Nova Lifestyle, Inc (NASDAQ:NVFY)

LOS ANGELES, Dec. 19, 2019 (GLOBE NEWSWIRE) -- Nova LifeStyle, Inc. (NASDAQ: NVFY) (“Nova LifeStyle” or the “Company”) today announced that the Company has increased the number of products to be offered in 2020 by 25%, and up to 40% in certain furnishing categories. 

As a result of the Company’s ongoing efforts to source products manufactured to the Company’s specifications in locations other than China, all of these new products are being manufactured in India and Malaysia. The Company continues to expand its product offerings, and to source additional manufacturing arrangements outside China to minimize the impact of the US-imposed tariffs on products manufactured in China and to diversify the Company’s sourcing base. The Company also announced that its 2020 new product debut will take place at the Las Vegas Market show scheduled for January 26-30, 2020. 

Tawny Lam, CEO of Nova LifeStyle stated: “Since the beginning of 2019, the Company has focused on marketing lower volume but high margin products. We are pleased to observe that the Company’s Q3 2019 net sales more than doubled our Q2 2019 net sales. We believe such quarter to quarter revenue increases reflect the market’s acceptance of our new and higher margin products. The Company anticipates the growth momentum to continue well into 2020.”

Diamond Sofa, a well-known brand of Nova has rapidly expanded overseas production sources in the Far East, facilitating the introduction of numerous new products. New product introductions, debuting in 2020, are set to expand the Company’s product offerings by a record 40% in certain home furnishings categories under the “Diamond Sofa” brand, with new designs featuring raw, natural materials enhanced with expert handmade craftsmanship. For the second year in a row, the Las Vegas Market has featured one of Diamond Sofa’s new lines – the Simone collection – as part of its “First Look” program. Such exposure has led to product displays in highly visible entertainment industry events such as the 2019 Academy Awards, 2019 Emmy Awards, and the upcoming 77th annual Golden Globes on January 5, 2020.

Diamond Sofa is the premier one-stop source of contemporary home furnishings for a wide customer base of brick and mortar, e-commerce, staging professionals and designers that value the brand’s ability to deliver on value, rich and trendy selections.

Third Quarter 2019 Financial Results

• Net sales for three months ended September 30, 2019 were $9.3 million, a decrease of 44% from $16.7 million in the same period of 2018.
• Net loss for the three months ended September 30, 2019 was $396 thousand, as compared to a loss of $492 thousand in the same period of 2018.

Tawny Lam, Chairperson and Chief Executive Officer of Nova LifeStyle, stated, “I am pleased to announce that our third quarter 2019 net sales more than doubled our second quarter 2019 net sales.   We believe that this quarter to quarter revenue increase reflects the market’s acceptance of our new higher margin product line and indicates great promise of continued revenue growth from our new product line. We will continue to work to enhance our distribution channels for our new products in an effort to continue to increase our revenues and return to profitability.” 

LOS ANGELES, Nov. 20, 2018 (GLOBE NEWSWIRE) -- Nova LifeStyle, Inc. (NVFY), a leading U.S.-based, innovative designer and distributor of modern LifeStyle home products, today announced that the Company received multiple orders totaling over $1.0 million to supply rental furniture for professional and corporate residential customers from Barsala, LLC.

Barsala is a North American provider of corporate housing and furnished luxury suites. These latest orders are destined for projects in Boston, Seattle, Chicago, Portland and San Diego.

Tawny Lam, Chief Executive Officer of Nova LifeStyle, commented, "We have continued to explore new opportunities to leverage our leading Diamond Sofa brand throughout the North American market.  Recently, we have seen tremendous potential in a growing staging market, where our customers can provide a distinctive, modern and elegant furnishing solution to their renter and office professional customers.  This represents a new direction for Nova LifeStyle, and serves as an incremental expansion of our existing retail and e-commerce businesses.  We are very pleased to have received initial orders from Barsala and expect to continue this partnership well into the future.”

Third Quarter 2018 Financial Results

• Net Sales was $16,747,827 vs last years last years same quarter of $33,222,625.
• Net income (loss) per share of common stock Basic and Diluted was $-0.02 vs last years gain of $0.11.

Tawny Lam, Chief Executive Officer of Nova LifeStyle, commented, "Our North American sales increased by 11%, which was offset by a decrease of sales to Australia and our sales efforts continue to be focused on higher margin products following our exit from the low-margin, mass product segment of the market. We are optimistic that our sales growth will continue in North American region.   Our largest selling product categories in the three months ended September 30, 2018 were sofas, cabinets and beds, which accounted for approximately 64%, 10% and 9% of sales, respectively. Overall, third quarter sales faced a very challenging comparison with last year as the prior year period featured very significant orders from an Australian customer. We are also working diligently with existing customers to shorten our collection cycle and lower our receivable amounts, and expect to make great progress in this regard in the coming fourth quarter.  We are looking forward to a strong year end after solid order activity and significant indications of interest at the recent High Point Market.”

LOS ANGELES, Aug. 20, 2018 (GLOBE NEWSWIRE) -- Nova LifeStyle, Inc. (NASDAQ: NVFY) (“Nova LifeStyle” or the “Company”), a leading U.S.-based, innovative designer and distributor of modern LifeStyle home products, today announced the appointment of a key technology executive, Mr. Wilson Yiu, to lead the expansion efforts of the Company’s Blockchain technology platform.  The Company is seeking to incorporate blockchain technology into its product supply chain.

Mr. Yiu has twenty years of experience in Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) projects in consulting, management, implementations, application development and e-commerce. Mr. Yiu was a senior IT manager at Green Wave Ingredients, one of America’s leading distributors and suppliers of nutritional and proprietary branded ingredients. His career started as a software programmer at Paramount Pictures. Mr. Wilson Yiu possesses technical expertise enter along with business process re-engineering experience.  He holds dual Bachelor’s degrees in Information Systems and Finance from the University of Southern California. Mr. Yiu will serve as the Chief Technology Officer of the Company.

Nova LifeStyle CEO Tawny Lam commented, “In December 2017, we announced the formation of a new entity - iDesign Blockchain Technology Inc – with a goal of creating an integrated community of product designers, users, interior decorators, customers and suppliers built on Blockchain technology.  Our product catalogue emphasizes the ‘modern’ lifestyle which appeals to younger, technology-centric clientele.  Those same individuals are most interested in new technologies such as Blockchain and we are very excited to have Wilson join us to advance our efforts as we look to develop new and innovative ways to engaging with our customers.”

Ms. Lam continued, “Following our strong second quarter financial results, Nova continues to expand through innovative marketing channels. We anticipate significant growth and earnings opportunities by adopting Blockchain applications that fully integrate the Company’s existing and expanding ecosystem of customers, sales channels and designers.”

Second Quarter 2018 Financial Results

• Revenue increased 24% to $24.1 million, compared to $19.5 million.
• Net income increased 150% to $1.4 million, or $0.05 per diluted share, compared to net income of $0.6 million or $0.02 per diluted share.

Tawny Lam, Chief Executive Officer of Nova LifeStyle, commented, "Nova Lifestyle is pleased to announce another quarter of great financial results. Our strategy of focusing on high-end products continues to validate our growth strategies, evidenced by a year over year revenue increase of over 23%. In particular, the Company saw gains in both ASPs and volumes shipped, reflecting that our extensive product offerings through catalogues are gaining momentum. Our international growth has been solid, particularly in Australia, where we have leveraged our relationships and brand recognition to serve customers in the hotel and hospitality industries.”

“In addition to home furnishing products, Nova LifeStyle is now offering a proprietarily designed ‘Office’ product line that greatly complements our existing catalogues. We are currently experiencing substantial cross-selling demand from commercial customers as companies look for beautifully designed and functional office environments to attract and retain employees in today’s low unemployment economy. Going forward, the Office product line will become an added sales channel that integrates corporate apartments and residential furniture adoptions. We anticipate significant sales and earnings growth to continue in the second half of 2018.”

First Quarter 2018 Financial Results

• First quarter revenues were $22.3 million, up 23.5%, compared to $18.1 million.
• Net income in the first quarter of 2018 was $1.6 million, or $0.06 per diluted share, compared with a net loss of $(1.2) million in the first quarter of 2017, resulting in an EPS loss of $(0.04).

Tawny Lam, Chief Executive Officer of Nova LifeStyle, commented, "Nova Lifestyle is pleased to announce fantastic first quarter 2018 financial results.  Since the beginning of 2018, Nova LifeStyle’s focus on marketing trendy designed, high-end products in our catalogues has attracted large orders from global customers. Our outstanding financial results are driven by sales increase across nearly all product categories, with online sales continuing to anchor our growth. This was a well-executed quarter with plenty of growth opportunities going forward.”

 “Nova LifeStyle entered 2018 with strong growth momentum. We have the latest product designs and deeper brand penetration for our popular Diamond Sofa brand. Since the Company was founded nearly 30 years ago, Diamond sofa has continued to innovate with new product offerings. We anticipate significant earnings growth in 2018.”

LOS ANGELES, April 10, 2018 (GLOBE NEWSWIRE) -- Nova LifeStyle, Inc. (NASDAQ:NVFY), a leading U.S.-based, innovative designer and distributor of modern LifeStyle home products, today issued financial guidance for Fiscal Year 2018.

Full Year Outlook for 2018:

Revenues Guidance
For fiscal year 2018, Nova LifeStyle currently expects total revenue to be at least $110 million, based on organic growth of existing operations.  In addition, the Company may elect to pursue potential strategic M&A opportunities which could provide additional revenue contribution.  E-commerce sales from the Company’s subsidiary, Diamond Sofa (https://www.diamondsofa.com/), are expected to achieve record performance, with significant growth deriving from marketing to large accounts such as Amazon.com and other established digital platforms.

Nova LifeStyle has sufficient capital to fund its projected growth and therefore currently has no plan to dilute current shareholders through equity offerings. Further, the Company does not expect its business to be materially impacted in any way by the trade policy differences between the U.S. and China.

2018 Net Income, Earnings Per Share (EPS) Guidance

For fiscal year 2018, Nova LifeStyle currently expects net income to be approximately $9.5 million, or EPS of $0.34 on a fully diluted basis, constituting a significant increase from 2017 net income of $3.8 million and diluted EPS of $0.14.

First Quarter 2018 Performance

The Company anticipates reporting significant sales and net income growth for the quarter ended March 31, 2018.

Approved $5 Million Stock Buyback to Initiate in Q2/18

The Company expects to engage in a stock buyback in the open market from time to time under an approved $5 million share buyback program approved by our Board in December, 2017. Subject to certain regulatory blackout periods, the Company intends to execute the buyback program beginning in the current second quarter.

Investor Awareness, Non-deal Roadshows

In 2018, the Company intends to actively engage with shareholders and the investment community in general to further enhance shareholder value, share trading depth and liquidity. The Company plans to meet with institutional investors through non-deal roadshows in 2018.

