LEASES |
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| LEASES | 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 lease the warehouse and office space of total 220,000 square feet for Massimo Motor with 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 Massimo Marine with monthly rent of $35,000 used for its operation. The lease will expire 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 Massimo Motor and Massimo Marine’s operations, respectively. The leases will expire on August 31, 2029. The Company also had multiple lease agreements for machinery, office equipment and vehicles with other companies. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.
Total operating lease expense for the three months ended March 31, 2026 and 2025 amounted to $717,143 and $716,942, respectively. Amortization of operating lease right-of-use assets amounted to $551,505 and $512,277 for the three months ended March 31, 2026 and 2025, respectively.
Total accretion of finance lease liabilities for the three months ended March 31, 2026 and 2025 amounted to $438 and $895, respectively. Amortization of finance lease right-of-use assets amounted to $10,380 and $10,149 for the three months ended March 31, 2026 and 2025, respectively.
MASSIMO GROUP AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NOTE 8 — LEASES (continued)
Supplemental balance sheet information related to operating and financing leases was as follows:
Operating leases
Financing leases
The following table includes supplemental cash flow and non-cash information related to leases:
The weighted average remaining lease terms and discount rates for all of operating lease and finance leases were as follows:
MASSIMO GROUP AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NOTE 8 — LEASES (continued)
The following is a schedule of maturities of operating and finance lease liabilities as of March 31, 2025:
Operating leases
Finance leases
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