accessories and maintenance items across all models in our approximately
40,000 sq. ft. parts department and strive to fill all orders for parts and accessories within 48 hours.

 State
of the Art Facility

 We are headquartered in a 376,000 sq. ft. facility of which 280,000 sq.
ft. is dedicated to Massimo Motor Sports and 96,000 sq. ft. to Massimo Marine. Our facility is adjacent to seven acres for boat storage in Dallas, Texas, which houses a design center, two assembly lines,
our parts department, a test track, dyno, and over 30 loading docks. In addition to serving as the manufacturing facility for our Pontoon
Boats, the facility is equipped to quickly palletize and shrink wrap ATVs and UTVs so that most orders can be shipped to stores or distributors
within three days. We have also partnered with Armlogi to gain access to its warehousing facilities and tailored logistics services for
fast order fulfillment of UTVS, ATVs, Go-Karts and Golf Carts.

 Highly
Experienced Management Team

 Our
experienced management team has demonstrated its ability to identify, create and implement new product opportunities, increase revenues,
improve financial performance, and maintain a corporate culture dedicated to serving our customers and providing them with premium quality
products at great value with unparalleled service.

 Strategy

 Our
goal is to enter the Top-Tier Band of the Powersports Vehicles and Boats Industry and increase our market share through the following
initiatives:

 Open
 New Distribution Centers. As of the date of this report we have opened five new distribution centers in California, Georgia,
 New Jersey, Texas, and Illinois through our partnership with Armlogi This expansion has enhanced our ability
 to efficiently deliver products, replacement parts, and accessories to customers, distributors, and retailers across the western
 and eastern United States. As a result, we have reduced delivery times and associated costs, improved operational efficiency, and
 enhanced customer satisfaction while strengthening our margins.

 Invest
 in our Infrastructure. We believe our success greatly depends on our ability to maintain our operating efficiencies. To support
 this initiative, we implemented an automated robotic assembly line, increasing production efficiency. Additionally, we upgraded key
 components of our information technology (IT) systems, integrating our online sales platform with our enterprise resource planning
 (ERP) system. We remain committed to further investments in our infrastructure to enhance operational efficiency.

 Expand
 Our Existing Product Lines. We have expanded our product lines by introducing new models of UTVs, ATVs and recreational vehicles
 to meet diverse customer needs and preferences. In 2024, we launched new all-weather UTV models equipped with enclosures and air
 conditioning, delivering both comfort and performance. We plan to extend these features to all UTV models in the near future.
 Additionally, we introduced new electric golf carts in 2024. We will continue to follow consumer trends and consult with our
 suppliers and distributors to identify new products and product upgrades we will offer to customers and distributors. Where
 possible, such as with our Pontoon Boats, we will upgrade our offerings and add new accessories to increase our profit
 margins.

 Expand
 into AI Application Robotic Products. To enhance our product portfolio with cutting-edge
 technology and AI, we plan to partner with existing manufacturers and begin by distributing
 AI-powered robotic products designed for both indoor and outdoor use. These products would integrate
 advanced AI, computer vision, and robotics, enabling them to navigate environments, avoid
 obstacles, deliver objects, and send alerts. We initially plan to adopt these products as companions or assistants for
hunting, as well as for various farm and ranch utility purposes. They present exciting opportunities across industries
 such as surveillance, inspection, logistics, and both indoor and outdoor entertainment. As
 we gain deeper insights into the market and customer needs, we will introduce customization
 options tailored to specific industries. To support our customers, we intend to provide pre-sales
 training on product operation and optimization, as well as comprehensive after-sales services,
 including maintenance and repairs. We believe this initiative can fundamentally transform
 our business, allowing us to expand beyond traditional powersports vehicles and boats into
 the realm of high-tech and AI-driven applications.

 Expand
 and Diversify our Supplier Base. To enable us to further diversify our product offerings, drive down our product costs and reduce
 our supply chain risks and improve quality control, we will seek to establish relationships with new suppliers in countries building
 their manufacturing capacities as certain buyers seek to reduce their dependence on Chinese manufacturers. Should appropriate opportunities
 arise, we will seek to vertically integrate our production capabilities by acquiring a manufacturing facility or opening our own
 plant.

 Increase
 our Personnel. We intend to look to augment our current personnel by adding additional employees with experience to increase
 sales of our current products, identify and launch new products and increase our operating efficiencies. This will also include hiring
 experienced engineers, product designers, and sales representatives who can help the Company achieve its growth objectives.

 Acquisitions
 and Consolidation: We will explore potential acquisitions and consolidation opportunities in the Powersports Vehicles and other
 related outdoor products industry to expand our market share and gain access to new technologies and capabilities.

 Products

 We
have a diverse product line which includes industrial and recreational UTVs, recreational ATVs, golf carts, motorcycles, Pontoon Boats,
juvenile products from go karts to balance bikes, and tractors, snow equipment and a line of accessories including EV chargers, electric
coolers, power stations and portable solar panels. In 2024, we launched new all-weather UTV models equipped with enclosures and air conditioning, delivering both comfort
and performance. We plan to extend these features to all UTV models in the near future. Additionally, we introduced new electric golf
carts in 2024. This strategic initiative
reflects our commitment to innovation, moving beyond traditional gas-powered models to meet the increasing demand for advanced technology
and enhanced comfort.

 The
majority of our products are imported directly from our manufacturer network to our facility in Dallas where they are assembled, accessorized
and inspected before shipment to a distributor or direct to the customer, with the exception of our Pontoon Boats, which are wholly manufactured
at our Dallas facility. With the exception of our products designed for industry usage, our products are designed to serve and market
towards recreational users.

 We
constantly monitor the consumer market and consult with suppliers to determine what new products we can offer customers. In determining
whether to commence distributing a product, among other things, we consider the quality and reliability of the product, the value we
believe we can deliver to the consumer based on the price to be paid to the supplier and the reliability of the supplier.

 ATV
and UTV

 An
ATV is an all-terrain vehicle-commonly called a four-wheeler or quad-designed for a single rider and typically used for recreation. A
UTV is a utility terrain vehicle used for work or recreation. Designed with a cabin for two to four riders, it is often called an SxS
or side-by-side.

 We
currently distribute five models of our line of ATVs with base prices ranging from approximately $,3,999 to $8,999, and four
lines of UTVs with various models including golf carts, at prices ranging from $6,499 to $21,999. We maintain a full line of
accessories and replacement parts for all of our ATVs and UTVs. In the fiscal years ended December 31, 2024 and 2023, the majority
of our ATV and UTV sales were gas-powered models. Nevertheless, we offer electric versions of several of our UTVs,
particularly electric golf carts and electric utility carts.

MSA 450F ATV

T-Boss 550 UTV

Warrior 1000

T-Boss 550L

T-Boss 1000

GKD 350 All-Terrain Go Kart

MVR 2X and Massimo MVR Cargo Max Electric Golf Carts

 Recreational
Pontoon Boats

 Pontoon
Boats are flat-deck boats propelled by an outboard motor with two or three floating aluminum tubes supporting the deck. They are rectangular
in shape, making them generally unsuitable for uneven or rough water and are popular in lakes where they are used for entertainment,
fishing, sunbathing and other leisurely activities. Pontoon Boats have a large deck surface, which allows for more seats, luxury, comfort,
expanded storage space, and increased capacity for a variety of activities depending on customers' preferences.

 We
entered the Pontoon Boats market in 2020 when we successfully launched our first series of Pontoon Boats. From inception, we have manufactured
our Pontoon Boats in our Dallas facility. In terms of our product offerings, we currently offer both gas-powered and electric-powered
boats and maintain a complete line of replacement parts and a broad range of accessories.

 Additionally,
we are now also producing fully electric Pontoon Boats. On December 2, 2024, the Company entered into partnership with Vision Marine
Technologies Inc ("Vision Marine"), a pioneer in electric marine propulsion. As part of the agreement, Massimo Marine will
supply pontoon boats to be equipped with Vision Marine's E-Motion 180E Powertrain System, a complete turnkey electric powertrain
solution.

 The
Pontoon Boats market has demonstrated remarkable growth since 2008, when the financial crisis resulted in declines across the boating
industry. According to data from Statistical Surveys Inc. ("SSI"), Pontoon Boats, second to personal watercraft, have been
a leading segment in the Pontoon Boating industry over the last decade. However, since 2023, the U.S. leisure boating industry has faced a decline by approximately 9% to 12%, driven by
economic volatility and high interest rates.

Pontoon Boat

 Motorcycles,
GO Karts, Youth Market and Accessories

 Along
with our larger vehicles, we offer a range of gas and electric powered wheeled vehicles for the sports enthusiast. These include lines
of minibikes and motorcycles, at prices ranging from $700 to $8,000, including our recently introduced E-Spider 72V Trike, go karts for
both children and adults, and a line of go karts, mini-bikes and electric balance bikes especially designed for the juvenile market.
Each of these models is designed to appeal to a specific segment within the recreational powersports market, from youth models to electric
vehicle enthusiasts.

Go Kart, Mini 125 and Motorcycles

 We
offer a wide range of accessories for all of our vehicles including replacement parts and supplies, along with seasonal equipment such
as snowplows and enclosures specially designed for our UTVs. Our outdoor accessories include EV chargers, portable solar panels, electric
coolers and power stations.

 Marketing

 Our
target customers are the growing portion of the United States population participating in outdoor recreational activities, farmers and
other industrial users that can benefit from the utility of an ATV or UTV.

 Major
market drivers for ATVs are the greater affordability and ease of operation compared to larger more cumbersome vehicles. ATVs are typically
less expensive than UTVs. Further, ATVs are easy to operate, especially if you have driven a motorcycle or snowmobile before.

 For
UTVs, major market drivers include excellent rideability and higher safety level, more options for customization, more storage room and
the ability to hold more passengers. A UTV is controlled by a steering wheel, as opposed to handlebars, making it much easier to drive
and allowing for familiarity for those who have driven a car or truck. Customers are more concerned about safety will likely be more
comfortable in a UTV than an ATV. Due to their design, UTVs are more stable and easier to control. They also have additional safety measures
not found on ATVs, such as seat belts and roll cages. Customers can now add lift kits, new suspensions, lighting systems, cabin heaters,
stereo systems and much more to their UTVs than was previously available. Lastly, people who need a more utilitarian work vehicle tend
to choose a UTV. In addition to higher payload capacities, UTVs usually have more storage room to haul around necessary equipment.

 Major
drivers of the Pontoon Boats industry in the United States include disposable income coupled with the rise in watercraft
sports activities across multiple states. Boating participation across the United States is growing as a result of escalating customer
spending for motorized water sports. Pontoon Boats in particular are benefitting from the consumer preference for the comfort flat decks
provide as compared to typical V-hull boats of the same length because of the increased open deck area. The larger decks make it easier
to host a family outing, party, or fishing outing. Pontoon Boats also provide a more stable steady ride than a narrow v-hulled craft
of similar size. Recent technological improvements, including the introduction of two- and four-stroke engines with direct injection
technology, which provide improved fuel economy, lower emissions, and more power, is increasing demand for larger more sophisticated
Pontoon Boats.

 Multiple
Distribution Channels

 Our
products are sold directly by us, in the e-commerce marketplace and through a network of dealerships, distributors, and retailers.

 To
reach our target customer, we have established multiple distribution channels for our products, including our own on-line sites, multiple
popular e-commerce sites, an extensive network of independent dealers and distributors and relationships with some of the largest retailers
in the United States including Tractor Supply Co., Lowes, Walmart, Sam's Club, and
more. We have a significant UTV retail partnership with Tractor Supply Co. through which we generated approximately $47 million and $73 million in revenue in the fiscal years ended December 31, 2023 and 2024, respectively. Our multiple channels for distribution and large dealer
network provide multiple avenues through which we can engage and communicate with consumers.

 We
have an in-house marketing staff which directs our ad campaigns and social media marketing as well as campaigns targeted at expanding
our distributor network. Our marketing personnel work closely with our dealers, distributors and retailers organizing in-store and co-branded
marketing programs. Since inception, we have sought to develop recognition for our brand name among both consumers and distributors through
a variety of advertising campaigns, including paid advertisements, landing page campaigns, co-branded campaigns, displays on YouTube
and other forms of social media and industry reviews. Part of our strategy has been to seek out quality suppliers, some with recognized
brands of their own, who can provide reliable, high-quality vehicles with the latest features at good value.

 Generally,
our sales directly to independent dealerships account for the majority of our sales during each fiscal year. Once we establish
partnerships with independent dealerships, we then sell our products directly to the dealers. The dealers are strategically located
throughout the United States. Once they purchase our product, in the most typical situation, they sell the products out of their
brick-and-mortar location to end users. The dealerships become our long-term partners and they work with us to promote our brand
across their own networks and channels. Presently, we have established partnerships with dealerships who carry our products in
approximately 2,800 locations across the United States and with retail stores such as Tractor Supply Co., and Lowes.
Over the past several years, we have been actively focusing our efforts on expanding our direct dealer network.

 Our
partnerships with dealers are critical to expanding our brand awareness in new markets geographically. We are beginning to make inroads
into the Canadian market and have initiated a relationship with an independent distributor in Ontario, Canada.

 Most
dealers and distributors distribute multiple products within our portfolio: ATVs and UTVs, Pontoon Boats, motorcycles, and other smaller
vehicles as well as parts and accessories. Unlike our competitors, which market their products principally through their affiliated dealers,
we also sell our products through well-known retailers such as Lowes, Tractor Supply Co., Farm King, and other farm and industrial equipment
dealers, boat and marine dealers and lawn and garden dealers.

 Before
entering into a formal partnership with a dealer, we conduct thorough background and credit checks to ensure the prospective partnership
is beneficial for us and our customers. To incentive our partners to promote our brands, we implement performance-based incentive programs,
which includes the possibility of obtaining additional benefits, such as promotional pricing.

 Dedicated
Customer Support Team

 Our
marketing effort does not stop when the customer purchases one of our products. After sale activities intended to maintain a positive
relationship include delivery confirmation calls, review requests, warranty registration cards and reminders for scheduled maintenance
and maintenance items. We have a dedicated staff of full-time employees including trained technicians to provide online and telephone
support to our customers and dealers. We carry full line of parts, accessories and maintenance items across all models in our approximately
40,000 sq. ft. parts facility and strive to fill all parts orders within 48 hours. We provide extensive parts diagrams and service manuals
and our trained technicians are available to both distributors and individual customers to assist with diagnosing and solving any problem
that may come up.

 Product
Warranties

 We
provide limited warranty coverage for defects in materials and workmanship in our ATVs, UTVs, golf carts, Go-Karts and motorcycles
for a period of one year. The warranty is non-transferable for the period of coverage if the vehicle is resold. Our limited warranty
is void if the vehicle is used as a rental, racing or any modifications are made to the product. Although we employ quality control
procedures, a product is sometimes distributed which needs repair or replacement. Historically, product recalls have not had a
material effect on our business.

 We
have entered into an exclusive arrangement with Mercury Marine, a division of Brunswick corporation ("Mercury Marine" or
"Mercury"), so all of our Pontoon Boats come equipped with a Mercury outboard engine and parts. Our Mercury warranty
and service program gives our customers access to 5,500 approved service centers in the United States. Like most luxury brands, we offer
a ten-year warranty on the deck of the Pontoon Boats and a lifetime warranty on aluminum on many materials and workmanship and a three-year
warranty for defects in critical parts including the structure, pontoons, fencing, channels, motor mounts and rotomold seat frames caused
by poor workmanship. Because we are Mercury exclusive, our customers receive a three-year warranty offered by Mercury on everything
supplied by Mercury, which includes digital control, hydraulic steering, throttle, steering system, engine, cables, and electrical. Our
warranty, along with the Mercury are transferable during the original warranty period and are in line with top level original
equipment manufacturers.

 Financing
Arrangements

 We
have arrangements with Northpoint Commercial Finance and Automotive Finance Corporation to provide floor plan financing for our dealers
and distributors. Substantially all of our products, including ATVs, UTVs, golf carts and Pontoon Boats are financed under arrangements
in which we are paid within a few days of a product's shipment. To incentivize our dealers and distributors, we bear the first
three month of interest, so they pay no interest if our products are sold within 90 days of receipt.

 We
do not directly provide financing for the purchase of our products. We do, however,
have programs where we introduce our customers to lenders, such as Northpoint Commercial Finance and Automotive Finance Corporation,
who are willing to provide financing for our UTVs, ATVs, golf carts and Pontoon Boats customers.

 We
work with several financing companies to offer competitive loans for prime and subprime buyers. Our partners can get prospective buyers
prequalified with no impact to credit scores via quick online applications. We do provide promotional support with these partners to
offer prime loan rates as low as 2.99%. We also sell select models direct which are paid in full prior to pick up or shipment.

 Manufacturing
and Sourcing

 We
manufacture our Pontoon Boats in our 376,000 sq. ft. facility of which 280,000 sq. ft. is dedicated to Massimo Motor Sports and 96,000
sq. ft. to Massimo Marine. Our facility is adjacent to a seven-acre storage area for boats in Dallas, Texas. This space houses a design
center, two assembly lines, training rooms, an approximately 40,000 square foot parts department, and over thirty loading docks. Structural
components and other materials are sourced locally from a variety of suppliers and electrical components and engines are obtained through
an exclusive arrangement with Mercury. We have entered into an exclusive arrangement with Mercury, so all of our Pontoon
Boats come equipped with a Mercury outboard engine and parts.

 Apart
from the brand name items we offer to our customers, such as the outboard motor, depth finder, radio and stereo system, the materials
and components used in our pontoons are generally available from multiple suppliers. If any supplier was unable to fulfill our needs,
alternate sources are available. More than 60% of the value of our boats are USA sourced, thus limiting our risk for overseas
interruption.

 Substantially
all products other than our boats, in particular our ATVs and UTVs, are sourced from select global manufacturers with which we have ongoing
relationships. Our in-house sourcing and logistics personnel reach out to possible vendors, suppliers and raw material providers, and
review their products and background to ensure that their products will meet our standards and that they can meet our needs on a timely
basis. We review market trends with our major suppliers to coordinate manufacturing volumes and delivery dates and determine whether
there is an opportunity to upgrade or accessorize a product to increase its customer appeal, the sales price and our margins. We currently
have ongoing supply agreements in place with approximately 30 suppliers, two of which are located in the United States, one in Taiwan,
and the majority in China.

 In
2017, we entered into a partnership for engines with Linhai Yamaha Motor Co. which enabled us to increase the performance of our vehicles
and offer new products. An agreement reached in 2019 with Kubota Japan enabled us to obtain a reliable diesel engine with which to enter
the diesel UTV market. Currently, our top three suppliers are Linhai Powersports USA Corporation ("Linhai Powersports"),
Huzhou Meiwen Textile Imp. & Exp. Co., Ltd. and Linhai Co., Ltd., all of which are located in China and supplied us with approximately
79% and 68% (by cost) of our products in the fiscal years ended December 31, 2024 and 2023, respectively.

 We
do not currently expect to suspend our production, sales or maintenance of any of our products or experience higher costs due to
constrained capacity or materially increased commodity prices or challenges sourcing materials. We believe our supply chain can
respond to expected consumer demand and we will be able to continue to supply products to our customers at reasonable prices. We
have not experienced, and do not currently expect to experience, surges or declines in consumer demand for which we are unable to
adjust our supply. We have not been affected by export restrictions or sanctions. Nevertheless, we are focusing on broadening our
base of suppliers to reduce our dependence on a limited number of suppliers for the majority of our products, to minimize the risk
of relying upon Chinese manufacturers, including the risk of fluctuations in the exchange rate between the U.S. Dollar and the legal
currency of China ("Chinese RMB") and impact of tariffs. Our ability to meet customer demand is significantly impacted
by tariffs on imported components. As of March 4, 2025, a 20% tariff applies to our Chinese imports, which we expect to directly
affect our cost structure. While we continue exploring ways to mitigate this impact, including potential pricing adjustments, it
remains uncertain whether we can pass these costs on to customers or if higher prices will negatively affect sales. For further
details please see " Risk Factors - There is no assurance there will not be disruptions to trade between China and the
United States."

 Research
and Development

 In
addition to our own internal research and development ("R&D"), we work closely with our suppliers to design innovative,
high-performance products to build strong customer loyalty and sustain our reputation as a leading-edge manufacturer. Our suppliers bear the expense of upfront engineering and design work, recouping the expense out of the amount charged for their products.

 Information
Technology

 Our
in-house design and logistics personnel rely heavily on IT systems to explore new product offerings, to ensure a smooth workflow, and
production quality and control. Our relationships with our customers and distributors rely upon the latest technologies to maintain contact
and foster a positive collaborative working relationship. As we grow, we will continue to rely heavily upon IT systems to maintain our
operating efficiency.

 Intellectual
Property

 We
currently hold eight issued patents in the United States that protect certain aspects of our products, design and technologies. Each
of our patents has a term of 14 years with the exception of one, which has 15 years. As part of our ongoing efforts to prevent infringements
on our intellectual property rights and to keep abreast of critical technology developments by our competitors, we closely monitor patent
applications in the United States and China. The following is a summary of our patent portfolio:

 No.

 Name
 of Patents

 Patent
 No.

 Grant
 Date

 Expiration
 Date

 Motorbike
 design patent

 US
 D643783S

 August
 23, 2011

 August
 23, 2025

 Motorbike
 design patent

 US
 D645791S

 September
 27, 2011

 September
 27, 2025

 ATV
 design patent

 D775563

 January
 3, 2017

 January
 3, 2031

 ATV
 design patent

 D701143

 March
 18, 2014

 March
 18, 2028

 5a

 Design
 patents acquired

 D691924

 October
 22, 2013

 October
 22, 2027

 5b

 Design
 patents acquired

 D788653

 June
 6, 2017

 June
 6, 2032

 5c

 Design
 patents acquired

 D682750

 May
 21, 2013

 May
 21, 2027

 5d

 Design
 patents acquired

 D709015

 July
 15, 2014

 July
 15, 2028

 We
also rely upon a combination of registered and unregistered trademarks, service marks, and trade names to strengthen our position as
a branded motor sports company with increasing brand recognition. We hold various registered trademarks in the United States with respect
to our brands and product lines. We carefully review the brands and trademarks being used by our competitors in the United States and
other jurisdictions before using a new trademark and in determining the jurisdictions in which to register any new trademark used by
us. As we continue to enter new product categories and develop new models of our current products, we plan to develop and register new
trademarks to differentiate such products.

 We
intend on entering into confidentiality agreements with our suppliers, employees and consultants who may have access to our proprietary
information. These agreements will provide that all inventions, ideas, discoveries, improvements, and copyrightable material made or
conceived by the individual arising out of the employment or consulting relationship and all confidential information developed or made
known to the individual during the term of the relationship are our exclusive property. See " Risk Factors-Risks Relating to
Our Business, Strategy, and Industry-We have not made use of confidentiality agreements in the past and, although we intend to rely on
such agreements in future dealings with suppliers, employees, consultants, and other parties, the prior lack or the breach of such agreements
could adversely affect our business and results of operations."

 Employees

 As of March 24, 2025, we had approximately 100 employees, of which approximately
10 were in management and administration, 18 were sales and service personnel, 62 were in manufacturing, 5 were in quality control and
5 were in R&D. None of our employees are represented by a union, and our relationship with our employees is satisfactory.

 Competition

 ATV
and UTV Markets

 The
major players in the market include Polaris, Bombardier Recreational Products (BRP), Honda and Yamaha. We seek to differentiate
ourselves by offering products with the latest design features and options and by providing superior aftermarket support to our customers
and distributors.

 Pontoon
Boats Market

 The
United States Pontoon Boats market is fragmented and there is a significant number of vendors which offer Pontoon Boats across the country.
Competition among vendors is based on product offerings and pricing, putting a premium on offering up to date models with high-end accessories.

 Seasonality

 The
ATV and UTV markets do experience some seasonality, but we have developed our product lines to appeal to seasonal customers to minimize
any disruptions. In the spring and summer months, we focus on outdoor campaigns tailored to spring cleaning, planting, fishing and family
outdoor activities. We promote our complimentary lines of outdoor accessories including electric coolers, outdoor power stations and
solar panels. In the fall and winter months, we have a heavy push for hunting season in the United States, and we promote our winter
accessories including snow blowers, snowplows and enclosures, in addition we recently launched the winter series of our T-Boss UTV series
with cab enclosure to provide protection from the elements.

 With
Pontoon Boats, we are both a distributor and a retailer, which provides some seasonal protection. Dealers order higher volumes between
October to March while retail orders are higher April to September. This gives us an overall balance. While winter months are always
slower than summer months, it allows us to maintain cash flow during the winter season.

 Product
Liability

 Product
liability claims are made against us from time to time. We do not believe that the outcome of any pending product liability litigation
will have a material adverse effect on our operations. However, no assurance can be given as to whether any material product liability
claims against us will be made in the future.

 Our
commercial general liability insurance provides us with coverages of $2,000,000 general aggregate limit and $2,000,000 products-completed
operations aggregate limit, with a minimal amount of deductible per claim. We also have umbrella liability insurance with coverage of
$5,000,000 aggregate on top of general liability insurance and workers' compensation insurance. We believe our current coverage
is adequate for our existing business and will continue to evaluate the coverages in the future in line with our expanding sales and
product breadth.

 Insurance

 We
carry various insurance coverage policies to protect against certain risks consistent with the exposures associated with the nature of
our operations. The most significant insurance policies that we carry include:

 commercial
 general liability insurance for bodily injury and property damage resulting from operations and our products;

 property
 insurance covering the replacement value of all real and personal property damage, including damages arising from earthquake, flood
 damage and business interruption;

 cargo
 insurance to protect against loss or damage to goods while in transit;

 workers'
 compensation coverage in the United States to required statutory limits;

 directors
 and officers insurance; and

 cyber
 insurance to mitigate risk exposure by offsetting recovery costs following a cyber-related security breach or similar event.

 All
policies are subject to certain deductibles, limits or sub-limits and policy terms and conditions.

 Inflation

 While
our business has been impacted by rising inflation, our management does not believe that it has had a material negative impact on our
business and results of operations. In recent years, our China-based suppliers have increased the cost of their products as a result
of inflation. However, these increases have thus far been offset by the exchange rate fluctuation of the Chinese RMB, which has resulted
in there being no material change to our costs. Although we are looking to broaden our supplier base outside of China to reduce our dependence
upon Chinese-based suppliers in general, there is no assurance we will be able to broaden our supplier base outside of China or that
increases in in our cost of goods will continue to be offset by exchange rate fluctuations.

 In
addition, to reduce the impact of inflation, we have worked with our suppliers to enter into letters of credit pursuant to which we can
make purchases and incur interest and fees at a lower rate than had we made the purchases using our existing bank loan.

 Regulatory
Issues

 We
are subject to extensive laws and regulations at many steps in the design, importing, production, marketing and distribution of our products.
In addition to the laws and regulations applicable to any business, there are certain requirements applicable only to powersports vehicles,
Pontoon Boats, recreational products and outdoor accessories such as those we distribute. These regulations include standards related
to safety, construction rules, sound and gaseous emissions, and the sale and marketing of products, and have generally become stricter
in recent years.

 We
endeavor to take appropriate measures to provide a safe, clean working environment for our employees. We strive to ensure and work with
our manufacturing partners to ensure that the products we offer comply with current regulations and with more stringent regulations anticipated
to become effective in the foreseeable future. Such measures include the development of new engines and vehicle designs, independently
and with our supplier partners, as well as the development of new energy-efficiency related technologies. The failure to comply with
applicable laws, rules and regulations regarding employees and product safety, health, environmental and noise pollution could cause
us to incur fines or penalties and our compliance programs require significant time and expense.

 Distributor
& Dealer Regulation

 Our
contractual relationships with distributors and dealerships throughout the country are subject to extensive regulation at the local,
state and national level. Each state's Department of Motor Vehicles sets rules concerning pricing, competition, warranty claims
and other aspects of the vehicular dealership business. These laws are further supported by state-wide "lemon laws." Lemon
laws provide remedies for consumers who seek to be compensated for defective vehicles that fall short of accepted standards of quality
and performance. The distribution of our vehicles is also regulated by state-wide licensing regimes, federal agency regulation and federal
common law pertaining to the Uniform Commercial Code. We have taken efforts to comply with these regulations governing our relationships
with our distributors and dealers by vetting our distributors and dealers to ensure their compliance with regulations statewide. The
licenses and required compliance to do business in each state can become expensive, and we may allow our licenses to lapse if we ascertain
that the costs outweigh the benefits. For example, in 2016, we allowed our Illinois license to expire and then in 2019, we reapplied
for our Illinois license once we were confident that we would continue to generate revenue in the state to mitigate the costs.

 Safety
Regulation

 Our
products are subject to extensive laws, rules and regulations relating to product safety promulgated by the federal and state governments
or regulatory authorities of the United States and the federal and provincial provinces in Canada. These requirements pertain to the
design, production, distribution and use of our products. We are a member of several industry and trade associations in Canada, the United
States, and other countries whose mandate is to promote safety in the manufacture and use of powersports products. Some of those trade
associations promulgate voluntary industry product safety standards with which we and our suppliers comply. While we strive to meet the
safety standards set by state and federal authorities, we have been subject to several inquiries by the U.S. Consumer Product Protection
Commission regarding defective products. We have also been subject to penalties including a Stop Sale order on one of our electric balance
bikes.

 Use
Regulation

 In
Canada, the United States and other countries, laws, rules and regulations have been promulgated or are under consideration relating
to the use of powersports vehicles and boats. Some countries, provinces, states, municipalities and local regulatory bodies have adopted,
or are considering the adoption of, legislation and local ordinances that restrict the use of snowmobiles, ATVs, UTV, Pontoon Boats and
outboard engines to specified hours and locations. The use of many of these products has been restricted in some national parks and federal
lands in Canada, the United States and other countries. In some instances, this restriction has consisted of a ban on the recreational
use of these vehicles in specific locations.

 Emissions
Regulation

 Our
products are subject to sound and gaseous emissions laws, rules and regulations promulgated by the governments and regulatory authorities
of Canada (Environment and Climate Change Canada), the United States (Environmental Protection Agency), individual American states (such
as the California Air Resources Board) and other jurisdictions. Such laws, rules and regulations may require the development of new engines
and vehicle designs, as well as the development of new energy-efficient technologies. The failure to comply with the laws, rules and
regulations regarding product safety, health, environmental and noise pollution and other issues could result in fines or penalties and
our efforts to comply with such regulations require significant time and expense.

 Item
1A. Risk Factors.

 Any
investment in our securities involves a high degree of risk. You should carefully consider the risks described below, which we believe
represent certain of the material risks to our business, together with the information contained elsewhere in this Report, before you
decide to invest in our shares of common stock. Please note that the risks highlighted here are not the only ones that we may face. For
example, additional risks presently unknown to us or that we currently consider immaterial or unlikely to occur could also impair our
operations. If any of the following events occur or any additional risks presently unknown to us actually occur, our business, financial
condition and operating results may be materially adversely affected. In that event, the trading price of our securities could decline
and you could lose all or part of your investment.

 Summary
of Significant Risks Affecting Our Company

 Our
significant risks may be summarized as follows:

 We
 have a limited operating history on which to judge our performance and assess our prospects for future success.

 We
 rely on independent dealers and distributors to manage the retail distribution of many of our products.

 We
 rely on third parties to manufacture many of the products we sell.

 The
 majority of the products we purchase are manufactured by in China and their operations are subject to risks associated with business
 operations in China. Any disruption of these manufacturers to supply us with appropriately priced products on a timely basis could
 have a material adverse effect on our business.

 Our
 management team has no experience operating a company with publicly traded shares.

 Economic
 conditions that impact consumer spending may have a material adverse effect on our business, and our partners' business.

 We
 currently maintain all our cash and cash equivalents with three financial institutions.

 We
 face intense competition in all product lines, including from some competitors that have greater financial and marketing resources.

 Any
 decline in the social acceptability of our products or any increased restrictions on the access or the use of the Company's
 products in certain locations could materially adversely affect our business, results operations, or financial condition.

 Our
 future expansion plans are subject to uncertainties and risks, and distribution centers we intend to open may not result in increased
 sales or efficiencies.

 Our
 limited investment in R&D of new products may adversely affect our ability to enhance existing products and develop and market
 new products.

 The
 inability of our dealers and distributors to secure adequate access to capital could materially adversely affect our business.

 We
 depend upon the successful management of inventory levels, both ours and that of our dealers

 There
 is no assurance there will not be disruptions to trade between China and the United States.

 We
 may not be able to successfully maintain our strategy of relying upon offshore manufacturers.

 Supply
 problems, termination or interruption of supply arrangements or increases in the cost of products could have a material adverse effect
 on our business.

 The
 high cost of delivering our Pontoon Boats may limit the geographic market for these products.

 Higher
 fuel costs can materially adversely affect our business.

 in the credit markets could decrease the ability of consumers to purchase our products and have a material adverse effect on our
 business.

 We
 may require additional capital which may not be available.

 Our
 business depends on the continued contributions made by Mr. Shan, our founder, Chairman and Chief Executive Officer.

 Our
 business depends on the efforts of our management, and our business may be severely disrupted if we lose their services.

