Nova Lifestyle Files Q3 2024 10-Q

TL;DR

**Nova Lifestyle (NVLA) Q3 2024 10-Q filed. Check financials for furniture biz.**

AI Summary

Nova Lifestyle, Inc. filed its Q3 2024 10-Q report on November 14, 2024, covering the period ending September 30, 2024. The company, formerly Stevens Resources, Inc., is based in Commerce, California, and operates in the household furniture industry. This filing provides financial updates for the third quarter and year-to-date performance.

Why It Matters

This filing provides investors with the latest financial performance and operational details for Nova Lifestyle, Inc. for the third quarter of 2024, crucial for assessing the company's health and future prospects.

Risk Assessment

Risk Level: medium — As a public company filing a 10-Q, there are inherent risks associated with financial reporting and market performance, but no specific immediate red flags are apparent from the header information alone.

Key Numbers

• Q3 2024 — Reporting Period (The financial period covered by this 10-Q filing.)
• September 30, 2024 — Period End Date (The specific date marking the end of the fiscal quarter reported.)
• November 14, 2024 — Filing Date (The date the 10-Q report was officially submitted to the SEC.)

Key Players & Entities

• Nova Lifestyle, Inc. (company) — Filer of the 10-Q report
• Stevens Resources, Inc. (company) — Former name of Nova Lifestyle, Inc.
• 20240930 (date) — End of the reporting period for the 10-Q
• 20241114 (date) — Filing date of the 10-Q
• Commerce, CA (location) — Business and mailing address of Nova Lifestyle, Inc.

FAQ

Filing Documents

• form10-q.htm (10-Q) — 1384KB
• 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
• 0001493152-24-045787.txt ( ) — 7914KB
• nvfy-20240930.xsd (EX-101.SCH) — 52KB
• nvfy-20240930_cal.xml (EX-101.CAL) — 67KB
• nvfy-20240930_def.xml (EX-101.DEF) — 202KB
• nvfy-20240930_lab.xml (EX-101.LAB) — 466KB
• nvfy-20240930_pre.xml (EX-101.PRE) — 360KB
• form10-q_htm.xml (XML) — 1317KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

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

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 44 Item 4.

Controls and Procedures

Controls and Procedures 44

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 45 Item 6. Exhibits 47

Signatures

Signatures 48 Table of Contents PART I. FINANCIAL INFORMATION Item 1. Financial Statements NOVA LIFESTYLE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS AS OF September 30, 2024 (UNAUDITED) AND DECEMBER 31, 2023 September 30, 2024 December 31, 2023 Assets Current Assets Cash and cash equivalents $ 162,285 $ 369,137 Accounts receivable, net 126,800 46,998 Advance to suppliers 132,678 93,740 Inventories 2,444,874 2,213,311 Prepaid expenses 257,083 984,934 Other receivables - 41,265 Total Current Assets 3,123,720 3,749,385 Noncurrent Assets Plant, property and equipment, net 270,233 287,673 Operating lease right-of-use assets, net 1,368,106 1,904,349 Intangible assets, net 4,450 8,473 Lease deposit 73,029 69,992 Goodwill 218,606 218,606 Total Noncurrent Assets 1,934,424 2,489,093 Total Assets $ 5,058,144 $ 6,238,478 The accompanying notes are an integral part of these condensed consolidated financial statements. 1 Table of Contents NOVA LIFESTYLE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (CONT ' D) AS OF September 30, 2024 (UNAUDITED) AND DECEMBER 31, 2023 September 30, 2024 December 31, 2023 Liabilities and Stockholders' (Deficit) Equity Current Liabilities Accounts payable $ 460,682 $ 430,045 Operating lease liability, current 664,633 701,985 Advance from customers 518,322 306,532 Loan from shareholder 376,602 - Accrued liabilities and other payables 1,149,435 1,100,661 Income tax payable 1,232,499 1,150,105 Total Current Liabilities 4,402,173 3,689,328 Noncurrent Liabilities Other Loan 144,958 147,428 Operating lease liability, non-current 763,810 1,262,256 Income tax payable 643,112 643,112 Total Noncurrent Liabilities 1,551,880 2,052,796 Total Liabilities 5,954,053 5,742,124 Contingencies and Commitments - - Stockholders' (Deficit) Equity Common stock, $ 0.001 par value;

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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