MANAGEMENT COMMENT

Tawny Lam, CEO of Nova LifeStyle, commented: “We currently anticipate 2018 to be a year of record sales and earnings growth. Based on our analysis of market trends and customer feedback, Nova LifeStyle expects to launch several new product lines in 2018 targeting the millennial communities as well as deepening channels in the hospitality industry.  We expect E-commerce sales to remain strong and are looking for our own “Diamond Sofa” brand to attract large sales volumes.”

“With a strong balance sheet and favorable market conditions, Nova LifeStyle looks forward to executing on its plans for 2018 and hopefully exceeding our own financial guidance,” Ms. Lam concluded.

Fourth Quarter 2017 Financial Results

• Fourth quarter revenues were $35.7 million, up 79.3%, compared to $19.9 million in the prior year period.
• Net Income (loss) per share of common stock basic and diluted was $0.05 vs. last years loss of $0.03.

Tawny Lam, Chief Executive Officer of Nova LifeStyle, commented, "Nova Lifestyle is pleased to announce outstanding 2017 financial results capped off by a fantastic fourth quarter. We anticipate the recently enacted U.S. tax law will bring considerable benefit to the Company going forward as our U.S. domestic sales are expected to expand rapidly. We have focused on trendy designed, high-end products in our catalogues, which are generating large orders from global customers, including those from as far as in Australia. Our growth is driven by increased customer interest towards our modern lifestyle furnishing solutions and increased online and mobile marketing efforts launched by the Company. Our drive towards uniquely designed, premium product mix since 2016 started to really pay off in 2017 as we experienced both record revenue growth and expanded profit margins.”

Outlook for 2018: Revenues and Earnings Growth Momentum to Continue
Ms. Lam continued, “Nova LifeStyle entered 2018 with continuing growth momentum. We had a very successful Las Vegas Market show in late January 2018. The event featured attendance levels and customer interest not seen in many years, which reflects an uptrend for the entire home furnishings industry. We are seeing strong interest in our products such as the ‘Hollywood Glam’ collection, which has generated orders from customers throughout the United States and internationally. Our three-decades of experience learned from designing and marketing products for international markets has enabled us to develop the scale, logistics, marketing efficiency and design expertise that will serve our customers well in 2018 and beyond. We focus on designing and producing furnishing solutions that meet our changing customers’ lifestyles, adopting the latest design innovation and deeper brand penetration for our own Diamond Sofa brand. We are expecting robust sales and significant earnings growth in 2018.”

LOS ANGELES, Feb. 12, 2018 (GLOBE NEWSWIRE) -- Nova LifeStyle, Inc. (NVFY) ("Nova LifeStyle" or the "Company"), a leading U.S.-based, innovative designer and distributor of modern LifeStyle home products, today announced that the Company was highlighted in the January 31, 2018 issue of Furniture Today* which included significant coverage of the Winter 2018 Las Vegas Market.  The event, which took place in Las Vegas, NV from January 28 through February 1, saw attendance grow 17% from last year’s event, marking the busiest Las Vegas Market in years.  In its showcase, Nova LifeStyle featured its “Hollywood Glam Collection,” which has already garnered orders from a client base that includes notable hotels in cities such as Las Vegas.

“We are very excited to kick off 2018 with what was overall one of our best Markets in many shows, with expanded product selection, availability, and improved flow of the showroom.  Even before the show, it was apparent that the products were exciting and well received, and we capitalized on that with good placement and advance promotion, which translated into tremendous interest in our catalogue,” commented Nova LifeStyle CEO Tawny Lam.

Ms. Lam continued, “This builds on the recent good news we have shared with investors regarding our increased financial guidance, setting the stage for what we hope will be a very good 2018.”

At the Winter Las Vegas Market, Nova LifeStyle showcased its Hollywood Glam Collection, a tribute to the classic glamour and elegance that recalls the Golden Era of Hollywood. The Company has received considerable interest in this collection, particularly the lush interplay of deep jewel tone velvets, rich woven fabrics, delicate tailoring and injections of gold and polished framing.

LOS ANGELES, Dec. 27, 2017 (GLOBE NEWSWIRE) -- Nova LifeStyle, Inc. (NASDAQ:NVFY) ("Nova LifeStyle" or the "Company"), a leading U.S.-based, innovative designer and distributor of modern LifeStyle home products, today announced that the Company has initiated design of a digital community that brings together designers and customers to deliver real time product and user experience built on Blockchain-empowered technology platform named The iDesign Blockchain Platform, which it believes to be a first in the furniture industry.

“iDesign Blockchain Technology Inc.,” a Nova LifeStyle subsidiary intends to establish a trusted digital ecosystem that links the experiences of independent product designers, customers and manufacturers with Nova-branded products on a creative global digital platform powered by Blockchain technology.

The iDesign Blockchain Technology Platform plans to target various artistic creator or designer as an innovation center, focusing on their ideation process to deliver enhanced user experience.

“Nova’s large existing and expanding customer base established over the last 25 years will initially serve as the launching base for the digital community. This ecosystem should deepen customer integration and enhance sales and earnings through Blockchain technology,” said Tawny Lam, CEO of Nova Lifestyle.

The Company will implement these new initiatives with cash flow from existing operations.

LOS ANGELES, Dec. 21, 2017 (GLOBE NEWSWIRE) -- Nova LifeStyle, Inc. (NVFY) ("Nova LifeStyle" or the "Company"), a leading U.S.-based, innovative designer and distributor of modern LifeStyle home products, today announced that the Company intends to begin accepting Bitcoin and other major cryptocurrency as it further develops its product distribution platform.

Nova LifeStyle recently announced its formation of a wholly-owned subsidiary “I Design Blockchain Technology Inc.”  The Company expects to integrate a community of product designers, users, interior decorators, customers and suppliers surrounding Nova-branded products built on Blockchain technology.

“Nova LifeStyle has continued to receive inquiries from customers on availability of various payment options as we develop our e-commerce and product distribution platform, including Bitcoin and other major cryptocurrency.  Nova Lifestyle continues to explore and adapt to the newest development in Blockchain technology to expand Nova-branded products and deepen brand loyalty,” said Ms. Tawny Lam, CEO of Nova LifeStyle.

LOS ANGELES, Dec. 20, 2017 (GLOBE NEWSWIRE) -- Nova LifeStyle, Inc. (NVFY) ("Nova LifeStyle" or the "Company"), a leading U.S.-based, innovative designer and distributor of modern LifeStyle home products, today announced that the Company has launched a wholly-owned subsidiary “I Design Blockchain Technology Inc” to enhance product sales through a Blockchain technology-empowered digital platform, integrating designers, interior decorators, manufacturers, stagers, customers and marketers surrounding Nova-designed modern lifestyle products.

Nova LifeStyle’s expansion into Blockchain technology is supported by its enormous existing worldwide consumer base through the Company’s 25-year operating history.  Earlier this year, the Company announced its intention to begin accelerating the use of Blockchain technology to further enhance the brand recognition of Nova’s traditional furniture business while also creating a platform to offer other potential products and services.  The Company believes that the integration of Blockchain into the current business model is essential to the future growth of Nova LifeStyle.

Management Comments

“Nova LifeStyle is experiencing strong sales and earnings growth as we have recently announced. The launching of a Blockchain technology-empowered digital platform intends to fully integrate our designers, customers and users on a transparent and distributed global Blockchain database,” said Ms. Tawny Lam, CEO of Nova LifeStyle.

“As Nova LifeStyle continues to transform our business in response to significant customer demand, we look forward to expanding our business by taking advantage of the many benefits offered by Blockchain technology.”

LOS ANGELES, Dec. 12, 2017 (GLOBE NEWSWIRE) -- Nova LifeStyle, Inc. (NVFY) (“Nova LifeStyle” or the “Company”), a California-based innovative designer and global distributor of modern lifestyle household consumer products, today announced that its Board of Directors has approved a 10b-18 share buyback program to purchase up to $5 million of the Company's common stock in transactions conducted through a broker or dealer in compliance with Rule 10b-18 promulgated under the Exchange Act. The duration of the program will be one year.

"As Nova LifeStyle continues to experience record profit growth, supported by a strong balance sheet and operating cash flow, the Company is pleased to announce it’s first buyback program that enables us to return value to shareholders, while at the same time continuing to invest in opportunities that will further strengthen our robust growth which is anticipated to continue well into 2018,” said Tawny Lam, CEO of Nova LifeStyle. "The Board of Directors believes that the company's shares are an attractive investment opportunity and repurchasing stock is an important part of our capital allocation strategy."

The Company has recently provided fourth quarter earnings guidance and anticipates record earnings growth in 2018.

The share buyback program will be funded from the Company's cash and future cash provided by operating activities.

The buyback program will depend on a number of factors, including, but not limited to, market conditions (such as price, trading volume) and the company's working capital requirements, general business conditions and other factors. The share buyback program has a time limit of one year and maybe suspended, modified for periods and discontinued upon approval by the Board of Directors in compliance with applicable securities laws and regulations.

LOS ANGELES, Nov. 17, 2017 (GLOBE NEWSWIRE) -- Nova LifeStyle, Inc. (NASDAQ:NVFY) (“Nova LifeStyle” or the “Company”), a California-based innovative designer and global distributor of modern lifestyle household consumer products, is pleased to provide financial guidance for the fourth quarter ending December 31, 2017.

Nova LifeStyle expects to generate:

Revenue to be approximately $35 to $36 million.
Net income to be approximately $1 million per month or in the range of $3 million - $3.5 million for the 4th quarter, a significant increase from the same period last year.
Net income per share to be in the range of $0.11 - $0.13 for the quarter, a significant increase versus the prior year.
Expanded sales channels, new product offerings and repeat customer orders from Asia and Australia. 
Expanded profit margins across nearly all product lines
“Since the Company’s successful transformation in early 2017 from a low-margin furniture manufacturing business to a high-margin innovative designer and global marketer of modern lifestyle consumer products, we have significantly fine-tuned our product mix and deepened distribution channels, which led to our recently announced record 3rd quarter financial results,” said Tawny Lam, CEO of Nova Lifestyle. 

“Nova made over $1 million in net income during the month of October, a substantial increase over the same period last year. Nova expects the same growth momentum to continue for the balance of the 4th quarter of 2017 and well into 2018.  As noted in our third quarter earnings release, Nova has a strong balance sheet with ample liquidity to fund operations. Additionally, management does not anticipate a need for external capital for the foreseeable future.”