 If
 we fail to develop and protect our brand names and reputation, we may not attract and retain new distributors and dealers, or customers.

 We
 may be unable to protect our intellectual property or may incur substantial costs as a result of litigation or other proceedings
 relating to our intellectual property.

 Significant
 product repair and/or replacement due to product warranty claims or product recalls could have a material adverse impact on our business.

 The
 failure of our IT systems or a security breach involving consumer or employee personal data could have a materially adverse effect
 on our business.

 Retail
 sales of our new products may be materially adversely affected by declining prices for used versions of our products or the supply
 of new products by competitors in excess of demand.

 We
 are subject to laws, rules and regulations regarding product safety, health, environmental and noise pollution, and other issues.

 If
 product liability lawsuits are brought against us, we may incur substantial liabilities.

 Our
 insurance may not be sufficient.

 We
 have been in the past, and may be, in the future subject to several litigation proceedings relating to defective products that have
 caused property damage, physical injury, and death.

 Our
 business requires us to pay licensing fees for each state that we operate in. We may not be able to justify the cost of compliance
 in a particular state or locality thus necessitating that we allow our license to expire.

 We
 have not made use of confidentiality agreements in the past and, although we intend to rely on such agreements in future dealings
 with suppliers, employees, consultants, and other parties, the prior lack or the breach of such agreements could adversely affect
 our business and results of operations.

 Our
 business could be materially harmed by epidemics, pandemics, or other public health emergencies, boycotts, and geo-political events.

 Our
 ability, or lack thereof, to attract, recruit, and maintain talented sales representatives may adversely affect our business and
 our plans to expand our market.

 Our
 ability, or lack thereof, to establish strategic partnerships and expand our distribution channels may adversely affect our business
 and our plans.

 Policies
 of the United States granting farmers incentives may cease.

 There
 is no existing market for our securities, and we do not know if one will develop.

 The
 market price of our common stock is likely to be highly volatile, and you could lose all or part of your investment.

 We
 have no current plans to pay cash dividends on our common stock for the foreseeable future.

 Our
 founder and principal shareholder have substantial influence over our Company.

 We
 will incur significant increased costs as a result of operating as a public company and will be required to devote substantial time
 to compliance initiatives.

 to estimates related to our property, fixtures and equipment or operating results that are lower than our current estimates may cause
 us to incur impairment charges on certain long-lived assets, which may adversely affect our results of operations.

 As
 an "emerging growth company" under applicable law, we are subject to lessened disclosure requirements, which could leave
 our stockholders with less information or fewer rights available to stockholders of more mature companies.

 If
 securities or industry analysts do not publish or cease publishing research or reports about us, our business, or our market, or
 if they change their recommendations regarding our common stock adversely, the price of our common stock and trading volume could
 decline.

 Anti-takeover
 provisions in our Articles of Incorporation and Bylaws and Nevada law could discourage, delay, or prevent a change in control of
 our company and may affect the trading price of our common stock.

 Failure
 to establish and maintain effective internal controls in accordance with Section 404 of the Sarbanes-Oxley Act could have a material
 adverse effect on our business and stock price.

 Our
 Bylaws provide that the Second Judicial District Court of Washoe County of the State of Nevada is the sole and exclusive forum for
 certain stockholder litigation matters.

 Risks
Relating to Our Business, Strategy, and Industry

 We
have a limited operating history on which to judge our performance and assess our prospects for future success.

 In
2017, we entered the market and began distributing recreational vehicles, including UTVs and ATVs. In 2020, we began to distribute pontoon
and tritoon boats and, more recently, we began to distribute accessories. Consequently, we have a limited operating history on which
to evaluate our prospects and those of our products. We may fail to continue our growth. You should not consider our historical growth
and expansion of our business as indicative of our ability to grow in the future.

 Economic
conditions that impact consumer spending may have a material adverse effect on our business, results of operations or financial condition.

 Our
products compete with a variety of other recreational products and activities for consumers' discretionary income and leisure time.
Our results of operations are therefore sensitive to changes in overall economic conditions, primarily in North America, that impact
consumer spending and particularly discretionary spending. Weakening of, and fluctuations in, economic conditions affecting disposable
consumer income such as personal income levels, the availability of consumer credit, employment levels, consumer confidence, business
conditions, changes in housing market conditions, capital markets, tax rates, savings rates, interest rates, fuel and energy costs, as
well as the impacts of natural disasters, extreme weather conditions, acts of terrorism or other similar events could reduce consumer
spending generally or discretionary spending in particular. Such reductions could materially adversely affect our business, results of
operations or financial condition.

 Demand for
our products is significantly influenced by weak economic conditions and increased market volatility worldwide. Any deterioration
in general economic conditions that diminishes consumer confidence or discretionary income may reduce our sales and materially
adversely affect our business, results of operations or financial condition.

 We
currently maintain all our cash and cash equivalents with three financial institutions, and, therefore, our cash and cash equivalents
could be adversely affected if the financial institutions in which we hold our cash and cash equivalents fails.

 We
currently maintain all our cash and cash equivalents with three financial institutions. At the current time, our cash balance with such
financial institutions is in excess of the Federal Deposit Insurance Corporation insurance ("FDIC Insurance") limit and,
therefore, we may not be able to recover a substantial portion of these cash and cash equivalents, in the event of the failure of any
such financial institutions. We are working with our current
financial institutions to increase the amount of funds held there that are insured by FDIC Insurance. Notwithstanding these efforts,
the failure of one or more of the financial institutions in which our cash and cash equivalents are held, the resulting inability for
us to obtain the return of our funds from any of those financial institutions, or any other adverse condition suffered by any of those
financial institutions, could impact access to our invested cash or cash equivalents and could adversely impact our operating liquidity
and financial performance.

 We
face intense competition in all product lines, including from some competitors that have greater financial and marketing resources. Failure
to compete effectively against competitors could materially adversely impact our business, results of operations or financial condition.

 The
Powersports Vehicles and Boats Industry is highly competitive. Competition in such markets is based upon several factors, including price,
quality, reliability, styling, product features and warranties. At the dealer level, competition is based on several factors including
sales and marketing support programs (such as financing joint advertising programs and cooperative advertising). Certain of our competitors
are more diversified and have financial and marketing resources which are substantially greater than ours, which allow these competitors
to invest more heavily in intellectual property, product development, and sales and marketing support. If we are not able to compete
with new products, product features or models comparable to or superior to those of our competitors, or attract new dealers, our business,
results of operations or financial condition could be materially adversely affected.

 We
are subject to competitive pricing. Such pricing pressure may limit our ability to maintain prices or to increase prices for our products
in response to raw material, component and other cost increases and so negatively affect our profit margins.

 Any
decline in the social acceptability of our products or any increased restrictions on the access or the use of the Company's products
in certain locations could materially adversely affect our business, results operations, or financial condition.

 Demand
for our products depends in part on their social acceptability. Public concerns about the environmental impact of our products or their
perceived safety could result in diminished social acceptance. Circumstances outside the Company's control, such as social actions
to reduce the use of fossil fuels, could also negatively impact consumers' perceptions of our products. Any decline in the social
acceptability of our products could negatively impact their sales or lead to changes in laws, rules and regulations that prevent their
access to certain locations, including trails and lakes, or restrict their use or manner of use in certain areas or during certain times.
Additionally, while we have implemented various initiatives to address these risks, including the improvement of the environmental footprint
and safety of our products, there can be no assurance that the perceptions of customers will not change. Consumers' attitudes towards
our products and the activities in which they are used also affect demand. Any failure to maintain the social acceptability of our products
could impact our ability to retain existing customers and attract new ones which, in turn, could have a material adverse effect on our
business, results of operations or financial condition.

 Our
future expansion plans are subject to uncertainties and risks, and distribution centers we intend to open may not result in sufficient
increased sales of our products or the anticipated efficiencies.

 We
intend to seek to expand our operations by opening additional distribution centers in the United States and distributing new products.
Our management will devote substantial time and resources to equipping and opening our new distribution centers which may distract them
from our current business. We must also devote substantial time and resources any time we introduce a new product. There is no assurance
that any new product we introduce will be successful and that we will recoup the amounts expended to introduce such product to our customers
and distributors. If our new distribution centers are not operated efficiently or new products we introduce do not gain consumer acceptance,
our business, financial condition, results of operations and growth prospects may be materially and adversely affected.

 As
of the date of this report we have opened five new distribution centers in California, Georgia, New Jersey, Texas, and Illinois through
our partnership with Armlogi. Opening these facilities should reduce the costs of delivering our products, particularly
our UTVs and ATVs, to dealers, distributors, and customers, and should increase our ability to sharply respond to the needs of our customers
for spare parts and equipment. However, there is no assurance that opening these facilities will increase our sales and will not have
an adverse impact on our business, financial condition, or results of operations.

 Our
limited investment in R&D of new products may adversely affect our ability to enhance existing products and develop and market new
products that respond to customer needs and preferences and achieve market acceptance.

 We
continually review consumer demand for our products and canvass our suppliers and distributors regarding products we might distribute.
We, however, devote limited amounts to researching consumer demand and developing new product lines. Thus, we may not be able to compete
effectively with those of our competitors that continually seek to develop new products and innovations to enhance consumer appeal. Product
development requires significant financial, technological, and other resources and without significant investment in product development,
there can be no assurance that we will be able to successfully compete in the marketplace. The new products of our competitors may beat
our products to market, be more effective with more features and be less expensive than our products, thus obtaining better market acceptance
or rendering our products obsolete.

 Any
new products that our suppliers develop may not receive market acceptance or otherwise generate any meaningful sales or profits for us.
Our suppliers may choose not to maintain or increase the level of their investments in manufacturing capacity and product R&D or
to fund advertising, marketing, promotional programs necessary to enhance the customer appeal of their products or their manufacturing
efficiencies. The sales of new products generally decline over the products' life cycle, with sales being higher early in the life
cycle of the new products and decreasing over time as the new products age. We cannot predict the length of the life cycle for any new
products we choose to distribute. Any failure by us and our suppliers to enhance existing products and develop and market new products
that respond to customer needs and preferences and achieve market acceptance could have a material adverse effect on our business, results
of operations or financial condition.

 Even
if we can successfully introduce enhanced existing products and new products in collaboration with suppliers, there is no guarantee that
the markets for these products will progress as anticipated. If any of the markets in which our products compete do not develop as expected,
our business, results of operations or financial condition could be materially adversely affected.

 We
rely on independent dealers and distributors to manage the retail distribution of many of our products.

 We
depend on the capability of independent dealers and distributors to develop and implement effective retail sales plans to create demand
among retail purchasers for many of our products. If these independent dealers and distributors are not successful in these endeavors,
we will be unable to maintain or increase our sales. Independent dealers and distributors may experience difficulty in funding their
day-to-day cash flow needs and paying their obligations resulting from adverse business conditions, including weakened consumer spending
or tightened credit. Inability to fund operations can force dealers and distributors to cease business, and we may not be able to obtain
alternate distribution in the vacated market, which could negatively impact our sales through reduced market presence or inadequate market
coverage. If a dealer or distributor defaults under any floorplan financing arrangements, we may be required to repurchase such dealer's
or distributor's inventory. See " The inability of dealers and distributors to secure adequate access to capital
could materially adversely affect our business, results of operations or financial condition." In some cases, we may seek to
terminate relationships with certain dealers or distributors, leading to a reduction in the number of dealers or distributors which carry
our products. Being forced to liquidate a former dealer's or distributor's inventory of our products could add downward pressure
on such products' prices. Further, the unplanned loss of any independent dealers or distributors may create negative impressions
of us or our products with retail customers and have a material adverse impact on our ability to collect wholesale receivables that are
associated with that dealer or distributor. Also, if our dealer and distributor base were to consolidate, competition for the business
of fewer dealers and distributors would intensify. If we do not provide product offerings at prices that meet the needs of dealers and
distributors, or if we lose a substantial amount of our dealer and distributor base, our business, results of operations or financial
condition could be materially adversely affected. Additionally, if we are unable to optimize or expand our dealer network in North America,
part of our growth strategy will be negatively impacted, which could have a material adverse effect on our business, results of operations
or financial condition.

 We
sell a majority of our products through distribution and dealer agreements. In general, distributors that are party to such agreements
are contractually obligated to offer our products on an exclusive basis. In contrast, the dealers through which we sell our products
also carry competing products. Occasionally, we may rely on dealers to service and repair our products. There can be no assurance that
dealers will provide high quality repair services to our customers. If dealers fail to provide quality service to our customers, our
brand identity and reputation may be damaged, which could have a material adverse effect on our business, results of operations or financial

 The
inability of our dealers and distributors to secure adequate access to capital could materially adversely affect our business, results
of operations or financial condition.

 Our
dealers and distributors require adequate liquidity to finance their operations and to purchase our products. Dealers and distributors
are subject to numerous risks and uncertainties that could unfavorably affect their liquidity, including, among other things, continued
access to adequate financing on a timely basis and on reasonable terms. We currently have agreements in place with two financing companies
to provide inventory financing to dealers and distributors to facilitate their purchase of our products. These sources of financing are
instrumental in our ability to sell products through our distribution network, as a significant percentage of our sales are done under
such arrangements. Our business, results of operations or financial condition could be materially adversely affected if a decline in
financing availability to its dealers and distributors occurs, or if financing terms change unfavorably. This could require us to find
alternative sources of financing, including providing this financing directly to dealers and distributors, which could require additional
capital to fund the associated receivables.

 We
depend on dealers, suppliers, financing sources and other strategic partners who may be sensitive to economic conditions that could affect
their businesses, results of operations or financial condition in a manner that materially adversely affects their relationship with
us.

 We
distribute products through numerous dealers and distributors. Therefore, we rely on third-party providers for the warehousing and distribution
of our products and for IT services. Also, we have relationships with a limited number of sources of product financing for dealers and
consumers. Therefore, our business, results of operations or financial condition could be materially adversely affected if a deterioration
of economic or business conditions results in a weakening of the financial condition of a material number of our dealers and distributors,
suppliers, or financing sources or if uncertainty about the economy or the demand for our products causes these business partners to
voluntarily or involuntarily reduce or terminate their relationship with us.

 We
depend upon the successful management of inventory levels, both ours and that of our dealers, and any failure to successfully manage
inventory levels could have a material adverse effect on our business, results of operations or financial condition.

 We
must maintain sufficient inventory levels to operate our business successfully. However, we must also guard against accumulating excess
inventory as we seek to minimize out-of-stock levels across all product categories and to maintain appropriate in-stock levels. The nature
of certain of our product lines, including our ATV, UTV and Pontoon Boat product lines, requires us to purchase or manufacture
products well in advance of the time they will be offered for sale. As a result, we may experience difficulty in responding to a changing
retail environment, which may lead to excess inventory or to inventory shortages if supply does not meet demand. In addition, sales for
many product lines are managed through long-term purchase commitments. We plan our inventory levels on an annual basis including planning
for the introduction of new products based on anticipated demand, as determined by our market assessment based in part on communications
with our dealers and other customers. If we do not accurately anticipate future demand for a particular product or the time it will take
to obtain new inventory, our inventory levels will not be appropriate and our results of operations may be negatively impacted, either
through lost sales or through lower gross profit margins due to greater than anticipated discounts and markdowns that might be necessary
to reduce inventory levels. Any failure by us to maintain appropriate inventory levels could have a material adverse effect on our business,

 Additionally,
we must work with our dealers and distributors to ensure that they maintain appropriate inventory levels. If our dealers and distributors
maintain insufficient inventory, it could result in lost sales. If they place additional orders for our products as sales materialize,
we and our suppliers might be unable to respond rapidly to these demands resulting in lost sales. Conversely, if our dealers and distributors
have excess inventory levels, it could result in lower gross profit margins due to demands on us to offer greater than anticipated discounts
and markdowns. Thus, any failure by our dealers to maintain appropriate inventory levels could materially adversely affect our business,

 We
rely on third parties to manufacture many of the products we sell.

 We
depend on third party suppliers to manufacture many of the products we sell, in particular, ATVs and UTVs, as opposed to our Pontoon
Boats which we manufacture in our Dallas facility. Approximately, 67% of our purchases in the fiscal year ended December 31, 2023
and 74% of our purchases in the fiscal year ended December 31, 2024 were made from two suppliers, and, as of both December 31, 2023
and December 31, 2024, our largest supplier accounted for 41% and 33% of the Company's total accounts payable respectively.
Competition for the output of these suppliers is intense. If these independent suppliers were unwilling or unable to supply us with
products at prices which enable us to maintain our gross margins, it would materially adversely affect our business, results of
operations or financial condition. Although we are looking to broaden our supplier base and to reduce our dependence upon a limited
number of suppliers, there is no assurance we will be able to do so and increasing the number of suppliers from which we purchase
products may increase our costs.

 We
rely on freights to ship the products that we purchase from our suppliers based in China to our facility in Dallas, Texas and as such,
we may face risks related to overseas freights cost fluctuation.

 We
have supply agreements with approximately 15 suppliers, 2 of which are based in the U.S., 1 of which are based in Taiwan, and
 12 of which are based in China. Approximately 79% of the products we purchased in the fiscal year ended
December 31, 2024, based on cost, were purchased from three suppliers in China of which 54% was purchased from a single
supplier located in Shanghai, China. Due to the supply chain crisis in the years 2021 and 2022, the cost of our oversea freights
increased significantly to double or even triple what it had been in the years 2020 and 2019. To offset these price increases, we
increased the selling prices for the majority of our products. Since 2023, the cost of overseas freights has decreased
substantially, though it still exceeds the cost prior to the supply chain crises. Although we are looking to broaden our supplier
base outside of China to reduce our dependence upon Chinese-based suppliers in general, there is no assurance we will be able to
broaden our supplier base outside of China or that we will be able to raise our prices to offset increased freight cost in the
future.

 The
majority of the products we purchase are manufactured by suppliers in China and their operations are subject to risks associated with
business operations in China. Any disruption in the ability of these manufacturers to supply us with appropriately priced products on
a timely basis could have a material adverse effect on our business, results of operations or financial condition.

 We
have supply agreements with approximately 15 suppliers, 2 of which are based in the U.S., 1 of which are based in Taiwan, and
12 of which are based in China. Approximately 79% of the products we purchased in the fiscal year ended
December 31, 2024, based on cost, were purchased from three suppliers in China of which 54% was purchased from a single
supplier located in Shanghai, China. Although we are looking to broaden our supplier base outside of China to reduce our dependence
upon Chinese based suppliers in general, there is no assurance we will be able to broaden our supplier base outside of
China.

 The
Chinese government may intervene or influence the operations of any business located in China or the industry in which a business operates
at any time, which could result in a material change to the operations of any or all our suppliers based in China. For example, the Chinese
government recently published new policies that significantly affected certain industries such as the education and internet industries,
and we cannot rule out the possibility that it will release regulations or policies that could adversely affect the business, financial
condition, and results of operations of our Chinese suppliers.

 China
has been subject to political instability and dramatic changes in economic policies. The Chinese economy is in a transition from a planned
economy to a market-oriented economy subject to five-year and annual plans adopted by the central government that set national economic
development goals. Policies of the Chinese government can have significant effects on the economic conditions of China. The Chinese government
has confirmed that economic development will follow the model of a market economy. Under this direction, we believe that China will continue
to strengthen its economic and trading relationships with foreign countries and business development in China will follow market forces.
While we believe that this trend will continue, we cannot assure you that this will be the case. Changes in policies, regulations, rules,
and the enforcement of laws by the Chinese government, may produce quick shifts in policy with little advance notice that could adversely
affect our interests by interfering with the operations of our Chinese based suppliers. Although the Chinese government has been pursuing
economic reform policies for more than two decades, we cannot assure you that the government will continue to pursue such policies or
that such policies may not be significantly altered, especially in the event of a change in leadership, social or political disruption,
or other circumstances affecting China's political, economic, and social environment.

 As
a majority of our products are manufactured by suppliers in China, and the Company only registers its patents in the U.S., our products
may be subject to scrutiny during manufacturing in China.

 Our
patents applied to our products manufactured in China are only registered in the U.S., and we are not sure whether there are any similar
technologies that are registered patents in China by other companies. Based on the relevant PRC laws, it is legal to build and assemble
certain products within the territory of China without due registration of the intellectual property rights, as long as the products
will not be disseminated in Chinese market. However, our products are manufactured by our suppliers in China, and we may not be able
to efficiently regulate them not to apply our technologies on other products they manufactured. Therefore, there is a risk that our suppliers
may be found in infringement of other companies' intellectual property rights and therefore, their business operations may be halted,
which in turn affect our normal supplying system.

 We
have suppliers based in Taiwan and the imports that we receive from Taiwan may be subject to certain risks of economic and policy changes
in China that could adversely affect our business operations.

 We
also import our products from Taiwan. The sovereignty of Taiwan is a longstanding point of contention between China and the United States.
The United States maintains unofficial relations with Taiwan, while also recognizing the "One China" policy of China, which
acknowledges Beijing as the legitimate government of China. Both China and the United States have engaged in military posturing around
the Taiwan Strait. This increases the risk of accidental clashes or misunderstandings that could escalate into conflict, which will affect
both our China-mainland-based and Taiwan-based suppliers.

 Our
major supplier is a state-owned entity in China.

 During
2023 and 2024, we purchased a majority of our products from Linhai Powersports, which is a state-owned entity ("SOE") in
China. A SOE is a legal entity that is established by the Chinese government to participate in commercial activities on the government's
behalf. As a SOE, Linhai Powersports is subject to the authority, direction, and mandates of the Chinese government, which may be influenced
to a significant degree by the political, economic, and social conditions in China. The Chinese government continues to play a significant
role in regulating industries within China by imposing industrial policies, providing subsidies, and heavily regulating or prohibiting
unwanted activities. There is no assurance the Chinese government will not interfere with the operations of Linhai Powersports or any
of our other suppliers. In addition, the Chinese government has implemented certain measures, including interest rate adjustments, to
control the pace of economic growth in China. These measures, or other economic, political, or social developments in China may affect
our China-based suppliers, which may adversely affect our business and operating results.

 There
is no assurance there will not be disruptions to trade between China and the United States

 The U.S.-China trade relationship has become increasingly strained, leading
to substantial tariff increases and other trade-related actions that further impact our business. In 2019, the U.S. imposed a 15% tariff
on Chinese imports, later reduced to 7.5% in 2020. However, the temporary exclusion for certain products expired in September 2020, and
tariffs have since risen. Most recently, in February 2025, the U.S. introduced a 10% tariff on all imported goods from China, which doubled
to 20% in March 2025. While we continue exploring ways to mitigate this impact, including potential pricing adjustments, it remains uncertain
whether we can pass these costs on to customers or if higher prices will negatively affect sales. Beyond tariffs, both governments have
implemented additional measures that have disrupted trade, increased costs, and created uncertainty in supply chains. These actions may
limit the availability of certain products from China, further restricting our ability to acquire necessary components at competitive
prices.

 There
is no assurance that the U.S. or Chinese governments will not impose additional tariffs or other restrictive measures in the future.
Further trade barriers could disrupt our supply chain, increase costs, and limit our ability to source components at competitive prices.
If we are unable to offset these rising costs through operational efficiencies or pricing strategies, our margins and overall financial
performance may be adversely affected. Ongoing trade tensions and regulatory changes continue to create uncertainty, posing a risk to
our business operations and profitability.

 We
may not be able to successfully maintain our strategy of relying upon offshore manufacturers.

 We
continually aim to lower operational costs, increase operational efficiencies and lower costs of acquiring inventory. We believe that
reliance upon flexible offshore low-cost product manufacturers mainly based in China is a key element to enable improvements in our ability
to respond to customers in a cost-effective manner. Our success in implementing this strategic plan is dependent on the involvement of
management, production employees, suppliers, and the stability of China economically and politically. Any inability to achieve this priority
could materially adversely impact our business, results of operations or financial condition by disrupting our ability to deliver appropriately
priced products to customers at the right time. Any disruption to anticipated levels of productivity and operational efficiencies in
the operations of the manufacturers from which we purchase products could have a material adverse impact on our business, results of
operations or financial condition.

 Supply
problems, termination or interruption of supply arrangements or increases in the cost of products could have a material adverse effect
on our business, results of operations or financial condition.

 Because
we rely upon overseas manufacturers for many of our products, we are particularly susceptible to disruptions in our supply chain. We
cannot be certain that we will not experience supply problems, such as the untimely delivery of, or defects or variations in, completed
products or parts or components of our products. We obtain a portion of our products from either a sole supplier or a limited number
of suppliers, mostly based in China. If these supply arrangements were terminated or interrupted for any reason, we could have difficulty
establishing substitute supply arrangements on a timely basis or on satisfactory terms. For example, due to the city lockdown in China
where most of our suppliers are, our stock supply was disrupted from May to July 2022. Our ability to re-supply our inventory resumed
in August 2022, but we estimate that we lost about $1.5 million of sales as a result of this supply disruption. Problems with our supplies
or supply arrangements could have a material adverse effect on our business, results of operations or financial condition. This situation
could be further aggravated if we are overly dependent on a few key suppliers. Moreover, our profitability could be affected by significant
fluctuations in the prices of the raw materials, parts, and components that our suppliers purchase to manufacture products. While our
business has been impacted by rising inflation, our management does not believe that it has had a material negative impact on our business
and results of operations. In recent years, our China-based suppliers have increased the cost of their products as a result of inflation.
However, these increases have thus far been offset by the exchange rate fluctuation of the Chinese RMB, which has resulted in there being
no material change to our costs. We may not be able to pass along price increases in raw materials, parts, or components to customers.
As a result, an increase in the cost of the raw materials, parts, and components our suppliers use in the manufacture of our products
could reduce our profitability and have a material adverse effect on our business, results of operations or financial condition.

 The
high cost of delivering our Pontoon Boats may limit the geographic market for these products.

 The
cost of delivering a Pontoon Boat is substantial relative to its purchase price. Consequently, many purchasers of our Pontoon Boats
arrange to pick up their boats at our facility in Dallas and it may be difficult to sell to reach customers located at substantial
distances from our facilities. This may limit our ability to increase sales of our Pontoon Boats without opening new manufacturing
facilities.

 Higher
fuel costs can materially adversely affect our business, results of operations or financial condition.

 Higher
fuel costs increase the transportation cost both of acquiring our inventory and shipping products to customers. Increases in energy costs
can also adversely affect the pricing and availability of petroleum based raw materials. There is no guarantee that we will be able to
pass such higher costs to customers, and so an increase in such costs could have a material adverse effect on our business, results of
operations or financial condition. Also, higher fuel costs, whether petroleum based or electric, increase the cost of owning and operating
many of our products, which can reduce demand for them and so materially adversely affect our business, results of operations or financial

 We
may require additional capital which may not be available.

 We
will require significant expenditures to fund future growth. We intend to fund our growth out of the proceeds of our IPO and internal
sources of liquidity or through additional financing from external sources. Our ability to obtain external financing in the future at
a reasonable cost is subject to a variety of uncertainties, including our future financial condition, results of operations and cash
flows and the condition of the global and domestic financial markets.

 If
we require additional funds and cannot obtain them on acceptable terms when required or at all, we may be unable to fulfill our working
capital needs, upgrade our existing facilities or expand our business and may have to reduce the level of our operations. These factors
may also prevent us from entering into transactions that would otherwise benefit our business or implementing our future strategies.
Any debt financing that we undertake may be expensive and might impose covenants that restrict our operations and strategic initiatives,
including limitations on our ability to incur liens or additional debt, pay dividends, repurchase our capital stock, make investments
and engage in mergers, consolidations, and asset sale transactions. Equity financing may be on terms that are dilutive or potentially
dilutive to our shareholders, and the prices at which new investors would be willing to purchase our equity securities may be lower than
the trading prices of such equities. If new sources of financing are required, but are unattractive, insufficient, or unavailable, then
we could be required to modify our business plans or growth strategy which could have a material adverse effect on our business, results
of operations or financial condition.

 Our
business depends on the continued contributions made by Mr. David Shan, our founder, Chairman and Chief Executive Officer. The loss of
his services may result in a severe impediment to our business.

 Our
success is dependent upon the continued contributions made by our founder, Chairman and Chief Executive Officer, Mr. David Shan. If Mr.
Shan cannot serve the Company or is no longer willing to do so, the Company may not be able to find alternatives in a timely manner or
at all. This would likely result in severe damage to our business operations and would have an adverse material impact on our financial
position and operational results.

 Our
business depends on the efforts of our management, and our business may be severely disrupted if we lose their services.

 In
addition to Mr. Shan, we currently depend on the continued services and performance of key members of our management team. Many of our
senior executives have extensive experience in our industries and with our business, products, distributors and dealers, and the markets
for our products. The loss of the technical knowledge, management expertise and knowledge of our operations possessed by one or more
members of the core management team could result in a diversion of management resources, as the remaining members of management would
need to cover the duties of any senior executive who leaves us and would need to spend time usually reserved for managing our business
to search for, hire and train new members of management. The loss of some or all our senior executives could negatively affect our ability
to develop and pursue our business strategy, which could materially adversely affect our business, results of operations or financial
condition. We do not maintain "Key Employee" insurance on any members of our management team.

 In
addition, our success depends to a large extent upon our ability to retain skilled employees at rates which enable us to maintain our
margins. There is intense competition for qualified and skilled employees, and our failure to recruit, train and retain such employees
at appropriate rates of compensation, if at all, could have a material adverse effect on our business, results of operations or financial

 Our
management team has no experience operating a company with publicly traded shares.

 Mr.
David Shan, our founder and principal shareholder, relocated to the United States from China in 1995. Mr. Shan and the members of our
senior management team have never operated a company with shares traded in the public markets and consequently, are not familiar with
many of the requirements applicable to a public company with shares listed on Nasdaq. Our management and other personnel need to
devote a substantial amount of time to ensure compliance with these requirements and we often need to rely upon outside
advisors, counsel, and consultants to ensure compliance with applicable laws and regulations and undertaking various actions, such as
implementing new internal controls and procedures. Compliance with these rules and regulations have increased our legal,
accounting, and financial compliance costs substantially.

 If
we fail to develop and protect our brand names and reputation, we may not attract and retain new distributors and dealers, or customers,
which could adversely affect our revenues and financial performance.

 We invest significant resources to promote our brand names to obtain favorable recognition for us and our products among the public
and, in particular, prospective distributors and dealers. We may not be able to attract and retain a robust network of distributors and
dealers or a significant customer base, which could in turn adversely affect our business, results of operations or financial condition.

 Our
ability to adequately protect our trade names, trademarks and patents could have an impact on our brand images, reputation, and ability
to penetrate new markets.

 We
believe that our trade names and trademarks and patents are important assets and an essential element of our strategy. We have applied
for the registration of many of our trade names, trademarks, and patents in the United States. Some of these applications have been granted
and some of these registrations are currently pending approval from the corresponding departments. There can be no assurance that we
will obtain such registrations or that the registrations we obtain will prevent the imitation of our products or infringement of our
intellectual property rights by others. Our failure to successfully protect our trademarks could diminish the value and effectiveness
of our past and future marketing efforts and could cause customer confusion. This could in turn adversely affect our revenues, profitability,
and the market price of our common stock.

 We
may be unable to protect our intellectual property or may incur substantial costs because of litigation or other proceedings relating
to the protection of our intellectual property.

 Our
success depends in part on our ability to protect our patents, trademarks, copyrights, trade secrets, and other intellectual property
from unauthorized use by others. If substantial unauthorized use of our intellectual property rights occurs, we may incur significant
costs in enforcing such rights by prosecuting actions for infringement, particularly considering that policing unauthorized use of our
intellectual property may be particularly difficult outside North America. Such unauthorized use could also result in diversion of management
resources devoting attention to these matters at the expense of other tasks related to our business. Others may also initiate litigation
to challenge the validity of our intellectual property, or allege that we are infringing their intellectual property. If our competitors
initiate litigation to challenge the validity of our intellectual property, or allege that we infringe theirs, we may incur substantial
costs to defend our rights. If the outcome of any such litigation is unfavorable, our business, results of operations or financial condition
could be materially adversely affected. We cannot be sure that any patents we have obtained or may obtain, or other protections such
as confidentiality and trade secrets, will be adequate to prevent imitation of our products and technology by others. If we are unable
to protect our technology through the enforcement of our intellectual property, our ability to compete based on technological advantages
may be harmed. If we fail to prevent substantial unauthorized use of our intellectual property, we risk the loss of certain competitive
advantages, which could have a material adverse effect on our business, results of operations or financial condition.

 Some
of our competitors have significantly more resources to direct toward developing and patenting new technologies. It is possible that
our competitors will develop patent equivalent or superior engine technologies and other products that compete with our products. They
may assert these patents against us and we may be required to license these patents on unfavorable terms or cease using the technology
covered by these patents, either of which could harm our competitive position and may materially adversely affect our business, results
of operation or financial condition.

