Nova LifeStyle Provides Update on Impact of COVID-19 Outbreak
03 März 2020 - 12:47PM
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.
Forward-Looking Statements
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.
Investor Relations Contact Andrew Barwicki 516-662-9461
andrew@barwicki.com ir@novalifestyle.com
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