Third Quarter 2017 Financial Results

• Net Sales was $33,222,625 vs last years $30,538,918. 
• Net income $2.96 million or $0.11 per share ($0.11 fully diluted), an increase of nearly 900% compared to $0.3 million or $0.01 per share ($0.01 fully diluted) net income in the third quarter of 2016

Tawny Lam, Chief Executive Officer of Nova LifeStyle commented: “We are pleased to have delivered stellar financial results. Nova LifeStyle’s third quarter financial performance reflects the results of our successful transformation from an ‘asset heavy’ furniture-manufacturing business to a ‘light asset,’ high margin, consumer product company focused on innovative product designs and customer-centric marketing. 2017 is Nova LifeStyle’s Diamond Sofa brand's 25th year in business and with a record number of new product SKUs as well as a rapidly expanding, diversified global customer base, Nova LifeStyle is poised for significant growth for years to come.”

Guidance and Outlook
Ms. Lam concluded: “We continue to see consistent growth leading into the 4th quarter as well as 2018. If this continues, we hope to initiate stock buybacks or start paying cash dividends in the near future to reward our long-term shareholders, as a way to maximize customer and shareholder value.”

LOS ANGELES, Sept. 21, 2017 (GLOBE NEWSWIRE) -- Nova LifeStyle, Inc. (NASDAQ:NVFY) or (the “Company,” "Nova"), a U.S.-based innovative designer and distributor of modern LifeStyle products is pleased to announce that based upon market surveys, follow-up interviews, and performance index comparisons, US News Express has selected Diamond Sofa, a Nova LifeStyle company as one of the top 5 Asian American Brands.

Established in California in 1992, Diamond Sofa is one of the best recognized furniture brands in the United States, embracing innovative designs and urban contemporary styles.

Nova LifeStyle Anticipates Robust Profit in Third Quarter 2017

Nova LifeStyle’s third quarter profit has increased substantially compared to the prior year period.  Based on a preliminary review of third quarter results, Nova anticipates robust third quarter financial performance driven by an increase in consumer demand and new product launches.

The Company also successfully completed a milestone business transformation in late 2016 when Nova divested its factories and franchise stores, thus transforming Nova's business model from a manufacturing-oriented, asset-heavy enterprise into an asset-light operation focused on modern product design, efficient distribution and marketing.

The Company's product stock keeping units (“SKUs”) have grown over 200% since 2016.  The Company’s products have been experiencing strong ordering activity at leading online retailers Amazon.com, Wayfair Inc. and Hayneedle.com.  Diamond Sofa has also maintained a long-term relationship with four furniture subsidiaries owned by Warren Buffet’s Berkshire Hathaway Inc.

LOS ANGELES, Dec. 02, 2016 (GLOBE NEWSWIRE) -- Nova LifeStyle, Inc. (NVFY) (“Nova LifeStyle” or the “Company”), a U.S.-based, leading innovative designer, manufacturer and distributor of modern lifestyle furniture, today announced the Company has continued to expand its e-commerce presence by partnering with Future World LifeStyle, which will feature Diamond Sofa Smart Furniture on its www.weilai178.com website.  Future World Lifestyle offers its 3 million plus members a reward redemption program that can be used for products listed on the site. 

Tawny Lam, President and Interim CEO of Nova LifeStyle stated, “Our partnership with Future World Lifestyle demonstrates continued success in expanding our presence in the e-commerce marketplace.  By partnering with a platform such as this, we gain access to over 3 million potential customers, allowing us to significantly leverage our exposure and marketing as we position the Company for continue revenue growth."

Today’s arrangement with Future World Lifestyle also marks a significant milestone for Diamond Sofa’s line of Smart Furniture.  Originally introduced in April of 2015, Diamond Sofa Smart Furniture offers consumers a superior line of products, led by its Smart Health Bed, which marry cutting-edge technology with traditional home furnishings.  By adding capabilities to monitor, record and deliver data, the Smart Health Bed provides medical care providers a way to improve patient care.  As a featured product on the Future World Lifestyle website, Nova LifeStyle anticipates its marketing efforts to be significantly enhanced.

Third Quarter 2016 Financial Results

• Third quarter net sales were $30.5 million, an increase of 26.9% compared to $24.0 million in the prior year period.
• Net income from continuing operations was $1.0 million, or $0.04 per diluted share based on 25.7 million shares outstanding in the third quarter of 2016, compared to net income from continuing operations of $0.4 million or $0.02 per diluted share based on 24.1 million shares outstanding in the same period of the prior year.

Tawny Lam, President and Interim Chief Executive Officer of Nova LifeStyle, stated, "We are excited to report a very solid third quarter for Nova LifeStyle. Our top line sales grew nearly 27% versus the same period last year as efforts we have made in recent quarters to focus our sales mix on higher-margin products began to pay off in the form of higher average selling prices and improved gross margins. Sales improved in every geography we serve, with European sales more than doubling in this quarter as compared to the same period last year as the regional economy there continues to improve. Our expectation is that growth will continue there and we are looking to capitalize on that momentum with an increased local sales and marketing effort.”

Ms. Lam continued, “The third quarter also saw us make a significant strategic change to our business as we agreed to sell our Chinese operations in order to focus on an “asset-light” operating model. The transaction, which we announced on September 29th and closed on October 25th, added $8.5 million to our balance sheet while also eliminating a significant source of margin pressure which has negatively impacted our results in recent quarters. As part of our strategic transition, we are devoting more energy and emphasis to developing our E-commerce initiatives, as exemplified by our recent agreement with Inno International. That partnership will allow us to engage consumers who are utilizing reward point programs for a wide variety of products and services.”

LOS ANGELES, Nov. 09, 2016 (GLOBE NEWSWIRE) -- Nova LifeStyle, Inc. (NVFY) (“Nova LifeStyle” or the “Company”), a U.S.-based, leading innovative designer, manufacturer and distributor of modern life style furniture, today announced the Company has made a strategic entry into a high margin, service oriented, e-commerce business through its partnership with Inno International Trading, a Hong Kong-based company engaged in the business of marketing, monetizing and exchanging reward points for its millions of existing members and customers.

Nova LifeStyle and Inno will collaborate in implementing and managing an Academic E-commerce marketplace and Reward Points Redemption Program, providing an online platform for Inno's members to monetize and exchange their reward points for various merchandise and services, including Nova LifeStyle’s products. The Company has established an integrated training center in Hong Kong to service Inno's customers.

On October 11, 2016, Nova Lifestyle announced in a press release its planned strategic realignment, transforming the Company from a marketing and designer of modern furniture to focus on high margin, less capital intensive, service-oriented business segments, focusing on business training and e-commerce.

Beginning this quarter, the Company anticipates significant portions of its sales and earnings will be earned from high growth, high margin business training and e-commerce related services.

Tawny Lam, President and Interim CEO of Nova LifeStyle stated, “We are excited to announce a strategic partnership with Inno International Trading. Today's press release marks Nova's first step in our transformation to a high margin, asset-light, service company. Millions of customers hold reward points - the same concept as in airline miles or points earned through credit card spending. There are also merchants eager to offer their products to these customers. Nova Lifestyle is positioning itself as a marketplace where reward points can be matched with merchandise, producing tangible benefits for Asia-based members. The Company shall derive training and service related fees from these efforts."

LOS ANGELES, Oct. 26, 2016 (GLOBE NEWSWIRE) -- Nova LifeStyle, Inc. (NVFY) (“Nova LifeStyle” or the “Company”), a U.S.-based, leading innovative designer, manufacturer and distributor of modern life style furniture, today announced it has closed its previously announced Share Transfer Agreement (“Agreement”) with Kuka Design Limited, a company incorporated in BVI (“Kuka BVI”) to sell NOVA BVI and its subsidiaries, which consists of the Company’s manufacturing operations in mainland China (the “Transaction”).

With the slow-down of the Chinese economy and a significant increase in labor and other costs for manufacturing facilities in China, the Company decided to sell NOVA BVI, allowing the Company to transition to a “light-asset” business model with greater flexibility and scalability while also focusing its operations on designing, developing, branding, marketing and distributing furniture products in North America, Asia and around the world.

Management Commentary
Ms. Tawny Lam, President, and Interim CEO, stated, "We are pleased to have closed our previously announced sale of our China-based business assets.  We are now looking forward to focusing our entire attention on designing, branding, marketing and distribution of furnishing products in North America, and developing the Company’s fast growing e-commerce segment.”

Transaction Details
Under the Agreement, Kuka Design BVI has purchased from the Company all of the issued and outstanding shares of NOVA BVI and the subsidiaries owned by NOVA BVI - Nova Furniture (Dongguan) Co., Ltd., Nova Dongguan Chinese Style Furniture Museum and Dongguan Ding Nuo Household Products Co., Ltd., which include all their assets and liabilities, for $8,500,000.

LOS ANGELES, Oct. 11, 2016 (GLOBE NEWSWIRE) -- Nova LifeStyle, Inc. (NASDAQ:NVFY) (“Nova LifeStyle” or the “Company”), a U.S.-based, leading innovative designer, manufacturer and distributor of modern life style furniture, today announced it has signed a $15 million annual product framework agreement to supply U.S. made mattresses and other products to a leading Hong Kong and Malaysia-based professional training institute - The Future Biz School, www.futurebizschool.com. The Future Biz School provides management and marketing training to working professionals across Asia based on its successful "Reward Points" programs. The actual sales under the framework agreement will be subject to, and fulfilled by, the specific orders from the Future Biz School (“FBS”).  Along with the execution of the framework agreement, the Company has received firm orders from FBS for October and November of 2016 to supply $2 million worth of products.

Nova started to market "Made in the USA" luxury mattresses in Asia in summer 2012.  An article in the Los Angeles Business Journal, entitled "Foreign Exchange," featured the Company’s marketing efforts to sell American made mattresses in China. The article can be accessed at: http://novalifestyle.com/20120911

Ms. Tawny Lam, Nova LifeStyle's Chairwoman and interim CEO stated, "We are very pleased to see growing demand in Asian markets for our American made mattresses as our marketing efforts start to bear fruit.  We look forward to working with the Future Biz School to fulfill current and future orders under the framework agreement.  Nova LifeStyle is making a strategic realignment to its overall business model, transforming the Company from an asset-heavy, market leader in modern furniture and manufacturing, to focus on business training and e-commerce as well as other higher margin, less capital intensive and more efficient business models.  Nova LifeStyle has many years of expertise in the e-commerce market. The Company plans to pursue and invest in strategic growth opportunities including acquisitions of online platforms of synergistic value. Nova LifeStyle intends to acquire and invest in digital platforms that match suppliers with buyers in both products and services."

Second Quarter 2016 Financial Results 

• Second quarter Net Sales were $24.0 million, a decrease of 17.9% compared to $29.2 million in the prior year period.
• Net loss was $0.7 million, or $0.03 per diluted share based on 24.9 million shares outstanding in the second quarter of 2016, compared to a net loss of $0.1 million or $0.01 per diluted share based on 22.0 million shares outstanding in the prior year period.