 Significant
product repair and/or replacement due to product warranty claims or product recalls could have a material adverse impact on our business,

 We
provide a limited warranty against defects for all our products for a period generally varying from 30 days to one year. We also provide
a limited emissions warranty for certain emissions-related parts in its products as required by the United States Environmental Protection
Agency. Although we employ quality control procedures, sometimes a product is distributed that needs repair or replacement, or that needs
to be recalled. Our standard warranties require dealers to repair or replace defective products during such warranty periods at no cost
to the consumer. We record provisions in our financial statements based on an estimate of product warranty claims, but there is the possibility
that actual claims may exceed these provisions and therefore negatively impact earnings. We could make major product recalls or could
be held liable should our products not meet safety standards or statutory requirements on product safety or consumer protection.

 In
addition, the risks of a product recall may be aggravated if production volumes increase significantly, supplied products do not meet
our standards, or we fail to perform our risk analysis systematically or product-related decisions are not fully documented. Historically,
product recalls have been administered through our dealers and distributors. The repair and replacement costs that we could incur in
connection with a recall could have a material adverse effect on our business, results of operations or financial condition. Product
recalls could also harm our reputation and cause us to lose customers, particularly if recalls cause consumers to question the safety
or reliability of our Company's products, which could have a material adverse effect on our business, results of operations or
financial condition.

 The
failure of our IT systems or a security breach involving consumer or employee personal data could have a materially adverse effect on
our reputation and business, results of operations or financial condition.

 Our
business operations utilize a variety of cloud-based IT systems. We are dependent on these systems for all commercial transactions, dealership
and distributorship interactions, and supply chain and inventory management. Although (i) have established a firewall for our network,
(ii) conduct regular system updates and employee trainings, (iii) regularly backup our data and (iv) have established appropriate contingency
plans to mitigate the risks associated with a failure of our IT systems or a security breach, if one of our key IT systems were to suffer
a failure or security breach this could have a material adverse effect on our business, results of operations or financial condition.
Further, we rely on third parties for certain IT services. If an IT service provider were to fail or the relationship with us were to
end, we might be unable to find a suitable replacement in a timely manner, and our business, results of operations or financial condition
could be materially adversely affected. We continually modify and enhance our IT systems and technologies to increase productivity and
efficiency. As new systems and technologies are implemented, we could experience unanticipated difficulties resulting in unexpected costs
and adverse impacts to our manufacturing and other business processes. When implemented, the systems and technologies may not provide
the benefits anticipated and could add costs and complications to ongoing operations, which may have a material adverse effect on our
business, results of operations or financial condition.

 We
and our dealers and distributors receive and store personal information in connection with human resources operations, credit operations,
warranty management, marketing efforts and other aspects of our businesses. Additionally, we exchange information with numerous trading
partners across all aspects of our operations. Any security breach of our IT systems or those of our dealers, distributors and trading
partners could result in disruptions to our operations or erroneous transactions. To the extent that such a breach results in a loss
or damage to our data, or an inappropriate disclosure of confidential or personal information, it could cause significant damage to our
reputation, affect our relationships with our customers, lead to claims against us and ultimately materially adversely affect our business,

 As
of the date of this Report, we have not experienced a material cyber security incident.

 Retail
sales of our new products may be materially adversely affected by declining prices for used versions of our products or the supply of
new products by competitors in excess of demand.

 We
have observed that when prices for used versions of our products have declined, it has had the effect of reducing demand among retail
purchasers for new versions of our products (at or near manufacturer's suggested retail prices). Also, while we take steps designed
to balance production volumes for our products with demand, our competitors could choose to supply new products to the market in excess
of demand at reduced prices which could also reduce demand for new versions of our products. Reduced demand for new versions of our products
could lead to reduced sales, which could materially adversely affect our business, results of operations or financial condition.

 Our
results of operations fluctuate from quarter to quarter and from year to year as they are affected, among other things, by the seasonal
nature of some of our product lines.

 Our
results of operations experience substantial fluctuations from quarter to quarter and year to year. A portion of our sales revenue generated
from Massimo Marine has seasonable sales pattern. For the fiscal years ended December 31, 2024 and 2023, our revenue generated from the
Massimo Marine made up approximately 3.4% and 10.2% of our total revenue, respectively. In general, retail sales of our products are highest
in their particular season of use and in the immediately preceding period. For example, retail sales for ATVs and Pontoon Boats will be highest
in winter and spring. Revenues in the first half of the fiscal year have generally been lower than those in the second half. However,
the mix of product sales may vary considerably from time to time as a result of changes in seasonal and geographic demand, the introduction
of new products and models and production scheduling for particular types of products. Any negative economic conditions that occur during
the months of traditionally higher sales of a given product could have a disproportionate effect on our results of operations for the
entire fiscal year. In addition, our dealers and distributors may modify orders, change delivery schedules, or change the mix of products
ordered. We may also make strategic decisions to deliver and invoice products at certain dates to lower costs or improve supply chain
efficiencies or may be forced to do so because of supply chain issues or disruption. As a result, our results of operations are likely
to fluctuate significantly from period to period such that any historical results should not be considered indicative of the results
to be expected for any future period. In addition, we incur significant additional expenses in the periods leading up to the introduction
of new products which may also result in fluctuations in our results of operations. Our annual and quarterly gross profit margins are
also sensitive to a number of factors, many of which are beyond our control, including shifts in product sales mix, geographic sales
trends, and currency exchange rate fluctuations, all of which we expect will continue. This seasonality in revenues, expenses and margins,
along with other factors that are beyond our control, including general economic conditions, changes in consumer preferences, weather
conditions, tariffs, free-trade arrangements, geopolitical uncertainty, the cost or availability of raw materials or labor, discretionary
spending habits and currency exchange rate fluctuations, could materially adversely affect our business, results of operations or financial

 We
are subject to laws, rules and regulations regarding product safety, health, environmental and noise pollution and other issues that
could cause us to incur fines or penalties or increase our operating costs.

 We
are subject to federal, provincial, state local, and municipal laws, rules and regulations in Canada and the United States regarding
product safety, health, environmental and noise pollution and other issues that could cause us to incur fines or penalties or increase
our operating costs, all of which could have a material adverse effect on our business, results of operations or financial condition.
A failure to comply with, or compliance with, any such requirements or any new requirements could result in increased expenses to modify
our products, or harm to our reputation, which could have a material adverse effect on our business, results of operations or financial
condition. Certain jurisdictions require or are considering requiring a license to operate certain of our products. While such licensing
requirements are not expected to be unduly restrictive, they may deter potential customers, thereby reducing sales. Our products are
also subject to laws, rules and regulations imposing environmental, noise emission, zoning and permitting restrictions, which laws, rules
and regulations are subject to change and may limit the locations where our products may be sold or used or restrict their use during
certain times or on certain conditions. Additional costs and investments might be required in the future if new regulations or restrictions
are put in place.

 Climate
change is receiving increasing attention worldwide. A consensus among scientists, legislators and others regarding the impact
of increased levels of greenhouse gases, including carbon dioxide, on climate change has led to significant legislative and regulatory
efforts to limit greenhouse gas emissions. Greenhouse gas regulations could require us to purchase allowances to offset our emissions
or result in an overall increase in costs of raw materials or operating expenses, any of which could reduce competitiveness in a global
economy or otherwise have a material adverse effect on our business, results of operations or financial condition. Many of our suppliers
face similar circumstances. Moreover, we and our suppliers may face greater regulatory or customer pressure to offer products that generate
less emissions. This may require the expenditure of significant funds on R&D implementation and subject us to the risk that our competitors
may respond to these pressures in a manner that gives them a competitive advantage. The development of such products may also present
challenges in maintaining the look, sound and feel of our products. While additional regulations of emissions in the future appear likely,
it is too early to predict whether such regulation could ultimately have a material adverse effect on the our business, results of operations
or financial condition.

 If
product liability lawsuits are brought against us, we may incur substantial liabilities.

 We
face a risk of lawsuits alleging product liability claims. We may be sued if any of our products allegedly causes injury or are found
to be otherwise unsuitable during product testing, manufacturing, marketing or sale. Any such product liability claims may include allegations
of defects in manufacturing, defects in design, a failure to warn of dangers inherent in the product, negligence, strict liability and
a breach of warranties. Claims could also be asserted under state consumer protection acts. If we cannot successfully defend ourselves
against product liability claims, we may incur substantial liabilities. Even successful defense would require significant financial and
management resources. Regardless of the merits or eventual outcome, liability claims may result in:

 decreased
 demand for products that we offer for sale;

 injury
 to our reputation;

 costs
 to defend the related litigation;

 a
 diversion of management's time and resources;

 substantial
 monetary awards to trial participants or customers; and

 product
 recalls, withdrawals or labeling, marketing or promotional restrictions.

 We
currently maintain product liability insurance. However, there is no guarantee that that such insurance will remain affordable or be
sufficient. If we are unable to retain sufficient product liability insurance coverage, it could prevent or inhibit the commercialization
of products we intend to market. Even if we maintain product liability insurance in the future, we may have to pay amounts awarded by
a court or negotiated in a settlement that exceed our coverage limitations or that are not covered by our insurance, and we may not have,
or be able to obtain, sufficient capital to pay such amounts.

 We
have two material pending litigation cases as of the date of this report. No assurance can be given that our historical claims
record will not change, that material product liability claims will not be made in the future against us, or that claims will not
arise in the future in excess of our indemnities and insurance coverage. Our records provision for known potential liabilities, but
there is the possibility that actual losses may exceed these provisions and therefore negatively impact earnings. Also, we may not
be able in the future to adequately insure our product liability and warranty risk or the cost of doing so may be prohibitive.
Adverse determinations of material product liability claims made against us could also harm our reputation and cause us to lose
customers and could have a material adverse effect on our business, results of operations or financial condition.

 Our
insurance may not be sufficient.

 We
carry insurance that we consider adequate in regard to the nature of the covered risks and the costs of coverage. We are not fully insured
against all possible risks, nor are all such risks insurable. We may be forced to cover the costs of certain realized risks which may
have a material adverse effect on our business, results of operations or financial condition.

 We
have been in the past and may be in the future subject to several litigation proceedings relating to defective products that have caused
property damage, physical injury and death. These proceedings may negatively affect our reputation, hurt the perception of our products
being safe and subject us to damages.

 From
2017 to 2024, we have been subject to two material pending litigation proceedings relating to: accidental fires, defective steering
mechanisms, faulty batteries and braking systems, bad engines and other issues of product design and/or manufacturing defect. Some
of these proceedings were filed pursuant to the plaintiffs experiencing death, injury or property damage. While we have been able to
settle the vast majority of these claims, there remains a possibility that these past claims may adversely affect the future ability
to sell our products. Distributors, dealers and customers may perceive our products to be unsafe or poorly built and may refuse to
carry them in stores or purchase them for personal use. We may be subject to similar litigation proceedings in the future which may
result in additional damages and a poor reputation among our distributors, dealers and customers. This could have a material adverse
effect on our business, results of operations or financial condition. See " An adverse determination in any significant
product liability claim could materially adversely affect our business, results of operations or financial
condition. "

 We
have been in the past and may be in the future subject to regulatory inquiries with respect to the safety of our products and compliance
with business regulations. These inquiries may negatively affect our reputation, hurt the perception of our products being safe and subject
us to costly penalties.

 We
are subject to a variety of federal, state and local laws which regulate our business. These laws include consumer safety protection
laws, laws regulating the registration and licensing of motor vehicles, state lemon laws, the Uniform Commercial Code, the Magnuson-Moss
Warranty Act and other such laws regulating the motorsports vehicle industry.

 In
the past we have been subject to regulatory inquiries from institutions such as the Missouri Office of the State Attorney General, the
California Air Resources Board, the Pennsylvania State Board of Vehicle Manufacturers, Dealers and Salespersons and the U.S. Consumer
Product Protection Commission. On at least one occasion, we have received punitive action by the U.S. Consumer Product Protection Commission
in the form of a Stop Sale order. The order required us to halt the sale of our Electric Balance Bike due to issues concerning excessive
lead content and the lack of a child safety certificate. Stop Sale orders may adversely affect our ability to sell popular products and
may cause us to have a poor reputation with the retailers, distributors and dealerships that may carry our products. If such past or
future inquiries were to become publicized, it could negatively affect consumers' perception of our brand and may lead to a significant
decrease in sales.

 Any
failure to adhere to the regulations and laws of federal, state and local institutions may result in costly fines, loss of license to
do business in a particular jurisdiction and other severe penalties. These penalties could have a material adverse effect on our business,
results of operations or financial condition. The burden of compliance with such regulations and laws may come at significant time and
expense and despite our best efforts to comply, we may still be subject to regulatory inquiry and sanction.

 Our
business requires us to pay licensing fees for each state that we operate in. We may not be able to justify the cost of compliance in
a particular state or locality thus necessitating that we allow our license to expire. This may have a materially adverse effect on our
business, results of operations or financial condition.

 Each
state within the United States maintains its own licensing regime with respect to vehicular sales. The applicable fees and compliance
rules may prove too costly for us and senior management may choose to permit our license-to-do-business in certain states to expire.
We may make such a decision based on the costs outweighing the benefits, although our judgment may prove incorrect, and we may forfeit
the possibility of significant profit by withdrawing from a certain state. Poor decision-making with respect to allowing certain licenses
to expire or to maintaining them indefinitely may have a materially adverse effect on our business, results of operations or financial

 We
have not made use of confidentiality agreements in the past and, although we intend to rely on such agreements in future dealings with
our suppliers, employees, consultants, and other parties, the prior lack or the breach of such agreements could adversely affect our
business and results of operations.

 In
the past, we have not made use of confidentiality agreements with our employees, customers, consultants and other parties to protect
proprietary information or trade secrets. We intend to rely on such confidentiality agreements on a go-forward basis. Current and
former employees not covered under confidentiality agreements may divulge our proprietary information or trade secrets. The release of
such proprietary information or trade secrets could adversely affect our business and results of operations. Additionally, for individuals
covered by future confidentiality agreements, there can be no assurance that these agreements will not be breached, that we would have
adequate remedies for any such breach or that our proprietary information or trade secrets will not otherwise become known to or independently
developed by competitors. To the extent that consultants, key employees or other third parties apply technological information independently
developed by them or by others to our proposed projects, disputes may arise as to the proprietary rights to such information that may
not be resolved in our favor. We may be involved from time to time in litigation to determine the enforceability, scope and validity
of our proprietary rights. Any such litigation could result in substantial cost and diversion of effort by our management and technical
personnel at the expense of other tasks related to our business.

 Unionization
activities may disrupt our operations and increase our costs.

 Although
none of our employees are currently covered under collective bargaining agreements, our employees or that of our suppliers, distributors
or retailers may elect to be represented by labor unions in the future. If a significant number of our employees or that of our suppliers,
distributors or retailers were to become unionized and collective bargaining agreement terms were significantly different from our or
our suppliers', distributors' or retailers' current compensation arrangements, it could have a material adverse effect
on our business, financial condition and results of operations. In addition, a labor dispute involving some or all our or that of our
suppliers, distributors, retailers or employees may harm our reputation, disrupt our operations and reduce our revenues, and resolution
of disputes could increase our costs.

 Our
business could be materially harmed by epidemics, pandemics, or any other outbreaks and public health emergencies, boycotts, and geo-political
events.

 Our
business could be materially and adversely affected by natural disasters or the outbreak of health epidemics, boycotts and geo-political
events, such as civil unrest and acts of terrorism, upheavals in U.S.-China relations, or similar disruptions could materially adversely
affect our business, results of operations or financial condition.. Material adverse effects from diseases could result in numerous known
and currently unknown ways including quarantines and lockdowns which impair the abilities of merchants to ship products. Any such disruption
may materially impact our business, results of operations or financial condition. These events could result in physical damage to one
or more of our properties or the properties of our suppliers and distributors, increases in fuel or other energy prices, temporary or
permanent closure of one or more of our facilities or the facilities of our suppliers and distributors, temporary lack of an adequate
workforce in a market, temporary or long-term disruption in the supply of raw materials, product parts and components, temporary disruption
in transport to and from overseas, especially China, and disruption to our information systems, and, ultimately, have a material adverse
impact on our business, results of operations or financial condition.

 Furthermore,
even after an outbreak has subsided, we may experience impacts to our business as a result of the global economic impact of the outbreak,
including any economic downturn or recession or other long-term effects that have occurred or may occur to us, our customers and vendors
in the future. The price of our common stock may decline significantly if such an event were to occur, in which case you may lose your
investment.

 Our
ability, or lack thereof, to attract, recruit, and maintain talented sales representatives may adversely affect our business and our
plans to expand our market.

 We
have a team of sales representatives which works with our dealers and distributors and to coordinate sales and distribution of our products
through their channels. To execute our expansion into new markets, it is important to attract, employ, and maintain talented sales representatives.
Even if we attract new talented sales representatives, there is no guarantee that we can maintain the talented individuals. Our inability
to maintain a roster of talented sales representatives may adversely affect our business and planned expansion into new markets.

 Our
ability, or lack thereof, to establish strategic partnerships and expand our distribution channels regionally and nationally may adversely
affect our business and our plans to expand our market.

 We
rely on our local and regional sales representatives to assist us with establishing strategic partnerships with dealers and distributors
located in new geographic areas. A critical component of our expansion plan is our sales representatives' ability to successfully
establish new strategic partnerships in the Northeast, West, Southeast, and Midwest of the United States. Even if we establish new strategic
partnerships, there is no guarantee that we can maintain successful relationships with the new dealers and distributors or that our partners
will yield additional revenue and profits based on sales.

 U.S.
policies granting farmers incentives may cease and farmers represent a large percentage of our revenue.

 In
fiscal year ended December 31, 2024 and 2023, approximately 60% and 40% of our consumers were farmers, respectively. As a supplier to
farmers, we are aware that farmers rely on U.S. governmental programs to fund the purchase of supplies from us and operate their business.
For example, the U.S. Department of Agriculture ("USDA") has a variety of grants and subsidies. The USDA offers farming producers
and agricultural businesses funding through its Pandemic Assistance for Producers initiative. The USDA's program, The Food Safety
Certification for Specialty Crops program provides up to $200 million in assistance for specialty crop producers who incur eligible on-farm
food safety program expenses to obtain or renew a food safety certification in calendar years 2023 or 2024.

 In
addition to USDA, various other regulatory entities at the federal and state level offer grants and subsidies, which some of our consumers
rely on to purchase our products. Most government incentives contain terms. Once the term of the program expires, there is no guarantee
that the program will be extended. If the United States' policies granting farmers incentives are not available to our farming
consumers, then we may lose consumers and this would adversely affect our business.

 Risks
Relating to Our Securities

 An
active trading market for our common stock may not develop or be sustained.

 Prior
to the commencement of trading of our common stock on Apr 1, 2024, no public market for our common stock existed. Although our common
stock is listed on Nasdaq, an active trading market for our common stock may not develop, or if developed, be sustained. The lack of
an active market may impair your ability to sell your shares at the time you wish to sell them or at a price that you consider reasonable.
The lack of an active market may also reduce the fair value of your shares.

 Further,
an inactive market may also impair our ability to raise capital by selling shares of our common stock may impair our ability to enter
into strategic partnerships or acquire companies or products by using our shares of common stock as consideration.

 Massimo is a holding company.

is a holding company and our only significant assets are the membership interest and capital stock of our subsidiaries. As a result,
we are subject to the risks attributable to our subsidiaries. As a holding company, we conduct substantially all of our business
through its subsidiaries, which generate substantially all of our revenues. Consequently, our cash flows and ability to complete
current or desirable future enhancement opportunities are dependent on the earnings of our subsidiaries and the distribution of
those earnings to us. The ability of these entities to pay dividends and other distributions will depend on their operating results
and will be subject to applicable laws and regulations which require that solvency and capital standards be maintained by such
companies and contractual restrictions contained in the instruments governing their debt. In the event of a bankruptcy, liquidation
or reorganization of any of our subsidiaries, holders of indebtedness and trade creditors will generally be entitled to payment of
their claims from the assets of that subsidiary before any assets are made available for distribution to us.

 The
market price of our common stock is likely to be highly volatile, and you could lose all or part of your investment.

 The
trading price of our common stock is likely to be volatile. This volatility may prevent you from being able to sell your shares at or
above the price you paid for your shares. Our stock price could be subject to wide fluctuations in response to a variety of factors,
which include:

 actual
 or anticipated fluctuations in our quarterly or annual operating results;

 publication
 of research reports by securities analysts about us or our competitors or our industry;

 the
 public's reaction to our press releases, our other public announcements and our filings with the Securities and Exchange Commission
 ("SEC");

 our
 failure or the failure of our competitors to meet analysts' projections or guidance that we or our competitors may give to
 the market;

 additions
 and departures of key personnel;

 strategic
 decisions by us or our competitors, such as acquisitions, divestitures, spin-offs, joint ventures, strategic investments or changes
 in business strategy;

 the
 passage of legislation or other regulatory developments affecting us or our industry;

 speculation
 in the press or investment community;

 in accounting principles;

 terrorist
 acts, acts of war or periods of widespread civil unrest;

 natural
 disasters and other calamities; and

 in general market and economic conditions.

 In
addition, the stock market has experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to
the operating performance of companies. Broad market and industry factors may negatively affect the market price of our common stock,
regardless of our actual operating performance. In the past, securities class action litigation has often been initiated against companies
following periods of volatility in their stock price. This type of litigation could result in substantial costs and divert our management's
attention and resources and could also require us to make substantial payments to satisfy judgments or to settle litigation.

 Our
quarterly operating results may fluctuate significantly and could fall below the expectations of securities analysts and investors due
to seasonality and other factors, some of which are beyond our control, resulting in a decline in our stock price.

 Our
quarterly operating results may fluctuate significantly because of several factors, including:

 labor
 availability and costs for hourly and management personnel;

 in interest rates;

 macroeconomic
 conditions, both nationally and locally;

 in consumer preferences and competitive conditions;

 expansion
 to new markets;

 increases
 in infrastructure costs; and

 in
 commodity prices.

 Unanticipated
fluctuations in our quarterly operating results could result in a decline in our stock price.

 Our
failure to meet the continued listing requirements of Nasdaq could result in a delisting of our common stock.

 If,
after listing, we fail to satisfy the continued listing requirements of Nasdaq, such as the corporate governance requirements or the
minimum closing bid price requirement, Nasdaq may take steps to delist our common stock. Such a delisting would likely have a negative
effect on the price of our common stock and would impair your ability to sell or purchase our common stock when you wish to do so. In
the event of a delisting, we can provide no assurance that any action taken by us to restore compliance with listing requirements would
allow our common stock to become listed again, stabilize the market price or improve the liquidity of our common stock, prevent our common
stock from dropping below the Nasdaq minimum bid price requirement or prevent future non-compliance with Nasdaq's listing requirements.

 If
Nasdaq delists our securities, we could face significant material adverse consequences, including:

 a
 limited availability of market quotations for our securities;

 reduced
 liquidity with respect to our securities;

 a
 determination that our shares of common stock are "penny stock" which will require brokers trading in our shares of common
 stock to adhere to more stringent rules, possibly resulting in a reduced level of trading activity in the secondary trading market
 for our shares of common stock;

 a
 limited amount of news and analyst coverage for our company; and

 a
 decreased ability to issue additional securities or obtain additional financing in the future.

 The
National Securities Markets Improvement Act of 1996, which is a federal statute, prevents or preempts the states from regulating the
sale of certain securities, which are referred to as "covered securities." Assuming our common stock will be listed on Nasdaq,
our common stock will be covered securities. Although the states are preempted from regulating the sale of our securities, the federal
statute does allow the states to investigate companies if there is a suspicion of fraud, and, if there is a finding of fraudulent activity,
then the states can regulate or bar the sale of covered securities in a particular case. Furthermore, if we were no longer listed on
Nasdaq, our common stock would not be covered securities and we would be subject to regulation in each state in which we offer our securities.

 If
our shares are delisted from Nasdaq and become subject to the penny stock rules, it would become more difficult to trade our shares.

 The
SEC has adopted rules that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks are generally
equity securities with a price of less than $5.00, other than securities registered on certain national securities exchanges or authorized
for quotation on certain automated quotation systems, provided that current price and volume information with respect to transactions
in such securities is provided by the exchange or system. If we do not obtain or retain a listing on Nasdaq and if the price of our common
stock is less than $5.00, our common stock will be deemed a penny stock. The penny stock rules require a broker-dealer, before a transaction
in a penny stock not otherwise exempt from those rules, to deliver a standardized risk disclosure document containing specified information.
In addition, the penny stock rules require that before effecting any transaction in a penny stock not otherwise exempt from those rules,
a broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive
(i) the purchaser's written acknowledgment of the receipt of a risk disclosure statement; (ii) a written agreement to transactions
involving penny stocks; and (iii) a signed and dated copy of a written suitability statement. These disclosure requirements may have
the effect of reducing the trading activity in the secondary market for our common stock, and therefore stockholders may have difficulty
selling their shares.

 We
have no current plans to pay cash dividends on our common stock for the foreseeable future, and you may not receive any return on investment
unless you sell your common stock for a price greater than that which you paid for it.

 We
may retain future earnings, if any, for future operations, expansion and debt repayment and have no current plans to pay any cash dividends
for the foreseeable future. Any decision to declare and pay dividends in the future will be made at the discretion of our Board of Directors
and will depend on, among other things, our results of operations, financial condition, cash requirements, contractual restrictions and
other factors that our Board of Directors may deem relevant. In addition, our ability to pay dividends may be limited by covenants of
any existing and future outstanding indebtedness we or our subsidiaries incur, including our credit facility. As a result, you may not
receive any return on an investment in our common stock unless you sell our common stock for a price greater than that which you paid
for it and any potential investor who anticipates the need for current dividends should not purchase our securities. See Item 5. "Market
for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities-Dividends."

 There
can be no assurance that we will ever provide liquidity to our investors through a sale of our company.

 While
acquisitions of manufacturing and distribution companies like ours are not uncommon, potential investors are cautioned that no assurances
can be given that any form of merger, combination, or sale of our Company will take place, or that any merger, combination, or sale,
even if consummated, would provide liquidity or a profit for our investors. You should not invest in our Company with the expectation
that we will be able to sell the business in order to provide liquidity or a profit for our investors.

 Our
founder and principal shareholder has substantial influence over our Company. His interests may not be aligned with the interests of
our other shareholders, and he could prevent or cause a change of control or other transactions.

 Mr.
David Shan owns 77% of our outstanding shares. Accordingly, Mr. Shan will have significant influence in determining the outcome of any
corporate transaction or other matter submitted to the shareholders for approval, including mergers, consolidations, the appointment
of directors and other significant corporate actions. Mr. Shan will also have the power to prevent or cause a change in control. Without
the consent of Mr. Shan, we may be prevented from entering into transactions that could be beneficial to us or our minority shareholders.
In addition, Mr. Shan could violate his fiduciary duties by diverting business opportunities from us to himself or others. The interests
of Mr. Shan may differ from the interests of our other shareholders. The concentration in the ownership of our common stock shares may
cause a material decline in the value of our common stock.

 The
sale or availability for sale of substantial amounts of our common stock could adversely affect its market price.

 Sales
of substantial amounts of our common stock in the public market, including sales made of any shares pledged for a loan by any holder
of a significant number of shares of our common stock, or the perception that these sales could occur, could adversely affect the market
price of our common stock and could materially impair our ability to raise capital through equity offerings in the future. Our common
stock is freely tradable without restriction or further registration under the Securities Act of 1933, as amended ("Securities
Act"), and shares held by our existing shareholders may also be sold in the public market in the future subject to the restrictions
in Rule 144 under the Securities Act and the applicable lock-up agreements. We cannot predict what effect, if any, market sales of securities
held by our significant shareholders or any other shareholder or the availability of these securities for future sale will have on the
market price of our common stock.

 We
incur significant increased costs as a result of operating as a public company and our management is required to devote substantial time
to new compliance initiatives.

 As
a public company, we now incur significant legal, accounting and other expenses that we did not incur as a private company. The Sarbanes-Oxley
Act, as well as rules subsequently implemented by the SEC and Nasdaq, has imposed various requirements on public companies. Our management
and other personnel need to devote a substantial amount of time to these compliance initiatives. Moreover, compliance with these rules
and regulations increase our legal, accounting and financial compliance costs substantially. A number of those requirements require us
to carry out activities we have not done previously. For example, we have created new board committees and adopted new internal controls
and disclosure controls and procedures. In addition, these rules and regulations may make our activities related to legal, accounting
and financial compliance more difficult, time-consuming and costly and may also place undue strain on our personnel, systems and resources.
Furthermore, if we identify any issues in complying with those requirements (for example, if we or our auditors identify a material weakness
or significant deficiency in our internal control over financial reporting), we could incur additional costs rectifying those issues,
and the existence of those issues could adversely affect us, our reputation or investor perceptions of us. If these requirements divert
the attention of our management and personnel from other business concerns, they could have a material adverse effect on our business,
financial condition and results of operations. For example, we expect these rules and regulations to make it more difficult and more
expensive for us to obtain director and officer liability insurance, and we may be required to incur substantial costs to maintain our
current levels of such coverage. These increased costs require us to divert a significant amount of money that we could otherwise use
to expand our business and achieve our strategic objectives. Advocacy efforts by stockholders and third parties may also prompt additional
changes in governance and reporting requirements, which could further increase our costs.

 Unanticipated
changes in effective tax rates or adverse outcomes resulting from examination of our income or other tax returns could adversely affect
our financial condition and results of operations.

 We
are subject to income taxes in the United States, and our domestic tax liabilities are subject to the allocation of expenses in differing
jurisdictions. Our future effective tax rates could be subject to volatility or adversely affected by a number of factors, including:

 in the valuation of our deferred tax assets and liabilities;

 expected
 timing and amount of the release of any tax valuation allowances;

 tax
 effects of stock-based compensation;

 costs
 related to intercompany restructurings;

 in tax laws, regulations or interpretations thereof; or

 lower
 than anticipated future earnings in jurisdictions where we have lower statutory tax rates and higher than anticipated future earnings
 in jurisdictions where we have higher statutory tax rates.

 In
addition, we may be subject to audits of our income, sales and other transaction taxes by federal, state and local authorities. Outcomes
from these audits could have an adverse effect on our financial condition and results of operations.

to accounting rules or regulations may adversely affect the reporting of our results of operations.

to existing accounting rules or regulations may impact the reporting of our future results of operations or cause the perception that
we are more highly leveraged. Other new accounting rules or regulations and varying interpretations of existing accounting rules or regulations
have occurred and may occur in the future.

to estimates related to our property, fixtures and equipment or operating results that are lower than our current estimates at certain
locations may cause us to incur impairment charges on certain long-lived assets, which may adversely affect our results of operations.

 In
accordance with accounting guidance as it relates to the impairment of long-lived assets, we make certain estimates and projections with
regard to our operations, as well as our overall performance, in connection with our impairment analyses for long-lived assets. When
impairment triggers are deemed to exist for our operations, the estimated undiscounted future cash flows are compared to its carrying
value. If the carrying value exceeds the undiscounted cash flows, an impairment charge equal to the difference between the carrying value
and the fair value is recorded. The projections of future cash flows used in these analyses require the use of judgment and a number
of estimates and projections of future operating results. If actual results differ from our estimates, additional charges for asset impairments
may be required in the future. If future impairment charges are significant, this could have a material adverse effect on the results
of our operations.

 As
an "emerging growth company" under applicable law, we are subject to lessened disclosure requirements, which could leave
our stockholders with less information or fewer rights available to stockholders of more mature companies.

 For
as long as we remain an "emerging growth company," we have elected to take advantage of certain exemptions from various reporting
requirements that are applicable to other public companies that are not "emerging growth companies" including, but not limited
to:

 not
 being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act;

 taking
 advantage of an extension of time to comply with new or revised financial accounting standards;

 reduced
 disclosure obligations regarding executive compensation in our periodic reports and proxy statements; and

 exemptions
 from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute
 payments not previously approved.

 We
expect to take advantage of these reporting exemptions until we are no longer an "emerging growth company." Because of these
lessened regulatory requirements, our stockholders would be left without information or rights available to stockholders of more mature
companies.

 Because
we have elected to use the extended transition period for complying with new or revised accounting standards for an "emerging growth
company" our financial statements may not be comparable to companies that comply with public company effective dates.

 We
have elected to use the extended transition period for complying with new or revised accounting standards for an emerging growth company.
This election allows us to delay the adoption of new or revised accounting standards that have different effective dates for public and
private companies until those standards apply to private companies. As a result of this election, our financial statements may not be
comparable to companies that comply with public company effective dates, and thus investors may have difficulty evaluating or comparing
our business, performance or prospects in comparison to other public companies, which may have a negative impact on the value and liquidity
of our common stock.

 We
are a "controlled company" within the meaning of Nasdaq listing standards and, as a result, qualify for exemptions from certain
corporate governance requirements.

 David
Shan, our Chief Executive Officer and Chairman of the Board of Directors holds approximately 77% of the voting power in us and, as a
result, we are a "controlled company" within the meaning of the Nasdaq listing standards. For so long as we remain a controlled
company, we technically qualify and are eligible to be exempted from the obligation to comply with certain Nasdaq corporate governance
requirements, however, we do not plan to take advantage of the exemptions provided to controlled companies, which include

 our
 Board of Directors is not required to be comprised of a majority of independent directors;

 our
 Board of Directors is not subject to the compensation committee requirements; and

 we
 are not subject to the requirements that director nominees be selected either by the independent directors or a nomination committee
 comprised solely of independent directors.

 our
 Board of Directors is not required to be comprised of a majority of independent directors;

 The
controlled company exemptions do not apply to the audit committee requirement or the requirement for executive sessions of independent
directors. We are required to disclose in our annual report that we are a controlled company and the basis for that determination. Although
we do not plan to take advantage of the exemptions provided to controlled companies, we may in the future take advantage of such exemptions.
Our status as a controlled company could cause our securities to be less attractive to certain investors or otherwise adversely affect
our securities' trading price.

