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Nova Lifestyle Inc (NVFY+2.09%). has submitted its 10-K filing for the fiscal year ended December 31, 2024.
The filing reports a decrease in net sales to $9.69 million from $11.09 million in the previous year, attributed to a 39% decrease in sales volume despite a 43% increase in average selling price.
Cost of sales decreased to $5.44 million from $6.91 million, resulting in a gross profit of $4.25 million, up slightly from $4.17 million the previous year.
Operating expenses were $9.61 million, down from $10.59 million, with selling expenses decreasing by 36% and general and administrative expenses increasing by 20%.
Research and development expenses decreased to $2.00 million from $3.11 million, reflecting reduced spending on AI and IT systems.
The company reported a net loss of $5.56 million, compared to a net loss of $7.72 million in the prior year.
Nova Lifestyle's principal market remains North America, accounting for 97.4% of total sales, with sales to Asia dropping to nil following the liquidation of jade mats inventory.
The company continues to face challenges related to tariffs and supply chain disruptions, impacting its ability to maintain cost-effective operations.
Nova Lifestyle's management has outlined plans to address ongoing financial challenges, including increasing sales through trade shows and developing new IT systems.
The company is actively monitoring its compliance with NASDAQ listing requirements, having addressed recent equity and bid price deficiencies through strategic transactions and stock issuance.
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 annual 10-K report dated March 31, 2025. To report an error, please email earnings@qz.com.