Management Commentary Jeffrey Wong, Chief Executive Officer of Nova LifeStyle, stated, "We are disappointed that second quarter results were not as strong as hoped for but we are optimistic that we will return to the top line growth trajectory seen in prior periods. In the quarter, our Chinese franchise retail sales were not immune to broader weakness seen throughout our industry. In response, we are taking aggressive actions to stimulate growth, with focused efforts on selling to property developers as well as hotels and apartments. Both of these channels offer opportunities for larger orders by allowing the Company to sell a complete set of furnishings and, in many cases, a complete furnishing set may be ordered for multiple dwelling units.�

Mr. Wong continued, �We are also focused on expanding our internet channel sales by continuing to add to our product catalogue. Internet sales provide multiple benefits for the Company, including broad customer reach along with sales and marketing scalability. Younger shoppers are particularly enthusiastic about using online channels either as part of their furniture buying process or as their total shopping solution. On the internet we can offer customers the ability to purchase single furniture pieces or complete furnishing sets. For busy professionals, the ability to buy a complete furnishings package online is especially appealing.�

Ms. Tawny Lam, President of Nova LifeStyle, stated, �We recently attended the Summer 2016 Las Vegas Market event which is always a highlight of the year. At the event this year we expanded our marketing efforts by adding a second showcase, allowing us to feature even more of our latest products. This summer we have debuted over 60 new items as we continue to focus on keeping our product catalogue fresh and diverse. At Las Vegas Market, the Company featured coordinated design galleries with Contemporary, Urban Vintage, Motion and Retro lines, along with in-stock, quick-ship availability allowing customers maximum ordering convenience. We enjoyed a very positive response from customers at Las Vegas Market, with very strong ordering rates and we have also seen that momentum continue with follow-on orders since we have returned from the event. I am very excited about the remainder of 2016 for Nova LifeStyle, especially as we begin to prepare for the 2016 holiday season.�

Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing
 
On June 20, 2016, Nova Lifestyle, Inc. (the “Company”) received written notice from the NASDAQ Stock Market (“NASDAQ”) stating that the Company is not in compliance with the $1.00 minimum closing bid price requirement for continued listing on The NASDAQ Global Market, as set forth in NASDAQ Listing Rule 5450(a)(1). The notice has no immediate effect on the listing of the Company's common stock, and its common stock will continue to trade on The NASDAQ Global Market under the symbol “NVFY” at this time.  In accordance with NASDAQ Listing Rule 5810(c)(3)(A), the Company has a grace period of 180 calendar days, or until December 19, 2016, to regain compliance with the minimum closing bid price requirement. To regain compliance, the closing bid price of the Company's common stock must meet or exceed $1.00 per share for at least ten consecutive business days during this 180-day grace period.

If the Company does not regain compliance by December 19, 2016, the Company may be eligible for an additional grace period if it applies to transfer the listing of its common stock to the NASDAQ Capital Market. To qualify, the Company would be required to meet the continued listing requirements for market value of publicly held shares and all other initial listing standards for the NASDAQ Capital Market, with the exception of the minimum bid price requirement, and provide written notice of its intention to cure the minimum bid price deficiency during the second compliance period.

If the Company meets these requirements, the NASDAQ staff will grant an additional 180 calendar days for the Company to regain compliance with the minimum bid price requirement. If the NASDAQ staff determines that the Company will not be able to cure the deficiency, or if the Company otherwise determines not to submit a transfer application or make the required representation, NASDAQ will provide notice that the Company’s common stock will be subject to delisting. The Company would have the right to appeal a determination to delist its common stock, and the common stock would remain listed on the NASDAQ Global Market until the completion of the appeal process.

The Company intends to monitor the closing bid price for its common stock between now and December 19, 2016 and will consider the various available options available to the Company if its common stock does not trade at a level that is likely to regain compliance.

LOS ANGELES, June 23, 2016 (GLOBE NEWSWIRE) -- Nova LifeStyle, Inc. (NASDAQ:NVFY) (“Nova LifeStyle” or the “Company”), a U.S.-based, leading innovative designer, manufacturer and distributor of modern life style furniture, today announced key achievements in furthering the Company’s export market business in Dubai and Australia.  The Company is focused on growing these market opportunities in order to diversify its business relative to its larger markets in North America, China, and Europe.

Key recent developments of note include:

• A big hotel project in Dubai has started production.  In addition, the Company’s customer has begun construction of a second project which offers Nova LifeStyle an opportunity to win additional business with the customer.
• Double Tree and Marriott hotel projects are in the early stages of production and represent significant business potential for Nova LifeStyle.  At this stage, the Company has five projects ongoing and an additional one in Australia in the negotiation stage.
• Nova LifeStyle will participate in the Home Show of Harvey Norman Australia in July 2016 which is a private in-house exhibition only for Harvey Norman buyers.  Harvey Norman is a leading retailer in Australia selling a range of products, including home furnishings.
• Nova LifeStyle is evaluating the opening of its own showroom in Dubai which would highlight furnishings for hotel projects in the area.  With more than 15 hotel projects under development Nova LifeStyle has significant opportunity to win business in Dubai and would likely operate the showroom in a joint venture structure with one of its partners from the Dragon Mall project in Dubai.    

Jeffrey Wong, CEO of Nova LifeStyle, stated, "By expanding our business in areas such as Dubai and Australia we gain multiple benefits.  In Dubai there are more than 15 hotel projects under development, offering our Company many opportunities to win significant business.  Hotel projects require much more furniture pieces than a residential home, as one would expect.  Winning hotel contracts will enable us to accelerate our top line growth with the added benefit of better payment terms which will allow us to tighten up our receivables.  In addition, by growing our business in Dubai and also Australia we will further diversify our operations, providing the Company a valuable buffer against weak economic activity in any one region.”

First Quarter 2016 Financial Results

• First quarter Net Sales were $27.1 million, an increase of 23% compared to $22.0 million in the prior year period.
• Net Income was $0.1 million, or $0.00 per diluted share based on 24.3 million shares outstanding in the first quarter of 2016, compared to net income of $1.6 million or $0.08 per diluted share based on 20.9 million shares outstanding in the prior year period.

Management Commentary
Jeffrey Wong, Chief Executive Officer of Nova LifeStyle, stated, "We are off to a solid start in 2016 with first quarter net sales up 23% versus last year. North American sales increased 14% during the period while Chinese sales posted a 23% gain. We have been ramping up our sales and marketing activities in the US and we are pleased to see that investment yields growth. In China, our subsidiary Ding Nuo continued to expand its business with IKEA and we are optimistic this trend will continue. We are also very heartened to see our sales in Europe post year over year growth of 61%. Economic conditions in that region are certainly not back to a high growth mode but we are nonetheless encouraged to see our sales improve as they did in the period.”

Mr. Wong continued, “As noted earlier, our first quarter sales mix favored our wholesale brands Diamond Bar and Nova Macao, which yield lower margins for the Company due to the wholesale nature of their operations. We continue to focus on providing our customers with a diverse catalogue of products which will appeal to a variety of tastes and budgets. On a short term basis, we expect our sales mix to vary as customers pick and choose among the many products we have on offer. By providing our customers with such a variety of products to choose from, we hope to become their first choice for home furnishings over the long term. Additionally, partners such as IKEA offer Nova LifeStyle an opportunity for significant sales leverage along with operational insight. Over the long term, we expect the margin we sacrifice in working with such accounts will provide value far exceeding any short-term margin compression.”

Ms. Tawny Lam, President of Nova LifeStyle, stated, “We are pleased to see our first quarter results reflect continued volume growth. This indicates that our products are “on point” with current trends and fashion in the home furnishings marketplace. We are constantly looking to keep our product catalogue fresh and our production line is currently in the process of adopting new image standards. We have been investing heavily in new product development along with an aggressive sales and marketing effort which we anticipate will drive continued sales increases along with improved margins as we move through the year. In closing, I would like to thank our shareholders for their support and trust in our company and also a special appreciation to all of our employees for their hard work and dedication.”

• Net sales were $29.0 million, an increase of 12% compared to the prior year period.
• Net Income was $0.03 million, or $0.00 per diluted share based on 24.1 million shares outstanding, compared to net income of $3.1 million or $0.15 per diluted share based on 20.9 million shares outstanding in the prior year period.

Management Commentary

Jeffrey Wong, CEO of Nova LifeStyle, stated, "Our third quarter results were highlighted by top line growth of 12% year over year, largely due to our expansion in North America and China. North American sales increased 19% during the period, as we aggressively expanded our marketing efforts to the U.S. and Canadian markets. In addition, we believe that there is considerable upside for our sales in China, largely driven by our receipt of a new yearly order plan from IKEA with higher volume expected in the coming months. Since qualifying as an approved vender for IKEA, we have seen sales steadily increase in China as a result of their expansion and the adoption of our product lines that can be used as both stand-alone or whole-room and home furnishing solutions. We are also continuing to penetrate new global markets, which included the receipt of a sizable order from a retail chain in South America. Nova LifeStyle is focused on enhancing the global reception of its brand and we are continuing to design and create new modern home furnishing solutions that encapsulate a changing contemporary lifestyle."

Mr. Wong continued, "Through our global network, Nova LifeStyle also sells (through an exclusive third party manufacturing partner) a managed variety of high quality bedding foundation components. In the third quarter, our cost of goods was elevated due to increased seasonal orders fulfilled using third party manufacturers. As a Company, we remain cognizant of evolving trends in the industry and continue to enrich our product lines to emphasize style, comfort and value. Nova LifeStyle is constantly seeking to integrate new sources of distribution and manufacturers that are properly aligned with our growth strategy, thus allowing us to continually focus on building both same store sales growth as well as drive the expansion of our overall distribution and manufacturing relationships through a deployment of popular, as well as trend-based, furnishing solutions worldwide. We are focused on growing in a sustainable manner, improving our receivables, and maintaining a lean operating infrastructure. We made considerable progress in this regard during the year and it will continue to be our focus in 2016 and beyond."

Mr. Wong concluded, "We are also committed to re-investing in our platform to stay ahead of emerging verticals within the home furnishing market, such as the emergence of e-commerce as a primary component of customer buying habits. During the period, the Company put the Nova sales-kit apps design into official operation at the Company's franchise stores and we are in the process of conducting procedure testing on our e-commerce platform and mobile apps. We expect to launch the service of our e-commerce platform and mobile apps by the end of 2015."

Management Discussion and Anlaysis

Net Sales

Net sales for the three months ended June 30, 2015, were $29.18 million, an increase of 13% from $25.93 million in the same period of 2014; this increase in net sales resulted primarily from a 7% increase in average selling price coupled with a 5% increase in sales volume.  Our subsidiary Ding Nuo, which was formed in October 2013, contributed $1.60 million to sales for the three months ended June 30, 2015, comparing $0.21 million in the same period of 2014. Our overall average selling price increased approximately 7% in the three months ended June 30, 2015, compared to the same period of 2014, resulting primarily from increased sales volume of high price products in both the Chinese domestic market and worldwide. Our largest selling product categories in the three months ended June 30, 2015 and 2014 were sofas, dining tables and cabinets , which accounted for approximately 31%, 16% and 15% of sales, respectively, for the three months ended June 30, 2015; and 37%, 17% and 18% of sales, respectively, for the three months ended June 30, 2014.

