Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 08, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Nova Lifestyle, Inc. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 27,796,485 | |
Amendment Flag | false | |
Entity Central Index Key | 0001473334 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 49,898,054 | $ 890,408 |
Accounts receivable, net | 12,748,016 | 67,457,261 |
Advance to suppliers | 5,862,091 | 10,625,021 |
Inventories | 6,464,030 | 6,371,112 |
Prepaid expenses and other receivables | 80,874 | 105,812 |
Total Current Assets | 75,053,065 | 85,449,614 |
Noncurrent Assets | ||
Plant, property and equipment, net | 162,639 | 147,096 |
Operating lease right-of-use assets, net | 3,025,279 | 0 |
Lease deposit | 43,260 | 43,260 |
Goodwill | 218,606 | 218,606 |
Intangible assets, net | 3,694,228 | 3,795,904 |
Deferred tax asset | 436,449 | 436,449 |
Total Noncurrent Assets | 7,580,461 | 4,641,315 |
Total Assets | 82,633,526 | 90,090,929 |
Current Liabilities | ||
Accounts payable | 528,834 | 4,145,927 |
Line of credit | 0 | 6,248,162 |
Operating lease liabilities, current | 450,437 | 0 |
Advance from customers | 54,485 | 45,309 |
Accrued liabilities and other payables | 269,414 | 808,629 |
Income tax payable | 455,435 | 584,874 |
Total Current Liabilities | 1,758,605 | 11,832,901 |
Noncurrent Liabilities | ||
Operating lease liabilities, non-current | 2,574,842 | |
Income tax payable | 3,376,094 | 3,351,652 |
Total Noncurrent Liabilities | 5,950,936 | 3,351,652 |
Total Liabilities | 7,709,541 | 15,184,553 |
Contingencies and Commitments | ||
Stockholders' Equity | ||
Common stock, $0.001 par value; 75,000,000 shares authorized, 28,686,452 and 28,566,652 shares issued and outstanding; as of March 31, 2019 and December 31, 2018, respectively | 28,686 | 28,567 |
Additional paid-in capital | 40,006,170 | 39,841,149 |
Statutory reserves | 6,241 | 6,241 |
Retained earnings | 34,882,888 | 35,030,419 |
Total Stockholders' Equity | 74,923,985 | 74,906,376 |
Total Liabilities and Stockholders' Equity | $ 82,633,526 | $ 90,090,929 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 28,686,452 | 28,566,652 |
Common stock, shares outstanding | 28,686,452 | 28,566,652 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Net Sales | $ 10,660,808 | $ 22,303,472 | |
Cost of Sales | 8,652,544 | 17,401,930 | |
Gross Profit | 2,008,264 | 4,901,542 | |
Operating Expenses | |||
Selling expenses | 389,239 | 631,153 | |
General and administrative expenses | 1,798,840 | 2,305,673 | |
Total Operating Expenses | 2,188,079 | 2,936,826 | |
(Loss) Income From Operations | (179,815) | 1,964,716 | |
Other Income (Expenses) | |||
Foreign exchange transaction loss | (427) | (136) | |
Interest expense, net | (36,142) | (31,582) | |
Financial expense | (36,066) | (30,720) | |
Total Other Expenses, Net | (72,635) | (62,438) | |
(Loss) Income Before Income Taxes | (252,450) | 1,902,278 | |
Income Tax (Benefit) expenses | (104,919) | 247,257 | |
Net (Loss) Income and Comprehensive (Loss) Income | $ (147,531) | $ 1,655,021 | |
Basic weighted average shares outstanding (in Shares) | [1] | 28,662,557 | 28,253,115 |
Diluted weighted average shares outstanding (in Shares) | 28,662,557 | 28,693,479 | |
Net (loss) income per share of common stock | |||
Basic (in Dollars per share) | $ (0.01) | $ 0.06 | |
Diluted (in Dollars per share) | $ (0.01) | $ 0.06 | |
[1] | Including 889,967 and 821,534 shares that were granted and vested but not yet issued for the three months ended March 31, 2019 and 2018, respectively. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings, Appropriated [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2017 | $ 28,192 | $ 38,682,377 | $ 6,241 | $ 29,730,794 | $ 68,447,604 |
Balance (in Shares) at Dec. 31, 2017 | 28,191,927 | ||||
Exercise of options - employees | $ 8 | (8) | |||
Exercise of options - employees (in Shares) | 7,730 | ||||
Stock issued to employees | $ 15 | 34,035 | 34,050 | ||
Stock issued to employees (in Shares) | 15,000 | ||||
Stock issued for service | $ 87 | 131,764 | 131,851 | ||
Stock issued for service (in Shares) | 87,081 | ||||
Stock options vested to board of directors and employees | 404,078 | 404,078 | |||
Net income (loss) | 1,655,021 | 1,655,021 | |||
Balance at Mar. 31, 2018 | $ 28,302 | 39,252,246 | 6,241 | 31,385,815 | 70,672,604 |
Balance (in Shares) at Mar. 31, 2018 | 28,301,738 | ||||
Balance at Dec. 31, 2018 | $ 28,567 | 39,841,149 | 6,241 | 35,030,419 | $ 74,906,376 |
Balance (in Shares) at Dec. 31, 2018 | 28,566,652 | 28,566,652 | |||
Stock issued to employees | $ 7 | 5,768 | $ 5,775 | ||
Stock issued to employees (in Shares) | 7,500 | ||||
Stock issued for service | $ 112 | 159,253 | 159,365 | ||
Stock issued for service (in Shares) | 112,300 | ||||
Net income (loss) | (147,531) | (147,531) | |||
Balance at Mar. 31, 2019 | $ 28,686 | $ 40,006,170 | $ 6,241 | $ 34,882,888 | $ 74,923,985 |
Balance (in Shares) at Mar. 31, 2019 | 28,686,452 | 28,686,452 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash Flows From Operating Activities | ||
Net (loss) income | $ (147,531) | $ 1,655,021 |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 111,044 | 112,017 |
Deferred tax expense | 0 | 31,704 |
Stock compensation expense | 175,962 | 595,677 |
Changes in bad debt allowance | (169,432) | 321,970 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 54,878,677 | (941,413) |
Advance to suppliers | 4,762,930 | (2,181,584) |
Inventories | (92,918) | 153,740 |
Other current assets | 14,116 | 35,452 |
Operating lease right-of-use assets, net | 107,357 | 0 |
Accounts payable | (3,617,093) | (295,656) |
Advance from customers | 9,176 | 23,395 |
Accrued liabilities and other payables | (539,215) | (113,806) |
Operating lease liabilities, non-current | (107,357) | 0 |
Taxes payable | (104,997) | 215,554 |
Net Cash Provided by (Used in) Operating Activities | 55,280,719 | (387,929) |
Cash Flows From Investing Activities | ||
Purchase of property and equipment | (24,911) | (11,499) |
Net Cash Used in Investing Activities | (24,911) | (11,499) |
Cash Flows From Financing Activities | ||
Proceeds from line of credit and bank loan | 11,796,018 | 15,923,479 |
Repayment to line of credit and bank loan | (18,044,180) | (20,125,597) |
Net Cash Used in Financing Activities | (6,248,162) | (4,202,118) |
Net Increase (Decrease) in Cash and Cash Equivalents | 49,007,646 | (4,601,546) |
Cash and Cash Equivalents, Beginning of Period | 890,408 | 5,722,716 |
Cash and Cash Equivalents, End of Period | 49,898,054 | 1,121,170 |
Cash paid during the period for: | ||
Income tax payments | 78 | 0 |
Interest paid | $ 36,143 | $ 31,582 |
Note 1 - Organization and Descr
Note 1 - Organization and Description of Business | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Text Block [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Note 1 - Organization and Description of Business Nova LifeStyle, Inc. (“Nova LifeStyle” or the “Company”), formerly known as Stevens Resources, Inc., was incorporated in the State of Nevada on September 9, 2009. The Company is a U.S. holding company with no material assets other than the ownership interests of our subsidiaries through which we market, design and sell furniture worldwide: Nova Furniture Limited in the British Virgin Islands (“Nova Furniture”), Nova Furniture Ltd. in Samoa (“Nova Samoa”), Bright Swallow International Group Limited (“Bright Swallow” or “BSI”), Nova Furniture Macao Commercial Offshore Limited (“Nova Macao”), and Diamond Bar Outdoors, Inc. (“Diamond Bar”). Nova Macao was organized under the laws of Macao on May 20, 2006, and is a wholly owned subsidiary of Nova Furniture. Diamond Bar was incorporated in California on June 15, 2000. Nova Macao is a trading company, importing, marketing and selling products designed and manufactured by third-party manufacturers for the U.S. and international markets. Diamond Bar markets and sells products manufactured by third-party manufacturers under the Diamond Sofa brand to distributors and retailers principally in the U.S. market. On April 24, 2013, the Company completed the acquisition of Bright Swallow, an established furniture company with a global client base. On December 7, 2017, Nova LifeStyle, Inc. incorporated i Design Blockchain Technology, Inc. (“i Design”) under the laws of the State of California. The purpose of i Design is to build our own blockchain technology team. This new company will focus on the application of blockchain technology in the furniture industry, including encouraging and facilitating interactions among designers and customers, and building a blockchain-powered platform that enables designers to showcase their products, including current and future furniture designs. This company is in the planning stage and has had minimal operations to date. The “Company” and “Nova” collectively refer to Nova LifeStyle, the U.S. parent, and its subsidiaries, Nova Furniture, Nova Samoa, Nova Macao, Diamond Bar, i Design and BSI. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Note 2 - Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. The unaudited condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company transactions and balances have been eliminated in consolidation. The interim condensed consolidated financial information as of March 31, 2019 and for the three month periods ended March 31, 2019 and 2018 have been prepared without audit, pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures, which are normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The interim condensed consolidated financial information should be read in conjunction with the Financial Statements and the notes thereto, included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018, previously filed with the SEC on April 1, 2019. In the opinion of management, all adjustments (which include all significant normal and recurring adjustments) necessary to present a fair statement of the Company’s interim condensed consolidated financial position as of March 31, 2019, its interim condensed consolidated results of operations and cash flows for the three month periods ended March 31, 2019 and 2018, as applicable, have been made. The interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods. Use of Estimates In preparing consolidated financial statements in conformity with U.S. GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the dates of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions made by management include, but are not limited to, revenue recognition, the allowance for bad debt, valuation of inventories, the valuation of stock-based compensation, income taxes and unrecognized tax benefits, valuation allowance for deferred tax assets, assumptions used in assessing impairment of long-lived assets and goodwill, and loss contingencies. Actual results could differ from those estimates. Recently Adopted Accounting Pronouncements On January 1, 2019, we adopted Accounting Standards Update No. 2016-02, Leases (Topic 842) (ASU 2016-02), as amended, which supersedes the lease accounting guidance under Topic 840, and generally requires lessees to recognize operating and financing lease liabilities and corresponding right-of-use (ROU) assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. We adopted the new guidance using the modified retrospective transition approach by applying the new standard to all leases existing at the date of initial application and not restating comparative periods. The most significant impact was the recognition of ROU assets and lease liabilities for operating leases. For information regarding the impact of Topic 842 adoption, see Significant Accounting Policies - Leases Significant Accounting Policies - Leases On January 1, 2019, we adopted Topic 842 using the modified retrospective transition approach by applying the new standard to all leases existing at the date of initial application. Results and disclosure requirements for reporting periods beginning after January 1, 2019 are presented under Topic 842, while prior period amounts have not been adjusted and continue to be reported in accordance with our historical accounting under Topic 840. We elected the package of practical expedients permitted under the transition guidance, which allowed us to carry forward our historical lease classification, our assessment on whether a contract was or contains a lease, and our initial direct costs for any leases that existed prior to January 1, 2019. We also elected to combine our lease and non-lease components and to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term. Additionally, for certain equipment leases, we apply a portfolio approach to effectively account for the operating lease ROU assets and liabilities. Upon adoption, we recognized total ROU assets of $3.13 million, with corresponding liabilities of $3.13 million on the condensed consolidated balance sheets. The ROU assets include adjustments for prepayments and accrued lease payments. The adoption did not impact our beginning retained earnings, or our prior year condensed consolidated statements of income and statements of cash flows. Under Topic 842, we determine if an arrangement is a lease at inception. ROU assets and liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. For this purpose, we consider only payments that are fixed and determinable at the time of commencement. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Our incremental borrowing rate is a hypothetical rate based on our understanding of what our credit rating would be. The ROU asset also includes any lease payments made prior to commencement and is recorded net of any lease incentives received. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise such options. Operating leases are included in operating lease right-of-use assets, operating lease liabilities, current and operating lease liabilities, non-current on our condensed consolidated balance sheets. Finance leases are included in property and equipment, net, accrued expenses and other current liabilities, and other liabilities on our condensed consolidated balance sheets. Business Combination For a business combination, the assets acquired, the liabilities assumed and any noncontrolling interest in the acquiree are recognized at the acquisition date, measured at their fair values as of that date. In a business combination achieved in stages, the identifiable assets and liabilities, as well as the noncontrolling interest in the acquiree, are recognized at the full amounts of their fair values. In a bargain purchase in which the total acquisition-date fair value of the identifiable net assets acquired exceeds the fair value of the consideration transferred plus any noncontrolling interest in the acquiree, that excess in earnings is recognized as a gain attributable to the acquirer. Deferred tax liability and asset are recognized for the deferred tax consequences of differences between the tax bases and the recognized values of assets acquired and liabilities assumed in a business combination in accordance with Accounting Standards Codification (“ASC”) Topic 740-10. Goodwill Goodwill is the excess of purchase price and related costs over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. In accordance with ASC Topic 350, “Intangibles-Goodwill and Other,” goodwill is not amortized but is tested for impairment, annually or more frequently when circumstances indicate a possible impairment may exist. Impairment testing is performed at a reporting unit level. An impairment loss generally would be recognized when the carrying amount of the reporting unit exceeds its fair value, with the fair value of the reporting unit determined using discounted cash flow (“DCF”) analysis. A number of significant assumptions and estimates are involved in the application of the DCF analysis to forecast operating cash flows, including the discount rate, the internal rate of return and projections of realizations and costs to produce. Management considers historical experience and all available information at the time the fair values of its reporting units are estimated. ASC Topic 350 also permits an entity to first assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount, including goodwill. If it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the two-step goodwill impairment test is required to be performed. Otherwise, no further testing is required. Performing the qualitative assessment involved identifying the relevant drivers of fair value, evaluating the significance of all identified relevant events and circumstances, and weighing the factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. After evaluating and weighing all these relevant events and circumstances, it was concluded that a positive assertion can be made from the qualitative assessment that it is more likely than not that the fair value of Diamond Bar is greater than its carrying amount. As such, it is not necessary to perform the two-step goodwill impairment test for Diamond Bar reporting unit. Accordingly, as of March 31, 2019 and 2018, the Company concluded there was no impairment of goodwill of Diamond Bar. Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers cash, money market funds, investments in interest bearing demand deposit accounts, time deposits and all highly liquid investments with an original maturity of three months or less to be cash equivalents. Accounts Receivable The Company’s accounts receivable arise from product sales. The Company does not adjust its receivables for the effects of a significant financing component at contract inception if it expects to collect the receivables in one year or less from the time of sale. The Company does not expect to collect receivables greater than one year from the time of sale. The Company’s policy is to maintain an allowance for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. An analysis of the allowance for doubtful accounts is as follows: Balance at January 1, 2019 $ 224,795 Reversal – recoveries by cash (169,432 ) Balance at March 31, 2019 $ 55,363 During the three months ended March 31, 2019 and 2018, bad debts (reversal) expenses were ($169,432) and $321,970, respectively. Advances to Suppliers Advances to suppliers are reported net of allowance when the Company determines that amounts outstanding are not likely to be collected in cash or utilized against purchase of inventories. Based on its historical record and actual practice, the Company receives goods within 5 to 9 months from the date the advance payment is made. As such, no reserve on supplier prepayments had been made or recorded by the Company. Any provisions for allowance for advances to suppliers, if deemed necessary, is included in general and administrative expenses in the consolidated statements of comprehensive income (loss). During the three months ended March 31, 2019 and 2018, no provision was made on advances to suppliers. Inventories Inventories are stated at the lower of cost and net realizable value, with cost determined on a weighted-average basis. Write-down of potential obsolete or slow moving inventories is recorded based on management’s assumptions about future demands and market conditions. The Company did not record any write-downs of inventories at March 31, 2019 and 2018. Plant, Property and Equipment Plant, property and equipment are stated at cost, net of accumulated depreciation and impairment losses, if any. Expenditures for maintenance and repairs are expensed as incurred; while additions, renewals and improvements are capitalized. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation is removed from the respective accounts, and any gain or loss is included in operations. Depreciation of property and equipment is provided using the straight-line method for substantially all assets with no salvage value and estimated lives as follows: Computer and office equipment 5 years Decoration and renovation 10 years Impairment of Long-Lived Assets Long-lived assets, which include property, plant and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the assets. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. Based on its review, the Company believes that as of March 31, 2019 and 2018, there was no impairment of its long-lived assets. Research and Development Research and development costs are related primarily to the Company designing and testing its new products during the development stage. Research and development costs are recognized in general and administrative expenses and expensed as incurred. Research and development expense were $16,521 and $65,589 for the three months ended March 31, 2019 and 2018, respectively. Income Taxes In its interim financial statements, the Company follows the guidance in ASC 270 “Interim Reporting” and ASC 740 “Income Taxes” whereby the Company utilizes the expected annual effective rate in determining its income tax provision. The income tax benefit for the three months ended March 31, 2019 is approximately $105,000 and is primarily related to quarter-to-date losses generated from U.S. operations. The income tax expense for the three months ended March 31, 2018 is approximately $247,000 and is primarily related to income from operations. Income taxes are accounted for using an asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The Company follows ASC Topic 740, which prescribes a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740 also provides guidance on recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Under the provisions of ASC Topic 740, when tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Nova Lifestyle, Inc. and Diamond Bar Outdoors, Inc. (“Diamond Bar”) are subject to U.S. federal and state income taxes. Nova Furniture BVI and Bright Swallow International Group Limited (“BSI”) were incorporated in the BVI, Nova Samoa was incorporated in Samoa and Nova Macau was incorporated in Macau. There is no income tax for companies domiciled in the BVI, Samoa and Macau. Accordingly, the Company’s consolidated financial statements do not present any income tax provision related to the BVI, Samoa and Macau tax jurisdiction where Nova Furniture BVI and BSI, Nova Samoa and Nova Macau are domiciled. The Tax Cuts and Jobs Act of 2017 (the “Act”) created new taxes on certain foreign-sourced earnings such as global intangible low-taxed income (“GILTI”) under IRC Section 951A, which is effective for the Company for tax years beginning after January 1, 2018. For the quarter ended March 31, 2019, the Company has calculated its best estimate of the impact of the GILTI in its income tax provision in accordance with its understanding of the Act and guidance available as of the date of this filing. A reconciliation of the January 1, 2019 through March 31, 2019, the amount of unrecognized tax benefits excluding interest and penalties (“Gross UTB”) is as follows: Gross UTB 2019 Balance $ 722,054 Decrease in unrecorded tax benefits taken (41 ) Balance – 722,013 At March 31, 2019 and December 31, 2018, the Company had cumulatively accrued approximately $643,000 and $619,000 for estimated interest and penalties related to unrecognized tax benefits, respectively. The Company recorded interest and penalties related to unrecognized tax benefits as a component of income tax expense, which totaled approximately $24,000 and $32,000 for the three months ended March 31, 2019, and 2018, respectively. The Company does not anticipate any significant changes to its unrecognized tax benefits within the next 12 months. As of March 31, 2019 and December 31, 2018, a total of $1.37 million and $1.34 million, respectively, of unrecognized tax benefit was recorded as long-term taxes payable, as ASC 740 specifies that tax positions for which the timing of the ultimate resolution is uncertain should be recognized as long-term liabilities. Other long-term taxes payable as of March 31, 2019 and December 31, 2018 consisted of an income tax payable of $2.01 million and $2.01 million, respectively, primarily arising from a one-time transition tax recognized in the fourth quarter of 2017 on our post-1986 foreign unremitted earnings. The Company elected to pay the one-time transition tax over eight years, commencing in April 2018. Revenue Recognition The Company recognizes revenues when its customer obtains control of promised goods or services, in an amount that reflects the consideration which it expects to receive in exchange for those goods. The Company recognizes revenues following the five step model prescribed under ASU No. 2014-09: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) we satisfy the performance obligation. Revenues from product sales are recognized when the customer obtains control of the Company’s product, which occurs at a point in time, typically upon delivery to the customer. The Company expenses incremental costs of obtaining a contract as and when incurred if the expected amortization period of the asset that it would have recognized is one year or less or the amount is immaterial. Revenues from product sales are recorded net of reserves established for applicable discounts and allowances that are offered within contracts with the Company’s customers. Product revenue reserves, which are classified as a reduction in product revenues, are generally characterized in the following categories: discounts, returns and rebates. These reserves are based on estimates of the amounts earned or to be claimed on the related sales and are classified as reductions of accounts receivable as the amount is payable to the Company’s customer. The Company’s sales policy allows for the return of product within the warranty period if the product is defective and the defects are the Company’s fault. As alternatives for the product return option, the customers have options of asking a discount from the Company for the products with quality issues or receiving replacement parts from the Company at no cost. The amount for return of products, the discount provided to the Company’s customers and the costs for replacement parts were immaterial for the three months ended March 31, 2019 and 2018. The Company generally expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within selling expenses on the Company’s consolidated statements of comprehensive income (loss). Cost of Sales Cost of sales consists primarily of costs of finished goods purchased from third-party manufacturers. Write-downs of inventory to the lower of cost or net realizable value is also recorded in the cost of sales. Shipping and Handling Costs Shipping and handling costs related to delivery of finished goods are included in selling expenses. During the three months ended March 31, 2019 and 2018, shipping and handling costs were $409 and $184, respectively. Advertising Advertising expenses consist primarily of costs of promotion and marketing for the Company’s image and products, and costs of direct advertising, and are included in selling expenses. The Company expenses all advertising costs as incurred. Advertising expense was $17,072 and $192,579 for the three months ended March 31, 2019 and 2018, respectively. Share-based compensation The Company accounts for share-based compensation awards to employees in accordance with FASB ASC Topic 718, “Compensation – Stock Compensation”, which requires that share-based payment transactions with employees be measured based on the grant-date fair value of the equity instrument issued and recognized as compensation expense over the requisite service period. The Company accounts for share-based compensation awards to non-employees in accordance with FASB ASC Topic 718 and FASB ASC Subtopic 505-50, “Equity-Based Payments to Non-employees”. Share-based compensation associated with the issuance of equity