 If
securities or industry analysts do not publish or cease publishing research or reports about us, our business or our market, or if they
change their recommendations regarding our common stock adversely, the price of our common stock and trading volume could decline.

 The
trading market for our common stock may be influenced by the research and reports that securities or industry analysts may publish about
us, our business, our market or our competitors. If any of the analysts who may cover us change their recommendation regarding our common
stock adversely, or provide more favorable relative recommendations about our competitors, the price of our common stock would likely
decline. If any analyst who may cover us was to cease coverage of our company or fail to regularly publish reports on us, we could lose
visibility in the financial markets, which in turn could cause the price of our common stock or trading volume to decline.

 Anti-takeover
provisions in our Articles of Incorporation and Bylaws and Nevada law could discourage, delay or prevent a change in control of our company
and may affect the trading price of our common stock.

 The
anti-takeover provisions of the Nevada law may discourage, delay or prevent a change in control by prohibiting us from engaging in a
business combination with an interested stockholder for a period of three years after the person becomes an interested stockholder, even
if a change in control would be beneficial to our existing stockholders. Our Articles of Incorporation and our Bylaws may discourage,
delay or prevent a change in our management or control over us that stockholders may consider favorable. For example, our Board of Directors
has the right to issue preferred stock without stockholder approval that could be used to dilute a potential hostile acquirer. As a result,
you may lose your ability to sell your stock for a price in excess of the prevailing market price due to these protective measures, and
efforts by stockholders to change the direction or management of the company may be unsuccessful. In addition, our Articles of Incorporation
and Bylaws:

 provide
 that vacancies on our Board of Directors, including newly created directorships, may be filled only by a majority vote of directors
 then in office;

 provide
 that special meetings of stockholders may only be called by our Chairman and/or President, our Board of Directors or a super-majority
 (66 or 2/3%) of our stockholders;

 place
 restrictive requirements (including advance notification of stockholder nominations and proposals) on how special meetings of stockholders
 may be called by our stockholders;

 not
 provide stockholders with the ability to cumulate their votes; and provide that only a super-majority of our stockholders (66 or
 2/3%) may amend our amended and restated bylaws.

 Failure
to establish and maintain effective internal controls in accordance with Section 404 of the Sarbanes-Oxley Act could have a material
adverse effect on our business and stock price.

 We are required to comply with the SEC's rules implementing Sections 302 and 404 of the Sarbanes-Oxley
Act, which requires management to certify financial and other information in our quarterly and annual reports and provide an annual management
report on the effectiveness of controls over financial reporting. Our independent registered
public accounting firm is not be required to attest to the effectiveness of our internal control over financial reporting until the later
of the year following our first annual report required to be filed with the SEC or the date we are no longer an emerging growth company
and are an accelerated or large accelerated filer.

 We may need to undertake various actions, such as implementing new internal controls
and procedures and hiring additional accounting or internal audit staff. In addition, we may identify material weaknesses in our internal
control over financial reporting that we may not be able to remediate in time to meet the applicable deadline imposed upon us for compliance
with the requirements of Section 404.

 If
we identify weaknesses in our internal control over financial reporting, are unable to comply with the requirements of Section 404 in
a timely manner or to assert that our internal control over financial reporting is effective, or if our independent registered public
accounting firm is unable to express an opinion as to the effectiveness of our internal control over financial reporting, investors may
lose confidence in the accuracy and completeness of our financial reports and the market price of our common stock could be negatively
affected, and we could become subject to investigations by Nasdaq on which our securities are listed, the SEC or other regulatory authorities,
which could require additional financial and management resources.

 As of December 31, 2024, we have
identified no material weaknesses related to the Company's internal control over financial reporting. Over the past year, we have
implemented measures to address previously identified material weaknesses in our internal control and have made significant progress in
remediating these issues. To strengthen our financial reporting function, we have hired additional staff and engaged external accounting
consultants with expertise in U.S. GAAP and SEC reporting. Additionally, we have integrated and automated our financial reporting system
with our ERP system to minimize manual errors. We have also implemented a series of training programs across departments and enhanced
supervision and controls over our comprehensive accounting policies and procedures manual in accordance with U.S. GAAP.

 Our
Bylaws provide that the Second Judicial District Court of Washoe County of the State of Nevada is the sole and exclusive forum for certain
stockholder litigation matters, which could limit our stockholders' ability to obtain a favorable judicial forum for disputes against
us, or our directors and officers.

 Our
Bylaws require, to the fullest extent permitted by Nevada law, that unless we consent in writing to the selection of an alternative forum,
the Second Judicial District Court of Washoe County of the State of Nevada (the "Court") shall be the sole and exclusive
forum for any stockholder (including a beneficial owner) to bring (i) any derivative action or proceeding brought on behalf of the Company,
(ii) any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee of the Company to the
Company or the Company's stockholders, (iii) any action asserting a claim against the Company, any director or the Company's
officers or employees arising pursuant to any provision of the NRS, Chapters 78 or 92A of the NRS or our Nevada Articles of Incorporation
or our Bylaws, or (iv) any action asserting a claim against the Company, any director or the Company's officers or employees governed
by the internal affairs doctrine. However, each of these clauses (i) through (iv) will not apply to any claim (x) as to which the Court
determines that there is an indispensable party not subject to the jurisdiction of the Court (and the indispensable party does not consent
to the personal jurisdiction of the Court within ten (10) days following such determination), (y) for which the Court does not have subject
matter jurisdiction, or (z) which is vested in the exclusive jurisdiction of a court or forum other than the Court, including pursuant
to Section 27 of the Securities Exchange Act of 1934, as amended ("Exchange Act"), which provides for exclusive federal jurisdiction
over suits brought to enforce any duty or liability created by the Exchange Act or the rules and regulations thereunder. Furthermore,
Section 22 of the Securities Act provides for concurrent jurisdiction for federal and state courts over all suits brought to enforce
any duty or liability created by the Securities Act or the rules and regulations thereunder, and as such the exclusive jurisdiction clauses
set forth above would not apply to such suits.

 Although
we believe these provisions benefit us by providing increased consistency in the application of Nevada law for the specified types of
actions and proceedings, the provisions may have the effect of discouraging lawsuits against us or our directors and officers. Any person
or entity purchasing or otherwise acquiring any interest in our shares of capital stock shall be deemed to have notice of and consented
to this exclusive forum provision, but will not be deemed to have waived our compliance with the federal securities laws and the rules
and regulations thereunder. If a court were to find the choice of forum provision contained in our amended and restated bylaws to be
inapplicable or unenforceable in an action, we may incur additional costs associated with resolving such action in other jurisdictions,
which could harm our business, financial condition, and results of operations.

 Item
1B. Unresolved Staff Comments.

 Not
applicable.

 Item
1C. Cybersecurity.

 Our
cybersecurity risk management program is designed to align with industry-standard cybersecurity frameworks and includes processes related
to each of the following functions: identification, protection, detection, response, and recovery. Examples of relevant processes include
steps for: assessing the severity of a cybersecurity threat; identifying the source of a cybersecurity threat, including whether the
cybersecurity threat is associated with a third-party service provider; implementing cybersecurity countermeasures and mitigation strategies;
and remediating and escalating cybersecurity incidents using cross-functional expertise. Our cybersecurity risk management program also
includes risk-based processes related to overseeing and identifying cybersecurity risks associated with the use of third-party providers,
including processes related to: conducting cybersecurity assessments of third-party service providers, including cybersecurity obligations
in contract with third-party service providers; and receiving and responding to notification of cybersecurity incidents of third-party
service providers. Our cybersecurity team engages third-party security experts to assist with our processes for assessing, identifying,
and managing risks from cybersecurity threat, including, for example, assessment of the maturity of our cybersecurity risk management
program, penetration testing, employee awareness testing, phish testing, and incident monitoring and response, including conducting tabletop
exercises.

 Our
cybersecurity risk management program is under the direction of IT manager, who has a master's degree in IT management. The IT
manager receives reports from our cybersecurity team on the prevention, detection, mitigation, and remediation of cybersecurity incidents.
Our Executive Cybersecurity Council meets as appropriate and receives updates from IT manager regarding our cybersecurity risks and risk
management program; cybersecurity incidents and our response to them; and, as appropriate, developments in the external cybersecurity
landscape, including learnings from external cybersecurity incidents.

 Our
full Board of Directors provides oversight of our cybersecurity risk management program and will receive updates on the program from
IT manager on a quarterly basis, or more frequently as appropriate. Those updates will include information regarding our cybersecurity
risks and risk management program; cybersecurity incidents and our response to them; and, as appropriate, developments in the external
cybersecurity landscape, including any learnings from external cybersecurity incidents.

 In
2024, we did not identify any cybersecurity threats that have materially affected or are reasonably likely to materially affect our business
strategy, results of operations, or financial condition. However, despite our efforts, we cannot eliminate all risks from cybersecurity
threats, or provide assurances that we have not experienced an undetected cybersecurity incident. For more information about these risks,
please see "Risk Factors - Risks Relation to our Business, Strategy, and Industry" in Report.

 Item
2. Properties.

 Our
executive offices are located at 3101 W Miller Road, Garland, Texas 75041., and our telephone number is (877) 881-6376. The cost for
our use of this space is $230,250 per month plus property tax and insurance. We consider our current office space adequate for our current
operations.

 At
those offices is also our 376,000 sq. ft. facility of which 280,000 sq. ft. is dedicated to Massimo Motor Sports and 96,000 sq. ft. to
Massimo Marine. Our facility is adjacent to seven acres for boat storage, which houses a design center, two assembly lines, our parts
department, a test track, dyno, and over 30 loading docks. In addition to serving as the manufacturing facility for our Pontoon Boats,
the facility is equipped to quickly palletize and shrink wrap ATVs and UTVs so that most orders can be shipped to stores or distributors
within three days.

 Item
3. Legal Proceedings.

 From
time to time, we may become involved in legal proceedings or be subject to claims arising in the ordinary course of our business. As
of March 20, 2025, we are party to two (2) material pending legal proceedings.

 Taizhou
Nebula Power Co. Ltd. v. Massimo Motor Sports, LLC

 In September 2020, Taizhou Nebula Power Co. Ltd. ("Nebula")
filed suit against us in the Dallas County District of Texas. Nebula has alleged that we owe them $2,343,868.60 for products that it shipped
to us from 2017 to 2019. Nebula also seeks undefined damages they claim were caused by our failure to hit certain sales targets pursuant
to the Distribution Agreement signed by both parties. A bench trial was conducted in May 2024. On June 6, 2024, the trial court entered
its Findings of Fact and Conclusions of Law, which generally found for Nebula on its breach of contract claims and denied Massimo's
counterclaims. After post-trial fees briefing, the trial court entered its Final Judgment on July 8, 2024 (see first audit response letter).
On August 7, 2024, Massimo timely filed a notice of appeal of the Final Judgment. Our Firm was not involved in the trial of this case.
Instead, we were retained as appellate counsel after Massimo received the Findings of Fact and Conclusions of Law. Massimo filed its appellant's
brief on January 31, 2025. Nebula's has until April 2, 2025 to file its appellee's brief. Massimo intends to continue vigorously defending the lawsuit and pursuing its appeal. While
Massimo is not opposed to an out-of-court settlement, to date Nebula's attorneys have had limited interest in discussing settlement.

 Zhejiang
Qunying Vehicle Co., Ltd. v. Cho International, Inc

 On
September 5, 2023, Zhejiang Qunyinh Vehicle Co., Ltd. ("Zhejiang") filed suit against us and ten other corporate entities
in the Superior Court of the State of California for Orange County. Zhejiang alleges claims of approximately $6,000,000 in damages for
products that were allegedly shipped to the United States but not paid for. Despite us being one of the ten entities that plaintiff has
sued, we have had minimal interactions with Zhejiang. We have not purchased any products from Zheijang. In February 2024, Zhejiang filed
a Second Amended Complaint. Massimo filed a demurrer seeking to dismiss the Second Amended Complaint due to Zhejiang's failure
to state a valid claim in March 2024. In August 2024, the Court denied in part and granted in part Massimo's demurrer. As a result,
Zhejiang still has valid claims against Massimo. The trial is scheduled for March 2026. Massimo intends to vigorously defend the lawsuit.

 In
the past, we have also been subject to over fifty (50) legal proceedings encompassing: employment disputes, personal injury and wrongful
death lawsuits, property damage lawsuits, product liability and manufacturing defect lawsuits and contractual disputes with our suppliers,
distributors, customers, an on-site security provider, a freight shipping company and a previous law firm. These cases also include an
inquiry by the Missouri Office of the Attorney General and the Pennsylvania State Board of Vehicle Manufacturers, Dealers and Salespersons.
We do not believe that these past cases will have a material adverse effect on our business, operating results, financial condition,
or cash flows. However, we cannot assure you that past litigation will not have an impact on our present reputation or goodwill among
dealers, distributors and customers.

 Item
4. Mine Safety Disclosures.

 Not
applicable.

 PART
II

 Item
5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities.

 (a)

 Market
 Information

 Our
shares of common stock are traded on Nasdaq under the symbol "MAMO." Our shares of common stock commenced public trading
on April 2, 2024.

 (b)

 Holders

 On
March 24, 2025, there were 27 holders of record of our shares of common stock.

 (c)

 Dividends

 As
of the date of this Report, we have not paid any cash dividends to stockholders. The declaration of any future cash dividend will be
at the discretion of our board of directors and will depend upon our earnings, if any, our capital requirements and financial position,
the general economic conditions, and other pertinent conditions. It is our present intention not to pay any cash dividends in the foreseeable
future, but rather to reinvest earnings, if any, in our business operations.

 (d)

 Securities
 Authorized for Issuance Under Equity Compensation Plans.

 The
following table provides information as of December 31, 2024, regarding our common stock that may be issued under the Company's
2024 Equity Incentive Plan (the "Incentive Plan").

 Plan category:

 Number of Securities to be issued Upon Exercise of Outstanding Options, Warrants, and Rights (a)

 Weighted Average Exercise Price of Outstanding Options (b)

 Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in column (a)) (c)

 Equity compensation plans approved by stockholders

 Incentive Plan

 - Stock option

 350,000

 $
 4.04

 1,650,000

 - Restricted Stock Units

 101,000

 -

 1,549,000

 (e)

 Recent
 Sales of Unregistered Securities

 None.

 (f)

 Use
 of Proceeds

 None.

 (g)

 Purchases
 of Equity Securities by the Issuer and Affiliated Purchasers

 None.

 Item
6. [Reserved]

 Item
7. Management's Discussion and Analysis of Financial Condition and Results of Operations.

 Management's
Discussion and Analysis of Financial Condition and Results of Operations

 The
following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated
financial statements and related notes that appear in this Report. In addition to historical consolidated financial information, the
following discussion contains forward-looking statements that reflect our plans, estimates, and beliefs. Our actual results could differ
materially from those discussed in the forward-looking statements. Factors that could cause or contribute to these differences include
those discussed below and elsewhere in this Report, particularly in "Risk Factors." All amounts included herein with respect
to the fiscal years ended December 31, 2024 and 2023 are derived from our audited consolidated financial statements included elsewhere
in this Report. Our financial statements have been prepared in accordance with U.S. GAAP.

 Overview
of Company

 Massimo is a holding company established on October 10, 2022 under the laws of the State of Nevada. The Company, through its subsidiaries,
is primarily engaged in the manufacturing and sales of a wide selection of farm and ranch tested UTVs, recreational ATVs, and Pontoon
Boats. Mr. David Shan, the Chairman of the Board and Chief Executive Officer, is the controlling shareholder (the "Controlling
Shareholder") of the Company.

 A
Reorganization of the legal structure was completed on June 1, 2023. the Controlling Shareholder transferred his 100% equity interest
in Massimo Motor and 100% equity interest in Massimo Marine to Massimo. After this reorganization, Massimo ultimately owns
100% equity interests of Massimo Motor and Massimo Marine.

 Before
and after the Reorganization, the Company, together with its subsidiaries, is effectively controlled by the same Controlling Shareholder,
and therefore, the Reorganization is considered as a recapitalization of entities under common control in accordance with ASC 805-50-25.
The consolidation of the Company and its subsidiaries have been accounted for at historical cost and prepared on the basis as if the
aforementioned transactions had become effective as of the beginning of the first period presented in the accompanying consolidated financial
statements in accordance with ASC 805-50-45-5.

 We
currently generate most of our revenues from the sales of UTVs and ATVs, which represented 96.6% and 89.8% of total revenue for the years
ended December 31, 2024 and 2023, respectively

 We
also generate revenue from the sales of Pontoon Boats, which represented 3.4% and 10.2% of our revenue for the years ended December 31,
2024 and 2023, respectively.

 Trends
and Key Factors that Affect Operating Results

 We
believe the most significant factors that affect our business and results of operations include the following:

 Risk
 of intense competition in the industry - The Powersports Vehicles and Boat Industry is
 highly competitive. Competition in such markets is based upon a number of factors, including
 price, quality, reliability, styling, product features and warranties. At the dealer level,
 competition is based on a number of factors including sales and marketing support programs
 (such as financing joint advertising programs and cooperative advertising). Certain of our
 competitors are more diversified and have financial and marketing resources which are substantially
 greater than ours, which allow these competitors to invest more heavily in intellectual property,
 product development, and sales and marketing support. If we are not able to compete with
 new products, product features or models comparable or superior to those of our competitors,
 or attract new dealers, our business, results of operations or financial condition could
 be materially adversely affected.

 We
 are subject to competitive pricing. Such pricing pressure may limit our ability to maintain prices or to increase prices for our
 products in response to raw material, component and other cost increases and so negatively affect our profit margins.

 Risk
 of economic and policy changes within China - We import our products from various Chinese suppliers. The Chinese government continues
 to play a significant role in regulating industry within China by imposing industrial policies, providing subsidies and heavily regulating
 or prohibiting unwanted activities. There is no assurance the Chinese government will not interfere with the operations of Linhai
 Powersports or any of our other suppliers. In addition, the Chinese government has implemented certain measures, including interest
 rate adjustments, to control the pace of economic growth in China. These measures, or other economic, political, or social developments
 in China may affect our China-based suppliers, which may adversely affect our business and operating results. We also import our
 products from Taiwan. The Taiwan issue is a longstanding point of contention between China and the United States. The U.S. maintains
 unofficial relations with Taiwan, while also recognizing the One China policy, which acknowledges Beijing as the legitimate government
 of Taiwan. Both China and the U.S. have engaged in military posturing around the Taiwan Strait. This increases the risk of accidental
 clashes or misunderstandings that could escalate into conflict, which will affect both our China-mainland-based and Taiwan-based
 suppliers. Additionally, both U.S. and Chinese governments have imposed tariffs on certain products and taken other actions
that have had an adverse impact on trade between the two countries.

 Risk
 of unavailability of additional capital - We will require significant expenditures to fund future growth. We have funded our
 growth out of the proceeds of the IPO and internal sources of liquidity or through additional financing from external sources. Our
 ability to obtain external financing in the future at a reasonable cost is subject to a variety of uncertainties, including our future
 financial condition, results of operations and cash flows and the condition of the global and domestic financial markets. If we require
 additional funds and cannot obtain them on acceptable terms when required or at all, we may be unable to fulfill our working capital
 needs, upgrade our existing facilities or expand our business and may have to reduce the level of our operations. These factors may
 also prevent us from entering into transactions that would otherwise benefit our business or implementing our future strategies.
 Any debt financing that we undertake may be expensive and might impose covenants that restrict our operations and strategic initiatives,
 including limitations on our ability to incur liens or additional debt, pay dividends, repurchase our capital stock, make investments
 and engage in mergers, consolidations and asset sale transactions. Equity financings may be on terms that are dilutive or potentially
 dilutive to our shareholders, and the prices at which new investors would be willing to purchase our equity securities may be lower
 than the trading prices of such equities. If new sources of financing are required, but are unattractive, insufficient or unavailable,
 then we could be required to modify our business plans or growth strategy which could have a material adverse effect on our business,

 Risk
 of uncertainty in the cost and production level of raw materials - We depend on third party suppliers to manufacture many of
 the products we sell, in particular, ATVs and UTVs, as opposed to our Pontoon Boats which we manufacture in our Dallas facility.
 For the year ended December 31, 2024, we purchased approximately 82% of our products from two of these suppliers. Competition for
 the output of these suppliers is intense. If these independent suppliers were unwilling or unable to supply us with products at prices
 which enable us to maintain our gross margins, it would materially adversely affect our business, results of operations or financial
 condition. Although we are looking to broaden our supplier base and to reduce our dependence upon a limited number of suppliers,
 there is no assurance we will be able to do so and increasing the number of suppliers from which we purchase products may increase
 our costs.

 Risk
 related to overseas freights fluctuation - The inflation rate and supply chain crisis experienced in 2021 and 2022 led to a significant
 increase in overseas freight costs. However, by December 31, 2024, there was a notable easing in both inflation and freight costs,
 reflecting an improvement in economic conditions and a stabilization in the supply chain.

 Risk
 related to inflation - In recent years, our China-based suppliers have increased the cost of their products due to inflation.
 We may not be able to pass along price increases in raw materials, parts, or components to customers. As a result, an increase in
 the cost of the raw materials, parts, and components our suppliers use in the manufacture of our products could reduce our profitability
 and have a material adverse effect on our business, results of operations or financial condition.

 Risk
 of seasonable sale of Pontoon Boats - A portion of our sales revenue generated from Massimo Marine has a seasonable sales pattern.
 For the years ended December 31, 2024 and 2023, our revenue generated from Massimo Marine was approximately 3.4% and 10.2% of our
 total revenue, respectively.

 Results
of Operations

 For
the years ended December 31, 2024 and 2023

 The
following table summarizes the results of consolidated statements of operations and comprehensive income for the for the years ended
December 31, 2024 and 2023 in U.S. dollars, and provides information regarding the dollar and percentage increase or (decrease) during
such year.

 For
 the years ended December 31,

 2024

 2023

 As
 % of Sales

 As
 % of Sales

 Increase (Decrease)

 Percentage
 Increase (Decrease)

 Sales

 $
 111,209,142

 100.0
 %

 $
 115,037,544

 100.0
 %

 $
 (3,828,402
)

 (3.3
)%

 Cost
 of sales

 76,865,803

 69.1
 %

 79,126,454

 68.8
 %

 (2,260,651
)

 (2.9
)%

 Gross

 34,343,339

 30.9
 %

 35,911,090

 31.2
 %

 (1,567,751
)

 (4.4
)%

 expenses

 Selling
 expenses

 9,804,547

 8.8
 %

 9,761,090

 8.5
 %

 43,457

 0.4
 %

 General
 and administrative expenses

 16,610,528

 14.9
 %

 13,227,106

 11.5
 %

 3,383,422

 25.6
 %

 Impairment
 of advance to suppliers

 772,780

 0.7
 %

 -

 -

 772,780

 NA

 Research
 and development

 343,493

 0.3
 %

 -

 -

 343,493

 NA

 Total
 operating expenses

 27,531,348

 24.8
 %

 22,988,196

 20.0
 %

 4,543,152

 19.8
 %

 from operations

 6,811,991

 6.1
 %

 12,922,894

 11.2
 %

 (6,110,903
)

 (47.3
)%

 Other
 income (expenses)

 Other
 income, net

 1,110,837

 1.0
 %

 140,866

 0.1
 %

 969,971

 688.6
 %

 Loss
 on litigation

 (3,645,092
)

 (3.3
)%

 -

 -

 (3,645,092
)

 NA

 Interest
 expense

 (98,667
)

 (0.1
)%

 (518,731
)

 (0.5
)%

 420,064

 (81.0
)%

 Total
 other expenses, net

 (2,632,922
)

 (2.4
)%

 (377,865
)

 (0.3
)%

 (2,255,057
)

 596.8
 %

 before income taxes

 4,179,069

 3.8
 %

 12,545,029

 10.9
 %

 (8,365,960
)

 (66.7
)%

 Provision
 for income taxes

 1,024,862

 0.9
 %

 2,129,804

 1.9
 %

 (1,104,942
)

 (51.9
)%

 Net
 income

 $

 2.8
 %

 $

 9.1
 %

 $
 (7,261,018
)

 (69.7
)%

 Revenues
decreased by $3.8 million, or 3.3%, from $115.0 million in fiscal 2023 to $111.2 million in fiscal 2024. The decrease in revenue was
primarily due to combined effects of rising demand in the U.S. ATV and UTV market and our modified sales strategy, offset by the
decrease in revenue from sales of Pontoon Boats. In 2024, we continued expanding our distribution network through various retailers
to enhance market penetration. We strategically focused our efforts on large retail stores in the U.S. (the "big box
stores") that offer their own financing plans, while moving away from retailers that have liberal return policies.

by Type

 For
 the years ended December 31,

 2024

 2023

 category

 %
 of
 total

 %
 of
 total

 Increase
 (Decrease)

 Percentage
 Increase
 (Decrease)

 UTVs,
 ATVs and e-bikes

 $
 107,458,551

 96.6
 %

 $
 103,312,838

 89.8
 %

 $
 4,145,713

 4.0
 %

 Pontoon
 Boats

 3,750,591

 3.4
 %

 11,724,706

 10.2
 %

 (7,974,115
)

 (68.0
)%

 Total

 $
 111,209,142

 100.0
 %

 $
 115,037,544

 100.0
 %

 $
 (3,828,402
)

 (3.3
)%

from sales of UTVs, ATVs and e-bikes

from sales of UTVs, ATVs and electric bikes increased by $4.1 million, or 4.0%, from $103.3 million in fiscal 2023 to $107.5 million
in fiscal 2024. The increase in revenue was primarily attributed to the expansion into more big box stores. This surge is consistent
with the increasing ranch/farm-work utilization of UTVs across the 1.89 million farms in the U.S. with an average size of 464 acres and
the new customer's rural lifestyle focus. The increase in sales is also due to a shift in our sales strategy, focusing mostly on
in-store sales to this retail chain store customer, which generally involve larger volumes and no returns. In addition, sales to this
new customer consist of high-turnover inventory products that are of high quality and have a strong customer reputation. This enhances
the efficiency of our capital utilization.

from sales of Pontoon Boats

from sales of Pontoon Boats decreased by $7.9 million, or 68.0%, from $11.7 million in fiscal 2023 to $3.8 million in fiscal 2024. The
decrease was primarily driven by an industry-wide downturn caused by high interest rates and inflation, which are impacting the consumption
of non-essential goods. In addition, the fact that the dealers have experienced high rejection rates at the floorplan financing providers
such as Northpoint has directly affected the inventory level the dealers maintain and therefore our sales in this category. This trend
aligns with broader industry challenges. The 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.

 Gross

 Our
gross profit decreased by $1.6 million, or 4.4%, from $35.9 million in fiscal 2023 to $34.3 million in fiscal 2024. Gross margin was
30.9% in fiscal 2024, as compared with 31.2% in fiscal 2023. Our gross margin in fiscal 2024 remained constant when compared with fiscal
2023.

 Our
cost and gross profit by revenue types are as follows:

 For
 the year ended

 For
 the year ended

 Category

 Cost
 of
 revenue

 Gross

 Gross
 margin
 (%)

 Cost
 of
 revenue

 Gross

 Gross
 margin
 (%)

 Variance
 in
 Cost of
 revenue

 Variance
 in
 gross

 Variance
 in
 gross
 margin
 (%)

 UTVs,
 ATVs and e-bikes

 $
 73,463,577

 $
 33,994,974

 31.6

 $
 69,881,055

 $
 33,431,783

 32.4

 $
 3,582,522

 $
 563,191

 (0.7
)

 Pontoon
 Boats

 3,402,226

 348,365

 9.3

 9,245,399

 2,479,307

 21.1

 (5,843,173
)

 (2,130,942
)

 (11.9
)

 Total

 $
 76,865,803

 $
 34,343,339

 30.9

 $
 79,126,454

 $
 35,911,090

 31.2

 $
 (2,260,651
)

 $
 (1,567,751
)

 (0.3
)

 Cost
of revenue on UTVs, ATVs and electric bikes increased by $3.6 million, or 5.1%, from $69.9 million in fiscal 2023 to $73.5 million in
fiscal 2024 and gross profit increased by $0.6 million, or 1.7%, from $33.4 million in fiscal 2023 to $34.0 million in fiscal 2024. However,
the gross margin decreased by 0.7%, from 32.4% in fiscal 2023 to 31.6% in fiscal 2024. The increase in the cost of revenue was primary
due to increased product purchase cost and freight and duty resulting from increased sales. The decline in gross margin was primarily
driven by higher freight costs in fiscal year 2024 compared to the last year.

 Cost
of revenue on Pontoon Boats decreased by $5.8 million, or 63.2%, from $9.2 million in fiscal 2023 to $3.4 million in fiscal 2024, and
gross profit decreased by $2.1 million, or 85.9%, from $2.5 million in fiscal 2023 to $0.3 million in fiscal 2024. Decrease in cost of
revenue was mainly due to decrease in products cost and freight and duty cost, resulting from decreased sales. Gross margin decreased
by 11.9%, from 21.1% in fiscal 2023 to 9.3% in fiscal 2024, which was driven by significant decrease in sales.

 Selling
expenses

 Our
selling expenses mainly consist of warranty expense, advertising and promotion expense, interest expense, and shipping and handling fee.
These expenses increased by $0.1 million, or 0.4%, from $$9.7 million in fiscal 2023 to $9.8 million in fiscal 2024, representing 8.8%
and 8.5% of our total revenue in fiscal 2024 and fiscal 2023. The increase was mainly due to higher shipping and handling fees, which
rose from approximately $4.9 million in fiscal 2023 to $6.3 million in fiscal 2024. The increase in shipping and handling fees was primarily
due to higher sales of UTVs and ATVs to big box stores, as we covered the shipping costs for those customers and charge higher prices
to offset these shipping costs. The increase was partly offset by a reduction in warranty expense of approximately $1.0 million, due
to enhanced quality control and customer service. The introduction of a traveling technician team has allowed us to respond to customer
requests more efficiently, reducing repair costs.

 General
and administrative expenses

 Our
general and administrative expenses primarily include salaries and benefits, professional fee, office expenses, travel expenses, insurance
expenses, and depreciation expenses. General and administrative expenses increased by $3.4 million, or 25.6%, from $13.2 million in fiscal
2023 to $16.6 million in fiscal 2024. The increase was mainly due to increased salaries and benefit, insurance expense and rent expense.
Our general and administrative expenses represented 14.9% and 11.5% of our total revenue in fiscal 2024 and fiscal 2023, respectively.

 Our
salaries and benefits were $6.4 million and $5.0 million, representing 38.7% and 38.0% of our total general and administrative expenses
in fiscal 2024 and 2023, respectively. The increase was primarily due to $0.5 million severance package following an employment termination
and a $1.1 million stock-based compensation expenses recognized for RSUs and stock option grants.

 Our
rent expenses increased by $1.2 million or 106.4%, from $1.2 million in fiscal 2023, to $2.4 million in fiscal 2024, representing
14.2% and 8.6% of our total general and administrative expenses for the years ended December 31, 2024 and 2023, respectively. Our
rent expense increased because we had two new lease agreements and renewed one in fiscal 2024 while one new lease agreement in fiscal
2023. We also had monthly rent increment upon renewing the lease agreement. Our property taxes included in the rent expenses also
increased by $0.4 million in fiscal 2024, compared to prior year.

 Our
insurance expense increased by $0.7 million or 75.6%, from $1.0 million in fiscal 2023, to $1.7 million in fiscal 2024, representing
10.1% and 7.2% of our total general and administrative expenses in fiscal 2024 and 2023, respectively. The increase was mainly due to
a higher general insurance premium year-over-year in line with sales growth, as well as the purchase of directors and officers insurance
following our transition to a public company.

 Impairment
of advance to suppliers

 During
the year ended December 31, 2024, we recorded a one-time impairment of advance to suppliers amounting to approximately $0.8 million.
In June 2024, we reached a tentative agreement regarding general settlement terms with one suppler who would pay approximately $0.3 million
to resolve the claim. Our advance to suppliers amounting to $1.1 million would be considered irrecoverable. Therefore, we wrote off the
advance to suppliers amounting to approximately $0.7 million during the year ended December 31, 2024. The settlement agreement was finalized
in August 2024. During the year ended December 31, 2023, we had no impairment of advance to suppliers.

 Loss
on litigation

 During
the year ended December 31, 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
$1.2 million in interest on balances since September 15, 2020. We have recorded an additional accrual of $3.6 million as of December
31, 2024, bringing the total accrual related to this lawsuit to approximately $6.0 million. We have filed the appeal in August 2024 and
its appellant's brief in January 2025.

