Sales Performance - For the year ended December 31, 2023, the largest selling product categories were sofas (37%), jade mats (18%), and beds (13%) from continuing operations [39]. - Sales to North America accounted for 79.1% of total sales from continuing operations in 2023, down from 94.2% in 2022 [44]. - Revenues from Diamond Bar accounted for 82.4% of total sales from continuing operations in 2023, while Nova Malaysia's revenues accounted for 17.6% [59]. - Sales to North America accounted for 79.1% of total sales from continuing operations in 2023, down from 94.2% in 2022, indicating a shift towards diversifying international sales [59]. Business Operations - The company sold its entire jade mats inventory for $2.00 million in liquidation sales in June 2023, exiting the jade mats business [44]. - The company sold its entire jade mats inventory for $2.00 million in liquidation sales in June 2023, exiting the jade mats business due to the negative impact of COVID-19 from 2020 to 2022 [45]. - The company has 27 full-time employees worldwide as of December 31, 2023, with 24 in the U.S. and 3 in Malaysia [28]. - Approximately 36% of total purchases in 2023 were from two principal suppliers, highlighting the company's reliance on a limited number of suppliers [55]. Financial Actions - A 1-for-5 reverse stock split was executed on May 22, 2023, consolidating every 5 shares into one [26]. - The company increased its authorized shares from 3,000,000 to 250,000,000 on September 5, 2023 [27]. Strategic Focus - The company focuses on integrating new sources of distribution and manufacturing to expand its customer base and drive growth [24]. - The company aims to respond to changing market conditions and take advantage of upturns in global and local economies [44]. - The company has established long-term relationships with worldwide customers by providing high-quality, cost-effective sourcing solutions [25]. - The company plans to expand the "Diamond Sofa" brand and introduce new brands for direct sales in the U.S. and international markets [50]. - The company aims to increase direct sales to a broad range of retailers and chain stores across the U.S. and international markets [50]. Product Development - The company invested $3.12 million in research and development in 2023, focusing on developing Virtual and Augmented reality software and AI systems [66]. - The company has developed over 230 products exclusively for international markets, showcasing its commitment to product diversification [48]. - The company anticipates introducing new products under the "Diamond Sofa" brand on a quarterly basis for the U.S. market [65]. Shipping and Logistics - The company experienced significant delays in shipping from Asia due to the pandemic, but shipping and related costs returned to normal by June 2022 [56]. - The company markets its products through wholesale and retail channels, as well as various online platforms worldwide [22].

Financial Performance - Net sales from continuing operations for Q3 2023 were $2.48 million, an 18% decrease from $3.02 million in Q3 2022[242]. - The average selling price decreased by 12%, and sales volume decreased by 7% compared to the same period last year[242]. - Sales to North America decreased by 12% to $2.43 million in Q3 2023 from $2.77 million in Q3 2022, primarily due to inflation and tightening monetary policy[243]. - Cost of sales decreased by 25% to $1.41 million in Q3 2023, with cost of sales as a percentage of sales decreasing to 57% from 62% in Q3 2022[244]. - Gross profit was $1.06 million for Q3 2023, down from $1.14 million in Q3 2022, with a gross profit margin of 43% compared to 38%[246]. - Operating expenses increased to $2.12 million in Q3 2023 from $2.09 million in Q3 2022, with selling expenses decreasing by 8% and general and administrative expenses increasing by 5%[248]. - Other expenses, net, decreased significantly to $90,321 in Q3 2023 from $758,994 in Q3 2022, mainly due to a reduction in foreign exchange loss[249]. - Income tax expenses were $147,371 in Q3 2023, compared to $0 in Q3 2022, due to net taxable income from Nova Malaysia[250]. - Loss from continuing operations was $1.29 million in Q3 2023, an improvement from a loss of $1.71 million in Q3 2022[251]. - The net loss for Q3 2023 was $1.29 million, compared to a net loss of $1.71 million in Q3 2022[253]. - Net sales from continuing operations for the nine months ended September 30, 2023, were $8.81 million, a decrease of 16% from $10.50 million for the same period in 2022[256]. - The average selling price decreased by 39%, while sales volume increased by 37% during the same period[256]. - Sales to North America decreased by 33% to $6.62 million, primarily due to inflation and reduced purchasing power[257]. - Gross profit from continuing operations was $3.17 million for the nine months ended September 30, 2023, compared to a gross loss