instruments to non-employees is measured at the fair value of the equity instrument issued or committed to be issued, as this is more reliable than the fair value of the services received. The fair value is measured at the date that the commitment for performance by the counterparty has been reached or the counterparty’s performance is complete. Earnings per Share (EPS) Basic EPS is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS is computed similar to basic net income per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if all the potential common shares pertaining to warrants, stock options, and similar instruments had been issued and if the additional common shares were dilutive. Diluted earnings per share are based on the assumption that all dilutive convertible shares and stock options and warrants were converted or exercised. Dilution is computed by applying the treasury stock method for the outstanding unvested restricted stock, options and warrants, and the if-converted method for the outstanding convertible instruments. Under the treasury stock method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later) and as if funds obtained thereby were used to purchase common stock at the average market price during the period. Under the if-converted method, outstanding convertible instruments are assumed to be converted into common stock at the beginning of the period (or at the time of issuance, if later). The following table presents a reconciliation of basic and diluted (loss) income per share for the three months ended March 31, 2019 and 2018: Three Months Ended March 31, 201 9 201 8 Net (Loss) Income $ (147,531 ) $ 1,655,021 Weighted average shares outstanding – basic* 28,662,557 28,253,115 Dilutive stock options and unvested restricted stock - 440,364 Weighted average shares outstanding – diluted 28,662,557 28,693,479 Net (loss) income per share of common stock Basic $ (0.01 ) $ 0.06 Diluted $ (0.01 ) $ 0.06 * Including 889,967 and 821,534 shares that were granted and vested but not yet issued for the three months ended March 31, 2019 and 2018, respectively. For the three months ended March 31, 2019 and 2018, 858,334 shares purchasable under warrants were excluded from EPS calculation, as their effects were anti-dilutive. For the three months ended March 31, 2019, 90,000 unvested restricted stock were anti-dilutive and were excluded from EPS calculation. Concentration of Credit Risk Financial instruments that potentially subject the Company to credit risk consist primarily of accounts and other receivables. The Company does not require collateral or other security to support these receivables. The Company conducts periodic reviews of the financial condition and payment practices of its customers to minimize collection risk on accounts receivable. A customer accounted for 59% of the Company’s sales for the three months ended March 31, 2019 and two customers accounted for 43% (27%, and 16% each) of the Company’s sales for the three months ended March 31, 2018. Gross accounts receivable from these customers were $6,278,074 and $7,852,123 as of March 31, 2019 and 2018, respectively. The Company purchased its products from four and three major vendors during the three months ended March 31, 2019 and 2018, accounting for a total of 84% (34%, 25%, 14%, and 11% each) and 93% (39%, 32% and 22% for each) of the Company’s purchases, respectively. Advances made to these vendors were $5,607,077 and $10,401,410 as of March 31, 2019 and 2018, respectively. Accounts payable to these vendors were $111,351 and $345,144 as of March 31, 2019 and 2018, respectively. Fair Value of Financial Instruments ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows: ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. The carrying value of cash, accounts receivable, advances to suppliers, other receivables, accounts payable, short-term line of credit, advance from customers, other payables and accrued liabilities approximate estimated fair values because of their short maturities. The estimated fair value of the long-term lines of credit approximated the carrying amount as the interest rates are considered as approximate to the current rate for comparable loans at the respective balance sheet dates. Foreign Currency Translation and Transactions The consolidated financial statements are presented in United States Dollar (“$” or “USD”), which is also the functional currency of Nova LifeStyle, Nova Furniture, Nova Samoa, Nova Macao, Bright Swallow, Diamond Bar and i Design. Segment Reporting ASC Topic 280, “Segment Reporting,” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s chief operating decision maker organizes segments within the company for making operating decisions assessing performance and allocating resources. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. Management determined that the Company’s operations constitute a single reportable segment in accordance with ASC 280. The Company operates exclusively in one business and industry segment: the design and sale of furniture. Management concluded that the Company had one reportable segment under ASC 280 because Diamond Bar is a furniture distributor based in California focusing on customers in the US, Bright Swallow is a furniture distributor focusing on customers in Canada, and Nova Macao is a furniture distributor based in Macao focusing on international customers. They are all operated under the same senior management of the Company, and management views the operations of Diamond Bar, Bright Swallow and Nova Macao as a whole for making business decisions. After the disposal of Nova Dongguan and its subsidiaries, all of the Company’s long-lived assets are mainly property, plant and equipment located in the United States for administrative purposes. Net sales to customers by geographic area are determined by reference to the physical locations of the Company’s customers. For example, if the products are delivered to a customer in the US, the sales are recorded as generated in the U.S.; if the customer directs us to ship its products to China, the sales are recorded as sold in China. New Accounting Pronouncements Recently issued accounting pronouncements not yet adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. This guidance is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Adoption of the ASUs is on a modified retrospective basis. The Company is currently evaluating the impact that the standard will have on its consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its |
Note 3 - Inventories
Note 3 - Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | Note 3 - Inventories The inventories as of March 31, 2019 and December 31, 2018 totaled $6,464,030 and $6,371,112, respectively, and were all finished goods. |
Note 4 - Plant, Property and Eq
Note 4 - Plant, Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Note 4 - Plant, Property and Equipment, Net As of March 31, 2019 and December 31, 2018, plant, property and equipment consisted of the following: March 31, 201 9 December 31, 201 8 Computer and office equipment $ 345,151 $ 320,239 Decoration and renovation 118,858 118,858 Less: accumulated depreciation (301,370 ) (292,001 ) $ 162,639 $ 147,096 Depreciation expense was $9,369 and $10,341 for the three months ended March 31, 2019 and 2018, respectively. |
Note 5 - Intangible Assets, net
Note 5 - Intangible Assets, net | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Text Block [Abstract] | |
Intangible Assets Disclosure [Text Block] | Note 5 - Intangible Assets, net The Company acquired a customer relationship with a fair value of $50,000 on August 31, 2011, as part of its acquisition of Diamond Bar. Concurrently with its acquisition of Diamond Bar, the Company entered into a trademark purchase and assignment agreement for all rights, title and interest in two trademarks (Diamond Sofa and Diamond Furniture) for $200,000 paid in full at the closing. Amortization of said customer relationship and the trademarks is provided using the straight-line method and estimated lives were 5 years for each. The Company acquired a customer relationship with a fair value of $6,100,559 on April 24, 2013, as part of its acquisition of Bright Swallow. Amortization of said customer relationship is provided using the straight-line method and estimated life was 15 years. Intangible assets consisted of the following as of March 31, 2019 and December 31, 2018: March 31, 201 9 December 31, 201 8 Customer relationship $ 6,150,559 $ 6,150,559 Trademarks 200,000 200,000 Less: accumulated amortization (2,656,331 ) (2,554,655 ) $ 3,694,228 $ 3,795,904 Amortization of intangible assets was $101,676 for the three months ended March 31, 2019 and 2018, respectively. Estimated amortization expense relating to the existing intangible assets with finite lives for each of the next five years is as follows: 12 months ending March 31, 2019 $ 406,704 2020 406,704 2021 406,704 2022 406,704 2023 406,704 |
Note 6 - Prepaid Expenses and O
Note 6 - Prepaid Expenses and Other Receivables | 3 Months Ended |
Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | Note 6 - Prepaid Expenses and Other Receivables Prepaid Expenses and Other Receivables consisted of the following at March 31, 2019 and December 31, 2018: March 31, 201 9 December 31, 201 8 Prepaid expenses $ 42,626 $ 96,197 Other receivables 38,248 9,615 Total $ 80,874 $ 105,812 As of March 31, 2019 and December 31, 2018, prepaid expenses mainly included insurance and other receivables represented an account balance in Paypal. |
Note 7 - Accrued Liabilities an
Note 7 - Accrued Liabilities and Other Payables | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Text Block Supplement [Abstract] | |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block] | Note 7 - Accrued Liabilities and Other Payables Accrued liabilities and other payables consisted of the following as of March 31, 2019 and December 31, 2018: March 31, 201 9 December 31, 201 8 Other payables $ 2,797 $ 49,441 Salary payable 40,479 46,081 Financed insurance premiums - 39,202 Accrued rents 9,930 2,951 Accrued commission 177,700 623,372 Accrued expenses, others 38,508 47,582 Total $ 269,414 $ 808,629 As of March 31, 2019 and December 31, 2018, other accrued expenses mainly included legal and professional fees, transportation expenses and utilities. Other payables represented other tax payable and meal expenses. |
Note 8 - Lines of Credit
Note 8 - Lines of Credit | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Note 8 - Lines of Credit On September 19, 2017, Diamond Bar extended the line of credit up to a maximum of $8,000,000 to maturity on June 1, 2019. The annual interest rate was 5.50% as of March 31, 2019. The line of credit is secured by all of the assets of Diamond Bar and is guaranteed by Nova LifeStyle. As of March 31, 2019 and December 31, 2018, Diamond Bar had $0 and $6,248,162 outstanding on the line of credit, respectively. During the three months ended March 31, 2019 and 2018, the Company recorded interest expense of $35,444 and $31,582, respectively. The Company paid off the line of credit during the three months ended March 31, 2019. The Diamond Bar loan has the following covenants: (i) maintain a minimum tangible net worth of not less than $20 million; (ii) maintain a ratio of debt to tangible net worth not in excess of 2.5 to 1.0; (iii) the pre-tax income must be not less than 1% of total revenue quarterly; and (iv) maintain a current ratio in excess of 1.25 to 1.00. As of December 31, 2018, Diamond Bar was in compliance with the stated covenants. |
Note 9 - Related Party Transact
Note 9 - Related Party Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Note 9 - Related Party Transactions On September 30, 2011, Diamond Bar leased a showroom in High Point, North Carolina from the Company’s president who is currently also our Chief Executive Officer and Chairman of the Board. The lease is to be renewed and has been renewed each year since 2011. On March 27, 2019, the Company renewed the lease for an additional one year term. The lease was for the amount of $34,561, with a term of one year and only for use during two furniture exhibitions to be held between April 1, 2019 and March 31, 2020. During the three month ended March 31, 2019 and 2018, the Company paid rental amounts of $17,281 and $0, respectively, that are included in selling expenses. On January 4, 2018, the Company entered into a sales representative agreement with a consulting firm, which is owned by our Chief Executive Officer and Chairman of the Board, for sales representative service for a term of two years. The Company agreed to compensate the sales representative commission at predetermined rates of the relevant sales amount. During the three months ended March 31, 2019 and 2018, the Company recorded $44,042 and $20,405 as commission expense to this sales representative. |
Note 10 - Stockholders_ Equity
Note 10 - Stockholders’ Equity | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Note 1 0 - Stockholders’ Equity Share repurchase program On December 12, 2017, the Company issued a press release announcing that the Board of Directors of the Company had approved a 10b-18 share repurchase program to repurchase up to $5 million of its outstanding common stock. Under the repurchase program, shares of the Company’s common stock may be repurchased from time to time over the next 12 months. The program expired on December 8, 2018 and no shares have been repurchased under the program. Warrants The following is a summary of the warrant activity for the three months ended March 31, 2019: Number of Warrants Average Exercise Price Weighted Average Remaining Contractual Term in Years Outstanding at January 1, 2019 858,334 $ 2.71 1.92 Exercisable at January 1, 2019 858,334 2.71 1.92 Granted - - - Exercised / surrendered - - - Expired - - - Outstanding at March 31, 2019 858,334 $ 2.71 1.67 Exercisable at March 31, 2019 858,334 $ 2.71 1.67 Shares Issued to Consultants On February 1, 2016, the Company entered into an agreement with a consultant for E-Commerce consulting service with a term of 24 months. The Company agreed to grant the consultant 10,000 shares of the Company’s common stock per month, for a total commitment of 240,000 shares. Twelve and half percent (12.5%) of those shares vested on April 30, 2016, 12.5% on July 30, 2016, 12.5% on October 31, 2016, 12.5% on January 31, 2017, 12.5% on April 30, 2017, 12.5% on July 30, 2017, 12.5% on October 31, 2017, and the remaining 12.5% on January 31, 2018. The fair value of the 240,000 shares was $326,400, which was calculated based on the stock price of $1.36 per share on February 1, 2016, the date the agreement was executed, and was amortized over the service term. During the three months ended March 31, 2019 and 2018, the Company amortized $0 and $13,600 as consulting expenses, respectively. On June 30, 2017, the Company entered into a consulting agreement with a consultant for business advisory service for a term of 12 months. The Company agreed to compensate the consultant a one-time amount of $10,000 worth of shares of the Company’s common stock based on the price per share on June 30, 2017. The Company also granted the consultant $10,000 worth of shares of the Company’s common stock per month starting from July 1, 2017 for a period of 12 months. The shares were issued pursuant to Nova LifeStyle, Inc.’s 2014 Omnibus Long-Term Incentive Plan (the “Plan”) approved by the Board of Directors (“Board”) of the Company on May 13, 2014 and ratified at the annual shareholder meeting on June 30, 2014. The Plan was registered under Form S-8 on July 30, 2014. On June 12, 2018, the Company renewed the agreement with the consultant for an additional year and agreed to compensate the consultant $10,000 worth of shares of the Company’s common stock per month starting from July 1, 2018 for a period of 12 months. The shares will be issued pursuant to the Plan. On January 31, 2019, the Company terminated the agreement. During the three months ended March 31, 2019 and 2018, the Company recorded $10,000 and $32,500 as consulting expense, respectively. On November 16, 2017, the Company entered into a consulting agreement with a consultant for consulting and strategy services effective on November 16, 2017 for one year. The Company agreed to grant the consultant 100,000 shares of the Company’s common stock. Twenty-five percent (25%) of those shares vested on February 15, 2018, 25% on May 15, 2018, 25% will vest on August 15, 2018 and the remaining 25% vested on November 15, 2018. The fair value of 100,000 shares was $173,000, which was calculated based on the stock price of $1.73 per share on November 16, 2017 and was amortized over the service term. The shares were issued pursuant to the Plan. During the three months ended March 31, 2019 and 2018, the Company amortized $0 and $42,658 as consulting expense, respectively. On December 10, 2017, the Company entered into a consulting agreement with a consultant for business advisory services effective as of January 1, 2018 and ending on December 31, 2018. The Company agreed to compensate the consultant a one-time amount of $15,000 worth of shares of the Company’s common stock based on the price per share on December 15, 2017. The Company also granted the consultant $15,000 worth of shares of the Company’s common stock per month starting from January 1, 2018 for 12 months. The shares were issued pursuant to the Plan. During the three months ended March 31, 2019 and 2018, the Company amortized $0 and $48,750 as consulting expense, respectively. On November 16, 2018, the Company entered into a consulting agreement with a consultant for consulting and strategy services effective on November 16, 2018 for one year. The Company agreed to grant the consultant 100,000 shares of the Company’s common stock. Twenty-five percent (25%) of those shares vested on February 15, 2019 and 25% on May 15, 2019, and 25% will vest on August 15, 2019 and the remaining 25% will vest on November 15, 2019. The fair value of 100,000 shares was $90,000 which was calculated based on the stock price of $0.90 per share on November 16, 2018 and will be amortized over the service term. The shares would be issued pursuant to the Plan. During the three months ended March 31, 2019, the Company amortized $22,500 as consulting expense. On December 1, 2018, the Company entered into a consulting agreement with a consultant for business advisory services effective as of January 1, 2019 and