Of the $3.25 million increase in net sales in the three months ended June 30, 2015, compared to the same period of 2014, $3.13 million was attributable to sales in markets other than China, principally as a result of increased sales in North America. North American sales increased 38% to $20.28 million in the three months ended June 30, 2015, compared to $14.68 million in the same period of 2014, as we aggressively expanded sales to the U.S. and Canadian markets and continued to integrate the operations of Bright Swallow.  As part of our gradual change in sales and marketing strategy launched in 2012, we increased marketing efforts in the U.S. markets while maintaining our marketing efforts and existing customer base in Europe. Sales to Europe were $3.13 million in the three months ended June 30, 2015, a decrease of 5% from $3.31 million in the same period of 2014, primarily as a result of the sluggish European economy. We anticipate increasing sales and marketing to the European market as the region’s economic outlook improves. Sales to Asia, excluding Hong Kong, and other countries, decreased 68% to $0.93 million in the three months ended June 30, 2015, compared to $2.93 million in the same period of 2014, primarily due to the decrease of sales orders from our major customers in Asia. Sales to Hong Kong decreased 88% to $0.04 million in the three months ended June 30, 2015, compared to $0.35 million in the same period of 2014, primarily due to the decrease in sales orders from customers in that region.
 
Sales to China, which included sales to franchisees in addition to wholesalers and agents to domestic retail stores and distributors for the export market, accounted for 16% of sales in the three months ended June 30, 2015, compared to 18% of sales in the same period of 2014. Sales to franchisees selling our branded products in China contributed approximately $0.16 million or 3% of our total China sales in the three months ended June 30, 2015, compared to $0.47 million or 10% in the same period of 2014. We are currently adopting new image standards as well as product lines for its franchise operations that will take time to develop.  First, through our production line, we intend to produce some products made from marble material. Second, we intend to import a range of additional products from the U.S. or Europe. We also intend to enrich our product lines to include a bedroom series, which would include beds, bed side tables, mattresses (which could be imported or purchased in China) and bedding sets including bed sheets, pillowcases, quilt covers, and other items (which can be purchased within China). Overall sales to China increased 3% to $4.78 million in the three months ended June 30, 2015 compared to $4.66 million in the same period of 2014 as a result of increased sales from our subsidiary, Ding Nuo, to IKEA. 

Net Income (Loss)

Net loss was $0.14 million in the three months ended June 30, 2015, a decrease of 105% from $3.35 million of net income for the same period of 2014. Our net profit margin, excluding the loss on change in fair value and extinguishment of warrant liability of $1,722,097, was 5% in the three months ended June 30, 2015, an increase of 1% from 4% for the same period of 2014.

LOS ANGELES, June 30, 2015 /PRNewswire/ -- Nova LifeStyle, Inc. (NASDAQ:NVFY) ("Nova LifeStyle" or the "Company"), a U.S.-based, innovative designer, manufacturer and distributor of modern LifeStyle furniture, today announced that the Company's Board of Directors (the "Board") formed a special committee (the "Special Committee") on June 24, 2015 to consider potential opportunities following the receipt of inquiry letters from certain funds and securities industry firms that have indicated an interest in investing in the Company

The Special Committee will consist of Mr. Sammy Ho, Nova LifeStyle's CFO, and four Independent Directors, who will evaluate these opportunities and explore them further with these potential investors and/or their representatives. These inquiries that the Company has received are preliminary and not specific.

Mr. Jeffrey Wong, Chief Executive Officer of Nova LifeStyle, stated, "Following the receipt of certain inquiries from investors, our Board felt that the formation of a Special Committee would ensure proper corporate independence to evaluate these opportunities.  These evaluations are in the early stages, and we will continue to keep our shareholders apprised of any developments and remain transparent throughout the process."

Gang Cheng, head of M&A Department of Everbright Securities Co., Ltd, a subsidiary of the China Everbright Group also stated, "With the booming China stock market, China's capital market is becoming more and more active, and companies with new concepts like Nova LifeStyle are favored by investors." 

Nova LifeStyle's Board cautions the Company's shareholders and others considering trading in the Company's securities that no decisions have been made by the Special Committee and there can be no assurance that any definitive offer will be made, that any agreement will be executed or that any transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to these inquiries except as required under applicable law.

2,970,509 shares of Common Stock
 
Nova LifeStyle, Inc.
 
Pursuant to this prospectus supplement and the accompanying prospectus, we are offering to investors 2,970,509 shares of our common stock, par value $0.001 per share (“Common Stock”).  2,000,001 shares of our Common Stock will be sold to investors for an aggregate cash purchase price of $4,000,002.  660,030 shares of our Common Stock will be issued to holders of our 2014 Series A Warrants (as defined herein) in exchange for the termination and surrender of such warrants, and 310,478 shares of our Common Stock will be issued to holders of our 2014 Series C Warrants (as defined herein) in exchange for the surrender and termination of such warrants.  In a concurrent private placement, we are also selling to purchasers of shares in this offering a warrant to purchase 1 share of our Common Stock for each share purchased for cash in this offering (the “2015 Warrants”).  The 2015 Warrants will be exercisable beginning on the six month anniversary of the date of issuance (the “Initial Exercise Date”) at an exercise price of $2.71 per share and will expire on the 5 year anniversary of the Initial Exercise Date.  The 2015 Warrants and the shares of our Common Stock issuable upon the exercise of the 2015 Warrants are not being registered under the Securities Act of 1933, as amended, pursuant to the registration statement of which this prospectus supplement and the accompanying prospectus form a part, are not being offered pursuant to this prospectus supplement and the accompanying prospectus and are being offered pursuant to the exemption provided in Section 4(a)(2) under the Securities Act.

Our Common Stock trades on the NASDAQ Stock Market LLC under the symbol “NVFY.” As of the date of this prospectus supplement, the aggregate market value of our outstanding Common Stock held by non-affiliates was approximately $37,722,534 based on 20,950,263 shares of outstanding Common Stock, of which 9,789,750 shares were held by affiliates as of such date, and a price of $3.38 per share, which was the last reported sale price of our Common Stock as quoted on the NASDAQ Stock Market LLC on May 21, 2015.

Nova LifeStyle, Inc.
 

Pursuant to this prospectus supplement and the accompanying prospectus, we are offering to investors 2,970,509 shares of our common stock, par value $0.001 per share (“Common Stock”).  2,000,001 shares of our Common Stock will be sold to investors for an aggregate cash purchase price of $4,000,002.  660,030 shares of our Common Stock will be issued to holders of our 2014 Series A Warrants (as defined herein) in exchange for the termination and surrender of such warrants, and 310,478 shares of our Common Stock will be issued to holders of our 2014 Series C Warrants (as defined herein) in exchange for the surrender and termination of such warrants.  In a concurrent private placement, we are also selling to purchasers of shares in this offering a warrant to purchase 1 share of our Common Stock for each share purchased for cash in this offering (the “2015 Warrants”).  The 2015 Warrants will be exercisable beginning on the six month anniversary of the date of issuance (the “Initial Exercise Date”) at an exercise price of $2.71 per share and will expire on the 5 year anniversary of the Initial Exercise Date.  The 2015 Warrants and the shares of our Common Stock issuable upon the exercise of the 2015 Warrants are not being registered under the Securities Act of 1933, as amended, pursuant to the registration statement of which this prospectus supplement and the accompanying prospectus form a part, are not being offered pursuant to this prospectus supplement and the accompanying prospectus and are being offered pursuant to the exemption provided in Section 4(a)(2) under the Securities Act.

Our Common Stock trades on the NASDAQ Stock Market LLC under the symbol “NVFY.” As of the date of this prospectus supplement, the aggregate market value of our outstanding Common Stock held by non-affiliates was approximately $37,722,534 based on 20,950,263 shares of outstanding Common Stock, of which 9,789,750 shares were held by affiliates as of such date, and a price of $3.38 per share, which was the last reported sale price of our Common Stock as quoted on the NASDAQ Stock Market LLC on May 21, 2015.

Item 1.01  Entry into a Material Definitive Agreement
 

On May 28, 2015, Nova LifeStyle, Inc. (the “Company”) entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain purchasers identified on the signature pages thereto (the “Purchasers”), pursuant to which the Company will offer to the Purchasers, in a registered direct offering, an aggregate of 2,970,508 shares (the “Shares”) of common stock, par value $0.001 per share (“Common Stock”).  2,000,000 Shares of our Common Stock will be sold to the Purchasers at a negotiated purchase price of $2.00 per share, for aggregate gross proceeds to the Company of $4,000,000, before deducting fees to the placement agent and other estimated offering expenses payable by the Company.  660,030 Shares of our Common Stock will be issued to holders of our 2014 Series A Warrants (as defined herein) in exchange for the termination and surrender of such warrants, and 310,478 Shares of our Common Stock will be issued to holders of our 2014 Series C Warrants (as defined herein) in exchange for the surrender and termination of such warrants. The Shares are being offered by the Company pursuant to an effective shelf registration statement on Form S-3, which was originally filed with the Securities and Exchange Commission on February 4, 2014, amended on February 20, 2014, and was declared effective on March 7, 2014 (File No. 333-193746) (the “Registration Statement”).

Pursuant to a securities purchase agreement, dated as of April 14, 2014, by and among the Company and certain investors, we issued Series A warrants (the “2014 Series A Warrants”) to purchase up to 660,030 Shares of our Common Stock and Series C warrants (the “2014 Series C Warrants”) to purchase up to 310,478 Shares of our Common Stock.  In accordance with the terms of the Purchase Agreement, the outstanding 2014 Series A Warrants will be exchanged for 660,030 Shares of our Common Stock, and the outstanding 2014 Series C Warrants will be exchanged for 310,478 Shares of our Common Stock.

In a concurrent private placement, the Company is also selling to the Purchasers a warrant to purchase one (1) share of the Company’s Common Stock for each share purchased for cash in the offering, pursuant to that certain Common Stock Purchase Warrant, by and between the Company and each Purchaser (each, a “2015 Warrant”, and collectively, the “2015 Warrants”).  The 2015 Warrants will be exercisable beginning on the six month anniversary of the date of issuance at an exercise price of $2.71 per share and will expire on the five year anniversary of the date of issuance. The purchase price of one share of the Company’s Common Stock under the 2015 Warrant is equal to the exercise price.

