NOVA LIFESTYLE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED) Six Months Ended June 30, Three Months Ended June 30, ------------------------- --------------------------- 2012 2011 2012 2011 ----------- ----------- ----------- ------------- (Unaudited) (Unaudited) ------------------------- ---------------------------Net Sales(Including sales to related party of $0 and $625,582 during the six months ended June 30, 2012 and 2011; and $0 and $261,180 during the three months ended June 30, 2012 and 2011, respectively) $27,146,315 $14,892,220 $16,147,061 $ 9,259,430Cost of Sales 20,320,386 10,650,433 12,331,407 6,806,804 ----------- ----------- ----------- -------------Gross Profit 6,825,929 4,241,787 3,815,654 2,452,626 ----------- ----------- ----------- -------------Operating Expenses Selling expenses 1,354,553 795,109 664,646 574,633 General and administrative expenses 2,360,913 1,416,998 1,309,698 1,090,445 Loss on disposal of plant, property and equipment 123,775 -- -- -- ----------- ----------- ----------- -------------Total Operating Expenses 3,839,241 2,212,107 1,974,344 1,665,078 ----------- ----------- ----------- -------------Income From Operations 2,986,688 2,029,680 1,841,310 787,548 ----------- ----------- ----------- -------------Other Income (Expenses) Non-operating income (expense) (23,039) 10,474 (25,338) 5,512 Foreign exchange transaction gain (loss) 23,975 (60,729) 15,663 (37,531) Financial expense (46,898) (16,322) (36,086) (6,933) ----------- ----------- ----------- -------------Total Other Expenses, Net (45,962) (66,577) (45,761) (38,952) ----------- ----------- ----------- -------------Income Before Income Tax 2,940,726 1,963,103 1,795,549 748,596Income Tax Expense 537,104 378,035 370,589 169,070 ----------- ----------- ----------- -------------Net Income 2,403,622 1,585,068 1,424,960 579,526Other Comprehensive Income Foreign currency translation (49,085) 235,985 (61,930) 131,511 ----------- ----------- ----------- -------------Comprehensive Income $ 2,354,537 $ 1,821,053 $ 1,363,030 $ 711,037 ----------- ----------- ----------- -------------Basic weighted average shares outstanding 18,431,799 11,788,314 18,486,567 11,952,747 ----------- ----------- ----------- -------------Diluted weighted average shares outstanding 18,589,410 11,788,314 18,491,138 11,952,747 ----------- ----------- ----------- -------------Basic net earnings per share $ 0.13 $ 0.13 $ 0.08 $ 0.05 =========== =========== =========== =============Diluted net earnings per share $ 0.13 $ 0.13 $ 0.08 $ 0.05 =========== =========== =========== ============= NOVA LIFESTYLE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS JUNE 30, 2012 (UNAUDITED) AND DECEMBER 31, 2011 June 30, December 31, 2012 2011 ------------ ------------ (Unaudited)Liabilities and Stockholders' EquityCurrent Liabilities Accounts payable $ 3,339,981 $ 6,758,058 Line of credit 3,495,140 -- Advance from customers 90,755 91,021 Accrued liabilities and other payables 825,303 834,128 Taxes payable 426,620 198,984 ------------ ------------Total Current Liabilities 8,177,799 7,882,191 ------------ ------------Noncurrent Liabilities Deferred rent payable 48,792 58,949 Income tax payable 4,215,859 4,016,266 ------------ ------------Total Noncurrent Liabilities 4,264,651 4,075,215 ------------ ------------Total Liabilities 12,442,450 11,957,406 ------------ ------------Contingencies and CommitmentsStockholders' Equity Common stock, $0.001 par value; 75,000,000 shares authorized, 18,486,567 and 17,898,267 shares issued and outstanding as of June 30, 2012 and December 31, 2011, respectively 18,487 17,898 Additional paid-in capital 18,970,395 17,074,535 Subscription receivable (1,950,000) (1,950,000) Statutory reserves 6,241 6,241 Accumulated other comprehensive income 2,089,889 2,138,974 Retained earnings 7,976,058 5,572,436 ------------ ------------Total Stockholders' Equity 27,111,070 22,860,084 ------------ ------------Total Liabilities and Stockholders' Equity $ 39,553,520 $ 34,817,490 ============ ============ NOVA LIFESTYLE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS JUNE 30, 2012 (UNAUDITED) AND DECEMBER 31, 2011 June 30, December 31, 2012 2011 ----------- ------------ (Unaudited)AssetsCurrent Assets Cash and cash equivalents $ 2,136,562 $ 2,505,179 Accounts receivable, net 22,162,058 18,974,612 Accounts receivable - related party -- 28,289 Due from factor -- 203,351 Advance to suppliers 1,123,472 349,767 Inventories 2,325,080 1,848,081 Prepaid expenses and other receivable 302,468 113,853 Deferred tax asset 156,514 156,974 ----------- ------------Total Current Assets 28,206,154 24,180,106 ----------- ------------Noncurrent Assets Heritage and cultural assets 128,199 128,687 Plant, property and equipment, net 8,668,266 8,721,186 Construction in progress 978,224 91,466 Construction deposit -- 634,830 Goodwill 218,606 218,606 Intangible assets, net 1,235,900 724,465 Deferred tax asset, net 118,171 118,144 ----------- ------------Total Noncurrent Assets 11,347,366 10,637,384 ----------- ------------Total Assets $39,553,520 $ 34,817,490 =========== ============
Contacts:
Corporate Contact:
Tawny Lam
President
Nova LifeStyle, Inc.
Tel: (323) 888-9999
Email: info@novalifeStyle.com
www.diamondsofa.com
IR and Press:
Ken Donenfeld
DGI Investor Relations, Inc.
Tel: (212) 425-5700
Email: kdonenfeld@dgiir.com
