LOS ANGELES, March 03, 2020 (GLOBE NEWSWIRE) -- Nova LifeStyle, Inc. (NASDAQ: NVFY) (“Nova LifeStyle” or the “Company”) today announced an update with respect to the potential impact of the COVID-19 outbreak on its business operations, and the Company’s ability to timely file its Annual Report on Form 10-K.
In response to the evolving dynamics related to the COVID-19 outbreak, the Company is following the guidelines of local authorities as it prioritizes the health and safety of its employees, contractors, suppliers and retail partners.
Our Offices located in Hong Kong and Macau were closed for two weeks following the Lunar New Year Holiday Break as a result of the outbreak, but have recently reopened. While the Company’s new products are being sourced from manufacturers in India and Malaysia, some of the products provided by third-party suppliers in China are experiencing production delays. Those suppliers have been closed since the Lunar New Year Holiday but we expect them to recommence production this month, absent further governmental action.
The Company has implemented a series of alternative solutions to reduce the impact of the production delays. These alternative solutions may result in additional costs being borne by the Company. The situation remains highly uncertain. It is therefore difficult for the Company to estimate the negative impact to the consumers’ demand for its products, especially in Asia market. However, it is clear that our first quarter operating results will be adversely impacted in any event. The Company is closely working with its partners to mitigate the impact of the COVID-19 outbreak on its business operations.
The Company has also been coordinating with its independent auditors with respect to the preparation of its Annual Report on Form 10-K. The Company’s ability to close its books for the fiscal year ended December 31, 2019 was delayed by the COVID-19 outbreak as was our auditor’s ability to perform field work. However, based upon the information available, the Company and our auditor believe that the Company will be able to file the Annual Report within the extension period afforded by Rule 12b-25.
About Nova LifeStyle
Nova LifeStyle, Inc. is a well-established, innovative designer and distributor of modern lifestyle furniture; primarily sofas, dining room furniture, cabinets, office furniture and related components, bedroom furniture, and various accessories, in matching collections. Nova's family of brands include Diamond Sofa and Bright Swallow. Nova's products feature urban contemporary styles that integrate comfort and functionality, incorporating upscale luxury designs which appeal to middle and upper middle-income consumers in the USA, China, Europe, and elsewhere in the world.
Visit Nova LifeStyle's website at www.NovaLifeStyle.com.
This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including our financial targets for our consolidated adjusted EBITDA and free cash flow, our expected future growth prospects and our exploration of acquisition opportunities. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terms such as “anticipate,” “estimate,” “believe,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “should,” “will,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target,” “trajectory” or the negative of these terms or other comparable terms. However, the absence of these words does not mean that the statements are not forward-looking. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances.
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