ending on December 31, 2019. The Company granted the consultant $15,000 worth of shares of the Company’s common stock per month starting from January 1, 2019 for 12 months. The shares were issued pursuant to the Plan. During the three months ended March 31, 2019, the Company amortized $45,000 as consulting expense. Shares and Warrants Issued through Private Placement Private Placement on May 28, 2015 On May 28, 2015, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain purchasers (the “Purchasers”) pursuant to which the Company offered to the Purchasers, in a registered direct offering, an aggregate of 2,970,509 shares of common stock, par value $0.001 per share. Of these, 2,000,001 shares were sold to the Purchasers at a negotiated purchase price of $2.00 per share, for aggregate gross proceeds to the Company of $4,000,002, before deducting fees to the placement agent and other estimated offering expenses payable by the Company. In accordance with the terms of the Purchase Agreement, the Company exchanged outstanding 2014 Series A Warrants with their holders for 660,030 shares of common stock, and exchanged the outstanding 2014 Series C Warrants with their holders for 310,478 shares of common stock. In a concurrent private placement, the Company also sold to the Purchasers a warrant to purchase one 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 (the “2015 Warrants”). The 2015 Warrants became 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 five year anniversary of the Initial Exercise Date. The purchase price of one share of the Company’s common stock under the 2015 Warrants is equal to the exercise price. The warrants issued in the private placement described above are exercisable for a fixed number of shares, and are classified as equity instruments under ASC 815-40-25-10. The Company accounted for the warrants issued in the 2015 private placement based on the fair value method under ASC Topic 505, and the fair value of the warrants was calculated using the Black-Scholes model under the following assumptions: estimated life of 5 years, volatility of 107%, risk-free interest rate of 1.55% and dividend yield of 0%. No estimate of forfeitures was made as the Company has a short history of granting options and warrants. The fair value of the warrants issued to investors at grant date was $3,147,530. Shares and Options Issued to Independent Directors On April 10, 2017, the Company entered into restricted stock award agreements under 2014 Omnibus Long-Term Incentive Plan with a new independent director of the Board. The Company agreed to grant $20,000 worth of stock to the independent director with a grant date on April 10, 2017. The restricted period lapses as of 50% of the restricted stock granted vested on April 10, 2017 based on the closing price of common stock on Nasdaq as of April 10, 2017, and 50% of the restricted stock granted vested on June 30, 2017 based on the closing price of common stock on Nasdaq as of June 30, 2017. During the three months ended March 31, 2019 and 2018, the Company amortized $0 and $1,260 as directors’ stock compensation expenses, respectively. On September 26, 2017 (the “Grant Date”), the Company entered into stock option agreements under the 2014 Omnibus Long-Term Incentive Plan with the three independent members of the board of directors. The Company agreed to grant the Company’s three independent directors options to purchase an aggregate of 300,000 shares of the Company’s common stock at an exercise price of $1.65 per shares, with a term of 5 years. Twenty-five percent (25%) of those stock options vested on September 30, 2017, 25% on December 31, 2017, 25% on March 31, 2018, and the remaining 25% vested on June 30, 2018. The fair value of the stock option granted is estimated on the date of the grant using the Black-Scholes option pricing model (“BSOPM”). The BSOPM has assumptions for risk free interest rates, dividends, stock volatility and expected life of an option grant. The risk-free interest rate is based upon market yields for United States Treasury debt securities at a maturity near the term remaining on the option. Dividend rates are based on the Company’s dividend history. The stock volatility factor is based on the historical volatility of the Company’s stock price. The expected life of an option grant is based on management’s estimate as no options have been exercised in the Plan to date. The fair value of the option granted to of the independent directors is recognized as director fee over the vesting period of the stock option award. The fair value of the options was calculated using the following assumptions, estimated life of five years, volatility of 84%, risk free interest rate of 1.87%, and dividend yield of 0%. The fair value of 300,000 stock options was $324,907 at the grant date. During the three months ended March 31, 2019 and 2018, the Company recorded $0 and $81,227 as directors’ stock compensation expenses, respectively. On November 7, 2018 (the “Grant Date”), the Company entered into stock option agreements under the 2014 Omnibus Long-Term Incentive Plan with the three independent members of the board of directors. The Company agreed to grant the Company’s three independent directors options to purchase an aggregate of 300,000 shares of the Company’s common stock at an exercise price of $1.18 per shares, with a term of 5 years. Twenty-five percent (25%) of those stock options vested on November 30, 2018, 25% on will vest on February 28, 2019, 25% on May 31, 2019, and the remaining 25% will vest on August 31, 2019. The fair value of the stock options granted is estimated on the date of the grant using the Black-Scholes option pricing model (“BSOPM”) as described above. The fair value of the options was calculated using the following assumptions: estimated life of ten years, volatility of 84%, risk free interest rate of 3.07%, and dividend yield of 0%. The fair value of 300,000 stock options was $240,105 at the grant date. During the three months ended March 31, 2019, the Company recorded $60,026 as directors’ stock compensation expenses. Shares Issued to Employees and Service Providers On May 18, 2016, the Company entered into agreements with three designers for product design services for a term of 24 months. The Company agreed to grant each designer 240,000 shares of the Company’s common stock. Twenty five percent (25%) of those shares vested on May 31, 2016, 25% on December 18, 2016, 25% on June 18, 2017 and the remaining 25% on December 18, 2017. The fair value of these shares was $388,800, which was calculated based on the stock price of $0.54 per share on May 18, 2016, the date the agreement was executed, and was amortized over the service term. During the three months ended March 31, 2019 and 2018, the Company amortized $0 and $47,934 as stock compensation expenses, respectively. On February 27, 2018, the Company renewed an employment agreement with the Company’s Corporate Secretary for a term of one year. The Company agreed to grant an award of 30,000 restricted Stock Units to the officer pursuant to the Company’s 2014 Omnibus Long-Term Incentive Plan. The fair value of these shares was $68,100, which was calculated based on the stock price of $2.27 per share on February 27, 2018, the date the awards were determined by the Compensation Committee of the Board. Twenty-five percent (25%) of those shares vested on February 27, 2018, 25% on March 31, 2018, 25% on June 30, 2018 and the remaining 25% vested on September 30, 2018. During the three months ended March 31, 2019 and 2018, the Company amortized $10,821 and $6,157 as stock compensation, respectively. On December 13, 2018, the Company extended an employment agreement with the Company’s Corporate Secretary for a term of one year. The Company agreed to grant an award of 30,000 restricted Stock Units to the officer pursuant to the Company’s 2014 Omnibus Long-Term Incentive Plan. The fair value of these shares was $23,100, which was calculated based on the stock price of $0.77 per share on December 13, 2018, the date the awards were determined by the Compensation Committee of the Board. Twenty-five percent (25%) of those shares vested on December 13, 2018, 25% on March 31, 2019, 25% on June 30, 2019 and the remaining 25% vested on September 30, 2019. During the three months ended March 31, 2019, the Company amortized $5,775 as stock compensation. Options Issued to Employees On August 29, 2017 (the “Grant Date”), the Board approved option grants to the Company’s employees to purchase an aggregate of 780,000 shares of the Company’s common stock (including options to purchase 100,000 shares and 35,000 shares to the Company’s CEO and CFO, respectively) at an exercise price of $1.26 per shares, with a term of 5 years, pursuant to the Company’s 2014 Omnibus Long-Term Incentive Plan. Fifty percent (50%) of those stock options vested immediately, and the remaining 50% vested on the six-month anniversary of the Grant Date. The fair value of the stock option granted is estimated on the date of the grant using the Black-Scholes option pricing model (“BSOPM”) as described in options to independent directors above. The fair value of the option granted to employees is recognized as compensation expense over the vesting