 Interest
expenses

 Our
interest expense decreased by $0.4 million or 81.0%, from $0.5 million in fiscal 2023, to $0.1 million in fiscal 2024. The decrease was
mainly due to the repayment of all outstanding loans in early fiscal 2024.

 Other
income, net

 Other
income increased by $1.0 million, or 688.6%, from $0.1 million in fiscal 2023, to $1.1 million in fiscal 2024. The increase was
primarily due to the following factors: (i) a $0.2 million write-off of a vendor's accounts payable balance following a
settlement with the vendor and us; (ii) an approximately $0.7 million write-off of long outstanding customer deposit or credit, both of which
contributed to higher other income; and (iii) an additional approximately $0.1 million in insurance claims in fiscal 2024 compared to fiscal 2023.

before income taxes

before income taxes decreased by $8.3 million, from $12.5 million in fiscal 2023, to approximately $4.2 million in fiscal 2024. The decrease
was primarily attributable to an increase of $3.4 million in general and administrative expenses, a decrease of $1.6 million decrease
in gross profit and an approximately $3.6 million loss on litigation and other expenses as discussed above.

 Provision
for income taxes

 The
income tax expense was approximately $1.0 million and $2.1 million in fiscal 2024 and 2023, respectively. We terminated our S Corporation
status as of June 1, 2023, in connection with the Reorganization and became a taxable C Corporation. Accordingly, the income tax provision
in fiscal 2024 combined both federal income tax of 21% and the state margin tax at Texas as a C Corporation, and the income tax provision
for the fiscal 2023 only reflected state margin tax at Texas as a S Corporation for five months and a federal income tax of 21% for the
remaining seven month's operation. Decrease in income tax expense was mainly due to decrease in assessable profit in fiscal 2024.

 Net
income

 Net
income was $3.2 million and $10.4 million in fiscal 2024 and 2023, respectively. The decrease was primarily due to decreased revenues
and gross profit, offset by an increase in general and administrative expenses and a loss on litigation, as discussed above

 Cash
Flows

 For
the Years Ended December 31, 2024 and 2023

 The
following table sets forth summary of our cash flows for the periods indicated:

 Years
 ended December 31,

 2024

 2023

 Net
 cash provided by operating activities

 $
 6,672,278

 $
 10,905,544

 Net
 cash used in investing activities

 (225,875
)

 (121,162
)

 Net
 cash provided by (used in) financing activities

 2,997,867

 (10,966,539
)

 Net
 increase (decrease) in cash and cash equivalents

 9,444,270

 (182,157
)

 Cash
and cash equivalents, beginning of the year

 947,971

 Cash
and cash equivalents, end of the year

 $
 10,210,084

 $

Activities

 Net
cash provided by operating activities was approximately $6.7 million in fiscal 2024, compared to net cash provided by operating activities
of approximately $10.9 million in fiscal 2023, representing a decrease in the net cash provided by operating activities of $4.2 million in
fiscal 2024 compared with fiscal 2023. The decrease is primarily due to the following:

 Net
income decreased by $7.3 million in fiscal 2024 compared with fiscal 2023.

 Our net income was adjusted for non-cash items, including non-cash operating
lease expense, gain (loss) on disposal of fixed asset, impairment of advance to suppliers, amortization of stock-based compensation related
to options and RSUs granted, amortization and depreciation, loss on litigation, deferred tax expense (recovery), inventories reserve,
write-off of accounts receivable and provision (reversal of allowance) for expected credit loss. Non-cash items of approximately $6.3
million in fiscal 2024, compared to non-cash items of approximately $2.3 million during fiscal 2023.

 Account
 payable decreased by approximately $0.8 million in fiscal 2024, compared to an increase of approximately $1.4 million in fiscal 2023,
 primarily because we paid off undue account payable in the form of Letter of Credit payments from the old bank in order to release
 the UCC to the new bank in fiscal 2024.

 Contract liabilities decreased by approximately $1.4 million in fiscal
2024, compared to an increase of $1.1 million in fiscal 2023, primarily because we made refund to customers and wrote off long outstanding
balance during the year.

 Tax payable decreased by approximately $0.6 million in fiscal 2024, compared
to an increase of approximately $2.1 million in fiscal 2023, primarily because we had a lower tax assessable income, we made a $0.5 million
prepayment of federal income tax and settled all income tax payable for the year ended December 31, 2023.

 Increase
 in payment of operating lease of $1.5 million in fiscal 2024, compared to $1.0 million in fiscal 2023, primary due to leasing additional
 warehouse space and rent increment upon the renewal of lease agreement.

 The
 balance was partly offset by decrease in account receivable by approximately $3.0 million in fiscal 2024, compared to an increase
 of approximately $3.5 million in fiscal 2023, and

 Increase in inventories by approximately $1.5 million, compared to an increase
of $2.5 million in fiscal 2023.

 Investing
Activities

 Net
cash used in investing activities was approximately $0.2 million in fiscal 2024, compared to net cash used in investing activities of
$0.1 million in fiscal 2023. The increase in net cash used investing activities was primarily attributable to the purchase of property
and equipment of $0.4 million, partially offset by a proceed of $0.2 million from sale of property and equipment in fiscal 2024.

 Financing
Activities

 Net
cash provided by financing activities was approximately $3.0 million in fiscal 2024, compared to net cash used in financing activities
of approximately $11.0 million in fiscal 2023. The increase in net cash provided by financing activities in fiscal 2024 was primarily
attributable to net proceed from IPO of $4.8 million and from the common shares subscription of $0.9 million, offset by the repayment
of bank loans of $0.3 million and repayment of loan from a related party of $2.4 million. This compares to fiscal 2023, when cash used
in financing included, net repayment of bank loan of $5.6 million and shareholder withdraw of $5.3 million.

 Liquidity
and Capital Resources

 Overview

 The
general objectives of our capital management strategy reside in the preservation of our capacity to continue operating, in providing
benefits to our stakeholders and in providing an adequate return on investment to our shareholders by selling our products at a price
commensurate with the level of operating risk assumed by us.

 We
thus determine the total amount of capital required consistent with risk levels. This capital structure is adjusted on a timely basis
depending on changes in the economic environment and risks of the underlying assets. We are not subject to any externally imposed capital
requirements.

 Working

 As
of December 31, 2024, we had cash and cash equivalents of approximately $10.2 million. Our current assets were approximately $45.4 million,
including approximately $6.6 million accounts receivable, approximately $27.3 million inventory, approximately $0.1 million advance to
suppliers and approximately $1.2 million prepayment deposit and other receivables, and our current liabilities were approximately $26.1
million, including $9.6 million accounts payable to suppliers, $6.0 million accrued payment on a legal judgment, $0.4 million contract
liabilities, $1.5 million income tax payable, $5.5 million loan from a related party and $2.2 million liabilities from obligations under
operating and financing leases, which resulted in a positive working capital of $19.2 million.

 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 support our operational needs solely by utilizing cash
flows generated from our operating activities organically for the next 12 months.

 Loan
Balance

 Loan
balance consists of the following:

 Bank
 loan – Cathay Bank (1)(4)

 $
 -

 $
 -

 Other
 loans - Northpoint (2)

 -

 205,440

 Other
 loans – BAC (3)

 -

 98,143

 Total

 $
 -

 $

 (1)

 On
 May 13, 2024, the Company's subsidiary Massimo Motor Sports obtained a line of credit
 from Cathay Bank, pursuant to which the Company has the availability to borrow a maximum
 $15.0 million out of this line of credit for one year at the U.S. prime rate + 0.75%. Before
 then, the company had a line of credit of maximum $10.0 million from Midfirst bank, which
 is cancelled upon the grant of the line of credit from Cathay Bank. As of December 31, 2024
 and 2023, the outstanding balance was $nil and $nil.

 This
 line of credit is also personally guaranteed by Mr. David Shan, the controlling shareholder. This line of credit is pledged by the
 Company's accounts receivable, deposit accounts, equipment and inventories.

 (2)

 On
April 19, 2022, the Company's subsidiary Massimo Marine obtained a $2.0 million pay as sold line of credit from Northpoint Commercial
Finance LLC ("Northpoint") for acquisition, financing and/or refinancing of inventory. This line of credit is also personally
guaranteed by Mr. David Shan, the controlling Shareholder, and Massimo Motor Sports, an affiliated company. As of December 31, 2024 and
2023, the outstanding balance was $nil and $205,440, respectively.

 (3)

 On
 February 18, 2022, the Company's subsidiary Massimo Marine obtained a credit facility for Mercury in the amount of $1.75
 million from Brunswick Acceptance Company LLC ("BAC") to finance purchase of inventory. This line of credit is also personally
 guaranteed by Mr. David Shan. As of December 31, 2024 and 2023, the outstanding balance was $nil and $98,143, respectively.

 (4)

 On
 January 15, 2021, the Company's subsidiary Massimo Motor Sports obtained a line of credit from Midfirst Bank, pursuant to which
 the Company has the availability to borrow a maximum $4.0 million out of this line of credit for two years at the U.S. prime rate
 + 0.25%. On April 18, 2022, this line of credit was further increased to $10.0 million, and on January 3, 2024, the maturity date
 was renewed to January 3, 2026.

 This
 line of credit is guaranteed by the Massimo, and is also personally guaranteed by Mr. David Shan, the controlling shareholder,
 and Miller Creek Holdings LLC, a related party controlled by Mr. David Shan. This line of credit is pledged by the Company's
 accounts receivable and inventories.

 On
 May 13, 2024, the credit facility was closed due to transferring to Cathay Bank ((1) above), and all guarantees were released and
 transferred to Cathay Bank.

Expenditures

 Our
capital expenditures consist primarily of expenditures for the purchase of fixed assets and equipment leases as a result of our business
growth. Our capital expenditures amounted to approximately $387,876 and $134,662 for Fiscal 2024 and 2023, respectively.

 Contractual
Commitments

 As
of December 31, 2024, the Company's contractual obligations consisted of the following:

 Contractual
 Obligations

 Total

 Less
 than

 year

 1-3
 years

 3-5
 years

 More
 than

 years

 Lease
 commitment

 $

 11,549,277

 $

 2,904,205

 $

 4,884,371

 $

 3,760,701

 $

 –

 Off-balance
Sheet Commitments and Arrangements

 There
were no off-balance sheet arrangements for the years ended December 31, 2024 and 2023, that have, or that in the opinion of management
are likely to have, a current or future material effect on our financial condition or results of operations.

 Critical
Accounting Policies and Estimates

 The
preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities, contingent assets and liabilities, each as of the date of the financial statements,
and revenue and expenses during the periods presented. On an ongoing basis, management evaluates their estimates and assumptions, and
the effects of any such revisions are reflected in the financial statements in the period in which they are determined to be necessary.
Management bases its estimates on historical experience and on various other factors that it believes are reasonable under the circumstances,
the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent
from other sources. Actual outcomes could differ materially from those estimates in a manner that could have a material effect on our
consolidated financial statements.

has determined that, while there are no critical accounting estimates, the most significant estimates relate to sales returns, products
warranty, allowance for credit loss, inventory provision, and the assessment and disclosure of contingent liabilities due to on-going
lawsuit. Each of these are discussed below.

 Sales
returns

 We
provide a refund policy to accept returns from end customers, which varies and depends on the different products and customers. The estimated
sales returns are determined based upon an analysis of historical sales returns. Return allowances are recorded as a reduction in sales
with corresponding sales return liabilities which are included in "accrued return liabilities." The estimated cost of returned
inventory is recorded as a reduction to cost of sales and an increase of right of return assets which is included in "inventories."
The factors affecting our sales return liabilities include the number of products currently within the return period, historical and
anticipated rates of sales returns claimed on those products, and the estimated amount of returns that may be claimed within this period.
If actual results differ from the estimates, revises its estimated sales returns liability accordingly. Each period end, the Company
reviews and reassesses the adequacy of its recorded sales returns liabilities and adjusts the amounts as necessary. As of December 31,
2024 and 2023, $261,588 and $283,276 of sales return liabilities associated with estimated product returns were recorded in the consolidated
balance sheet, respectively. During the years ended December 31, 2024 and 2023, the Company recorded sales returns of $1,061,694 and
$3,355,112 respectively.

 Warranty

 We
generally provides a one-year limited warranty against defects in materials related to the sale of products. We considers the warranty
as an assurance type warranty since the warranty provides the customers the assurance that the product complies with agreed-upon specifications.
Estimated future warranty obligations are included in cost of product sales in the period in which the related revenue is recognized.
The factors affecting the our warranty include the number of products currently under warranty, historical and anticipated rates of warranty
claim on those products, and the estimates of repair and replacement costs to satisfy the our warranty obligation. The anticipated rate
of warranty claims is the primary estimate used in determining the warranty liability and is relatively predictable using historical
experience of failure rates. The average remaining aggregate warranty period of the products sold is calculated, repair parts are generally
already in stock or available at pre-determined prices, and labor rates are generally arranged at pre-established amount with service
providers. If actual results differ from the estimates, we revises its estimated warranty liability. Each quarter, we reevaluates its
estimates and assess the adequacy of its recorded warranty liabilities and adjust the amounts as necessary. As of December 31, 2024 and
2023, $503,553 and $619,113 of product warranty were recorded in the consolidated balance sheet, respectively. During the years ended
December 31, 2024 and 2023, the Company recorded warranty expenses of $1,274,037 and $1,924,203, respectively.

 Allowance
for credit loss

 We
considered various factors, including nature, historical collection experience, the age of the accounts receivable balances and the contract
assets, credit quality and specific risk characteristics of its customers, current economic conditions, forecasts of future economic
conditions, reversion period, and qualitative and quantitative adjustments to develop an estimate of credit losses. We have adopted loss
rate method to calculate the credit loss and considered the relevant factors of the historical and future conditions of the Company to
make reasonable estimation of the risk rate. For accounts receivable aged less than one year and non-overdue contract assets, we use
the loss rate method, which is a combination of historical rate method and adjustment rate method, to estimate the credit loss. For accounts
receivable aged over one year and overdue retainage receivable, we use the individual specific valuation method to estimate the credit
loss.

 We
wrote off potentially uncollectible accounts receivable against the allowance for credit losses if it is determined that the amounts
will not be collected. As of December 31, 2024 and 2023, we recorded allowance for credit loss of $0.5 million and $0.6 million in the
consolidated balance sheet, respectively.

 Inventory
provision

 We
assessed the net realizable value of each item of inventories and compared to the cost on the book, which include the cost of raw materials,
freight and duty for raw materials, direct labor costs, and the overhead costs for finished goods at the end of each reporting period.
In addition, we assessed all slow-moving or obsolete items for inventory valuation purposes. As of December 31, 2024 and 2023, the Company
had inventory provision of $469,900 and $439,900, included in inventories, net in the consolidated balance sheet. Impairment provision
of inventories was $30,000 and $439,900 for the years ended December 31, 2024 and 2023, respectively, included in cost of revenues in
the consolidated statement of operations and comprehensive income.

 Contingencies

 We
may be involved in various legal proceedings, claims and other disputes arising from the commercial operations, projects and other matters
which, in general, are subject to uncertainties and in which the outcome are not predictable. We determine whether an estimated loss
from a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated. Although we can
give no assurances about the resolution of pending claims, litigation or other disputes and the effect such outcomes may have on us,
we believe that any ultimate liability resulting from the outcome of such proceedings, to the extent not otherwise provided or covered
by insurance, will not have a material adverse effect on the our unaudited condensed consolidated financial position or results of operations
or liquidity as at December 31, 2024 and 2023, except one litigation discussed below.

 Litigation

 On
July 8, 2024, the Company received a final judgment from the trial court in the lawsuit filed by Taizhou Nebula Power Co, Ltd. ("Nebula")
on September 15, 2020. The final judgment awarded Nebula $3,334,542 in damages, $1,436,809 in attorneys' fees and other court costs,
and $1,217,610 in interest on balances from September 15, 2020. In connection with this judgment, the Company recorded an additional
accrual of $3,645,092 as of December 31, 2024, bringing the total accrual related to this lawsuit to approximately $5,988,961. The
Company filed an appeal in August 2024 and its appellant's brief in January 2025.

 Although
our significant accounting policies are elaborated upon in Note 2 – Summary of Significant Accounting Policies in our consolidated
financial statements, we maintain that there were no critical accounting policies.

 Item
7A. Quantitative and Qualitative Disclosures about Market Risk.

 We
are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information otherwise
required under this Item.

 Item
8. Financial Statements and Supplementary Data.

 Reference
is made to pages F-1 through F-29 comprising a portion of this Report, which are incorporated herein by reference.

 Item
9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

 None.

 Item
9A. Controls and Procedures.

 Evaluation
of Disclosure Controls and Procedures

 Disclosure
controls and procedures are controls and other procedures designed to ensure that information required to be disclosed in our reports
filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's
rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information
required to be disclosed in our reports filed or submitted under the Exchange Act is accumulated and communicated to management, including
our Chief Executive Officer and Chief Financial Officer (together, the "Certifying Officers"), or persons performing similar
functions, as appropriate, to allow timely decisions regarding required disclosure.

 In
designing periods specified in the SEC's rules and forms, and that such information is accumulated and evaluating the disclosure
controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide
only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment
in evaluating the cost-benefit relationship of possible controls and procedures. The Certifying Officers have concluded that the Company's
disclosure controls and procedures are effective in reaching that level of assurance.

 At
the end of the period being reported upon, the Company carried out an evaluation, under the supervision and with the participation of
the Company's management, including the Certifying Officers, of the effectiveness of the design and operation of the Company's
disclosure controls and procedures. Based on the foregoing, the Certifying Officers concluded that our disclosure controls and procedures
were effective to ensure that the material information required to be included in our Securities and Exchange Commission reports is accumulated
and communicated to our management, including our principal executive and financial officer, recorded, processed, summarized and reported
within the time periods specified in SEC's rules and forms relating to the Company.

 Remediated
Material Weaknesses

 As
of December 31, 2023, material weaknesses were identified in internal controls due to (1) lack of sufficient in-house personnel in our
accounting department with sufficient knowledge of the generally accepted accounting principles in the United States of America ("U.S.
GAAP") and SEC reporting rules, and (2) Inadequate segregation of duties resulting from limited accounting staff and resources.

 In
response to the above identified material weaknesses, together with a third-party internal controls consulting firm, we have hired additional
staff and engaged external accounting consultants with expertise in U.S. GAAP and SEC reporting. Additionally, we have integrated and
automated our financial reporting system with our ERP system to minimize manual errors. We have also implemented a series of training
programs across departments and enhanced supervision and controls over our comprehensive accounting policies and procedures manual in
accordance with U.S. GAAP.

 Management's
Annual Report on Internal Controls over Financial Reporting

is responsible for establishing and maintaining adequate internal control over financial reporting for us. Internal control over financial
reporting (as defined in Rule 13a-15(f) of the Exchange Act) is a process to provide reasonable assurance regarding the reliability of
our financial reporting for external purposes in accordance with U.S. generally accepted accounting principles. Internal control over
financial reporting includes maintaining records that in reasonable detail accurately and fairly reflect our transactions; providing
reasonable assurance that transactions are recorded as necessary for preparation of our consolidated financial statements; providing
reasonable assurance that receipts and expenditures of company assets are made in accordance with management authorization; and providing
reasonable assurance that unauthorized acquisition, use or disposition of company assets that could have a material effect on our consolidated
financial statements would be prevented or detected on a timely basis. Because of its inherent limitations, internal control over financial
reporting is not intended to provide absolute assurance that a misstatement of our consolidated financial statements would be prevented
or detected.

conducted an evaluation of the effectiveness, as of December 31, 2024, of our internal control over financial reporting based on the
framework in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in
2013. Based on this evaluation, management and the Certifying Officers concluded that our internal control over financial reporting was
effective as of December 31, 2024.

in Internal Control over Financial Reporting

 Other
than as discussed above, there have been no changes to our internal control over financial reporting during the fiscal year ended December
31, 2024 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 Item
9B. Other Information.

 Insider
Trading Arrangements

 During
the quarter ended December 31, 2024, none of our directors or officers adopted or terminated any contract, instruction or written plan
for the purchase or sale of our securities to satisfy the affirmative defense conditions of "Rule 10b5-1 trading arrangement"
or any "non-Rule 10b5-1 trading arrangement".

 Item
9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections.

 Not
applicable.

 PART
III

 Item
10. Directors, Executive Officers and Corporate Governance.

 Directors
and Executive Officers

 The
following table sets forth information concerning our executive officers and directors and their ages as of the date of this Report:

 Name

 Age

 Position(s)

 David
 Shan

 Chief
 Executive Officer and Chairman of the Board of Directors

 Dr.
 Yunhao Chen

 Chief
 Financial Officer and Director

 Quenton Petersen

 Vice
 President

 Paolo
 Pietrogrande

 Director,
 Chair of Nominating and Corporate Governance Committee

 Ting
 Zhu

 Director,
 Chair of Audit Committee

 Mark
 Sheffield

 Director,
 Chair of Compensation Committee

 The
following is a brief account of the business experience during the past five years (and, in some instances, for prior years) of each
director and officer of our Company.

 David
Shan - Chief Executive Officer and Chairman of the Board of Directors

 David
Shan founded Massimo Motor Sports on June 30, 2009. He has served as Chief Executive Officer since 2009 and became Chairman of
the Board of Directors of the Company in April 2024. Since founding the Company in 2009, he has designed and implemented the Company's
long-term business plan, and, over the years, he has led the Company to expand its product line to include a range of UTVs, ATVs, solar
systems, electric coolers, and electric scooters. In 2018, Mr. Shan also founded Massimo Marine, a subsidiary of the Company that mainly
focuses on manufacturing Pontoon Boats. Mr. Shan has consistently demonstrated his entrepreneurial spirit by successfully establishing,
building, and managing multiple businesses. His track record as a business leader and operator exemplifies his entrepreneurial mindset
and ability to identify opportunities, create value, and drive business growth. Mr. David Shan holds a bachelor's degree in international
trade from Qingdao Ocean University of China.

 Dr.
Yunhao Chen - Chief Financial Officer and Director

 Dr.
Yunhao Chen has served as our Chief Financial Officer since May 2023 and began serving as a director in April 2024. Prior to
joining the Company, Dr. Chen served as the Chief Financial Officer of a Nasdaq-listed company, where she led the company through its
initial public offering process and directed and managed the company's financial reporting and accounting functions. Dr. Chen oversaw
the company's investor relations and capital market functions and successfully executed several private placements. Dr. Chen, as
our Chief Financial Officer, has extensive knowledge and experience with U.S. GAAP and SEC reporting and compliance requirements. As
part of her experience, she has conducted analyses and research regarding a large amount of formal filings of SEC registrants, with focuses
on financial disclosure, capital market anomaly, business valuation, internal control and auditing, corporate tax avoidance, and earnings-returns
relation. With a Ph. D. in Accounting and an MBA in Finance and MIS from the University of Minnesota, and a BE degree from University
of International Business and Economics of China, Dr. Chen has been active in academia. From 2007 to 2014, she served as a faculty member
at the University of Miami and Florida International University. In addition, from 2011 until 2023, she has been teaching courses
at the Southern Medical University in China's Healthcare MBA program, including but not limited to Financial Statement Analysis
and Business Valuation, Accounting for Managers, and Accounting Theories and Studies, among other undergraduate and graduate courses.
She has presented research results and implications for policymakers at national and international conferences. Dr. Chen has also published
research results in both accounting and finance journals, such as Financial Management, the Journal of American Tax Association,
and the Journal of Information System.

 Quenton Petersen - Vice President

 Quenton
Petersen has been serving as the Sales and Marketing Manager and later as the Director of Sales at Massimo Motor Sports since
2018. From 2011 until 2016, Mr. Petersen worked as the sales manager at Flow Wall, - a garage storage solutions provider with its headquarters
located in Salt Lake City, where he implemented and developed -partnerships with retail industry leaders, including but not limited to
Home Depot, Costco, and Amazon. Prior to joining Flow Wall, from 2009 until 2011, Mr. Petersen worked as a Top Customer Care representative
- at eBay Inc. Mr. Petersen studied accounting and business management at Dixie State University in St. George.

 Ting
Zhu - Independent Director, Chair of Audit Committee

 Ting
Zhu has served as our independent director and chair of our Audit Committee since April 2024. Ms. Zhu is an active licensed certified
public accountant in Texas since 2005. Prior to 2005, Ms. Zhu worked in various certified public accounting firms and industries, which
include Pricewaterhouse Coopers, Zale Lipshy University Hospital, and Automatic Products Corporation. From 2007 until 2014, Ms. Zhu was
one of the founders of First Home Improvement, a trading company. In 2010, she founded Spring Creek Tax Services. Spring Creek Tax Services
provides tax compliance service for small- to middle-size businesses and individuals. It is not a licensed certified public accounting
firm.

 Paolo
Pietrogrande - Independent Director, Chair of the Nominating and Corporate Governance Committee

 Paolo
Pietrogrande has served as our independent director and chair of our Nominating and Corporate Governance Committee since April
2024. Since 2004, Mr. Pietrogrande has been the Managing Partner of Netplan Management Consulting, LLC, a U.S.-based executive advisory
with a subsidiary in Italy, supporting individuals, organizations and companies in defining their goals and in executing action lists
with effectiveness, integrity, social responsibility and passion. serving as Chairman of Trasporti Romagna, a leading low temperature
logistic services provider in Italy, and Chairman and CEO of Sofinter Group, a leading industrial and power steam generator systems provider
with global reach. He is also the Chairman of TLRnet, a holding company of Egea Group, a leading district heating developer. Mr. Pietrogrande
also serves as the Chairman of Edera Impresa Sociale, an R&D incubator for the civil construction industry, a benefit company and
is a director of various publicly listed companies, including MAPS Group (IOT), ACBoilers, Itea (R&D for Oil & Gas. Mr. Pietrogrande
received his doctorate degree in Chemical Engineering from Sapienza University of Rome, and he received a certificate of management of
technology and innovation at California Institute of Technology.

 Mark
Sheffield - Independent Director Nominee, Chair of Compensation Committee

 Mark
Sheffield has served as our independent director and chair of our Compensation Committee since April 2024. Since 2006, Mr. Sheffield
has been a strategic advisor for Woods Cycle Country, a dealership in Texas for goods in the Powersports Vehicles and Boat Industry,
including motorcycles, ATVs, and watercraft. Since 2016, Mr. Sheffield has also been a powersports, recreational vehicle, and marine
business consultant for Spader Business Management/NCM Associates. Mr. Sheffield currently serves on the Board of Directors of the Texas
Motorcycle Dealer Association and the National Powersports Dealer Association, advocacy groups for dealers in the Powersports Vehicles
and Boat Industry. Mr. Sheffield has also worked with other dealers, including America's Powersports, Honda of Houston, and Woods
Indian Motorcycle.

 Board
of Directors and Committees

 Our
Board of Directors consists of five directors, including two executive directors and three independent directors. We also have established
an Audit Committee, a Nominating and Corporate Governance Committee and a Compensation Committee under the Board of Directors. We have
adopted a charter for each of the three committees. Each of the committees of our Board of Directors shall have the composition and responsibilities
described below.

 Family
Relationships

 Except
as disclosed herein, none of the directors or executive officers have a family relationship as defined in Item 401 of Regulation S-K.

 Involvement
in Certain Legal Proceedings

 To
the best of our knowledge, none of our directors or executives has, during the past ten years, been involved in any legal proceedings
in subscription (f) of Item 401 of Regulation S-K.

 Controlled
Company Status

 A
controlled company is a company of which more than 50% of the voting power for the election of directors is held by an individual, a
group or another company. We are a controlled company because Mr. Shan, our Chief Executive Officer and Chairman of the Board of Directors,
holds more than 50% of our voting power.

 Therefore,
for so long as we remain a controlled company, we technically qualify and are eligible to be exempted from the obligation to comply with
certain Nasdaq corporate governance requirements, however, we do not currently plan to take advantage of the exemptions provided to controlled
companies, which include:

 our
 Board of Directors is not required to be comprised of a majority of independent directors;

 our
 Board of Directors is not subject to the compensation committee requirement; and

 we
 are not subject to the requirements that director nominees be selected either by the independent directors or a nomination committee
 comprised solely of independent directors.

 The
controlled company exemptions do not apply to the audit committee requirement or the requirement for executive sessions of independent
directors. We are required to disclose in our annual report that we are a controlled company and the basis for that determination. Although
we do not currently plan to take advantage of the exemptions provided to controlled companies, we may in the future take advantage of
such exemptions.

 Role
of the Board of Directors in Risk Oversight

 The
Board of Directors is responsible for assessing the risks facing our company and considers risk in every business decision and as part
of our business strategy. The Board of Directors recognizes that it is neither possible nor prudent to eliminate all risk, and that strategic
and appropriate risk-taking is essential for us to compete in our industry and in the global market and to achieve our growth and profitability
objectives. Effective risk oversight, therefore, is an important priority of the Board of Directors.

 While
the Board of Directors oversees our risk management, management is responsible for day-to-day risk management processes. Our Board of
Directors expects management to consider risk and risk management in each business decision, to proactively develop and monitor risk
management strategies and processes for day-to-day activities and to effectively implement risk management strategies that are adopted
by the Board of Directors. The Board of Directors reviews and adjusts our risk management strategies at regular intervals, or as needed.

 Code
of Business Conduct

 Our
Board of Directors has adopted a code of business conduct and ethics, the "Code of Business Conduct," to ensure that our
business is conducted in a consistently legal and ethical manner. Our policies and procedures cover all major areas of professional conduct,
including employee policies, conflicts of interest, protection of confidential information, and compliance with applicable laws and regulations.
The Code of Business Conduct is available at our website at www.massimomotor.com. The reference to our website address in this Report
does not include or incorporate by reference the information on our website into this Report. We intend to disclose future amendments
to certain provisions of our code of conduct, or waivers of these provisions, on our website or in public filings.

 Board
Committees

 Our
Board of Directors has appointed an Audit Committee, Compensation Committee, and a Nominating and Corporate Governance Committee, and
has adopted charters for each of these committees.

 Audit
Committee

 The
Audit Committee consists of Ting Zhu, Paolo Pietrogrande and Mark Sheffield, with Ting Zhu serving as Chairman. The Audit Committee assists
the Board of Directors in discharging its responsibilities relating to the financial management of our Company and oversight of our accounting
and financial reporting, our independent registered public accounting firm and its audits, our internal financial controls and the continuous
improvement of our financial policies and practices. In addition, the Audit Committee is responsible for reviewing and discussing with
management our policies with respect to risk assessment and risk management. The responsibilities of the Audit Committee, which is set
forth in its charter, include:

 appointing,
 approving the compensation of, and assessing the independence of our independent registered public accounting firm;

 pre-approving
 audit and permissible non-audit services, and the terms of such services, to be provided by our independent registered public accounting
 firm;

 and discussing with management and our independent registered public accounting firm our annual and quarterly financial statements
 and related disclosures;

 coordinating
 the oversight and reviewing the adequacy of our internal control over financial reporting;

 establishing
 policies and procedures for the receipt and retention of accounting-related complaints, whistleblowers, and concerns; and

 and approving any related party transactions.

 Our
Audit Committee complies with all applicable requirements of the SEC and the listing requirements of Nasdaq. We intend to comply with
future requirements to the extent they become applicable to us.

 Compensation
Committee

 Our
Compensation Committee consists of Mark Sheffield, Ting Zhu, and Paolo Pietrogrande, with Mr. Sheffield serving as Chairman. The Compensation
Committee assists the Board of Directors in setting and maintaining our compensation philosophy and in discharging its responsibilities
relating to executive and other human resources hiring, assessment and compensation, and succession planning. The responsibilities of
the Compensation Committee, which are set forth in its charter, include:

 and approving corporate goals and objectives relevant to compensation of our chief executive officer;

 evaluating
 the performance of our chief executive officer in light of such corporate goals and objectives and determining the compensation of
 our chief executive officer;

 determining
 the compensation of all our other officers and reviewing periodically the aggregate amount of compensation payable to such officers;

 overseeing
 and making recommendations to the Board of Directors with respect to our incentive-based compensation and equity plans; and

 and making recommendations to the Board of Directors with respect to director compensation.

 The
composition of our Compensation Committee complies with all applicable requirements of the SEC and the listing requirements of Nasdaq.
We intend to comply with future requirements to the extent they become applicable to us.

 Nominating
and Corporate Governance Committee

 The
Nominating and Corporate Governance Committee consists of Paolo Pietrogrande, Mark Sheffield and Ting Zhu, with Mr. Pietrogrande serving
as Chairman. The responsibilities of the Nominating and Corporate Governance Committee, which is set forth in its charter, includes:

 making
 recommendations to the Board of Directors regarding the size and composition of the Board of Directors;

 recommending
 qualified individuals as nominees for election as directors;

 the appropriate skills and characteristics required of director nominees;

 establishing
 and administering a periodic assessment procedure relating to the performance of the Board of Directors as a whole and its individual
 members; and

 periodically
 reviewing the corporate governance guidelines and supervising the management representative charged with implementing our corporate
 governance procedures.

 The
composition of our Nominating and Corporate Governance Committee complies with all applicable requirements of the SEC and the listing
requirements of Nasdaq. We intend to comply with future requirements to the extent they become applicable to us.