The 2015 Warrants and the shares of the Company’s Common Stock issuable upon the exercise of the 2015 Warrants (the “Warrant Shares”) are not being registered under the Securities Act of 1933, as amended (the “Securities Act”), pursuant to the Company’s Registration Statement and are instead being offered pursuant to the exemption provided in Section 4(a)(2) under the Securities Act.  Each Purchaser is either (i) an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act or (ii) a “qualified institutional buyer” as defined in Rule 144A(a) under the Securities Act.  Each Purchaser, either alone or together with its representatives, has enough knowledge and experience to be considered a sophisticated investor, has access to the type of information normally provided in a prospectus for a registered securities offering, and has agreed not to resell or distribute the 2015 Warrants or the Warrant Shares to the public except pursuant to sales registered or exempted under the Securities Act.

In connection with the private placement and in accordance with the Purchase Agreement, the Company is required to file a registration statement on Form S-3 within 45 calendar days of the closing of the offering to provide for the resale of the Warrant Shares.

The exercise price and number of Warrant Shares will be subject to adjustment in the event of any stock dividends and splits, reverse stock split, recapitalization, reorganization or similar transaction, as described in the 2015 Warrants.  The 2015 Warrants will be exercisable on a “cashless” basis in certain circumstances.
 
The exercisability of the 2015 Warrants may be limited if, upon exercise, the holder or any of its affiliates would beneficially own more than 4.99% of the Common Stock, provided that upon 61 days’ prior notice to the Company, the holder may increase or decrease the beneficial ownership limitation, in an amount not to exceed 9.99%.

If, at any time the 2015 Warrants are outstanding, any fundamental transaction occurs, as described in the 2015 Warrants and generally including any consolidation or merger into another corporation, the consummation of a transaction whereby another entity acquires more than 50% of the outstanding shares of the Company’s Common Stock, or the sale of all or substantially all of the Company’s assets, the successor entity must assume in writing all of the Company’s obligations to the 2015 Warrant holders.
 
In the event of a fundamental transaction, and upon any subsequent exercise of the 2015 Warrant, the holder must have the right to receive, for each share of Common Stock that would have been issuable upon exercise of the 2015 Warrant immediately prior to the occurrence of such fundamental transaction, the number of shares of common stock of the successor entity, and any additional consideration receivable as a result of such fundamental transaction, by a holder of the number of shares of Common Stock for which the 2015 Warrant is exercisable immediately prior to the consummation of such fundamental transaction.  Additionally, upon consummation of a fundamental transaction, the holders of the 2015 Warrants can elect to cause the Company to repurchase the 2015 Warrants for an amount of cash equal to the Black Scholes value of the remaining unexercised portion of the 2015 Warrants.
 
Per the terms of the Purchase Agreement, the Company has agreed with the Purchasers to the following: (i) that subject to certain exceptions, the Company will not, within the 6 month period immediately following the closing of the offering, enter into any agreement to issue or announce the issuance or proposed issuance of any securities; (ii) the Company will not, during the period in which the 2015 Warrants are outstanding, enter into an agreement to effect a “Variable Rate Transaction,” as that term is defined in the Purchase Agreement; and (iii) until the one-year anniversary of the closing of the offering, the Company will not undertake a reverse or forward stock split or reclassification of the Common Stock without the prior written consent of the Purchasers holding a majority in interest of the Shares then outstanding and still held by them, subject to certain exceptions.

The Company also agreed to indemnify each of the Purchasers against certain losses resulting from its breach of any representations, warranties or covenants under agreements with each of the Purchasers, as well as under certain other circumstances described in the Purchase Agreement.

Maxim Group LLC acted as the lead placement agent (the “Placement Agent”) for the Company, on a “reasonable best efforts” basis, in connection with the offering. A copy of the placement agency agreement, dated as of May 28, 2015, by and between the Company and the Placement Agent is attached hereto as Exhibit 10.2 and incorporated herein by reference (the “Placement Agency Agreement”).
 
The foregoing summaries of the offering, the securities to be issued in connection therewith, the Purchase Agreement, the Placement Agency Agreement and the 2015 Warrants do not purport to be complete and are qualified in their entirety by reference to the definitive transaction documents. A copy of the Purchase Agreement is attached hereto as Exhibit 10.1 and is incorporated herein by reference, and a copy of the form of 2015 Warrant is attached hereto as Exhibit 4.1 and is incorporated herein by reference.

Item 3.02  Unregistered Sales of Equity Securities

Please see the disclosure regarding the 2015 Warrants and the Warrant Shares set forth under Item 1.01, which is incorporated by reference into this Item 3.02.

Item 3.03  Material Modification to Rights of Security Holders

As more fully set forth in the Company’s Current Report on Form 8-K, filed with the SEC on April 14, 2014 and incorporated by reference herein, on April 17, 2014, the Company issued the 2014 Series A Warrants to purchase up to 660,030 shares of Common Stock in the aggregate at an exercise price of $8.48 per share, (ii) Series B warrants to purchase up to 633,628 shares of Common Stock in the aggregate at an exercise price of $6.82 per share (the “Series B Warrants”); and (iii) the 2014 Series C Warrants to purchase up to 310,478 shares of Common Stock in the aggregate at an exercise price of $8.53 per share.  The Series B Warrants have expired by their terms, but the Series A Warrants and the Series C Warrants will be terminated as a result of the offering described in Item 1.01 above.

LOS ANGELES, April 28, 2015 /PRNewswire/ -- Nova LifeStyle, Inc. (NVFY), a U.S.-based fast-growing, innovative designer, manufacturer and distributor of modern LifeStyle furniture, today announced the completion of the design of the Smart Health Bed (SHB), the first piece to be introduced to the market from the Smart Health Furniture line of products that monitors, records and delivers data directly from the bed to key medical care providers.

"Global demand for smart products that promote good health is growing rapidly," stated Jeffery Wong, CEO of Nova LifeStyle, Inc. "Health-conscious consumers want products that promote good health and are preventative. That was the impetus behind the creation of our new furniture line, Smart Health Furniture, which we intend to market first, through our franchise stores in China and then, online through our internet platform home87.com, the only online presence solely dedicated to selling furniture and home furnishings in China."

"We are very excited to showcase the Smart Health Bed in our showrooms at the up-coming furniture markets," commented Tawny Lam, President of Nova LifeStyle, Inc. "The Smart Health Bed (SHB) will make its North American debut at the Las Vegas Furniture Market, August 2-6, 2015 and at the Shanghai International Furniture Expo, September 9-12, 2015."

Via the technically advanced comprehensive intelligent control and management system designed by Nova LifeStyle engineers, the Smart Health Furniture product line will allow the vital data that is collected available to specific medical professionals to quickly detect any possible health issues, adding in the prevention of larger health issues which reduces overall medical and healthcare costs.

Additionally, the company continues discussions with several distributors in Asia, the United States and Europe.

LOS ANGELES, April 6, 2015 /PRNewswire/ -- Nova LifeStyle, Inc. (NVFY), a U.S.-based fast growing, innovative designer, manufacturer and distributor of modern LifeStyle furniture, today announced that the Board of Directors approved by unanimous vote on April 1, 2015, pursuant to the Audit Committee's recommendation on March 31, 2015, the replacement of the independent auditor of the Company. The engagement of Crowe Horwath (HK) CPA Limited, replacing Marcum Bernstein & Pinchuk LLP as the independent auditor, commenced as of March 31, 2015 for the fiscal year ending December 31, 2015.

Crowe Horwath (HK) CPA Limited serves clients worldwide as an independent and highly integrated member of Crowe Horwath International, one of the largest global accounting networks in the world. The network consists of more than 200 independent accounting and advisory services firms in more than 120 countries around the world and has its worldwide headquarters in New York, U.S.A.

Commenting on the change, Tawny Lam, President and Chairman of the Board of Nova LifeStyle, said, "On behalf of the Board, I would like to thank Marcum for their services to the Company over the past five years and we look forward to working with Crowe Horwarth in the future."

Management Discussion and Analysis

Net Sales

Net sales for the year ended December 31, 2014, were $98.71 million, an increase of 26% from $78.36 million in 2013; this increase in net sales resulted primarily from a 32% increase in sales volume due to a 6% decrease in average selling price.  Our subsidiary Bright Swallow, which was acquired in April 2013, contributed $8.35 million to sales for the year ended December 31, 2014, an increase from the $6.24 million in sales it contributed for the year ended December 31, 2013.  Our new subsidiary Ding Nuo, which was formed in October 2013, contributed $2.03 million to sales for the year ended December 31, 2014. Our overall average selling price decreased approximately 6% in the year ended December 31, 2014, compared to 2013, resulting primarily from increased sales volume of low price products in both the Chinese domestic market and worldwide. Our largest selling product categories in the years ended December 31, 2014 and 2013 were sofas, cabinets and dining tables, which accounted for approximately 34%, 16% and 16% of sales, respectively, for the year ended December 31, 2014, and 37%, 17% and 16% of sales, respectively, for the year ended December 31, 2013.

Of the $20.35 million increase in net sales in the year ended December 31, 2014, compared to 2013, $19.33 million was attributable to sales in markets other than China, principally as a result of increased sales in North America and Asia, including Hong Kong and other countries. North American sales increased 46% to $64.39 million in the year ended December 31, 2014, compared to $44.03 million in 2013 as we aggressively expanded sales to the U.S. and Canadian markets and integrated the operations of Bright Swallow.  As part of our gradual change in sales and marketing strategy starting in 2012, we increased marketing efforts in the U.S. markets while maintaining our marketing efforts and existing customer base in Europe. Sales to Europe were $11.40 million in the year ended December 31, 2014, a decrease of 20% from $14.27 million in 2013 as a result of the slow European economy. We anticipate increasing sales and marketing to the European market as the region’s economic outlook improves. Sales to Asia, including Hong Kong, and other countries, increased 61% to $5.23 million in the year ended December 31, 2014, compared to $3.25 million in 2013, primarily due to the increase of sales orders from our major customers in Asia.

Sales to China, which included sales to franchisees in addition to wholesalers and agents to domestic retail stores and distributors for the export market, accounted for 17% of sales in the year ended December 31, 2014, compared to 20% of sales in 2013. Sales to franchisees selling our branded products in China contributed approximately $2.33 million or 14% of our total China sales in the year ended December 31, 2014, compared to $3.08 million or 19% in 2013. The Company is currently adopting new image standards as well as product lines for its franchise operations that will take time to develop.  First, through our production line, we intend to produce some products made from marble material. Second, we intend to import a range of additional products from the U.S. or Europe. We also intend to enrich our product lines to include a bedroom series, which would include beds, bed side tables, mattresses (which could be imported or purchased in China) and bedding sets including bed sheets, pillowcases, quilt covers, and other items (which can be purchased within China). Overall sales to China increased 6% to $17.03 million in the year ended December 31, 2014 compared to $16.01 million in 2013 as a result of $2.03 million sales from our newly incorporated company, Ding Nuo. 
 