of $0.88 million for the same period in 2022, representing an increase of $4.06 million[260]. - Operating expenses decreased to $5.79 million for the nine months ended September 30, 2023, from $6.58 million for the same period in 2022, a reduction of 12%[262]. - Other expenses, net, decreased by $538,750 to $286,970 for the nine months ended September 30, 2023, primarily due to a reduction in foreign exchange loss[263]. - The net loss for the nine months ended September 30, 2023, was $3.05 million, compared to a net loss of $8.30 million for the same period in 2022[267]. - Cash provided by operating activities was $1.52 million for the nine months ended September 30, 2023, an increase of $4.97 million from cash used in operating activities in the same period of 2022[270]. Operational Changes - Nova LifeStyle transitioned away from low-margin products to improve gross profit margins and net profitability, focusing on high-end product lines[197]. - The company launched its Summer 2023 Collection at the Las Vegas and High Point Markets, targeting a higher-end customer demographic[197]. - Nova LifeStyle is actively pursuing alternative product lines, particularly in the health-oriented furniture segment, which has shown positive growth potential[192]. - The company has shifted some manufacturing from China to other Asian countries like Malaysia and India to mitigate the impact of U.S. trade tariffs[197]. - The de-registration and liquidation of Nova HK were completed in February 2023, with its assets transferred to Nova Malaysia[190]. - The company experienced significant operational disruptions due to COVID-19, impacting its showrooms and manufacturing capabilities[193]. Financial Position - Nova LifeStyle's financial resources are currently believed to be adequate to finance operations for the next 12 months, following a registered direct offering that raised gross proceeds of $3,120,622 in July 2021[194]. - The company received approximately $139,802 under the Paycheck Protection Program (PPP) in May 2020 to support its operations during the pandemic[194]. - As of September 30, 2023, the allowance for bad debt was $692, down from $3,420 as of September 30, 2022, indicating a significant reduction in expected credit losses[204]. - The gross receivable as of September 30, 2023, was $69,203, with $302 over 90 days past due, reflecting the company's credit management practices[204]. - The company maintains an allowance for potential credit losses based on historical bad debt experience and current economic trends, reflecting proactive risk management[204]. - The company recorded no unrecognized tax benefits as of September 30, 2023, indicating a stable tax position with no anticipated significant changes in the next 12 months[216]. - The accumulated undistributed earnings from foreign subsidiaries were approximately $25.5 million as of September 30, 2023, with no deferred tax expense recorded for U.S. federal and state income tax[215]. - Long-term taxes payable as of September 30, 2023, amounted to $0.64 million, primarily due to a one-time transition tax recognized in 2017[279]. - The company elected to pay the one-time transition tax over eight years starting from April 2018[280]. - As of September 30, 2023, 95% of accounts receivable outstanding had been collected, indicating improved cash flow management[273]. - As of September 30, 2023, $9,150 or 12% of advances to suppliers had been delivered in the form of furniture purchases[276]. Stock and Securities - A 1-for-5 reverse stock split was executed on May 22, 2023, affecting the company's authorized and outstanding shares[201]. - The authorized shares of common stock were increased from 3,000,000 to 250,000,000 as per the amendment approved on September 5, 2023[202]. - The company filed a new shelf registration statement on October 13, 2023, allowing for the sale of securities up to a total amount of $55,000,000[278]. - The previous shelf registration statement, effective from October 15, 2020, expired on October 15, 2023, with gross proceeds from a prior offering amounting to $3,120,622[277]. Market and Currency Risks - The translation rate for Malaysian Ringgit (RM) to U.S. dollars was RM4.69 to 1 as of September 30, 2023, compared to RM4.40 to 1 as of December 31, 2022, showing a depreciation of the RM[228]. - Quantitative and qualitative disclosures about market risk are not required[283]. - There are no off-balance sheet arrangements that materially affect the company's financial condition or operations[281]. - The company has not entered into any financial guarantees or derivative contracts that are not reflected in its consolidated financial statements[282]. - The company does not have any retained or contingent interest in assets transferred to unconsolidated entities[282]. - The company has not engaged in any variable interest arrangements with unconsolidated entities[282].