 Insider
Trading Policy

 On
March 25, 2024, we adopted insider trading policies and procedures governing the purchase, sale, and/or other dispositions of our securities
by directors, officers, and employees, which are reasonably designed to promote compliance with insider trading laws, rules and regulations,
and applicable Nasdaq listing standards (the "Insider Trading Policy").

 The
foregoing description of the Insider Trading Policy does not purport to be complete and is qualified in its entirety by the terms and
conditions of the Insider Trading Policy, a copy of which is attached hereto as Exhibit 19.1 and is incorporated herein by reference.

 Section
16(a) of the Exchange Act

 Section
16(a) of the Exchange Act, as amended, requires our directors and certain of our officers, as well as persons who own more than 10% of
a registered class of our equity securities ("Reporting Persons"), to file reports with the SEC. To our knowledge, based
solely on review of the copies of such reports furnished to us and written representations that no other reports were required, all Section
16(a) filing requirements applicable to officers, directors and greater than ten percent shareholders, except the following, were complied
with during the fiscal year ended December 31, 2024:

 Mark
 Sheffield;

 Paolo
 Pietrogrande;

 Ting
 Zhu;

 Yunhao
 Chen;

Independence

 Our
Board has reviewed the independence of our directors, applying the Nasdaq independence standards. Based on this review, the Board determined
that each Ting Zhu, Paolo Pietrogrande and Mark Sheffield are "independent" within the meaning of Item 7(d)(3)(iv)(B) of
Schedule 14A under the Securities Exchange Act of 1934, as amended, and as defined by Rule 4200(a)(15) of the NASDAQ Marketplace Rules.
In making this determination, our Board considered the relationships that each of these non-employee directors has with us and all other
facts and circumstances our board deemed relevant in determining their independence.

 Item
11. Executive Compensation.

 The
following table sets forth total compensation paid to our named executive officers for the years ended December 31, 2024, and 2023. Individuals
we refer to as our "named executive officers" include (i) all individuals serving as our Chief Executive Officer during the
fiscal year ended December 31, 2024; (ii) our two most highly compensated executive officers other than our Chief Executive Officer who
were serving as executive officers at the end of the fiscal year ended December 31, 2024, whose salary and bonus for services rendered
in all capacities exceeded $100,000 during the fiscal year ended December 31, 2024 and (iii) our most highly compensated executive officer
other than our Chief Executive Officer who served as an executive officer during the fiscal year ended December 31, 2024 but not at the
end of the fiscal year ended December 31, 2024 whose salary and bonus for services rendered in all capacities exceeded $100,000 during
the fiscal year ended December 31, 2024.

 Summary
Compensation Table

 Name
 and Principal Position

 Year

 Salary

 $

 Bonus
 $

 Option
 Based Awards (6)
 $

 Stock
 Awards (5)
 $

 Other
 Compensation

 $

 Total

 $

 David
 Shan,

 2024

 236,527

 -

 100,007

 176,850

 -

 505,134

 Chief
 Executive Officer(1)

 2023

 272,115

 -

 -

 -

 -

 272,115

 Dr.
 Yunhao Chen

 2024

 200,010

 -

 62,091

 400,958

 -

 663,059

 Chief
 Financial Officer(2)

 2023

 110,212

 -

 -

 -

 -

 110,212

 Quenton
 Peterson,

 2024

 109,237

 -

 -

 11,640

 63,455

 184,332

 Vice
 President(3)

 2023

 161,540

 -

 -

 -

 161,540

 Michael
 Smith

 2024

 230,950

 -

 62,091

 117,901

 316,200

 714,852

 Vice
 President(4)

 2023

 183,945

 -

 -

 -

 -

 183,945

 (1)

 In
 2024, Mr. Shan received a salary of $125,007 from Massimo Motor Sports and $111,520 from Massimo Marine. In 2023, Mr. Shan received
 a salary of $125,000 from Massimo Motor Sports and $147,115 from Massimo Marine.

 (2)

 The
 compensation in the table reflects salary paid by Massimo Motor Sports to Dr. Chen.

 (3)

 Mr.
 Peterson served as Vice President of Massimo Motor Sports until October 25, 2023, and was later re-appointed for the position on
 March 1, 2025. The compensation in the table reflects salary paid by Massimo Motor Sports to Mr. Peterson.

 (4)

 In
 2024, Mr. Smith received a salary of $120,005 from Massimo Motor Sports, a salary of $110,945 from Massimo Marine, and a commission
 of $316,200 from Massimo Marine. In 2023, Mr. Smith received a salary of $42,310 from Massimo Motor Sports and $141,635 from Massimo
 Marine. Mr. Smith served as Vice President of Massimo Motor Sports until March 1, 2025.

 (5)

 Amounts
 shown represent the aggregate full grant date fair value of each award calculated in accordance with FASB ASC Topic 718. The assumptions
 made in the calculation of these amounts are contained in Note 17 to the Company's audited financial statements for the year
 ended December 31, 2024, included herein.

 (6)

 Amounts
 shown represent the aggregate grant date fair value of options granted in May 2024 calculated in accordance with FASB ASC Topic 718
 subject to various vesting periods. Assumptions used in the calculation of these amounts are included in the Note 17 of the Company's
 audited financial statements for the year ended December 31, 2024, included herein.

and Officer Liability Insurance

 We
have purchased director and officer liability insurance that provides financial protection for our directors and officers in the
event that they are sued in connection with the performance of their services and also provides employment practices liability coverage,
which insures for harassment and discrimination suits.

 Compensation
Pursuant to Agreements and Plans

 Employment
Agreements

 We
have entered into employment agreements with our Chief Executive Officer, Chief Financial Officer, and Vice President, with each agreement
effective June 1, 2023.

 Agreement
with David Shan

 We
entered into an employment agreement, effective June 1, 2023, with Mr. David Shan, our Chief Executive Officer. The agreement provides
for at-will employment, an annual base salary of $275,000, and a discretionary annual bonus opportunity. The CEO's total compensation
also includes a grant of Company stock under the Company's Incentive Plan.

 Under
the CEO employment agreement, Mr. Shan agreed to customary confidentiality and intellectual property assignment provisions and, during
the employment term and for a period of 12 months following termination of the CEO employment agreement, to refrain from (i) soliciting
the Company's employees or independent contractors or (ii) competing against the Company's business. Mr. Shan has also agreed
to a non-disparagement restriction. The Company agreed to customary indemnification provisions and to provide directors and officers
liability insurance coverage during Mr. Shan's employment and for a six-year term thereafter.

 Agreement
with Dr. Yunhao Chen

 We
entered into an employment agreement, effective June 1, 2023, with Dr. Yunhao Chen, our Chief Financial Officer. The agreement provides
for at-will employment, an annual base salary of $200,000, and a discretionary annual bonus opportunity. The CFO's total compensation
also includes a grant of Company stock under the Incentive Plan.

 Under
the CFO employment agreement, Dr. Chen agreed to customary confidentiality and intellectual property assignment provisions and, during
the employment term and for a period of 12 months following termination of the CFO employment agreement, to refrain from (i) soliciting
the Company's employees or independent contractors or (ii) competing against the Company's business. Dr. Chen has also agreed
to a non-disparagement restriction. The Company agreed to customary indemnification provisions and to provide directors and officers
liability insurance coverage during Dr. Chen's employment and for a six-year term thereafter.

 Agreement
with Michael Smith

 We
had entered into an employment agreement, effective June 1, 2023, with Mr. Michael Smith. The agreement provided for at-will employment,
an annual base salary of $250,000, and a discretionary annual bonus opportunity. His total compensation also includes a grant of Company
stock under the Incentive Plan.

 Under
the VP employment agreement, Mr. Smith had agreed to customary confidentiality and intellectual property assignment provisions and, during
his employment term and for a period of 24 months following termination of the VP employment agreement, to refrain from (i) soliciting
the Company's employees or independent contractors or (ii) competing against the Company's business. Mr. Smith has also agreed
to a non-disparagement restriction. The Company agreed to customary indemnification provisions and to provide directors and officers
liability insurance coverage during Mr. Smith's employment and for a six-year term thereafter.

 Agreement
with Quenton Petersen

 On
March 1, 2025, the Company, appointed Quenton Petersen as the Vice President. In connection with this appointment, the Company entered into an
employment agreement with Mr. Petersen (the "Petersen Agreement"). Pursuant to the Petersen Agreement, Mr. Petersen will
serve as the Company's Vice President on an at-will basis. The Petersen Agreement provides Mr. Petersen with the following compensation:
(i) an annualized base salary of $150,000 USD, (ii) eligibility to receive equity grants under the Company's equity plan, (iii)
eligibility to receive commissions based on a schedule to be agreed between Mr. Petersen and the Company, (iv) eligibility to receive
an annual bonus that the Company may award in its sole and absolute discretion, and (v) eligibility for any fringe benefits offered by
the Company on the same terms and conditions as other employees.

 Compensation
of Directors

 The following table sets forth a summary of compensation for the fiscal year ended December 31, 2024, that we paid to each director other
than our chief executive officer and our chief financial officer, whose compensation is fully reflected in the Summary Compensation Table
set forth above. No other or additional compensation for services was paid to any of the directors.

 Fees Earned or Paid in Cash

 ($)

 Stock Compensation

 ($)(1)

 Option Compensation

 ($)(1)

 Total

($)

 Paolo Pietrogrande

 -

 $

 $
 -

 $

 Ting Zhu

 -

 $

 $
 -

 $

 Mark Sheffield

 -

 $

 $
 -

 $

 (1)
 The amounts in these columns represent the grant date fair values of the
awards calculated in accordance with ASC Topic 718. Please see Note 17 to the consolidated financial statements for the year ended December
31, 2024, contained in this Annual Report for the assumptions used in the calculation of grant date fair values pursuant to FASB ASC Topic
718.

 Equity
Incentive Plan

 We
have implemented the Incentive Plan, the form of which is attached hereto as Exhibit 10.9. The Incentive Plan is intended to provide
for awards to attract, motivate, retain, and reward selected key employees and other eligible persons, including our named executive
officers. A summary of the Incentive Plan is set out below.

 Number
of Shares

million shares of our common stock are reserved for grant or issuance under the Incentive Plan. Shares issuable under the Incentive Plan
may be authorized, but unissued, or reacquired shares. Up to two million shares of our common stock may be issued upon the exercise of
incentive stock options.

 The
number of shares available for issuance under the Incentive Plan also includes an automatic annual increase, or the evergreen feature,
on the first day of each calendar year, beginning January 1, 2025 and continuing until (and including) January 1, 2034, equal to the
lesser of:

 a
 number of shares equal to 1% of the aggregate number of shares of our common stock issued and outstanding as of December 31 of the
 immediately preceding calendar year; or

 such
 number of shares of our common stock as the plan administrator may determine.

 Any
shares of our common stock that are represented by awards under the Incentive Plan that are forfeited, expire, or are cancelled or settled
in cash without delivery of shares, or that are forfeited back to us or reacquired by us after delivery for any reason, or that are tendered
to us or withheld to pay the exercise price or related tax withholding obligations in connection with any award under the Incentive Plan,
will again be available for awards under the Incentive Plan. Only shares of our common stock actually issued under the Incentive Plan
will reduce the share reserve.

 Annual
Limitation on Awards to Non-Employee Directors

 The
Incentive Plan contains a limitation whereby the value of all awards under the Incentive Plan and all other cash compensation paid by
the Company to any non-employee director may not exceed $300,000 for the first calendar year a non-employee director is initially appointed
to the Board, and $100,000 in any other calendar year.

 Administration

 The
Incentive Plan is administered by our Compensation Committee or such other similar committee pursuant to the terms of the Incentive Plan.
The plan administrator, which initially is our Compensation Committee, has full power to select, from among the individuals eligible
for awards, the individuals to whom awards will be granted, to make any combination of awards to participants, and to determine the specific
terms and conditions of each award, subject to the provisions of the Incentive Plan. The plan administrator may delegate to one or more
of our officers the authority to grant awards to individuals who are not subject to the reporting and other provisions of Section 16
of the Exchange Act.

 Eligibility

 Persons
eligible to participate in the Incentive Plan are employees, non-employee directors, and consultants of the Company and its subsidiaries
as selected from time to time by the plan administrator in its discretion.

 Types
of Awards

 The
Incentive Plan provides for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, and other-stock
based awards, or collectively, awards.

 Stock
Options. The Incentive Plan permits the granting of both options to purchase shares of our Common Stock intended to qualify as incentive
stock options under Section 422 of the Code ("ISOs") and options that do not so qualify (nonqualified stock option or "NSOs").
Options granted under the Incentive Plan are NSOs if they fail to qualify as ISOs or exceed the annual limit on ISOs. ISOs may only be
granted to employees of the Company and its subsidiaries. NSOs may be granted to any persons eligible to receive awards under the Incentive
Plan.

 The
option exercise price of each option will be determined by the plan administrator. The exercise price for an ISO may not be less than
100% of the fair market value of the Company's common stock on the date of grant or, in the case of an ISO granted to a 10% stockholder,
110% of such share's fair market value. The term of each option will be fixed by the plan administrator and may not exceed ten
(10) years from the date of grant (or five years for an ISO granted to a 10% stockholder). The plan administrator will determine at what
time or times each option may be exercised, including the ability to accelerate the vesting of such options.

 Upon
exercise of options, the option exercise price must be paid in full either in cash, check, or, with approval of the plan administrator,
by delivery (or attestation to the ownership) of shares of our Common Stock that are beneficially owned by the optionee free of restrictions
or were purchased in the open market. Subject to applicable law and approval of the plan administrator, the exercise price may also be
made by means of a broker-assisted cashless exercise. In addition, the plan administrator may permit NSOs to be exercised using a "net
exercise" arrangement that reduces the number of shares issued to the optionee by the largest whole number of shares with fair
market value that does not exceed the aggregate exercise price.

 Stock
Appreciation Rights. The plan administrator may award stock appreciation rights ("SARs") subject to such conditions and
restrictions as it may determine. SARs entitle the recipient to shares of Common Stock, or cash, equal to the value of the appreciation
in the Company's stock price over the exercise price, as set by the plan administrator. The term of each SAR will be fixed by the
plan administrator and may not exceed ten years from the date of grant. The plan administrator will determine at what time or times each
SAR may be exercised, including the ability to accelerate the vesting of such SARs.

 Restricted
Stock. A restricted stock award is an award of Common Stock that vests in accordance with the terms and conditions established by
the plan administrator. The plan administrator will determine the persons to whom grants of restricted stock awards are made, the number
of restricted shares to be awarded, the price (if any) to be paid for the restricted shares, the time or times within which awards of
restricted stock may be subject to forfeiture, the vesting schedule and rights to acceleration thereof, and all other terms and conditions
of restricted stock awards. Unless otherwise provided in the applicable award agreement, a participant generally will have the rights
and privileges of a stockholder as to such restricted shares, including without limitation the right to vote such restricted shares and
the right to receive dividends, if applicable.

 Restricted
Stock Units. Restricted stock units ("RSUs") are the right to receive shares of Common Stock at a future date in accordance
with the terms of such grant upon the attainment of certain conditions specified by the plan administrator. Restrictions or conditions
could include, but are not limited to, the attainment of performance goals, continuous service with the Company or its subsidiaries,
the passage of time or other restrictions or conditions. The plan administrator determines the persons to whom grants of RSUs are made,
the number of RSUs to be awarded, the time or times within which awards of RSUs may be subject to forfeiture, the vesting schedule, and
rights to acceleration thereof, and all other terms and conditions of the RSUs. The value of the RSUs may be paid in shares of Common
Stock, cash, other securities, other property, or a combination of the foregoing, as determined by the plan administrator.

 The
holders of RSUs will have no voting rights. Prior to settlement or forfeiture, RSUs awarded under the Incentive Plan may, at the plan
administrator's discretion, provide for a right to dividend equivalents. Such right entitles the holder to be credited with an
amount equal to all dividends paid on one share of Common Stock while each RSU is outstanding. Dividend equivalents may be converted
into additional RSUs. Settlement of dividend equivalents may be made in the form of cash, Common Stock, other securities, other property,
or a combination of the foregoing. Prior to distribution, any dividend equivalents shall be subject to the same conditions and restrictions
as the RSUs to which they are payable.

 Other
Stock-Based Awards. Other stock-based awards may be granted either alone, in addition to, or in tandem with, other awards granted
under the Incentive Plan and/or cash awards made outside of the Incentive Plan. The plan administrator shall have authority to determine
the persons to whom and the time or times at which other stock-based awards will be made, the amount of such other stock-based awards,
and all other conditions, including any dividend and/or voting rights.

 Tax
Withholding

 Participants
in the Incentive Plan are responsible for the payment of any federal, state, or local taxes that the Company or its subsidiaries are
required by law to withhold upon the exercise of options or stock appreciation rights or vesting of other awards. The plan administrator
may cause any tax withholding obligation of the Company or its subsidiaries to be satisfied, in whole or in part, by the applicable entity
withholding from shares of Common Stock to be issued pursuant to an award a number of shares with an aggregate fair market value that
would satisfy the withholding amount due. The plan administrator may also require any tax withholding obligation of the Company or its
subsidiaries to be satisfied, in whole or in part, by an arrangement whereby a certain number of shares issued pursuant to any award
are immediately sold and proceeds from such sale are remitted to the Company or its subsidiaries in an amount that would satisfy the
withholding amount due.

 Transferability
of Awards

 Unless
determined otherwise by the plan administrator, an award may not be sold, pledged, assigned, hypothecated, transferred, or disposed of
in any manner, except to a participant's estate or legal representative, and may be exercised, during the lifetime of the participant,
only by the participant. If the plan administrator makes an award transferable, such award will contain such additional terms and conditions
as the plan administrator deems appropriate.

 Equitable
Adjustments

 In
the event of a merger, consolidation, recapitalization, stock split, reverse stock split, reorganization, split-up, spin-off, combination,
repurchase or other change in corporate structure affecting the Company's Common Stock, the maximum number and kind of shares reserved
for issuance or with respect to which awards may be granted under the Incentive Plan will be adjusted to reflect such event, and the
plan administrator will make such adjustments as it deems appropriate and equitable in the number, kind, and exercise price of shares
covered by outstanding awards made under the Incentive Plan.

 Change
in Control

 In
the event of any proposed change in control (as defined in the Incentive Plan), the plan administrator will take any action as it deems
appropriate, which action may include, without limitation, the following: (i) the continuation of any award, if the Company is the surviving
corporation; (ii) the assumption of any award by the surviving corporation or its parent or subsidiary; (iii) the substitution by the
surviving corporation or its parent or subsidiary of equivalent awards; (iv) accelerated vesting of the award, with all performance objectives
and other vesting criteria deemed achieved at targeted levels, and a limited period during which to exercise the award prior to closing
of the change in control, or (v) settlement of any award for the change in control price (less, to the extent applicable, the per share
exercise price).

 Amendment
and Termination

 The
Board may amend or terminate the Incentive Plan at any time. Any such termination will not affect outstanding awards. No amendment, alteration,
suspension, or termination of the Incentive Plan will materially impair the rights of any participant, unless mutually agreed otherwise
between the participant and the Company. Approval of the stockholders shall be required for any amendment, where required by applicable
law, as well as (i) to increase the number of shares available for issuance under the Incentive Plan and (ii) to change the persons or
class of persons eligible to receive awards under the Incentive Plan.

 Term
of Plan

 The
Incentive Plan was adopted by the Board on March 25, 2024 and will remain in effect for ten years from that date, unless it is terminated
earlier by the Board.

 Outstanding
Equity Awards at Fiscal Year-End

 The
table below summarizes all unexercised options, stock that has not vested, and equity incentive plan awards for each named executive
officer as of December 31, 2024.

 Option Awards

 Stock Awards

 Number of Securities Underlying Unexercised Options

 Option Exercise

 Option Expiration

 No. of Shares or Units of Stock that Have Not

 Market Value of Shares or Units of Stock that Have Not

 Equity Incentive Plan Awards: No. of Unearned Shares, Units or Other Rights That Have Not

 Name

 Exercisable

 Un-exercisable

 Price ($) (1)

 Date

 Vested

 Vested ($) (2)

 Vested

 David Shan

 -

 46,860

 $
 4.27

 May 21, 2029

 37,500

 96,375

 -

 -

 103,140

 $
 4.00

 May 21, 2034

 -

 -

 Dr. Yunhao Chen

 -

 50,000

 $
 4.00

 May 21, 2029

 25,000

 64,250

 -

 -

 50,000

 $
 4.00

 May 21, 2034

 -

 -

 Michael Smith

 -

 50,000

 $
 4.00

 May 21, 2029

 25,000

 64,250

 -

 -

 50,000

 $
 4.00

 May 21, 2034

 -

 -

 (1)

 Weighted Average Exercise Price.

 (2)

 Measured at closing stock price on December 31, 2024.

 Clawback
Policy

 On
March 25, 2024, the Board of Directors adopted a clawback policy which provides for the recovery of certain executive compensation in the
event of an accounting restatement resulting from material non-compliance with financial reporting requirements under the federal securities
laws. Since the adoption of this policy, there have been no accounting restatements, nor is there any compensation to be recovered.

 Item
12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

 The
following table sets forth information regarding the beneficial ownership of our common stock as of March 24, 2025, based on information
obtained from the persons named below, with respect to the beneficial ownership common stock, by:

 each
 person known by us to be the beneficial owner of more than 5% of our outstanding common stock;

 each
 of our executive officers and directors that beneficially owns our common stock; and

 all
 our executive officers and directors as a group.

 In
the table below, percentage ownership is based on 41,546,700 shares of our common stock issued and outstanding as of March 24,
2025.

 Beneficial
ownership is determined in accordance with the rules of the SEC and includes voting or investment power with respect to the securities.
In computing the number and percentage of shares beneficially owned by a person, shares that may be acquired by such person (for example,
upon the exercise of options or warrants) within 60 days following March 24, 2025 are counted as outstanding, while these shares are
not counted as outstanding for computing the percentage ownership of any other person. Except as otherwise indicated, each person or
entity named in the table has sole voting and investment power with respect to all shares of our capital shown as beneficially owned,
subject to applicable community property laws.

 The
address of each holder listed below, except as otherwise indicated, is c/o 3101 W Miller Road, Garland, Texas 75041.

 Name
 of Beneficial Owner

 Shares
 of Common
 Stock
 Beneficially
 Owned(1)

 Percent
 of Common
 Stock
 Beneficially
 Owned

 Executive
 Officers and Directors

 David
 Shan

 32,122,500

 %

 Dr.
 Yunhao Chen

 108,334

 *

 Paolo
 Pietrogrande

 6,750

 *

 Ting
 Zhu

 6,750

 *

 Mark
 Sheffield

 6,750

 *

 Quenton
Petersen

 -

 -

 All
 directors and executive officers as a group (6 persons)

 32,251,084

 %

 5%
 Stockholders

 Asia
 International Securities Exchange Co., Ltd

 4,330,000

 10.4
 %

 *

 Represents
 beneficial ownership of less than 1%.

 Securities
Authorized for Issuance under Equity Compensation Plans

 The
following table provides information as of December 31, 2024, regarding our common stock that may be issued under the Company's
2024 Incentive Plan.

 Plan
 category:

 Number
 of Securities to be issued Upon Exercise of Outstanding Options, Warrants, and Rights (a)

 Weighted
 Average Exercise Price of Outstanding Options (b)

 Number
 of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in column (a))
 (c)

 Equity
 compensation plans approved by stockholders

 Incentive
 Plan

 - Stock option

 350,000

 $
 4.04

 1,650,000

 -
Restricted Stock Units

 101,000

 -

 1,549,000

 Item
13. Certain Relationships and Related Transactions, and Director Independence.

 The
following are transactions in the fiscal year ended December 31, 2024 and until the date of this Report, between us and enterprises that
directly or indirectly through one or more intermediaries, control or are controlled by, or are under common control with: (a) us, (b)
our directors; (c) individuals owning, directly or indirectly, an interest in the voting power of the Company that gives them significant
influence over the Company, and close members of any such individual's family; (d) key management personnel, that is, those persons
having authority and responsibility for planning, directing and controlling the activities of the Company, including senior management
of companies and close members of such individuals' families; and (e) enterprises in which a substantial interest in the voting
power is owned, directly or indirectly, by any person described in (c) or (d) or over which such a person is able to exercise significant
influence.

 Our
Audit Committee reviews all related party transactions on an ongoing basis and all such transactions be approved by the Audit Committee.
In determining whether to approve a related party transaction, the Audit Committee shall consider, among other factors, the following
factors to the extent relevant to the related party transaction:

 whether
 the terms of the related party transaction are fair to the Company and on the same basis as would apply if the transaction did not
 involve a related party;

 whether
 there are business reasons for the Company to enter into the related-party transaction;

 whether
 the related party transaction would impair the independence of an outside director;

 whether
 the related party transaction would present an improper conflict of interest for any director or executive officer of the Company,
 taking into account the size of the transaction, the overall financial position of the director, executive officer or the related
 party, the direct or indirect nature of the director's, executive officer's or the related party's interest in
 the transaction and the ongoing nature of any proposed relationship, and any other factors the Audit Committee deems relevant; and

 any
 pre-existing contractual obligations.

 The
following are the major related parties and their relationships with us:

 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

 As
of December 31, 2024, loan from a related party consists of the following:

 Loan
 from David Shan, opening balance

 $
 7,920,141

 Repayment

 2,373,593

 dividend declared

 -

 Loan
 from David Shan, ending balance

 $

 Non-current

 -

 Current

 $

 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 MdFirst 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 repayments of the loan from Mr. Shan for the next twelve months. Consequently,
the outstanding balance has been reclassified from non-current liabilities to current liabilities as of December 31, 2024.

 On
August 1, 2018, the Company signed a lease agreement with Miller Creek Holding LLC, a related party owned by Mr. Shan to rent the warehouse
and office space of total 220,000 square feet for a monthly rent of $40,000. The lease expired on July 31, 2021 and was renewed for another
three years, expiring on July 31, 2024, with monthly rent of $60,000. On August 1, 2024, the lease was further renewed for another five
years and expired on July 31, 2029 with monthly rent of $145,750. On April 29, 2023, the Company signed another lease agreement with
Miller Creek Holding LLC, a related party owned by the controlling shareholder, to rent the warehouse and office space of total 66,000
square feet for monthly rent of $35,000 used for its operation. The lease expires on April 30, 2026. On May 1, 2024, the Company signed
another two lease agreements with Miller Creek Holding LLC, a related party owned by the controller shareholder, to rent additional warehouse
and office space of 60,000 square feet and 30,000 square feet for monthly rent of $33,000 and $16,500 used for its operation, respectively.
The leases will expire on August 31, 2029. The Company also had multiple lease agreements for machinery, office equipment and vehicles.
The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

 The
Company recorded rent expense of $1,953,750 for the fiscal year ended December 31, 2024 respectively in connection with lease arrangements.

 In
connection with the Company's bank borrowing, Mr. Shan and Miller Creek Holdings LLC provided an unlimited guarantee to the Company's
bank loan.

 On January 3, 2024, Massimo Motor Sports signed a renewal agreement with
MidFirst Bank. Under the agreement, Mr. David Shan, the controlling shareholder, Miller Creek Holdings LLC and Massimo, the holding
company of Massimo Motor provided unlimited guarantee to the Company's bank loan. On May 13, 2024, the credit facility was closed
due to transferring to Cathay Bank ((1) above), and all guarantees were released and transferred to Cathay Bank.

 On May 13, 2024, the Company's subsidiary Massimo Motor Sports obtained
a line of credit from Cathay Bank, pursuant to which the Company has the availability to borrow a maximum $15.0 million out of this line
of credit for one year at the U.S. prime rate + 0.75%. Before then, the company had a line of credit of maximum $10.0 million from Midfirst
bank, which is cancelled upon the grant of the line of credit from Cathay Bank. As of December 31, 2024 and 2023, the outstanding balance
was $nil and $nil. This line of credit is also personally guaranteed by Mr. David Shan, the controlling shareholder. This line of credit
is pledged by the Company's accounts receivable, deposit accounts, equipment and inventories.

 Statement
of Policy

 All
future transactions between us and our officers, directors or five percent stockholders, and respective affiliates will be on terms no
less favorable than could be obtained from unaffiliated third parties and will be approved by a majority of our independent directors
who do not have an interest in the transactions and who had access, at our expense, to our legal counsel or independent legal counsel.

 To
the best of our knowledge, during the past three fiscal years, other than as set forth above, there were no material transactions, or
series of similar transactions, or any currently proposed transactions, or series of similar transactions, to which we were or are to
be a party, in which the amount involved exceeds $120,000, and in which any director or executive officer, or any security holder who
is known by us to own of record or beneficially more than 5% of any class of our common stock, or any member of the immediate family
of any of the foregoing persons, has an interest (other than compensation to our officers and directors in the ordinary course of business).

Independence

 Our
common stock is listed on Nasdaq. The listing rules of this stock exchange generally require that a majority of the members of a listed
company's Board of Directors, and each member of a listed company's audit, compensation and nominating and corporate governance
committees, be independent. Our Board of Directors has determined that Paolo Pietrogrande, Ting Zhu and Mark Sheffield do not have any
relationships that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director and such
directors are "independent" as that term is defined under the rules of Nasdaq and Rule 10A-3, described below.

 Audit
committee members must also satisfy the independence criteria set forth in Rule 10A-3 under the Exchange Act, subject to the transition
rule that is applicable to a newly public company. In order to be considered independent for purposes of Rule 10A-3, a member of an audit
committee of a listed company may not, other than in his or her capacity as a member of the audit committee, the Board of Directors,
or any other board committee accept, directly or indirectly, receive any consulting, advisory, or other compensatory fee from the listed
company or any of its subsidiaries or be an affiliated person of the listed company or any of its subsidiaries.

 Item
14. Principal Accountant Fees and Services.

 The
following is a summary of fees paid or to be paid to ZH CPA, LLC, our independent registered accounting firm ("ZH CPA"),
for services rendered.

 Audit
Fees

 Audit
fees consist of fees for professional services rendered for the audit of our year-end financial statements and services that are normally
provided by ZH CPA in connection with regulatory filings. The aggregate fees of ZH CPA for professional services rendered for the audit
of our annual financial statements and review of the financial for the fiscal years ended December 31, 2024 and 2023 totaled approximately
$300,000 and $295,000, respectively. The above amounts include interim procedures and audit fees, as well as attendance at audit committee
meetings.

 Audit-Related
Fees

 Audit-related
fees consist of fees billed for assurance and related services that are reasonably related to performance of the audit or review of our
financial statements and are not reported under "Audit Fees." These services include attest services that are not required
by statute or regulation and consultations concerning financial accounting and reporting standards. During the year ended December 31,
2024, we did not pay ZH CPA any audit-related fees.

 All
Other Fees

 We
did not pay ZH CPA for any other services for the years ended December 31, 2024 and 2023.

 Pre-Approval
Policy

 Our
audit committee was formed upon the consummation of our IPO. As a result, the audit committee did not pre-approve all of the foregoing
services, although any services rendered prior to the formation of our audit committee were approved by our Board of Directors. Since
the formation of our audit committee, and on a going-forward basis, the audit committee will pre-approve all auditing services and permitted
non-audit services to be performed for us by our auditors, including the fees and terms thereof (subject to the de minimis exceptions
for non-audit services described in the Exchange Act which are approved by the audit committee prior to the completion of the audit).

 PART
IV

 Item
15. Exhibit and Financial Statement Schedules.

 (a)

 The
 following documents are filed as part of this Report:

 (1)

 Consolidated
 Financial Statements

 Page

 Report of Independent Registered Public Accounting Firm PCAOB ID Number 6413

 Consolidated Balance Sheets as of December 31, 2024 and 2023

 Consolidated Statements of Operations and Comprehensive Income for the Years Ended December 31, 2024 and 2023

 Consolidated Statements of Changes in Shareholders' Equity for the Years Ended December 31, 2024 and 2023

 Consolidated Statements of Cash Flows for the Years Ended December 31, 2024 and 2023

 Notes to Consolidated Financial Statements

 - F-30

 (2)

 Consolidated
 Financial Statements Schedule

 All
financial statement schedules are omitted because they are not applicable or the amounts are immaterial and not required, or the required
information is presented in the financial statements and notes thereto beginning on page F-1 of this Report.

 (3)

 Exhibits

 We
hereby file as part of this Report the exhibits listed in the attached Exhibit Index. Exhibits that are incorporated herein by reference
can be inspected on the SEC website at www.sec.gov.

 Item
16. Form 10-K Summary.

 Not
applicable.

 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 To
the Shareholders and Board of Directors of

Group

 Opinion
on the Financial Statements

 We
have audited the accompanying consolidated balance sheets of Massimo Group and its subsidiaries (the "Company") as of December
31, 2024 and 2023, and the related consolidated statement of operations and comprehensive income, changes in shareholders' equity,
and cash flows for each of the years in the two-year period ended December 31, 2024 and the related notes (collectively referred to as
the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects,
the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the
years in the period ended December 31, 2024 in conformity with accounting principles generally accepted in the United States of America.

 Basis
for Opinion

 These
consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion
on the Company's consolidated financial statements based on our audits. We are a public accounting firm registered with the Public
Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company
in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission
and the PCAOB.