period of the stock option award. The fair value of the options was calculated using the following assumptions, estimated life of ten years, volatility of 84%, risk free interest rate of 1.70%, and dividend yield of 0%. The fair value of 780,000 stock options was $643,182 at the grant date. During the three months ended March 31, 2019 and 2018, the Company recorded $0 and $321,591 as stock compensation, respectively. On August 24, 2018 (the “Grant Date”), the Board approved option grants to the Company’s CFO to purchase an aggregate of 35,000 shares of the Company’s common stock at an exercise price of $1.85 per shares, with a term of 5 years, pursuant to the Company’s 2014 Omnibus Long-Term Incentive Plan. Fifty percent (50%) of those stock options vested immediately, and the remaining 50% vested on the six-month anniversary of the Grant Date. The fair value of the option granted to CFO in 2018 is recognized as compensation expense over the vesting period of the stock option award. The fair value of the options was calculated using the following assumptions: estimated life of ten years, volatility of 84%, risk free interest rate of 2.72%, and dividend yield of 0%. The fair value of 35,000 stock options was $43,680 at the grant date. During the three months ended March 31, 2019, the Company recorded $21,840 as stock compensation. As of March 31, 2019, unrecognized share-based compensation expense related to options was $120,053. Stock option activity under the Company’s stock-based compensation plans is shown below: Number of Average Aggregate Intrinsic (1) Weighted Outstanding at January 1, 2019 1,367,500 1.34 $ 3.96 Exercisable at January 1, 2019 1,125,000 1.37 $ 3.75 Granted - Exercised - Forfeited - - - Outstanding at March 31, 2019 1,367,500 $ 1.34 $ - $ 3.71 Exercisable at March 31, 2019 1,217,500 $ 1.36 $ - $ 3.60 (1) The intrinsic value of the stock options at March 29, 2019 is the amount by which the market value of the Company’s common stock of $0.88 as of March 29, 2019 exceeds the exercise price of the option. Statutory Reserves As a U.S. holding company, the Company’s ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiaries. Relevant PRC statutory laws and regulations permit payments of dividends by the Company’s PRC subsidiary, Nova Macao, only out of the subsidiary’s retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of Nova Macao. Pursuant to the corporate laws of the PRC and Macao, including the PRC Regulations on Enterprises with Foreign Investment, Nova Macao is required to maintain a statutory reserve by appropriating from after-tax profit before declaration or payment of dividends. The statutory reserve represents restricted retained earnings. As a result of the Macau laws and regulations that require annual appropriations of 10% of after-tax income to be set aside prior to payment of dividends as a general statutory reserve fund until such reserve balance reaches 50% of the subsidiary’s registered capital. Nova Macao is restricted in its ability to transfer a portion of its net assets to the Company as a dividend. Surplus Reserve Fund At March 31, 2019 and December 31, 2018, Nova Macao had surplus reserves of $6,241, representing 50% of its registered capital. Common Welfare Fund The common welfare fund is a voluntary fund to which Nova Macao can elect to transfer 5% to 10% of its net income. This fund can only be utilized on capital items for the collective benefit of the subsidiary’s employees, such as construction of dormitories, cafeteria facilities, and other staff welfare facilities. This fund is non-distributable other than upon liquidation. Nova Macao does not participate in this voluntary fund. |
Note 11 - Geographical Sales
Note 11 - Geographical Sales | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Note 1 1 - Geographical Sales Geographical distribution of sales consisted of the following for the three months ended March 31, 2019 and 2018: Three Months Ended March 31, 201 9 201 8 Geographical Areas North America $ 4,194,550 $ 12,717,485 China 6,278,704 - Australia - 3,660,465 Asia* - 5,925,522 Other countries 187,554 - $ 10,660,808 $ 22,303,472 * excluding China |
Note 12 - Commitments and Conti
Note 12 - Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Note 1 2 - Commitments and Contingencies Lease Commitments On June 17, 2013, the Company entered into a lease agreement for office, warehouse, storage, and distribution space with a five year term, commencing on November 1, 2013 and expiring on October 31, 2018. The lease agreement also provides an option to extend the term for an additional six years. On April 23, 2018, the Company extended the lease for another 36 months with an expiration date of October 31, 2021. The monthly rental payment is $42,000 with an annual 3% increase. On January 7, 2014, the Company entered into a sublease agreement with Diamond Bar for warehouse space with a five-year term commencing on November 1, 2013 and expiring on October 31, 2018. The Company subleased a portion of its warehouse space to one of its customers with a one-year term commencing on December 1, 2013 and expiring on November 30, 2014, which has been renewed every year with the current term expiring on October 31, 2018. The sublease was not renewed. The sublease income of $6,000 per month was recorded against the rental expense. During the three months ended March 31, 2019 and 2018, the Company recorded $0 and $18,000 sublease income, respectively. On September 13, 2017, Bright Swallow renewed the lease for another two year term, commencing on October 1, 2017 and expiring on September 30, 2019. The monthly rental payment is 20,000 Hong Kong Dollars ($2,548). The Company terminated the lease on December 31, 2018. The Company has entered into several lease agreements for office and warehouse space in Commerce, California and showroom space in Las Vegas, Nevada and High Point, North Carolina on monthly or annual terms. Total rental payments for the three months ended March 31, 2019 and 2018 was $291,439 and $199,069, respectively. The components of lease costs, lease term and discount rate with respect of leases with an initial term of more than 12 months are as follows: Three Months Ended March 31, 2019 Operating lease cost $ 146,069 Weighted Average Remaining Lease Term - Operating leases 5.58 years Weighted Average Discount Rate - Operating leases 5 % The following is a schedule, by years, of maturities of lease liabilities as of March 31, 2019: Operating Leases The remainder of 2019 $ 441,127 Fiscal year 2020 604,811 Fiscal year 2021 622,956 Fiscal year 2022 641,644 Fiscal year 2023 660,894 Thereafter 508,000 Total undiscounted cash flows 3,479,432 Less: imputed interest (454,153 ) Present value of lease liabilities $ 3,025,279 Legal Proceedings On December 28, 2018, a Federal class action complaint was filed by George Barney against the Company and its former and current CEOs and CFOs (Thanh H. Lam, Ya Ming Wong, Jeffery Chuang and Yuen Ching Ho) in the United States District Court for the Central District of California, claiming the Company violated federal securities laws and pursuing remedies under Sections 10(b) and 20(a) of the Security Exchange Act of 1934 and Rule 10b-5 (the “Complaint”). The Complaint seeks to recover compensatory damages caused by the Company’s alleged violations of federal security laws during the period from December 3, 2015 through December 20, 2018. In reliance solely on a blog appearing in Seeking Alpha The Company plans to vigorously defend against this lawsuit. On March 8, 2019, in the United States District Court for the Central District of California, shareholder Jie Yuan filed a derivative lawsuit purportedly on behalf of the Company against its former and current CEOs and CFOs (Thanh H. Lam, Ya Ming Wong, Jeffery Chuang and Yuen Ching Ho) and directors (Charlie Huy La, Bin Liu, Steven Qiang Liu, Umesh Patel, and Min Su) (collectively, the “Defendants”) seeking to recover any losses the Company sustains as a result of alleged securities violations outlined in the Andri Report and Barney Other than the above, the Company is not currently a party to any legal proceeding, investigation or claim which, in the opinion of the management, is likely to have a material adverse effect on the business, financial condition or results of operations. |
Note 13 - Subsequent Events
