Massimo Group has announced a regulatory issue concerning its previously issued financial statements for the fiscal year ending December 31, 2024. The company's audit committee, in consultation with management, has concluded that these financial statements should not be relied upon and need to be restated. This decision follows the identification of misstatements during the preparation of interim financial statements for the quarter ending March 31, 2025. The primary issue involves an underestimation of holiday promotion markdowns by a significant client, which is expected to reduce sales by approximately $1.9 million and net income by $1.4 million. The company's management acknowledged ineffective internal controls over financial reporting, particularly in communication and period-end disclosure processes. Massimo Group plans to address these issues in an amended annual report and has discussed the matter with its independent accounting firm, ZH CPA, LLC.