 We
conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.
The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part
of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing
an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

 Our
audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether
due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence
regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles
used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that our audits provide a reasonable basis for our opinion.

 /s/ ZH CPA, LLC

 We have served as the Company's auditor since
 2022.

 Denver, Colorado

 March 26, 2025

18 th Street, Suite 3000, Denver, CO, 80202 USA Phone: 1.303.386.7224 Fax: 1.303.386.7101 Email: admin@zhcpa.us

 F- 1

 CONSOLIDATED
BALANCE SHEETS

 AS OF DECEMBER 31, 2024
AND 2023

 2024

 2023

 As of December 31,

 2024

 2023

 ASSETS

 CURRENT ASSETS

 Cash and cash equivalents

 $
 10,210,084

 $

 Accounts receivable, net

 6,589,038

 9,566,445

 Inventories, net

 27,258,640

 25,800,912

 Advance to suppliers

 99,076

 1,589,328

 Due from a related party

 8,576

 -

 Prepaid and other current assets

 1,220,432

 637,509

 Total current assets

 45,385,846

 38,360,008

 NON-CURRENT ASSETS

 Property and equipment at cost, net

 532,259

 399,981

 Right of use operating lease assets, net

 9,485,899

 1,478,221

 Right of use financing lease assets, net

 71,801

 113,549

 Deferred offering costs

 -

 1,457,119

 Other non-current assets

 49,500

 -

 Deferred tax assets

 1,166,451

 134,601

 Total non-current assets

 11,305,910

 3,583,471

 TOTAL ASSETS

 $
 56,691,756

 $
 41,943,479

 LIABILITIES AND EQUITY

 CURRENT LIABILITIES

 Short-term loans

 $
 -

 $

 Accounts payable

 9,572,444

 10,334,208

 Other payable, accrued expenses and other current liabilities

 6,169,193

 2,441,966

 Accrued return liabilities

 261,588

 283,276

 Accrued warranty liabilities

 503,553

 619,113

 Contract liabilities

 449,999

 1,835,411

 Current portion of obligations under operating leases

 2,119,894

 847,368

 Current portion of obligations under financing leases

 43,421

 41,647

 Income tax payable

 1,482,203

 2,121,083

 Loan from a related party

 -

 Total current liabilities

 26,148,843

 18,827,655

 NON-CURRENT LIABILITIES

 Obligations under operating leases, non-current

 7,412,693

 630,853

 Obligations under financing leases, non-current

 33,602

 77,024

 Loan from a related party

 -

 7,920,141

 Total non-current liabilities

 7,446,295

 8,628,018

 TOTAL LIABILITIES

 $
 33,595,138

 $
 27,455,673

 Commitments and Contingencies

 -

 -

 EQUITY

 Common shares, $ 0.001 par value, 100,000,000 shares authorized, 41,539,950 and 40,000,000 issued and outstanding as of December 31, 2024 and 2023, respectively

 41,539

 40,000

 Subscription receivable

 -

 ( 832,159
)

 Additional paid-in-capital

 6,614,907

 1,994,000

 Retained earnings

 16,440,172

 13,285,965

 Total equity

 23,096,618

 14,487,806

 TOTAL LIABILITIES AND EQUITY

 $
 56,691,756

 $
 41,943,479

 The
accompanying notes are an integral part of these consolidated financial statements.

 F- 2

 CONSOLIDATED
STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

 FOR
THE YEARS ENDED DECEMBER 31, 2024 AND 2023

 2024

 2023

 For the Years Ended

 2024

 2023

 Revenues

 $
 111,209,142

 $
 115,037,544

 Cost of revenues

 76,865,803

 79,126,454

 Gross profit

 34,343,339

 35,911,090

 Operating expenses:

 Selling expense

 9,804,547

 9,761,090

 General and administrative

 16,610,528

 13,227,106

 Impairment of advance to suppliers

 772,780

 -

 Research and development

 343,493

 -

 Total operating expenses

 27,531,348

 22,988,196

 Income from operations

 6,811,991

 12,922,894

 Other income (expense):

 Other income, net

 1,110,837

 140,866

 Loss on litigation

 ( 3,645,092
)

 -

 Interest expense

 ( 98,667
)

 ( 518,731
)

 Total other (expense) income, net

 ( 2,632,922
)

 ( 377,865
)

 Income before income taxes

 4,179,069

 12,545,029

 Provision for income taxes

 1,024,862

 2,129,804

 Net income and comprehensive income

 $

 $

 Earnings per Share – basic

 $
 0.08

 $
 0.26

 Weighted average shares outstanding – basic

 41,010,654

 Earnings per Share – diluted

 $
 0.08

 $
 0.26

 Weighted average shares outstanding – diluted

 41,161,849

 The
accompanying notes are an integral part of these consolidated financial statements.

 F- 3

 CONSOLIDATED
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

 FOR
THE YEARS ENDED DECEMBER 31, 2024 AND 2023

 Shares

 Receivable

 Earnings

 Total

 Common Share

 Subscription

 Additional
 Paid-in

 Retained

 Shares

 Receivable

 Earnings

 Total

 Balance at December 31, 2022

 $
 40,000

 $
 ( 2,034,000
)

 $
 1,994,000

 $
 5,070,740

 $
 5,070,740

 Subscription received

 –

 –

 1,201,841

 –

 –

 1,201,841

 Capital dividend declared

 –

 –

 –

 –

 ( 2,200,000
)

 ( 2,200,000
)

 Net income

 –

 –

 –

 –

 Balance at December 31, 2023

 $
 40,000

 $
 ( 832,159
)

 $
 1,994,000

 $
 13,285,965

 $
 14,487,806

 Balance

 $
 40,000

 $
 ( 832,159
)

 $
 1,994,000

 $
 13,285,965

 $
 14,487,806

 Subscription received

 –

 –

 832,159

 88,172

 –

 920,331

 Initial public offering, net of share issuance costs

 1,300,000

 1,300

 –

 3,337,941

 –

 3,339,241

 Common stock issued for services

 22,485

 –

 79,978

 –

 80,000

 Common stock issued upon vesting of RSUs

 226,334

 –

 ( 226
)

 –

 –

 Amortization of share-based compensation related to options granted

 –

 –

 –

 224,190

 –

 224,190

 Amortization of share-based compensation related to RSU granted

 –

 –

 –

 922,399

 –

 922,399

 Common stock cancelled for services

 ( 8,869
)

 ( 9
)

 –

 ( 31,547
)

 –

 ( 31,556
)

 Net income

 –

 –

 –

 –

 Balance at December 31, 2024

 41,539,950

 $
 41,539

 $
 -

 $
 6,614,907

 $
 16,440,172

 $
 23,096,618

 Balance

 41,539,950

 $
 41,539

 $
 -

 $
 6,614,907

 $
 16,440,172

 $
 23,096,618

 The
accompanying notes are an integral part of these consolidated financial statements.

 F- 4

 CONSOLIDATED
STATEMENTS OF CASH FLOWS

 FOR THE YEARS ENDED DECEMBER 31, 2024
AND 2023

 2024

 2023

 Year Ended December 31,

 2024

 2023

 Cash flows from operating activities:

 Net income

 $

 $

 Adjustments to reconcile net income to net cash provided by operating activities:

 Depreciation

 129,598

 151,512

 Non-cash operating lease expense

 1,580,173

 974,973

 Amortization of finance lease right-of-use assets

 41,748

 42,113

 Write-off of accounts receivable

 -

 598,434

 (Reversal of) provision of allowance for expected credit loss

 ( 52,169
)

 203,301

 Gain on disposal of property and equipment

 ( 36,001
)

 ( 15,777
)

 Addition of inventories reserve, net

 30,000

 439,900

 Impairment of advance to suppliers

 772,780

 Loss on litigation

 3,645,092

 –

 Amortization of share-based compensation related to options granted

 224,190

 –

 Amortization of share-based compensation related to RSU granted

 922,399

 –

 Common stock issued for services

 48,444

 Deferred income tax recovery

 ( 1,031,850
)

 ( 134,601
)

 Changes in operating assets and liabilities:

 Accounts receivable

 3,029,576

 ( 3,536,449
)

 Inventories

 ( 1,487,728
)

 ( 2,477,862
)

 Advance to suppliers

 717,472

 1,388,084

 Prepaid and other current assets

 ( 632,423
)

 ( 566,370
)

 Due from a related party

 ( 8,576
)

 –

 Accounts payables

 ( 761,764
)

 1,356,453

 Other payable, accrued expense and other current liabilities

 82,135

 ( 303,959
)

 Tax payable

 ( 638,880
)

 2,121,083

 Accrued warranty liabilities

 ( 115,560
)

 358,582

 Accrued return liabilities

 ( 21,688
)

 ( 273,262
)

 Contract liabilities

 ( 1,385,412
)

 1,139,137

 Lease liabilities – operating lease

 ( 1,533,485
)

 ( 974,973
)

 Net cash provided by operating activities

 6,672,278

 10,905,544

 Cash flows from investing activities:

 Proceed from sales of property and equipment

 162,001

 13,500

 Acquisition of property and equipment

 ( 387,876
)

 ( 134,662
)

 Net cash used in investing activities

 ( 225,875
)

 ( 121,162
)

 Cash flows from financing activities:

 Proceeds from bank loan

 -

 3,150,000

 Repayment of bank loan

 -

 ( 8,750,000
)

 (Repayment of) proceeds from other loans

 ( 303,583
)

 Repayment of finance lease liabilities

 ( 41,648
)

 ( 40,003
)

 Repayment to related party

 -

 ( 142,427
)

 Deferred offering costs

 ( 246,890
)

 ( 825,330
)

 Repayment of shareholder advance, net

 ( 2,373,593
)

 ( 5,264,203
)

 Proceeds from initial public offering, net of share issuance costs

 5,043,250

 -

 Proceeds from subscription deposits

 920,331

 601,841

 Net cash provided by (used in) financing activities

 2,997,867

 ( 10,966,539
)

 Net decrease in cash and cash equivalents

 9,444,270

 ( 182,157
)

 Cash and cash equivalents, beginning of the year

 947,971

 Cash and cash equivalents, end of the year

 $
 10,210,084

 $

 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

 Cash paid for interest

 $
 98,667

 $
 518,731

 Cash paid for income taxes

 $
 2,695,591

 $
 143,322

 NON-CASH ACTIVITIES

 Right of use assets obtained in exchange for operating lease obligations

 $
 9,587,851

 $
 1,113,140

 Right of use assets obtained in exchange for finance lease

 $
 -

 $
 60,805

 Common shares cancellation

 $
 31,556

 $
 -

 The
accompanying notes are an integral part of these consolidated financial statements.

 F- 5

 NOTES

 NOTE
1 — ORGANIZATION AND BUSINESS DESCRIPTION

Group (the "Company"), is a holding company established on October 10, 2022 under the laws of the State of Nevada. The Company,
through its subsidiaries, is primarily engaged in the manufacturing and sales of a wide selection of farm and ranch tested utility terrain
vehicles ("UTVs"), recreational all-terrain vehicles ("ATVs"), and pontoon and tritoon boats ("Pontoon
Boats"). On April 4, 2024, the Company closed its initial public offering ("IPO") of 1,300,000 shares of its common
stock at an IPO price of $ 4.50 per share for aggregate gross proceeds of approximately $ 5.85 million from the offering (Note 15). In
connection with the offering, the Company's common shares began trading on the Nasdaq Capital Market under the trading symbol "MAMO."
Mr. David Shan, the Chairman of the Board and Chief Executive Officer ("CEO"), is the controlling shareholder (the "controlling
shareholder") of the Company who owns 77.3 % equity interest of Massimo Group as of December 31, 2024.

 Reorganization

 On
June 1, 2023, the two shareholders transferred their 100 % equity interest in Massimo Motor Sports, LLC ("Massimo Motor Sports")
and 100 % equity interest in Massimo Marine, LLC ("Massimo Marine") to Massimo Group (the "Reorganization"). After
this Reorganization, Massimo Group ultimately owns 100 % equity interests of Massimo Motor Sports and Massimo Marine.

 Before
and after the Reorganization, the Company, together with its subsidiaries, is effectively controlled by the same controlling shareholders,
and therefore the Reorganization is considered as a recapitalization of entities under common control in accordance with Accounting Standards
Codification ("ASC") 805-50-25. The consolidation of the Company and its subsidiaries have been accounted for at historical
cost and prepared on the basis as if the aforementioned transactions had become effective as of the beginning of the first period presented
in the accompanying consolidated financial statements in accordance with ASC 805-50-45-5.

 Details
of the Company and its subsidiaries are set out below upon the Reorganization:

 SCHEDULE OF SUBSIDIARIES

 Subsidiaries

 Date of
 Incorporation

 Jurisdiction of
 Formation

 Percentage of
 direct/indirect
 Economic
 Ownership

 Principal
 Activities

 Massimo Group

 October 10, 2022

 Nevada

 Holding company

 Massimo Motor Sports, LLC

 June 30, 2009

 Texas

 %

 Manufacture of UTVs and ATVs

 Massimo Marine, LLC

 January 6, 2020

 Texas

 %

 Manufacture of Pontoon Boats

 On
June 1, 2023, the Company entered into two agreements with Asian International Securities Exchange Co., Ltd. ("AISE") and
AISE agreed to invest $ 1 million to Massimo Motor Sports and $ 1 million to Massimo Marine to exchange their 15 % of equity interest respectively.
After Reorganization, the 15 % of equity interest in Massimo Motor Marine and Massimo Marine owned by AISE have been exchanged to 15 %
of equity interest in Massimo Group.

 F- 6

 NOTES

 NOTE
2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 Basis
of Presentation and Principles of Consolidation

 The
accompanying consolidated financial statements, which include the accounts of Massimo Group and its wholly owned subsidiaries, have been
prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). All intercompany balances
and transactions have been eliminated in consolidation.

 Comparative Figures

 A payable of $ 2,343,869 to a supplier related to a litigation (Note 11)
has been reclassified from accounts payable to other payables, accrued expenses and other current liabilities as of December 31, 2023
to confirm the current year's presentation. This reclassification had no impact on the Company's operating results or financial position
for the respective years.

 Uses
of estimates and assumptions

 In
preparing the consolidated financial statements in conformity with U.S. GAAP, management makes estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenses during the reporting period. These estimates are based on information as of the date
of the consolidated financial statements. Significant accounting estimates required to be made by management include allowance for inventories,
allowance for credit losses, sales return liabilities, warranty costs and the assessment and the disclosure of contingency liabilities.
The Company evaluates its estimates and assumptions on an ongoing basis and its estimates on historical experience, current and expected
future conditions and various other assumptions that management believes are reasonable under the circumstances based on the information
available to management at the time these estimates and assumptions are made. Actual results and outcomes may differ significantly from
these estimates and assumptions.

 Cash
and cash equivalents

 Cash
and cash equivalents consist of cash on hand, the balances with banks and the liquid investments with maturities of three months or less.
The Company maintains all its bank accounts in the United States, maximum amounts of $ 597,877 and $ 435,457 are insured by Federal Deposit
Insurance Corporation ("FDIC") as of December 31, 2024 and 2023, respectively.

 Accounts
receivable, net

 Accounts
receivable represent trade receivable and are recognized initially at fair value and subsequently adjusted for any allowance for expected
credit loss. The Company grants credit to customers, without collateral, under normal payment terms. The Company uses a loss rate method
to estimate the allowance for credit losses. The Company evaluates the expected credit loss of accounts receivable based on customer
financial condition and historical collection information adjusted for current market economic conditions and forecasts of future economic
performance when appropriate. Loss-rate approach is based on the historical loss rates and expectations of future conditions. The Company
writes off potentially uncollectible accounts receivable against the allowance for credit losses if it is determined that the amounts
will not be collected.

 F- 7

 NOTES

 NOTE

 Inventories,
net

 Inventories
are stated at the lower of cost or net realizable value, using the first-in, first out (FIFO) method. Costs include the cost of raw materials,
freight and duty. Any excess of the cost over the net realizable value of each item of inventories is recognized as a provision for diminution
in the value of inventories. Net realizable value is estimated using selling price in the normal course of business less any costs to
complete and sell products. As of December 31, 2024 and 2023, the Company had inventory provision of $ 469,900 and $ 439,900, included
in inventories, net in the consolidated balance sheet. Impairment provision of inventories were $ 30,000 and $ 439,900 for the years ended
December 31, 2024 and 2023, respectively, included in cost of revenues in the consolidated statement of operations and comprehensive
income.

to suppliers

to suppliers consists of balances paid to suppliers for purchasing of products, parts and accessories that have not been provided or
received. Advances to suppliers are short-term in nature and are reviewed periodically to determine whether their carrying value has
become impaired. The Company evaluated the carrying value of individual advances based on specifics facts and circumstances for any impairment
at each reporting date. For the years ended December 31, 2024 and 2023, the Company recorded the impairment loss of $ 772,780 and $ nil
respectively on its advance to suppliers in connection of an expected settlement between the Company and one supplier during the year.

 Deferred
offering cost

 Deferred
offering costs were expenses directly related to the Company's IPO. These costs consisted of legal, accounting, printing, and filing
fees that the Company capitalized. The deferred offering costs are reclassified to additional paid-in capital upon receipts of the capital
raised at IPO closing date.

 Property
and equipment

 Property
and equipment are recorded at cost. Depreciation is provided in amounts sufficient to amortize the cost of the related assets over their
useful lives using the straight-line method, as follows:

 SCHEDULE OF PROPERTY AND EQUIPMENT USEFUL LIFE

 Useful
 life

 Furniture
 and fixtures

 5 - 7
 years

 Machinery
 equipment

 5 - 7
 years

 Electronic
 equipment

 years

 Transportation
 equipment

 years

 Leasehold
 improvement

 Over
 the shorter of the lease term or estimated useful lives ( 3 - 5 years)

 Expenditures
for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures
for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated
depreciation of assets retired or sold are removed from the respective accounts, and any gains or losses on disposals are determined
by comparing proceeds with carrying amount and are recognized within "other income (expense)" in the consolidated statements
of operations and comprehensive income.

 F- 8

 NOTES

 NOTE

 Leases

 The
Company adopted Accounting Standards Update ("ASU") No. 2016-02—Leases (Topic 842) since January 1, 2020, using a modified
retrospective transition method permitted under ASU No. 2018-11. This transition approach provides a method for recording existing leases
only at the date of adoption and does not require previously reported balances to be adjusted. The Company evaluates the contracts it
enters into to determine whether such contracts contain leases. A contract contains a lease if the contract conveys the right to control
the use of identified property or equipment for a period of time in exchange for consideration. At commencement, contracts containing
a lease are further evaluated for classification as an operating or finance lease where the Company is a lessee.

Leases

 For
operating leases, the Company measures its lease liabilities based on the present value of the total lease payments not yet paid discounted
based on the more readily determinable of the rate implicit in the lease or its incremental borrowing rate, which is the estimated rate
the Company would be required to pay for a collateralized borrowing equal to the total lease payments over the term of the lease. As
most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information
available at commencement date in determining the present value of future payments. The Company measures right-of-use ("ROU")
assets based on the corresponding lease liability adjusted for payments made to the lessor at or before the commencement date, and initial
direct costs it incurs under the lease. The Company begins recognizing lease expense when the lessor makes the underlying asset available
to the Company.

 Lease
cost for operating leases includes the amortization of the ROU asset and interest expense related to the operating lease liability. For
leases with lease term less than one year (short-term leases), the Company records operating lease expense in its consolidated statements
of operations on a straight-line basis over the lease term and record variable lease payments as incurred.

 Finance
Leases

 Lease
cost for finance leases where the Company is the lessee includes the amortization of the ROU asset, which is amortized on a straight-line
basis and recorded to "Depreciation of right-of-use finance asset" and interest expense on the finance lease liability, which
is calculated using the interest method and recorded to "Interest expense, net." Finance lease ROU assets are amortized over
the shorter of their estimated useful lives or the terms of the respective leases, including periods covered by renewal options that
the Company is reasonably certain of exercising.

 Impairment
of long-lived assets

 Long-lived
assets, primarily consist of property and equipment, are evaluated for impairment whenever events or changes in circumstances (such as
a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount may
not be fully recoverable or that the useful life is shorter than the Company had originally estimated. When these events occur, the Company
evaluates the impairment by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be
generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less
than the carrying value of the assets, the Company recognizes an impairment loss based on the excess of the carrying value of the assets
over the fair value of the assets. No impairment charge was recognized for the years ended December 31, 2024 and 2023, respectively.

 F- 9

 NOTES

 NOTE

 Fair
value of financial instruments

 ASC
825-10 requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would
be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement
date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize
the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as
follows:

 Level
 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

 Level
 2 — inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted
 market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable
 and inputs derived from or corroborated by observable market data.

 Level
 3 — inputs to the valuation methodology are unobservable.

 Unless
otherwise disclosed, the fair value of the Company's financial instruments, including cash and cash equivalents, accounts receivables,
other receivable included in other current assets, loan from a related party, accounts payable, other payable, accrued expense and other
liabilities, contract liabilities, approximates their recorded values due to their short-term maturities. The Company determined that
the carrying value of the lease liabilities approximated their fair value as the interest rates used to discount the contracts approximate
market rates. The Company noted no transfers between levels during any of the periods presented. The Company did not have any instruments
that were measured at fair value on a recurring nor non-recurring basis as of December 31, 2024 and 2023.

recognition

 The
Company adopted ASC Topic 606, "Revenue from Contracts with Customers". The core principle of the guidance is that an entity
should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration
to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, the Company applies
the following steps:

 Step
1: Identify the contract(s) with a customer

 Step
2: Identify the performance obligations in the contract

 Step
3: Determine the transaction price

 Step
4: Allocate the transaction price to the performance obligations in the contract

 Step
5: Recognize revenue when (or as) the entity satisfies a performance obligation

 The
Company's revenue is generated primarily by sales of UTVs, ATVs, electric bikes ("e-bikes"), and Pontoon Boats.
Revenue represented the amount of consideration to which the Company expects to be entitled in exchange for promised goods. Revenue
is recorded when performance obligations are considered to be satisfied when control is transferred to our customers. For sales made
through our e-commerce platform, revenue is recorded upon delivery and customer acceptance. For direct sales and consignment sales, revenue is recognized
when goods leave the warehouse and when customers pick up goods in stores, respectively.

 F- 10

 NOTES

 NOTE

 Sales
returns

 The
Company provides a refund policy to accept returns from end customers, which varies and depends on different products and customers.
The estimated sales returns are determined based upon an analysis of historical sales returns. Return allowances are recorded as a reduction
in sales with corresponding sales return liabilities which are included in "accrued return liabilities." The estimated cost
of returned inventory is recorded as a reduction to cost of sales and an increase of right of return assets which is included in "inventories."
The factors affecting the Company's sales return liabilities include the number of products currently within the return period,
historical and anticipated rates of sales returns claimed on those products, and the estimated amount of returns that may be claimed
within this period. If actual results differ from the estimates, the Company revises its estimated sales returns liability accordingly.
Each period end, the Company reviews and reassesses the adequacy of its recorded sales returns liabilities and adjusts the amounts as
necessary. As of December 31, 2024 and 2023, $ 261,588 and $ 283,276 of sales return liabilities associated with estimated product returns
were recorded in the consolidated balance sheet, respectively. During the years ended December 31, 2024 and 2023, the Company recorded
sales returns of $ 1,061,694 and $ 3,355,112 respectively.

 Products
warranty

 The
Company generally provides a one-year limited warranty against defects in materials related to the sale of products. The Company considers
the warranty as an assurance type warranty since the warranty provides the customers the assurance that the product complies with agreed-upon
specifications. Estimated future warranty obligations are included in cost of product sales in the period in which the related revenue
is recognized. The factors affecting the Company's warranty include the number of products currently under warranty, historical
and anticipated rates of warranty claim on those products, and the estimates of repair and replacement costs to satisfy the Company's
warranty obligation. The anticipated rate of warranty claims is the primary estimate used in determining the warranty liability and is
relatively predictable using historical experience of failure rates. The average remaining aggregate warranty period of the products
sold is calculated, repair parts are generally already in stock or available at pre-determined prices, and labor rates are generally
arranged at pre-established amount with service providers. If actual results differ from the estimates, the Company revises its estimated
warranty liability. Each quarter, the Company reevaluates its estimates and assess the adequacy of its recorded warranty liabilities
and adjust the amounts as necessary. As of December 31, 2024 and 2023, $ 503,553 and $ 619,113 of product warranty were recorded in the
consolidated balance sheet, respectively. During the years ended December 31, 2024 and 2023, the Company recorded warranty expenses of
$ 1,274,037 and $ 1,924,203, respectively.

 Contract
liabilities

 The
contract liabilities of the Company are primarily related to advances received from customer. The contract liabilities are reported in
a net position on a customer-by-customer basis at the end of each reporting period. Contract liabilities are recognized when the Company
receives prepayment from customers resulting from purchase order. Contract liabilities will be recognized as revenue when the products
are delivered. As of December 31, 2024 and 2023, the Company recorded contract liabilities of $ 449,999 and $ 1,835,411, respectively,
which will be recognized as revenue upon delivery of the products sold. For the years ended December 31, 2024 and 2023, the amounts transferred
from contract liabilities to revenue at the beginning of the fiscal period were $ 1,158,440 and $ 696,274, respectively.

 Disaggregation
of revenues

 The
Company disaggregates its revenue from contracts by products, as the Company believes it best depicts how the nature, amount, timing
and uncertainty of the revenue and cash flows are affected by economic factors. The Company's disaggregation of revenues for the
years ended December 31, 2024 and 2023 is disclosed in Note 19 of these consolidated financial statements.

 F- 11

 NOTES

 NOTE

 Cost
of revenues

 Cost
of revenues includes all of the costs and expenses directly related to the production of goods and services included in revenues. Cost
of revenues primarily consists of cost of products, freight and duty allocated and warehouse related overhead, such as salaries and benefits,
rent, warehouse supplies and depreciation expenses.

 The
freights and duty costs incurred when shipping raw materials from suppliers to the Company are included in cost of revenues, amounting
to $ 11,385,278 and $ 8,773,647 for the years ended December 31, 2024 and 2023, respectively.

 Shipping
and handling costs

 Shipping
and handling costs, which include costs related to the selection of products and their delivery to customers, are presented in selling
expenses. The shipping and handling costs incurred upon goods delivery to customers are $ 6,282,588 and $ 4,933,810 for the years ended
December 31, 2024 and 2023, respectively.

 Advertising
costs

 The
Company expenses all advertising costs as incurred. Advertising costs presented in selling expenses were $ 569,757 and $ 768,671 for the
years ended December 31, 2024 and 2023, respectively.

 401(k)
benefit plan

 The
401(k) benefit plan covers substantially all employees and allows voluntary employee contributions up to the annually adjusted Internal
Revenue Service dollar limit. These voluntary contributions are matched equal to 100 % of the employee's compensation contributed
and not to exceed 4 % of the total eligible compensation. The employees' voluntary contributions and the Company's matching
contributions are 100 % vested immediately. The Company adopted the 401(k) benefit plan from March 2022.

taxes

 Before
the Reorganization, the Company elected to be taxed as an S Corporation for federal and state income tax purposes. As an S Corporation,
the Company is not subject to federal income tax and state tax in Texas. As such, shareholders are taxed on their pro rata share of earnings
and deductions of the Company, regardless of the amount of distributions received. After the Reorganization, the Company is subjected
to U.S. federal income tax at 21 % and the margin tax in the state of Texas.

tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred
tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of
assets and liabilities computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount
expected to be realized.

 F- 12

 NOTES

 NOTE

taxes (continued)

 The
Company accounts for uncertain tax positions in accordance with Financial Accounting Standards Board ("FASB") ASC Topic No.
740, "Accounting for Uncertainty in Income Taxes." A tax position is recognized as a benefit only if it is "more likely
than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount
recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not
meeting the "more likely than not" test, no tax benefit is recorded.

 Significant
judgment is also required in evaluating the Company's uncertain income tax positions and provisions for income taxes. Liabilities
for uncertain income tax positions are recognized based on a two-step approach. The first step is to evaluate whether an income tax position
has met the recognition threshold by determining if the weight of available evidence indicates that it is more likely than not to be
sustained upon examination. The second step is to measure the income tax position that has met the recognition threshold as the largest
amount that is more than 50% likely of being realized upon settlement. The Company continually assesses the likelihood and amount of
potential adjustments and adjusts the income tax provisions, income taxes payable and deferred income taxes in the period in which the
facts that give rise to a revision become known. The Company recognizes interest and penalties related to uncertain income tax positions
as interest expense.

 Earnings
per share

 The
Company computes earnings per share ("EPS") in accordance with ASC 260, "Earnings per Share" ("ASC 260").
ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided
by the weighted average common shares outstanding for the period. Diluted presents the dilutive effect on a per share basis of potential
common shares (e.g., Restricted Stock Units ("RSU"), options and warrants) as if they had been converted at the beginning
of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase
income per share or decrease loss per share) are excluded from the calculation of diluted EPS. For the years ended December 31, 2024
and 2023, a total of 101,000 and nil unvested RSU were included in the computation of weighted average number of common shares for the
calculation of diluted EPS.

 Stock-based
compensation

 The
Company follows the provisions of ASC 718, "Compensation - Stock Compensation" ("ASC 260"), which establishes
the accounting for employee share-based awards. For employee share-based awards, stock-based compensation cost is measured at the grant
date based on the fair value of the award and is recognized as expense with graded vesting on a straight-line basis over the requisite
service period for the entire award.

 Segment
reporting

 The
Company follows ASC 280, "Segment Reporting. " The Company's Chief Executive Officer or chief operating decision-maker
reviews the consolidated financial results when making decisions about allocating resources and assessing the performance of the Company
as a whole and hence, the Company has only one reportable segment. The Company operates and manages its business as a single segment.
As the Company's long-lived assets are all located in the United States and substantially all the Company's revenues are
derived from within the United States, no geographical segments are presented.

 F- 13

 NOTES

 NOTE

 Concentration
and risks

 a.
Concentration of credit risk

 Assets
that potentially subject the Company to a significant concentration of credit risk primarily consist of cash and cash equivalents, accounts
receivable and other receivable included in other current assets. The maximum exposure of such assets to credit risk is their carrying
amounts at the balance sheet dates. The Company maintains all the bank accounts at financial institutions in the United States, where
there is $ 250,000 standard deposit insurance coverage limit per depositor, per FDIC-insured bank and per ownership category. As of December
31, 2024, balances of two banks in Massimo Motor Sports exceeded the insured limits by $ 147,954 and $ 9,457,067, respectively. As of December
31, 2023, balances of one bank in Massimo Motor Sports exceeded the insured limits by $ 330,357.

 To
limit the exposure to credit risk relating to deposits, the Company primarily places cash deposits with large financial institutions
in the United States. The Company conducts credit evaluations of its customers and generally does not require collateral or other security
from them. The Company establishes an accounting policy to provide for current expected credit losses based on the individual customer's
financial condition, credit history, and the current economic conditions.

 b.
Foreign Exchange Risk

 Most
of our raw materials are imported from China. The value of the Chinese Yuan against the U.S. dollar is affected by the changes in China
and United States economic conditions. We do not believe that we currently have any significant direct foreign exchange risk and have
not used any derivative financial instruments to hedge exposure to such risk.

 c.
Interest Rate Risk

 Interest
rate risk is the risk that future cash flows will fluctuate as a result of changes in market interest rates. Our exposure to interest
rate risk primarily relates to the interest rates from our lessors and our borrowings with banks. The related party loan bears no interest.
Our leasing obligations' interest rates are fixed at the commencement date of the leases. We have not been exposed to material
risks due to the fact that our borrowing from the bank is not significant. And we have not used any derivative financial instruments
to manage our interest risk exposure. However, we cannot provide assurance that we will not be exposed to material risks due to changes
in market interest rate in the future.

 d.
Liquidity Risk

 Liquidity
risk arises through the excess of financial obligations over available financial assets due at any point in time. Our objective in managing
liquidity risk is to maintain sufficient readily available reserves in order to meet our liquidity requirements at any point in time.
We achieve this by maintaining sufficient cash and banking facilities.

 F- 14

 NOTES

 NOTE

 Concentration
and risks (continued)

 e.
Significant customers

 For
the years ended December 31, 2024 and 2023, one and one customer accounted for 66 % and 41 % of the Company's total revenues, respectively.

 As
of December 31, 2024 and 2023, one and one customer accounted for 68 % and 86 % of the Company's total accounts receivable.

 f.
Significant suppliers

 For
the year ended December 31, 2024, two suppliers individually accounted for 54 % and 18 % of the Company's total purchases respectively.
For the year ended December 31, 2023, three suppliers individually accounted for 48 %, 19 % and 14 % of the Company's total purchases
respectively.

 As
of December 31, 2024, two suppliers individually accounted for 33 %
 and 18 %
 of the Company's total accounts payable,
respectively. As of December 31, 2023, two suppliers individually accounted 41 %
and 19 %
of the Company's total accounts payable, respectively.

 Recent
accounting pronouncements

 The
Company considers the applicability and impact of all ASUs. Management periodically reviews new accounting standards that are issued.

