NOVA LIFESTYLE, INC. ANNOUNCES DELAY IN FILING FORM 10-K REPORT AND PROVIDES COVID-19 UPDATE

LOS ANGELES, March 27, 2020 (GLOBE NEWSWIRE) -- Nova LifeStyle, Inc. (NASDAQ: NVFY) (“Nova LifeStyle” or the “Company”) today announced that the filing of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 (“Annual Report”) will be delayed beyond the required filing date of March 30, 2020 until May 14, 2020; and the Company provided an update on the impact of the COVID-19 outbreak on the Company.

Annual Report Filing Date

The Company previously announced that it expected to file its Annual Report within the extension period afforded by Rule 12b-25. As a result of the increasing challenges associated with the COVID-19 outbreak, the Company does not expect to file the Annual Report until May 14, 2020. The Company filed a Current Report on Form 8-K today which outlines the Company’s reliance on the relief from the original filing deadline provided by the SEC, and the Annual Report filing extension permitted thereunder. The extension of time is necessary due to unanticipated delays being experienced by the Company’s auditors in completing the field work associated with the audit of the Company’s financial statements.

COVID-19 Update

The Company primarily conducts its business operations from four cities: Los Angeles, California, Hong Kong, Macao, China and Kuala Lumpur, Malaysia. In response to the evolving dynamics related to the COVID-19 outbreak, the Company is following the public health orders and guidelines issued by local authorities as it prioritizes the health and safety of its employees, contractors, suppliers and retail partners. The offices located in Hong Kong and Macau were closed for the Lunar New Year Holiday Break, and remained closed as a result of the outbreak until late February. Both of those offices are now open. The two showrooms and warehouse in Kuala Lumpur have been closed since March 18, 2020. The Los Angeles facility public showroom has been closed since March 16, 2020, but a skeleton staff works in that facility each day to receive shipping containers of products delivered from the Company’s contract manufacturers, and to ship products to customers, and most of our staff is working remotely.