Nova Lifestyle, Inc. Files Q2 2024 10-Q

TL;DR

**Nova Lifestyle (NV Lifestyle) Q2 10-Q filed. Financials and operations update.**

AI Summary

Nova Lifestyle, Inc. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the second quarter. Key financial data and disclosures relevant to investors are presented.

Why It Matters

This filing provides investors with the latest financial health and performance indicators for Nova Lifestyle, Inc., crucial for making informed investment decisions.

Risk Assessment

Risk Level: medium — The filing is a standard 10-Q, but the company operates in the cyclical furniture industry, which can be subject to economic fluctuations.

Key Numbers

• 2024-06-30 — Period End Date (The filing covers financial results up to this date.)
• 2024-08-14 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• Nova Lifestyle, Inc. (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• 20240814 (date) — Filing date
• Commerce, CA (location) — Company's business and mailing address

FAQ

Filing Documents

• form10-q.htm (10-Q) — 1439KB
• ex31-1.htm (EX-31.1) — 17KB
• ex31-2.htm (EX-31.2) — 17KB
• ex32-1.htm (EX-32.1) — 7KB
• ex32-2.htm (EX-32.2) — 7KB
• 0001493152-24-032235.txt ( ) — 8253KB
• nvfy-20240630.xsd (EX-101.SCH) — 50KB
• nvfy-20240630_cal.xml (EX-101.CAL) — 66KB
• nvfy-20240630_def.xml (EX-101.DEF) — 191KB
• nvfy-20240630_lab.xml (EX-101.LAB) — 447KB
• nvfy-20240630_pre.xml (EX-101.PRE) — 353KB
• form10-q_htm.xml (XML) — 1564KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 1 Condensed Consolidated Balance Sheets as of June 30, 2024 (unaudited) and December 31, 2023 1 Condensed Consolidated Statements of Loss and Comprehensive Loss for the six months and three months ended June 30, 2024 and 2023 (unaudited) 3 Condensed Consolidated Statements of Stockholders' Equity for the six months and three months ended June 30, 2024 and 2023 (unaudited) 4 Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023 (unaudited) 6 Notes to Condensed Consolidated Financial Statements for the six months and three months ended June 30, 2024 and 2023 (unaudited) 7 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 29 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 42 Item 4.

Controls and Procedures

Controls and Procedures 42

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 42 Item 1A.

Risk Factors

Risk Factors 44 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 44 Item 5. Other Information 44 Item 6. Exhibits 44

Signatures

Signatures 45 i Table Of Contents PART I. FINANCIAL INFORMATION Item 1. Financial Statements NOVA LIFESTYLE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2024 (UNAUDITED) AND DECEMBER 31, 2023 June 30, 2024 December 31, 2023 Assets Current Assets Cash and cash equivalents $ 363,409 $ 369,137 Accounts receivable, net 44,469 46,998 Advance to suppliers 50,793 93,740 Inventories 2,134,343 2,213,311 Prepaid expenses 1,088,677 984,934 Other receivables 30,982 41,265 Total Current Assets 3,712,673 3,749,385 Noncurrent Assets Plant, property and equipment, net 254,098 287,673 Operating lease right-of-use assets, net 1,543,204 1,904,349 Intangible assets, net 5,791 8,473 Lease deposit 69,275 69,992 Goodwill 218,606 218,606 Total Noncurrent Assets 2,090,974 2,489,093 Total Assets $ 5,803,647 $ 6,238,478 The accompanying notes are an integral part of these condensed consolidated financial statements. 2 Table of Contents NOVA LIFESTYLE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (CONT ' D) AS OF JUNE 30, 2024 (UNAUDITED) AND DECEMBER 31, 2023 June 30, 2024 December 31, 2023 Liabilities and Stockholders' Equity Current Liabilities Accounts payable $ 297,764 $ 430,045 Operating lease liability, current 671,988 701,985 Advance from customers 428,736 306,532 Loan from shareholder 369,159 - Accrued liabilities and other payables 1,136,631 1,100,661 Income tax payable 1,130,865 1,150,105 Total Current Liabilities 4,035,143 3,689,328 Noncurrent Liabilities Other Loan 145,779 147,428 Operating lease liability, non-current 931,405 1,262,256 Income tax payable 643,112 643,112 Total Noncurrent Liabilities 1,720,296 2,052,796 Total Liabilities 5,755,439 5,742,124 Contingencies and Commitments - - Stockholders' Equity Common stock, $ 0.001 par value; 250,000,000 shares authorized, 2,672,

Business

Business Combination For a business combination, the assets acquired, the liabilities assumed and any noncontrolling interest in the acquiree are recognized at the acquisition date and measured at their fair values as of that date. In a business combination achieved in stages, the identifiable assets and liabilities, as well as the noncontrolling interest in the acquiree, are recognized at the full amounts of their fair values. In a bargain purchase in which the total acquisition-date fair value of the identifiable net assets acquired exceeds the fair value of the consideration transferred plus any noncontrolling interest in the acquiree, that excess in earnings is recognized as a gain attributable to the acquirer. Deferred tax liability and assets are recognized for the deferred tax consequences of differences between the tax bases and the recognized values of assets acquired and liabilities assumed in a business combination in accordance with Accounting Standards Codification ("ASC") Topic 740-10. Goodwill Goodwill is the excess of purchase price and related costs over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. In accordance with ASC Topic 350, "Intangibles-Goodwill and Other," goodwill is not amortized but is tested for impairment, annually or more frequently when circumstances indicate a possible impairment may exist. Impairment testing is performed at a reporting unit level. An impairment loss generally would be recognized when the carrying amount of the reporting unit exceeds its fair value, with the fair value of the reporting unit determined using discounted cash flow ("DCF") analysis. A number of significant assumptions and estimates are involved in the application of the DCF analysis to forecast operating cash flows, including the discount rate, the internal rate of return and projections of realizations and costs to produce. Management considers historical experience and all available informat

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