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Nova Lifestyle, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in net sales to $2.62 million from $2.48 million in the same quarter the previous year. The increase is attributed to a rise in average selling price, despite a decrease in sales volume.
Cost of sales for the quarter was $1.44 million, representing 55% of sales, compared to 57% in the same quarter of the previous year. This decrease in cost ratio is due to a focus on high-quality products with higher profit margins.
The company reported a gross profit of $1.18 million for the quarter, compared to $1.06 million in the previous year, with the increase attributed to higher profit margins.
Operating expenses increased to $3.59 million from $2.12 million, primarily due to increased consulting fees and research and development expenses.
Net loss for the quarter was $2.47 million, compared to $1.29 million in the previous year. The increase in net loss is mainly due to higher operating expenses.
Cash used in operating activities was $1.13 million, while cash provided by financing activities was $960,000, mainly from a shareholder loan and private placement.
Nova Lifestyle had a working capital deficit of $1,278,453 as of September 30, 2024. The company is focused on increasing sales and improving cash flow to meet future obligations.
The filing also details various financial agreements, including a private placement and a shareholder loan to support working capital needs.
Nova Lifestyle continues to focus on expanding its product offerings and increasing its presence in the North American market.
The company is addressing its NASDAQ listing compliance and has submitted a plan to regain compliance with stockholders’ equity requirements.
Nova Lifestyle is not currently a party to any legal proceedings that are expected to have a material adverse effect on its business.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Nova Lifestyle Inc quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.