Net Income

Net income was $8.55 million in the year ended December 31, 2014, an increase of 76% from $4.87 million for 2013. Our net profit margin was 9% in the year ended December 31, 2014, an increase of 3% from 6% for 2013, due to the reasons explained above. The increase in profit margin resulted primarily from income from the change in fair value of warrant liability, which is a non-cash and non-taxable income.   
 

LOS ANGELES, Dec. 22, 2014 /PRNewswire/ -- Nova LifeStyle, Inc. (NASDAQ-GM: NVFY), a U.S.-based fast growing, innovative designer, manufacturer and distributor of modern LifeStyle furniture, today announced that it has expanded its footprint in Asia with the opening of seven new stores across China. The Company, continuing to move forward and execute its growth initiatives, staggered the franchise openings between May and November 2014.

• Pujiang , Shanghai  (2260 sq ft) 
• Zhao Qing near Macau (2508 sq ft) 
• Golden Seahorse Furniture Mall, Shenzhen (2368 sq ft)
• European Town, Shenzhen (1938 sq ft)
• Zhuhai, Guangdong  (4628.48 sq ft)          
• Jane Eyre, Hui Dong (2800 sq ft)
• Redstar Macalline, Da Qing. (2131 sq ft)

"The opening of these latest stores is a result of our continued hard work to push forward with our expansion plans in China and gain market share through our franchise model," commented Jeffrey Wong, CEO of Nova LifeStyle, Inc. "The new locations were chosen based on certain criteria such as recent and projected growth rates, demographics and purchasing patterns."

"These new stores will sell Nova branded furniture across major cities in China, including Shenzhen and Shanghai. We continue to witness the emergence of a growing middle class of consumers in China that value stylish and elegant furniture and we are very excited about the opportunities we see ahead as we continue to tap into this market and generate sales," concluded Tawny Lam, President of Nova LifeStyle, Inc.

These latest franchises are in addition to the franchise partnership contract announced in September 2014 with the Ablejoy Company of China.

• Net sales were $25.9 million, an increase of 16% compared to $22.3 million from the prior year period, and is primarily the result of a 6% increase in sales volume and 9% increase in average selling price. 
• Net income was $3.1 million, an increase of 156% from $1.22 million for the same period of 2013, or $0.15 per diluted share, based on a weighted average diluted share count of 20.9 million shares.

"We began this quarter with a trip to NASDAQ to ring the opening bell and continued on to deliver a strong third quarter," stated Tawny Lam, President of Nova LifeStyle, Inc.  "We were successful on our commitment to grow sales in China with a signed agreement with Ping An, number 62 on Forbes Global 2000 list of the largest companies in the world; in September, we shipped the first of three monthly shipments to IKEA's distribution center in Shanghai; and we expanded our franchise network by partnering with Ablejoy, one of China's largest franchise builders.  We made good on our initiative to grow eCommerce sales and are thrilled with the 200% increase that we experienced for the whole of the third quarter via the online sales venues of Alibaba's B2C site, TMall and JD.com.  We stayed true to our mission to create innovative designs, offer a diversified product line and maintained a leading-edge, fully integrated design-to-production business model, which for us, is the fundamental strength of our business and will allow us to drive long-term shareholder value."

LOS ANGELES, Oct. 28, 2014 /PRNewswire/ -- Nova LifeStyle, Inc. (NVFY), a U.S.-based fast growing, innovative designer, manufacturer and distributor of modern LifeStyle furniture, today announced new purchase orders from Nebraska Furniture Mart, an Omaha-based subsidiary of Berkshire Hathaway Inc., for their Grandscape project in Dallas, Texas.

"These purchase orders are the latest in a series of recently announced business developments and we are delighted with the momentum we are seeing as we continue to supply our established customers and gain new market share," commented Jeffrey Wong, CEO, Co-Founder of Nova LifeStyle, Inc., "We are very pleased to be delivering our state-of-the-art modern LifeStyle furniture to Nebraska Furniture Mart stores across the country, including to their newest store in The Colony, Texas."

Nebraska Furniture Mart, a Berkshire Hathaway Inc. subsidiary founded in 1937, is the largest home furnishing store in North America, selling furniture, flooring, appliances and electronics.  The Nebraska Furniture Mart of Texas is their third and largest store located in The Colony of Dallas-Fort Worth, Texas.

"Generating orders from the largest home furnishing store in North America is a testament to the quality of our product and our growing reputation within the U.S. market," stated Tawny Lam, President of Nova LifeStyle, Inc. "This, alongside the recently announced progress in our China business, is indicative of our commitment to developing world class brands and taking market share globally."

LOS ANGELES, Sept. 25, 2014 /PRNewswire/ -- Nova LifeStyle, Inc. (NVFY), a U.S.-based fast growing, innovative designer, manufacturer and distributor of modern LifeStyle furniture, today announced the signing of a franchise partnership contract with the Ablejoy Company of China, to provide Nova products to their network of over 200 retail stores.  Nova LifeStyle initiated shipping to Ablejoy earlier this month and will continue to supply current and future franchise stores.

"Nova's partnership with Ablejoy is a great opportunity to further expand our avenues for the fastest growing markets in China and gain wider exposure for our brands," commented Jeffrey Wong, CEO, Co-Founder of Nova LifeStyle, Inc., "We remain focused on our efforts to expand our sales and distribution globally and improve our overall profitability. We believe this, and the other recently announced new relationships, will continue to be positive contributions to both our sales and profitability in the current fiscal year and beyond."

Ablejoy is based in Suzhou City in Jiangsu Province and is one of the largest franchise operators in China.  Founded in 1996, Ablejoy prides itself on opening franchise stores for name-brand furniture through its extensive franchisee network and strong capital resources, offering well-known name-brand furniture in all its stores and employs a "Customers First" philosophy.  With its initial stores based in Jiangsu Province, Ablejoy is also expanding into Shanghai and other neighboring markets.

"I am very excited with these new developments.  By building new and stronger business relationships in this sector of the industry, we continue to see results with our major growth initiatives in China," stated Tawny Lam, President of Nova LifeStyle, Inc., "Joining forces with solid and reputable companies such as Ablejoy to expand Nova's reputation and reach via Ablejoy's network of retail franchises as well as opening additional franchise stores for Nova in prime locations represents a great accomplishment."

• compares to net income of $2.4 million, or$0.13 per Net sales were $25.9 million, an increase of 35.3% compared to the prior year period. 
• Net income was $3.7 million, or $0.18 per diluted share, based on a weighted average diluted share count of 20.0 million shares, and included a non-cash, pre-tax gain of $2.2 million in the second quarter of fiscal 2014, due to the change in the fair value of warrant liability. This diluted share

"The second quarter was another strong quarter for us as we achieved sales growth of over 35% reflecting solid execution on our growth initiatives to increase distribution in key global markets.  We also achieved higher operating profitability, with our operating income margin up 70 basis points year-over-year as we continue to tightly control costs even as we invest in the growth of our business," stated Tawny Lam, President of Nova LifeStyle, Inc.  "We are making further progress on our growth initiatives including our e-Commerce platform and digital initiatives and are thrilled with the support we have received from leading furniture brands and organizations targeting the China market.  We continue to build our capabilities to allow consumers to shop how, when and where they want and believe our platform will become an online destination for furniture and home furnishings in China.  We also further expanded our global reach as we shipped our first IKEA delivery under that supply agreement.   We continue to expect these initiatives to contribute significantly to both our sales and profitability in the current and next fiscal year, and to increase our net income in fiscal year 2014 over last year."

Item 1.01 Entry into a Material Definitive Agreement.

As disclosed in Nova LifeStyle, Inc.'s (the “Company”) Current Report on Form 8-K filed with the Securities and Exchange Commission on April 14, 2014, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain purchasers identified on the signature pages thereto (the “Buyers”) pursuant to which the Company will sell to the Buyers, in a registered direct offering, an aggregate of 1,320,059 shares (the “Shares”) of common stock, par value $0.001 per share (“Common Stock”), at a negotiated purchase price of $6.78 per share, for aggregate gross proceeds to the Company of $8,950,000.02, before deducting fees to the placement agent and other estimated offering expenses payable by the Company.
 
As part of the transaction, the Buyers will also receive (i) Series A warrants to purchase up to 660,030 shares of Common Stock in the aggregate at an exercise price of $8.48 per share (the “Series A Warrants”); (ii) Series B warrants to purchase up to 633,628 shares of Common Stock in the aggregate at an exercise price of $6.82 per share (the “Series B Warrants”); and (iii) Series C warrants to purchase up to 310,478 shares of Common Stock in the aggregate at an exercise price of $8.53 per share (the “Series C Warrants” and together with the Series A Warrants and the Series B Warrants, the “Warrants”). The Series A Warrants have a term of four years and are exercisable by the holders at any time after the date of issuance. The Series B Warrants have a term of six months and are exercisable by the holders at any time after the date of issuance. The Series C Warrants have a term of four years and are exercisable by the holders at any time after the date of issuance. After the six month anniversary of the issuance date of the Series C Warrants, to the extent that a holder of Series C Warrant exercises less than 70% of such holder’s Series B Warrants and the closing sale price of the Common Stock is equal to or greater than $9.81 for a period of ten consecutive trading days, then the Company may purchase the entire then-remaining portion of such holder’s Series C Warrants for $1,000.
 
The Shares, the Warrants and the Common Stock issuable upon exercise of the Warrants are being offered by the Company pursuant to an effective shelf registration statement on Form S-3, which was originally filed with the Securities and Exchange Commission on February 4, 2014, amended on February 20, 2014, and was declared effective on March 7, 2014 (File No. 333-193746). A prospectus supplement was filed with the Securities and Exchange Commission on April 14, 2014.

Item 1.01   Entry into a Material Definitive Agreement

On April 14, 2014, Nova LifeStyle, Inc. (the “Company”) entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain purchasers identified on the signature pages thereto (the “Buyers”) pursuant to which the Company will sell to the Buyers, in a registered direct offering, an aggregate of 1,320,059 shares (the “Shares”) of common stock, par value $0.001 per share (“Common Stock”), at a negotiated purchase price of $6.78 per share, for aggregate gross proceeds to the Company of $8,950,000.02, before deducting fees to the placement agent and other estimated offering expenses payable by the Company.
 