 The
Jumpstart Our Business Startups Act provides that an emerging growth company ("EGC") as defined therein can take advantage
of an extended transition period for complying with new or revised accounting standards. This allows an EGC to delay adoption of certain
accounting standards until those standards would otherwise apply to private companies. The Company has adopted the extended transition
period.

 In
December 2023, the FASB issued ASU No. 2023-09, "Improvements to Income Tax Disclosures" (Topic 740). The ASU requires disaggregated
information about a reporting entity's effective tax rate reconciliation as well as additional information on income tax paid.
The ASU is effective on a prospective basis for annual periods beginning after December 15, 2025. Early adoption is also permitted for
annual financial statements that have not yet been issued or made available for issuance. This ASU will likely result in the required
additional disclosures being included in the Company's consolidated financial statements, once adopted.

 In
November 2024, the FASB issued ASU No. 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation
Disclosures, which requires disaggregated disclosure of certain costs and expenses, including purchases of inventory, employee compensation,
depreciation, amortization, and depletion, within relevant income statement captions. The guidance is effective for fiscal years beginning
after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The
Company is currently evaluating this ASU to determine the impact of adoption on its consolidated financial statements and related disclosures.

 The
Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material
effect on the Company's consolidated balance sheets, statements of income and comprehensive income and statements of cash flows.

 F- 15

 NOTES

 NOTE
3 — ACCOUNTS RECEIVABLE, NET

 Accounts
receivable consists of the following:

 SCHEDULE OF ACCOUNTS RECEIVABLE

 Accounts receivable

 $
 7,094,229

 $
 10,123,805

 Less: allowance for credit loss

 ( 505,191
)

 ( 557,360
)

 Accounts receivable, net

 $
 6,589,038

 $
 9,566,445

 The
Company recorded a reversal of allowance for credit loss of $ 52,169 and an addition of allowance for credit loss of $ 203,301 for the
years ended December 31, 2024 and 2023, respectively. The Company wrote off uncollectible accounts receivable of $ nil and $ 598,434 from
one customer for the years ended December 31, 2024 and 2023, respectively.

 The
movement of allowance for credit loss are as follow:

OF MOVEMENT OF ALLOWANCE FOR CREDIT LOSS

 Beginning
 balance

 $

 557,360

 $

 354,059

 (Reversal
 of) addition of provision

 ( 52,169

)

 203,301

 Ending
 balance

 $

 505,191

 $

 557,360

 The
Company's accounts receivable balances as of December 31, 2024 and 2023 are pledged for its line of credit facility at Cathay Bank
and Midfirst Bank (See Note 12).

 NOTE
4 — INVENTORIES

 Inventories
consist of the following:

 SCHEDULE OF INVENTORIES

 Products and accessories

 $
 18,001,768

 $
 16,777,928

 Parts

 1,113,872

 899,188

 Inventories in transit

 4,861,016

 5,399,964

 Freight and duty

 3,751,884

 3,163,732

 Inventory, gross

 27,728,540

 26,240,812

 Less: inventory allowance

 ( 469,900
)

 ( 439,900
)

 Inventories, net

 $
 27,258,640

 $
 25,800,912

 F- 16

 NOTES

 NOTE
4 — INVENTORIES (continued)

 The
movement of inventory allowance are as follow:

OF INVENTORY ALLOWANCE

 Beginning balance

 $
 439,900

 $
 -

 Addition of provision

 30,000

 439,900

 Ending balance

 $
 469,900

 $
 439,900

 Impairment
provision of inventories recorded for lower of cost or net realizable value adjustments were $ 30,000 and $ 439,900 for the years ended
December 31, 2024 and 2023, respectively.

 The
inventories which are pledged for the Company's line of credit facility at Cathay Bank/Midfirst Bank are $ 21,606,371 and $ 19,961,227
as of December 31, 2024 and 2023, respectively (See Note 12).

 NOTE
5 — ADVANCE TO SUPPLIERS

to suppliers consist of the following:

OF ADVANCE TO SUPPLIERS

 to suppliers

 $

 871,856

 $

 1,589,328

 Less:
 impairment of advance to suppliers

 ( 772,780

)

 -

 to suppliers, net

 $

 99,076

 $

 1,589,328

 An
impairment of advance to suppliers of $ 772,780 and $ nil was recorded during the years ended December 31, 2024 and 2023.

 In
June 2024, we reached a tentative agreement regarding general settlement terms with one supplier who would use approximately $ 312,500
to resolve the claim. Therefore, we wrote off $ 772,780 advance to the suppliers, reducing it from $ 1,085,280 to $ 312,500. The settlement
agreement was finalized in August 2024, and relative payment was received in October 2024. During the year ended December 31, 2023, we
had no impairment of advance to suppliers.

 NOTE
6 — PREPAID AND OTHER CURRENT ASSETS

 Prepaid
and other current assets consist of the following:

OF PREPAID AND OTHER CURRENT ASSETS

 Prepayment

 $

 1,096,383

 $

 598,481

 Other
 receivables

 124,049

 39,028

 Total

 $

 1,220,432

 $

 637,509

 F- 17

 NOTES

 NOTE
7 — PROPERTY AND EQUIPMENT, NET

 Property
and equipment, net, consist of the following:

 SCHEDULE OF PROPERTY AND EQUIPMENT, NET

 Furniture and Fixtures

 $
 125,977

 $
 125,977

 Machinery equipment

 360,868

 89,418

 Vehicles

 473,667

 670,793

 Electronic equipment

 35,303

 35,303

 Leasehold improvement

 90,974

 90,974

 Subtotal

 1,086,789

 1,012,465

 Less: accumulated depreciation and amortization

 ( 554,530
)

 ( 612,484
)

 Property and equipment, net

 $
 532,259

 $
 399,981

 The
Company recorded depreciation expense of $ 129,598 and $ 151,512 for the years ended December 31, 2024 and 2023, respectively.

 There
was an addition of $ 387,876 and $ 134,662 on property and equipment during the years ended December 31, 2024 and 2023, respectively. There
was a disposal of property and equipment with the net book value of $ 126,000 and $ 29,317 with realized gain of $ 36,001 and $ 15,777 on
the disposal during the years ended December 31, 2024 and 2023, respectively.

 No
impairment loss was recorded for the years ended December 31, 2024 and 2023.

 NOTE
8 — LEASES

 On
August 1, 2018, the Company signed a lease agreement with Miller Creek Holding LLC, a related party owned by the controlling shareholder,
to rent the warehouse and office space of total 220,000 square feet for monthly rent of $ 40,000 used for its operation. The lease expired
on July 31, 2021 and was further renewed for another three years and expired on July 31, 2024 with monthly rent of $ 60,000. On August
1, 2024, the lease was further renewed for another five years and will expire on July 31, 2029 with monthly rent of $ 145,750. On April
29, 2023, the Company signed another lease agreement with Miller Creek Holding LLC, to rent the warehouse and office space of total 66,000
square feet for monthly rent of $ 35,000 used for its operation. The lease expires on April 30, 2026. On May 1, 2024, the Company signed
another two lease agreements with Miller Creek Holding LLC, to rent additional warehouse and office space of 60,000 square feet and 30,000
square feet for monthly rent of $ 33,000 and $ 16,500 used for its operation, respectively. The leases will expire on August 31, 2029.
The Company also had multiple lease agreements for machinery, office equipment and vehicles. The Company's lease agreements do
not contain any material residual value guarantees or material restrictive covenants.

 Total
operating lease expense for the years ended December 31, 2024 and 2023 amounted to $ 2,058,524 and $ 1,104,769, respectively. Amortization
of operating lease right-of-use assets amounted to $ 1,580,172 and $ 974,973 for the years ended December 31, 2024 and 2023, respectively.

 Total
accretion of finance lease liabilities for the years ended December 31, 2024 and 2023 amounted to $ 4,677 and $ 7,048, respectively. Amortization
of finance lease right-of-use assets amounted to $ 41,748 and $ 42,113 for the years ended December 31, 2024 and 2023, respectively.

 F- 18

 NOTES

 NOTE
8 — LEASES (continued)

 Supplemental
balance sheet information related to operating and financing leases was as follows:

 SCHEDULE OF SUPPLEMENTAL BALANCE INFORMATION

leases

 Operating lease liabilities - current

 $
 2,119,894

 $
 847,368

 Operating lease liabilities - non-current

 7,412,693

 630,853

 Total

 $
 9,532,587

 $
 1,478,221

 Financing
leases

 Finance
 lease liabilities - current

 $

 43,421

 $

 41,647

 Finance
 lease liabilities - non-current

 33,602

 77,024

 Total

 $

 77,023

 $

 118,671

 The
following table includes supplemental cash flow and non-cash information related to leases:

 SCHEDULE OF SUPPLEMENTAL CASH FLOW AND NON-CASH INFORMATION

 Cash paid of amounts included in the measurement of lease liabilities:

 Operating cash flows used in operating leases

 $
 2,011,837

 $
 1,104,769

 Operating cash flows used in finance leases

 $
 4,677

 $
 7,048

 Financing cash flows used in finance leases

 $
 41,648

 $
 40,003

 Right-of-use assets obtained in exchange for lease obligations:

 Finance lease liabilities

 $
 -

 $
 60,805

 Operating lease liabilities

 $
 9,587,851

 $
 1,113,140

 The
weighted average remaining lease terms and discount rates for all of operating lease and finance leases were as follows:

OF WEIGHTED AVERAGE REMAINING LEASE TERMS AND DISCOUNT RATES

 Weighted-average remaining lease term (years):

 Finance lease

 1.95 years

 2.85 years

 Operating leases

 4.39 years

 1.82 years

 Weighted average discount rate:

 Finance leases

 4.85
 %

 4.61
 %

 Operating leases

 8.65
 %

 8.61
 %

 F- 19

 NOTES

 NOTE
8 — LEASES (continued)

 The
following is a schedule of maturities of operating and finance lease liabilities as of December 31, 2024:

 SCHEDULE OF MATURITIES OF OPERATING AND FINANCE LEASE LIABILITIES

leases

 Twelve months ending December 31,

 Operating leases

 2025

 $
 2,857,880

 2026

 2,507,498

 2027

 2,343,000

 2028

 2,343,000

 2029

 1,416,250

 Total future minimum lease payments

 11,467,628

 Less: imputed interest

 ( 1,935,041
)

 Present value of operating lease liabilities

 $
 9,532,587

 Finance
leases

 Twelve months ending December 31,

 Finance leases

 2025

 $
 46,325

 2026

 25,172

 2027

 8,701

 2028

 1,451

 Total future minimum lease payments

 81,649

 Less: imputed interest

 ( 4,626
)

 Present value of finance lease liabilities

 $
 77,023

 NOTE
9 — ACCRUED RETURN LIABILITIES

 The
following table shows changes in the Company's accrued return:

 SCHEDULE OF ACCRUED RETURN LIABILITIES

 Beginning balance

 $
 283,276

 $
 556,538

 Actual recognized products return

 ( 1,061,694
)

 ( 3,355,112
)

 Accruals for product return liabilities

 1,040,006

 3,081,850

 Ending balance

 $
 261,588

 $
 283,276

 F- 20

 NOTES

 NOTE
10 — ACCRUED WARRANTY EXPENSES

 The
following table shows changes in the Company's accrued warranties and related costs:

OF ACCRUED WARRANTIES AND RELATED COSTS

 Beginning balance

 $
 619,113

 $
 260,531

 Cost of warranty claims

 ( 1,274,037
)

 ( 1,924,203
)

 Accruals for product warranty

 1,158,477

 2,282,785

 Ending balance

 $
 503,553

 $
 619,113

 NOTE
11 — OTHER PAYABLE, ACCRUED EXPENSE AND OTHER CURRENT LIABILITY

 The
following table shows breakdown of Company's other payable, accrued expense and other current liabilities:

 SCHEDULE OF OTHER PAYABLE ACCRUED EXPENSE AND OTHER CURRENT LIABILITIES

 Credit card liabilities

 $
 13,792

 $
 7,732

 Sales Tax payable

 27,129

 13,204

 Other current liabilities

 -

 77,161

 Payroll liabilities

 139,311

 -

 Accrual on litigation (Note 18)

 5,988,961

 2,343,869

 Total

 $
 6,169,193

 $
 2,441,966

 F- 21

 NOTES

 NOTE
12 — LOANS

 Loan
balance consists of the following:

 SCHEDULE OF LOAN BALANCE

 Bank loan – Cathay Bank (1)/Midfirst (4) (1)(4)

 $
 -

 $
 -

 Other loans - Northpoint (2)

 -

 205,440

 Other loans – BAC (3)

 -

 98,143

 Total

 $
 -

 $

 Loan balance

 $
 -

 $

 (1)

 On
 May 13, 2024, the Company's subsidiary Massimo Motor Sports obtained a line of credit from Cathay Bank, pursuant to which the
 Company has the availability to borrow a maximum $ 15.0 million out of this line of credit for one year at the U.S. prime rate + 0.75 %.
 Before then, the company had a line of credit of maximum $ 10.0 million from Midfirst bank, which is cancelled upon the grant of the
 line of credit from Cathay Bank. As of December 31, 2024 and 2023, the outstanding balance was $ nil and $ nil.

 This
 line of credit is also personally guaranteed by Mr. David Shan, the controlling shareholder. This line of credit is pledged by the
 Company's accounts receivable, deposit accounts, equipment and inventories.

 (2)

 On
 April 19, 2022, the Company's subsidiary Massimo Marine obtained a $ 2.0 million pay
 as sold line of credit from Northpoint Commercial Finance LLC ("Northpoint")
 for acquisition, financing and/or refinancing of inventory. This line of credit is also personally
 guaranteed by Mr. David Shan, the Controlling Shareholder, and Massimo Motor Sports, an affiliated
 company. As of December 31, 2024 and 2023, the outstanding balance was $ nil and $ 205,440,
 respectively.

 (3)

 On
 February 18, 2022, the Company's subsidiary Massimo Marine obtained a credit facility for Mercury in the amount of $ 1.75
 million from Brunswick Acceptance Company LLC ("BAC") to finance purchase of inventory. This line of credit is also personally
 guaranteed by Mr. David Shan. As of December 31, 2024 and 2023, the outstanding balance was $ nil and $ 98,143, respectively.

 (4)

 On
 January 15, 2021, the Company's subsidiary Massimo Motor Sports obtained a line of credit from Midfirst Bank, pursuant to which
 the Company has the availability to borrow a maximum $ 4.0 million out of this line of credit for two years at the U.S. prime rate
 + 0.25 %. On April 18, 2022, this line of credit was further increased to $ 10.0 million, and on January 3, 2024, the maturity date
 was renewed to January 3, 2026.

 This
 line of credit was guaranteed by the Massimo Group, and was also personally guaranteed by Mr. David Shan, the controlling shareholder,
 and Miller Creek Holdings LLC, a related party controlled by Mr. David Shan. This line of credit was pledged by the Company's
 accounts receivable and inventories.

 On
 May 13, 2024, the credit facility was closed due to transferring to Cathay Bank ((1) above), and all guarantees were released and
 transferred to Cathay Bank.

 F- 22

 NOTES

 NOTE
13 — RELATED PARTY TRANSACTIONS

 The
relationship of related parties is summarized as follow:

 SCHEDULE OF RELATIONSHIP OF RELATED PARTIES

 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:

OF LOAN FROM RELATED PARTY

 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

 7,920,141

 Non-current

 -

 ( 7,920,141
)

 Current

 $

 $
 -

 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 repayments of the loan from Mr. Shan for 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 unlimited guarantee to the Company's loan (See Note 12).

 (c)
Due from a related party

OF DUE FROM RELATED PARTY

 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.

 F- 23

 NOTES

 NOTE
14 — TAXES

 Corporate
Income Taxes

Motor and Massimo Marine both terminated their status as a Subchapter S Corporation as of June 1, 2023, in connection with the Reorganization
and became a taxable C Corporation. Prior to that date, as an S Corporation, the Company had no U.S. federal income tax expense. As such,
any periods prior to June 1, 2023 will only reflect a margin tax for the state of Texas and corresponding tax expense. As a C Corporation,
the Company combined effective tax rate for federal income taxes of 21 % and state margin tax.

 As
of December 31, 2024 and 2023, the Company did not have an accrued liability for uncertain tax positions and does not anticipate recognition
of any significant liabilities for uncertain tax positions during the next 12 months. For the years ended December 31, 2024 and 2023,
no amounts were incurred for income tax uncertainties or interest and penalties. The Company is currently not aware of any issues under
review that could result in significant payments, accruals, or material deviation from its position. The Company's tax years since
its formation remain subject to possible income tax examination by its major taxing authorities for all periods. The Company's
effective tax rate for the years ended December 31, 2024 and 2023 are 24.5 % and 17.0 % respectively.

 The
provision for income tax consists of the following:

 SCHEDULE OF INCOME TAX PROVISION

 2024

 2023

 Years Ended

 2024

 2023

 Income tax provision – current

 $
 2,056,712

 $
 2,264,405

 Income tax (recovery) provision - deferred

 ( 1,031,850
)

 ( 43,137
)

 Deferred tax adjustment – change of tax rates

 -

 ( 91,464

)

 Income tax (recovery) provision

 $
 1,024,862

 $
 2,129,804

 The
following table reconciles the statutory tax rate to the Company's effective tax:

 SCHEDULE OF RECONCILIATION OF INCOME TAXES

 2024

 2023

 Years Ended

 2024

 2023

 Net income before income taxes

 $
 4,179,069

 $
 12,545,029

 Income tax at the federal statutory rate

 %

 %

 Statutory U.S. federal income tax (recovery) provision

 877,604

 2,634,456

 S Corporation benefits

 -

 ( 553,133
)

 State margin tax

 32,561

 139,945

 Non-deductible expense

 40,048

 -

 Prior year true-up

 74,649

 -

 Deferred tax adjustment – change of tax rates

 -

 ( 91,464
)

 Total

 $
 1,024,862

 $
 2,129,804

 F- 24

 NOTES

 NOTE
14 — TAXES (continued)

 Corporate
Income Taxes (continued)

 The
Company's deferred tax assets and liabilities consist of the following:

 SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES

 Deferred tax assets:

 Allowance for credit loss

 $
 106,090

 $
 117,046

 Property and equipment

 16,480

 16,480

 Lease liability – operating

 2,001,843

 310,426

 Lease liability – financing

 16,175

 24,920

 Other temporary difference

 1,032,980

 -

 Total deferred tax assets

 3,173,568

 468,872

 Deferred tax liabilities:

 Right of use assets – operating

 ( 1,992,039
)

 ( 310,426
)

 Right of use assets – financing

 ( 15,078
)

 ( 23,845
)

 Total deferred tax liabilities

 ( 2,007,117
)

 ( 334,271
)

 Deferred tax assets, net

 $
 1,166,451

 $
 134,601

 NOTE
15 — SHAREHOLDERS' EQUITY

 Common
Shares

 Based
on the Company's Articles of Incorporation, the authorized number of common stock was 100,000,000 shares of common stock with par
value of $ 0.001, and 40,000,000 common shares were issued on June 1, 2023. The authorized number of preferred stock was 5,000,000 shares
of preferred stock with par value of $ 0.01, and no preferred shares were issued. All share information included in these consolidated
financial statements have been retroactively adjusted for the Reorganization as if such reduce par value and common shares issuance occurred
on the first day of the first period presented. During the year ended December 31, 2024, the Company issued 1,548,819 shares and cancelled
 8,869 shares of its common stock with par value of $ 0.001.

 As
of December 31, 2024 and 2023, 41,539,950 and 40,000,000 common shares were outstanding, respectively, with par value of $ 0.001.

 F- 25

 NOTES

 NOTE
15 — SHAREHOLDERS' EQUITY (continued)

 Initial
Public Offering

 On
April 4, 2024, the Company closed its IPO of 1,300,000 shares of its common stock at an IPO price of $ 4.50 per share for aggregate gross
proceeds of approximately $ 5.85 million from the offering. The total net proceeds to the Company from the IPO, after deducting discounts,
expense allowance, and expenses, were approximately $ 5.0 million. Pursuant to the terms and conditions of the underwriting agreement,
dated as of April 1, 2024, by and between Craft Capital Management LLC (the "Representative") and the Company (the "Underwriting
Agreement"), the underwriters had an overallotment option, exercisable for 45 days by May 19, 2024, to purchase up to an additional
 195,000 shares from the Company at the offering price less of $ 4.50 the underwriting discount and commissions to cover over-allotments.
As of the reporting date, all representative options have expired without exercise.

 Common
Shares Issued for Service

 On
June 18, 2024, the Company signed a consulting agreement (the "Consulting Agreement") with TJCM Asset Management LLC ("TJCM")
to provide strategic consulting and financial advisory services to the Company for twelve months from June 18, 2024. As partial of consideration
for the services, TJCM is entitled to receive shares of the Company's common stock equivalent to a value of $ 160,000 calculated
by the valuation price defined as average closing price of the Company's shares of common stock for the five consecutive trading
days immediately preceding the effective date of the Consulting Agreement. On June 21, 2024, the Company issued 22,485 shares of common
stock to TJCM as the prepayment of $ 80,000 on the services to be provided. On November 29, 2024, the agreement was terminated under mutual
agreement, and the Company cancelled 8,869 shares of common stock issued to TJCM before. The Company recorded expenses of $ 48,445 and
$ nil in connection with service for the years ended December 31, 2024 and 2023, respectively.

 Representative's
Warrants

 Pursuant
to the Underwriting Agreement, the Company issued to the Representative and its designee warrants (the "Representative's
Warrants") to purchase 87,100 shares of common stock. The Representative's Warrants are exercisable at a per share exercise
price equal to $ 5.63 and are exercisable at any time and from time to time, in whole or in part, during the period commencing on October
4, 2024 and terminating on April 4, 2029. Neither the Representative's Warrants nor any of the shares issued upon exercise of the
Representative's Warrants may be sold, transferred, assigned, pledged or hypothecated, or be the subject of any hedging, short
sale, derivative, put or call transaction that would result in the effective economic disposition of such securities by any person, for
a period of six months immediately following the commencement of sales of the offering.

determined that these warrants meet the requirements for equity classification under ASC 815-40 because they are indexed to their own
shares and meet the requirements for equity classification. The warrants were recorded at fair value on the date of grant as a component
of shareholders' equity. The fair value of these warrants was $ 220,000, which was considered a direct cost of IPO and included
in additional paid-in capital. The fair value has been estimated using the Black-Scholes pricing model with the following weighted-average
assumptions: market value of underlying share of $ 4.02, risk free rate of 4.3 %, expected term of five years; exercise price of the warrants
of $ 5.63, volatility of 89 %; and expected future dividends of nil.

 As
of December 31, 2024, 87,100 warrants in connection with IPO funding was outstanding, with an exercise price of $ 5.63 and remaining life
of 4.26 years.

 F- 26

 NOTES

 NOTE
16 — EARNINGS PER SHARE

 For
the years ended December 31, 2024, the effect of potential shares of common stock from the unexercised options, unexercised warrants,
and unvested Restricted Stock Units ("RSU") are included in the computation of diluted net earnings per share. As a result,
a total of 154,029 unvested RSU were included in the computation of weighted average number of common shares for the year ended December
31, 2024.

 For
the years ended December 31, 2023, the Company has no stock options, warrants or RSU issued and no impact on diluted earnings per share.

 The
following table presents a reconciliation of basic and diluted net income per share:

 SCHEDULE OF EARNINGS PER SHARE

 Years Ended

 2024

 2023

 Net income attributable to the Company

 $

 $

 Weighted average number of common shares outstanding – basic

 41,010,654

 Dilutive securities – unvested RSU

 151,195

 -

 Weighted average number of common shares outstanding – diluted

 41,161,849

 Earnings per share – basic

 $
 0.08

 $
 0.26

 Earnings per share – diluted

 $
 0.08

 $
 0.26

 NOTE
17 — 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 $ 922,399 and $ nil stock-based compensation expense in connection with RSUs for years ended December 31, 2024 and 2023,
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

 Granted

 328,334

 3.76

 0.58

 Forfeited

 ( 1,000
)

 3.88

 -

 Vested

 ( 226,334
)

 3.70

 -

 Outstanding December 31, 2024

 101,000

 $
 3.88

 0.37

 Exercisable, December 31, 2024

 -

 $
 -

 -

 F- 27

 NOTES

 NOTE
17 — EMPLOYEE STOCK PLANS (continued)

 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 December 31, 2024, intrinsic value of the options is nil.

 The
Company recorded $ 224,190 and $ nil stock-based compensation expense in connection with options for years ended December 31, 2024 and
2023, respectively.

 The
following table summarized the Company's share option activity:

OF SHARE OPTION ACTIVITY

 Number of
 Options

 Weighted Average
 Exercise Price

 Weighted Average Remaining
 Life in Years

 Granted

 350,000

 4.04

 9.23

 Cancelled

 -

 -

 -

 Vested

 -

 -

 -

 Unvested balance, December 31, 2024

 350,000

 $
 4.04

 8.72

 Exercisable, December 31, 2024

 -

 $
 -

 -

 As
of December 31, 2024, the total unrecognized compensation cost related to outstanding RSUs and stock options was $ 307,397 and $ 278,749,
which the Company expects to recognize over a weighted-average period of 0.37 years and 1.07 years.

 F- 28

 NOTES

 NOTE
18 — COMMITMENTS AND CONTINGENCIES

 Contingencies

 The
Company may be involved in certain legal proceedings, claims and disputes arising from the commercial operations, which, in general,
are subject to uncertainties and in which the outcomes are not predictable. The Company determines whether an estimated loss from a contingency
should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated. Although the Company can give no assurances
about the resolution of pending claims, litigation or other disputes and the effect such outcomes may have on the Company, the Company
believes that any ultimate liability resulting from the outcome of such proceedings, to the extent not otherwise provided or covered
by insurance, will not have a material adverse effect on the Company's consolidated balance sheets or results of operations or
liquidity as at December 31, 2024 and December 31, 2023, except the two discussed below.

 Litigation

 Taizhou Nebula Power Co. Ltd. v. Massimo Motor
Sports, LLC

 On
July 8, 2024, the Company received a final judgment from the trial court in the lawsuit filed by Taizhou Nebula Power Co, Ltd. ("Nebula")
on September 15, 2020. The final judgment awarded Nebula $ 3,334,542 in damages, $ 1,436,809 in attorneys' fees and other court costs,
and $ 1,217,610 in interest on balances from September 15, 2020. In connection with this judgment, the Company recorded an additional
accrual of $ 3,645,092 as of December 31, 2024, bringing the total accrual related to this lawsuit to $ 5,988,961 and $ 2,343,869 as of December
31, 2024 and 2023, respectively. The Company filed an appeal in August 2024 and its appellant's brief in January 2025.

 Zhejiang Qunying Vehicle Co., Ltd. v. Cho International,
Inc

 On September 5, 2023, Zhejiang
Qunyinh Vehicle Co., Ltd. ("Zhejiang") filed suit against the Company and ten other corporate entities in the Superior Court
of the State of California for Orange County. Zhejiang alleges claims of approximately $ 6,000,000 in damages for products that were allegedly
shipped to the United States but not paid for. Despite being one of the ten entities that plaintiff has sued, the Company has had minimal
interactions with Zhejiang. The Company has not purchased any products from Zheijang. In February 2024, Zhejiang filed a Second Amended
Complaint. The Company filed a demurrer seeking to dismiss the Second Amended Complaint due to Zhejiang's failure to state a valid
claim in March 2024. In August 2024, the Court denied in part and granted in part the Company's demurrer. As a result, Zhejiang
still has valid claims against the Company. The trial is scheduled for March 2026. Based on the current assessment, the outcome of the
legal proceeding is considered remote. Therefore, no accrual has been proposed in the financial statements.

 NOTE
19 — SEGMENT REPORTING

 An
operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses,
and is identified on the basis of the internal financial reports that are provided to and regularly reviewed by the Company's chief
operating decision maker in order to allocate resources and assess performance of the segment.

of the Company concludes that it has only one reporting segment. The Company is primarily engaged in the business of manufacturing and
sales of a wide selection of farm and ranch tested UTVs, recreational ATVs, and Pontoon Boats.

 The
Company's CEO reviews consolidated results when making decisions about allocating resources and assessing performance of the Company,
rather than by product types or geographic area; hence the Company concluded it has only one reporting segment.

 The
following table presents sales by product categories for the years ended December 31, 2024 and 2023, respectively:

 SCHEDULE OF SALES BY PRODUCT CATEGORIES

 2024

 2023

 Years Ended

 2024

 2023

 UTVs, ATVs and e-bikes

 $
 107,458,551

 $
 103,312,838

 Pontoon Boats

 3,750,591

 11,724,706

 Total

 $
 111,209,142

 $
 115,037,544

 NOTE
20 — SUBSEQUENT EVENTS

 The
Company evaluated all events and transactions that occurred after December 31, 2024 up through the date the Company issued these consolidated
financial statements, and unless disclosed below, there are not any material subsequent events that require disclosure in these consolidated
financial statements.

 F- 29

GROUP

TO FINANCIAL STATEMENTS

 EXHIBIT

 Exhibit
 No.

 Description

 1.1

 Form of Underwriting Agreement (incorporated by reference to the Company's Current Report on Form 8-K filed with the SEC on April 4, 2024)

 3.1

 Articles of Incorporation of the Company (incorporated by reference to the Company's Registration Statement on Form S-1 filed with the SEC on December 18, 2023)

 3.2

 Bylaws of the Company (incorporated by reference to the Company's Registration Statement on Form S-1 filed with the SEC on December 18, 2023)

 4.1

 Form of Underwriter Warrant (incorporated by reference to the Company's Current Report on Form 8-K filed with the SEC on April 4, 2024)

 4.2

 Description of Registered Securities(*)

 10.1

 Contribution Agreement dated June 1, 2023, by and among Massimo Group, David Shan and Asia International Securities Exchange Co., Ltd. (incorporated by reference to the Company's Registration Statement on Form S-1 filed with the SEC on December 18, 2023)

 10.2

 Employment Agreement dated June 1, 2023, between the Company and David Shan() (incorporated by reference to the Company's Registration Statement on Form S-1 filed with the SEC on December 18, 2023)

 10.3

 Employment Agreement dated June 1, 2023, between the Company and Dr. Yunhao Chen() (incorporated by reference to the Company's Registration Statement on Form S-1 filed with the SEC on December 18, 2023)

 10.4

 Business Loan Agreement dated April 18, 2022, between the Company and MidFirst Bank (incorporated by reference to the Company's Registration Statement on Form S-1 filed with the SEC on December 18, 2023)

 10.5

 Addendum No. 1 to Business Loan Agreement dated June 15, 2023, between the Company and MidFirst Bank (incorporated by reference to the Company's Registration Statement on Form S-1 filed with the SEC on December 18, 2023)

 10.6

 Addendum No. 2 to Business Loan Agreement, dated October 15, 2023, between the Company and MidFirst Bank (incorporated by reference to the Company's Registration Statement on Form S-1 filed with the SEC on December 18, 2023)

 10.7

 Business Loan Agreement, dated January 3, 2024 (incorporated by reference to the Company's Registration Statement on Form S-1/A filed with the SEC on February 5, 2024)

 10.8

 Promissory Note dated January 3, 2024 (incorporated by reference to the Company's Registration Statement on Form S-1/A filed with the SEC on February 5, 2024)

 10.9

 2024 Stock Incentive Plan (incorporated by reference to the Company's Registration Statement on Form S-1/A filed with the SEC on February 5, 2024)

 10.10

 Strategic partnership agreement, dated June 11, 2024, by and between Armlogi Holding Corp and the Company

 19.1

 Insider Trading Policy

 21.1

 List of Subsidiaries(*)

 23.1

 Consent of ZH CPA, LLC Certified Public Accountants and Advisors, A Professional Corporation

 31.1

 Certification of the Principal Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.(*)

 31.2

 Certification of the Principal Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*

 32.1

 Certification of the Principal Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 32.2

 Certification of the Principal Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 97.1

 Executive Compensation Clawback Policy, adopted March 25, 2024(*)

 101.xsd

 101.cal

 101.def

 101.lab

 101.pre

 Cover

 *

 Incorporated
 by reference to the exhibit filed with the annual report on Form 10-K filed with SEC on April 15, 2024.

 SIGNATURES

 Pursuant
to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed
on its behalf by the undersigned, thereunto duly authorized.

 March

 GROUP

 By:

 /s/
 David Shan

 Name:

 David
 Shan

 Title:

 Chief
 Executive Officer and Chairman

 Pursuant
to the requirements of the Securities Exchange Act of 1934, this Report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated.

 Name

 Position

 Date

 /s/
 David Shan

 Chief
 Executive Officer and Chairman

 March

 David
 Shan

 (Principal
 Executive Officer)

 /s/
 Yunhao Chen

 Chief
 Financial Officer and Director

 March

 Yunhao
 Chen

 (Principal
 Financial and Accounting Officer)

 /s/
 Paolo Pietrogrande

 March

 Paolo
 Pietrogrande

 /s/
 Mark Sheffield

 March

 Mark
 Sheffield

 /s/
 Ting Zhu

 March

 Ting
 Zhu