Nova LifeStyle, Inc. (NASDAQ: NVFY) officially reported its third quarter fiscal results ending on 30 September 2020.

Net revenues were $3.3 million for the quarter ending September 30, 2020, compared to $7.7 million year over year.

Sales expenses were $9.9 million for period ending September 30, 2020, compared to $6.1 million for the same duration year before.

Sales losses include a write-down of our slow-moving product, mostly Jade mats in Malaysia, of $7.77 million to the lower cost and net realisable value in the third quarter of 2020.

Operating expenses were $8.2 million for the three months ending September 30, 2020, compared to $272 thousand in the same quarter in 2019.

Net revenues were $7.8 million for the nine-month period ending September 30, 2020, compared with $19.5 million in the same fiscal quarter in 2019.

Sales expenses were $12.8 million for the nine-month period ending September 30, 2020, opposed to $15.3 million in the same period in 2019.

Sales losses include a write-down of our slow-moving product, mostly Jade mats in Malaysia, of $7.77 million to the lower cost and net realisable value in the third quarter of 2020.

Operating expenses were $9.6 million for the nine months ending September 30, 2020, compared to $1.4 million in the same timeframe in 2019.

In August, the Malaysian government upheld the closure order until 31 December 2020 for all businesses. As a consequence of the COVID-19 pandemic, the Company continues to witness decreased demand for its goods and an increased number of sales order cancellations.

With the advent of the pandemic, goods imported from Asia have faced major delays as well as a surge in freight prices. In the future, we could face shipping delays.

Ultimately, the Corporation believes that the effect on the United States and world economies of the COVID-19 epidemic will continue to have a significant adverse impact on demand for its goods.