Financial Performance - Net sales from continuing operations for Q2 2023 were $4.46 million, a 17% increase from $3.81 million in Q2 2022, primarily driven by a 149% increase in sales volume[243]. - Cost of sales decreased by 59% to $3.02 million in Q2 2023, compared to $7.36 million in Q2 2022, with cost of sales as a percentage of sales dropping to 68% from 193%[246]. - Gross profit for Q2 2023 was $1.45 million, compared to a gross loss of $3.55 million in Q2 2022, resulting in a gross profit margin of 32% versus a gross loss margin of 93%[248]. - Operating expenses decreased by 14% to $1.83 million in Q2 2023 from $2.13 million in Q2 2022, with selling expenses down by 27%[250]. - Loss from continuing operations was $0.54 million in Q2 2023, significantly reduced from $5.69 million in Q2 2022[253]. - Net loss for Q2 2023 was $0.54 million, compared to a net loss of $5.69 million in Q2 2022[255]. - For the six months ended June 30, 2023, net sales were $6.34 million, down from $7.48 million in the same period of 2022[257]. - Gross profit for the six months ended June 30, 2023, was $2.11 million, compared to a gross loss of $2.02 million in the same period of 2022[257]. - Loss from operations for the six months ended June 30, 2023, was $1.56 million, a decrease from $6.50 million in the same period of 2022[257]. - The net loss was $1.76 million for the six months ended June 30, 2023, compared to a net loss of $6.59 million for the same period in 2022[269]. Revenue and Sales Trends - Net sales from continuing operations for the six months ended June 30, 2023, were $6.34 million, a decrease of 15% from $7.48 million for the same period in 2022, primarily due to a 46% decrease in average selling price, partially offset by a 56% increase in sales volume[258]. - Sales to North America decreased by 41% to $4.19 million for the six months ended June 30, 2023, compared to $7.10 million for the same period in 2022, mainly due to inflation and reduced purchasing power[259]. Operational Changes - Nova LifeStyle transitioned away from low-margin products to improve gross profit margins, which is expected to adversely impact revenue and net profit in the short term[198]. - The company is shifting a portion of its manufacturing from China to other Asian countries such as Vietnam and India to mitigate the impact of U.S. trade tariffs[198]. - The company launched a line of high-end physiotherapeutic jade mats in 2019, targeting therapy clinics and hospitality sectors in Southeast Asia[193]. - The company has limited experience in Southeast Asia, which may require considerable management attention and resources[193]. Financial Position and Cash Flow - As of June 30, 2023, the gross accounts receivable amounted to $1,206,030, with $208,478 being over 90 days past due[205]. - The allowance for bad debt was maintained at $2,718 as of June 30, 2023, compared to $2,104 as of June 30, 2022[205]. - Net cash provided by operating activities was $1.43 million for the six months ended June 30, 2023, an increase of $2.75 million from cash used in operating activities for the same period in 2022[273]. - Net cash used in investing activities was $2.47 million for the six months ended June 30, 2023, an increase from $1,487 used in the same period in 2022, primarily due to a software project[275]. Regulatory and Compliance - The company completed the de-registration and liquidation of Nova HK in February 2023, transferring its assets to Nova Malaysia[190]. - The company adopted ASU 2016-13 and ASU 2022-02 effective January 1, 2023, with no impact on the financial statement presentation or disclosures[235]. - The company recorded long-term taxes payable of $0.64 million as of June 30, 2023, primarily arising from a one-time transition tax recognized in 2017[282]. - No off-balance sheet arrangements that materially affect financial condition or results of operations[284]. - No financial guarantees or commitments to guarantee third-party payment obligations[285]. Market Conditions - The markets in North America (excluding the U.S.) are experiencing a slowdown, potentially entering a recession due to high interest rates and inflation[198]. - Nova LifeStyle's operations in Malaysia faced multiple closures due to COVID-19, with the showroom reopening on March 5, 2021, after a nationwide lockdown[194]. - The exchange rate for translating Malaysian Ringgit (RM) to U.S. dollars was RM4.67 to 1 as of June 30, 2023[229].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-36259 NOVA LIFESTYLE, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) 6565 E. Washington Blvd. Co ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (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, 2022 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: 333-36259 NOVA LIFESTYLE, INC. (Exact name of registrant as specified in its charter) (State or other juris ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-36259 NOVA LIFESTYLE, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) 6565 E. Washington Blvd ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-36259 NOVA LIFESTYLE, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) 6565 E. Washington Blvd. Com ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-36259 NOVA LIFESTYLE, INC. (Exact name of registrant as specified in its charter) Nevada 90-0746568 (323) 888-9999 (Registrant's telephone number, including area code) Secu ...

(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, 2021 OR UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☐ 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: 333-36259 NOVA LIFESTYLE, INC. (Exact name of registrant as specified in its charter) Nevada 90-0746568 (St ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-36259 NOVA LIFESTYLE, INC. (Exact name of registrant as specified in its charter) Nevada 90-0746568 (State or other jurisdiction of incorporation or organization) (IRS ...