As part of the transaction, the Buyers will also receive (i) Series A warrants to purchase up to 660,030 shares of Common Stock in the aggregate at an exercise price of $8.48 per share (the “Series A Warrants”). ; (ii) Series B warrants to purchase up to 633,628 shares of Common Stock in the aggregate at an exercise price of $6.82 per share (the “Series B Warrants”); and (iii) Series C warrants to purchase up to 310,478 shares of Common Stock in the aggregate at an exercise price of $8.53 per share (the “Series C Warrants” and together with the Series A Warrants and the Series B Warrants, the “Warrants”). The Series A Warrants have a term of four years and are exercisable by the holders at any time after the date of issuance. The Series B Warrants have a term of six months and are exercisable by the holders at any time after the date of issuance. The Series C Warrants have a term of four years and are exercisable by the holders at any time after the date of issuance. After the six month anniversary of the issuance date of the Series C Warrants, to the extent that a holder of Series C Warrant exercises less than 70% of such holder’s Series B Warrants and the closing sale price of the Common Stock is equal to or greater than $9.81 for a period of ten consecutive trading days, then the Company may purchase the entire then-remaining portion of such holder’s Series C Warrants for $1,000.
 
The exercise prices and the number of shares issuable upon exercise of each of the Warrants are subject to adjustment upon the occurrence of certain events, including, but not limited to, stock splits or dividends, business combinations, sale of assets, similar recapitalization transactions, or other similar transactions. The exercise prices of each of the Warrants are subject to adjustment in the event that the Company issues or is deemed to issue shares of Common Stock for less than the then applicable exercise prices of each of the Warrants.
 
The exercisability of the Warrants may be limited if, upon exercise, the holder or any of its affiliates would beneficially own more than 4.9% of the Common Stock.

Nova LifeStyle, Inc.

 
Pursuant to this prospectus supplement and the accompanying prospectus, we are offering to investors 1,320,059 shares of our common stock (the “Shares”) together with the following warrants: (i) Series A warrants to purchase up to an aggregate of 660,030 shares of common stock at an exercise price of $8.48 per share (the “Series A Warrants”); (ii) Series B warrants to purchase up to an aggregate of 633,628 shares of common stock at an exercise price of $6.82 per share (the “Series B Warrants”); and (iii) Series C warrants to purchase up to an aggregate of 310,478 shares of common stock at an exercise price of $8.53 per share (the “Series C Warrants” and, together with the Series A Warrants and the Series B Warrants, the “Warrants”). The Series A Warrants have a term of four years and are exercisable by the holders at any time after the date of issuance. The Series B Warrants have a term of six months and are exercisable by the holders at any time after the date of issuance. If, at any time after the thirty (30) day anniversary of the issuance date of the Series B Warrants, the price of the Company’s common stock is greater than or equal to $7.84 for a period of ten (10) consecutive trading days, and if certain other conditions are met, including conditions relating to trading volume, the Company shall on one occasion have the right to require the Series B Warrant holders to exercise all of the remaining unexercised portion of the Series B Warrants held by such holders. The Series C Warrants have a term of four years and are exercisable by the holders at any time after their issuance. At any time after the six month anniversary of the issuance date of the Series C Warrants, to the extent that a holder of Series C Warrants exercises less than 70% of such holder’s Series B Warrants and the closing sale price of the Company’s common stock is equal to or greater than $9.81 for a period of ten (10) consecutive trading days, then the Company can purchase the entire then-remaining portion of such holder’s Series C Warrants for $1,000. In connection with this offering, we also issued, as additional compensation, to FT Global Capital, Inc., our exclusive placement agent, placement agent warrants to purchase up to 92,404 shares of common stock, equivalent to 7% of the Shares, at an exercise price of $8.48 per share (the “Placement Agent Warrants”).
 
 
Our common stock trades on the NASDAQ Stock Market LLC under the symbol “NVFY.” There is no established public trading market for the Warrants and we do not expect a market to develop. In addition, we do not intend to apply for listing of the Warrants on any national securities exchange. As of the date of this prospectus supplement, the aggregate market value of our outstanding common stock held by non-affiliates was approximately $73,970,846 based on 19,397,957 shares of outstanding common stock, of which 10,962,500 shares were held by affiliates as of such date, and a price of $8.77 per share, which was the last reported sale price of our common stock as quoted on the NASDAQ Stock Market LLC on March 7, 2014.

Management Discussion and Analysis

Results of Operations
 
Comparison of Years Ended December 31, 2013 and 2012

Net Sales

Net sales for the year ended December 31, 2013 were $78.36 million, an increase of 18% from $66.30 million in 2012; this increase in net sales resulted primarily from a 2% increase in average selling price and 14% increase in sales volume.  Our newly acquired subsidiary Bright Swallow contributed $6.24 million to sales for the year ended December 31, 2013. Our overall average selling price increased approximately 2% in the year ended December 31, 2013 compared to 2012, resulting primarily from increased sales volume of higher-margin products and finished goods purchased from third party manufacturers (but with relatively lower profit margin) in both the China domestic market and worldwide. Our largest selling product categories in the years ended December 31, 2013 and 2012 were sofas, cabinets and dining tables, which accounted for approximately 37%, 17% and 16% of sales, respectively, for the year ended December 31, 2013 and 21%, 18% and 22% of sales, respectively, for the year ended December 31, 2012.

Of the $12.06 million increase in net sales in the year ended December 31, 2013 compared to 2012, $13.19 million (more than the total increase in net sales) was attributable to sales in markets other than China (China sales decreased in 2013 described below), principally as a result of increased sales in North America. North American sales increased 45% to $44.03 million in year ended December 31, 2013 compared to $30.45 million in 2012 as we aggressively expanded sales to the U.S. and Canadian markets and integrated the operations of Diamond Bar and newly-acquired Bright Swallow.  As part of our gradual change in sales and marketing strategy starting in 2012, we increased marketing efforts in the U.S. markets while maintaining our marketing efforts and existing customer base in Europe. Sales to Europe were $14.27 million in the year ended December 31, 2013, a decrease of 3.90% from $14.84 million in 2012. We anticipate increasing sales and marketing to the European market as the region’s economic outlook improves. Sales to Asia, including Hong Kong and other countries, increased to $3.25 million in the year ended December 31, 2013 compared to $3.07 million in 2012, primarily due to increase of the sales orders from our major customers in Asia.

Sales to China, which includes sales to franchisees in addition to wholesalers and agents to domestic retail stores and distributors for the export market, accounted for 20% of sales in the year ended December 31, 2013 compared to 26% of sales in 2012. Sales to franchisees selling our branded products in China contributed approximately $3.08 million or 19% of our total China sales in the year ended December 31, 2013 compared to $3.97 million or 23% in 2012. The Company is currently adopting new image standards as well as product lines for its franchise operations that will take time to develop.  First, through our production line, we intend to produce some products made from marble material. Second, we intend to import a range of additional products from the U.S. or Europe. We also intend to enrich our product lines to include Bedroom series, like Beds, Bed side tables, mattresses (which could be imported or purchased in China) and Bedding sets including Bed sheets, pillowcases, quilt covers, etc.(which can be purchased within China). We expect this trend to reverse itself in the near future.  Overall sales to China decreased 7% to $16.01 million in the year ended December 31, 2013 compared to $17.15 million in 2012. 

Net Income

Net income was $4.87 million in the year ended December 31, 2013, a decrease of 10.0% from $5.43 million in 2012. Our net profit margin was 6% in the year ended December 31, 2013, a decrease of 2% from 8% for 2012, due to the reasons explained above regarding gross profit margin. The decrease in profit margin resulted primarily from increased cost of sales as a percentage of net sales, which was due primarily to changes in our sales and marketing strategy that included increased purchases of products from other manufacturers and a decreased percentage of self-produced products, and overall price increases on labor as a result of continuous inflation in China and increased factory overhead; in addition, we attracted more sales orders from certain big trading company customers by lowering the selling price to them.

NOVA LIFESTYLE, INC.

667,500 Shares of Common Stock

SELLING SHAREHOLDERS

The following information is provided to update the selling shareholders table in the prospectus to reflect a transfer of warrants to purchase up to an aggregate of 77,550 shares of our common stock by Radnor Research & Trading Company (“Radnor”) to each of Guy Durand, Talman Harris, William R. James, Alexander Kibrik, William J. Scholander and Charles Morgan Simpson. Accordingly, the selling shareholders table has been updated to delete Radnor and to add Guy Durand, Talman Harris, William R. James, William J. Scholander and Charles Morgan Simpson and list the number of shares beneficially owned by Guy Durand, Talman Harris, William R. James, William J. Scholander and Charles Morgan Simpson to reflect the acquisition of the warrant transferred by Radnor. With respect to Alexander Kibrik, the selling shareholders table has been updated to add EB Holdings LLC to reflect the acquisition by EB Holdings LLC of the warrant originally transferred by Radnor to Alexander Kibrik. The prospectus supplement relates to the resale of such shares and the shares issuable upon exercise of such warrants. We may amend or supplement the information in this prospectus supplement from time to time in the future to update or change the information with respect to the selling shareholders in the table below and the shares which may be resold. In addition, we may amend or supplement the prospectus from time to time in the future to update or change the information with respect to other selling shareholders.

LOS ANGELES, Jan. 14, 2014 /PRNewswire/ -- Nova LifeStyle, Inc. (OTCQB: STVS), a fast growing innovative designer and manufacturer of modern lifestyle furniture, today announces that the Company's common stock has been approved for listing on the NASDAQ Global Market (NASDAQ) on January 10th, 2014 and is expected to commence trading on NASDAQ under the ticker symbol "NVFY" on January 17th, 2014. The Company's common stock will continue to trade on the Over-the-Counter Bulletin Board until the market closes on January 16th, 2014. 

Ms. Tawny Lam, the President of the Company commented, "This is a very exciting moment for our Company and we are very proud of the progress we have made since becoming a publicly traded company on June 30th, 2011.  The listing on theNASDAQ Global Market allows us the greater visibility with investors around world as we continue to work to grow our business and sell our products internationally."

Third Quarter 2013 financial results

• Revenues were $22.3 million vs last years $19.2 million.
• Earnings per share decreased slightly to $0.19 per share in comparison with FY 2012 value of $0.20 noting an increase in the shares outstanding year over year of 383,923 shares which would account for this modest decrease in EPS.

Ms. Tawny Lam, President and Chairperson of the Board of the Company noted: "We are excited by our integration of our new product lines as recently unveiled at the Shanghai (PRC) and Las Vegas (USA) Home Furnishing Conventions into our expanded distribution channels.  Additionally, online sales continue to increase and our North American sales increased from $18.3M in FY 2012 (9 months) to $30.8M in FY 2013 (9 months) as we continue to work to fully integrate the Bright Swallow acquisition earlier this year.  We are looking forward to an excellent fourth quarter and year end finish.  Sales related to other geographies were stable as we continue to focus on the consumers continued growth of interest in the urban contemporary lines we provide."

One of Nova's long term partners, Nebraska Furniture Mart's (a subsidiary of Berkshire Hathaway) has recently begun the development of a new Dallas/Ft. Worth, Texas project, Grandscape� that will be adding 3.9 million square feet of retail space as well as a substantial new furniture outlet for service of that general north Texas geography.  Giving our long standing relationship with NFM we anticipate this expansion will provide us an opportunity to expand further in the North Texas market.