Note 13 - Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Note 1 3 - Subsequent Events The Company has evaluated all events that have occurred subsequent to March 31, 2019 through the date that the consolidated financial statements were issued, and no subsequent event has been identified. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies, by Policy (Policies) [Line Items] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. The unaudited condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company transactions and balances have been eliminated in consolidation. The interim condensed consolidated financial information as of March 31, 2019 and for the three month periods ended March 31, 2019 and 2018 have been prepared without audit, pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures, which are normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The interim condensed consolidated financial information should be read in conjunction with the Financial Statements and the notes thereto, included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018, previously filed with the SEC on April 1, 2019. In the opinion of management, all adjustments (which include all significant normal and recurring adjustments) necessary to present a fair statement of the Company’s interim condensed consolidated financial position as of March 31, 2019, its interim condensed consolidated results of operations and cash flows for the three month periods ended March 31, 2019 and 2018, as applicable, have been made. The interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates In preparing consolidated financial statements in conformity with U.S. GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the dates of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions made by management include, but are not limited to, revenue recognition, the allowance for bad debt, valuation of inventories, the valuation of stock-based compensation, income taxes and unrecognized tax benefits, valuation allowance for deferred tax assets, assumptions used in assessing impairment of long-lived assets and goodwill, and loss contingencies. Actual results could differ from those estimates. |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements Recently issued accounting pronouncements not yet adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. This guidance is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Adoption of the ASUs is on a modified retrospective basis. The Company is currently evaluating the impact that the standard will have on its consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The guidance should be adopted on a prospective basis for the annual or any interim goodwill impairment tests beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, "Compensation — Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting," which expands the scope of ASC 718 to include share-based payment transactions for acquiring goods and services from non-employees. An entity should apply the requirements of ASC 718 to non-employee awards except for specific guidance on inputs to an option pricing model and the attribution of cost. The amendments specify that ASC 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor's own operations by issuing share-based payment awards. The new guidance is effective for SEC filers for fiscal years, and interim reporting periods within those fiscal years, beginning after December 15, 2019 (i.e., January 1, 2020, for calendar year entities). Early adoption is permitted. The Company is evaluating the effects of the adoption of this guidance and currently believes that it will impact the accounting of the share-based awards granted to non-employees. |
Business Combinations Policy [Policy Text Block] | Business Combination For a business combination, the assets acquired, the liabilities assumed and any noncontrolling interest in the acquiree are recognized at the acquisition date, measured at their fair values as of that date. In a business combination achieved in stages, the identifiable assets and liabilities, as well as the noncontrolling interest in the acquiree, are recognized at the full amounts of their fair values. In a bargain purchase in which the total acquisition-date fair value of the identifiable net assets acquired exceeds the fair value of the consideration transferred plus any noncontrolling interest in the acquiree, that excess in earnings is recognized as a gain attributable to the acquirer. Deferred tax liability and asset are recognized for the deferred tax consequences of differences between the tax bases and the recognized values of assets acquired and liabilities assumed in a business combination in accordance with Accounting Standards Codification (“ASC”) Topic 740-10. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill Goodwill is the excess of purchase price and related costs over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. In accordance with ASC Topic 350, “Intangibles-Goodwill and Other,” goodwill is not amortized but is tested for impairment, annually or more frequently when circumstances indicate a possible impairment may exist. Impairment testing is performed at a reporting unit level. An impairment loss generally would be recognized when the carrying amount of the reporting unit exceeds its fair value, with the fair value of the reporting unit determined using discounted cash flow (“DCF”) analysis. A number of significant assumptions and estimates are involved in the application of the DCF analysis to forecast operating cash flows, including the discount rate, the internal rate of return and projections of realizations and costs to produce. Management considers historical experience and all available information at the time the fair values of its reporting units are estimated. ASC Topic 350 also permits an entity to first assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount, including goodwill. If it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the two-step goodwill impairment test is required to be performed. Otherwise, no further testing is required. Performing the qualitative assessment involved identifying the relevant drivers of fair value, evaluating the significance of all identified relevant events and circumstances, and weighing the factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. After evaluating and weighing all these relevant events and circumstances, it was concluded that a positive assertion can be made from the qualitative assessment that it is more likely than not that the fair value of Diamond Bar is greater than its carrying amount. As such, it is not necessary to perform the two-step goodwill impairment test for Diamond Bar reporting unit. Accordingly, as of March 31, 2019 and 2018, the Company concluded there was no impairment of goodwill of Diamond Bar. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers cash, money market funds, investments in interest bearing demand deposit accounts, time deposits and all highly liquid investments with an original maturity of three months or less to be cash equivalents. |
Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block] | Accounts Receivable The Company’s accounts receivable arise from product sales. The Company does not adjust its receivables for the effects of a significant financing component at contract inception if it expects to collect the receivables in one year or less from the time of sale. The Company does not expect to collect receivables greater than one year from the time of sale. The Company’s policy is to maintain an allowance for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. An analysis of the allowance for doubtful accounts is as follows: Balance at January 1, 2019 $ 224,795 Reversal – recoveries by cash (169,432 ) Balance at March 31, 2019 $ 55,363 During the three months ended March 31, 2019 and 2018, bad debts (reversal) expenses were ($169,432) and $321,970, respectively. |
Advances to Suppliers Policy [Policy Text Block] | Advances to Suppliers Advances to suppliers are reported net of allowance when the Company determines that amounts outstanding are not likely to be collected in cash or utilized against purchase of inventories. Based on its historical record and actual practice, the Company receives goods within 5 to 9 months from the date the advance payment is made. As such, no reserve on supplier prepayments had been made or recorded by the Company. Any provisions for allowance for advances to suppliers, if deemed necessary, is included in general and administrative expenses in the consolidated statements of comprehensive income (loss). During the three months ended March 31, 2019 and 2018, no provision was made on advances to suppliers. |
Inventory, Policy [Policy Text Block] | Inventories Inventories are stated at the lower of cost and net realizable value, with cost determined on a weighted-average basis. Write-down of potential obsolete or slow moving inventories is recorded based on management’s assumptions about future demands and market conditions. The Company did not record any write-downs of inventories at March 31, 2019 and 2018. |
Property, Plant and Equipment, Policy [Policy Text Block] | Plant, Property and Equipment Plant, property and equipment are stated at cost, net of accumulated depreciation and impairment losses, if any. Expenditures for maintenance and repairs are expensed as incurred; while additions, renewals and improvements are capitalized. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation is removed from the respective accounts, and any gain or loss is included in operations. Depreciation of property and equipment is provided using the straight-line method for substantially all assets with no salvage value and estimated lives as follows: Computer and office equipment 5 years Decoration and renovation 10 years |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets Long-lived assets, which include property, plant and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the assets. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. Based on its review, the Company believes that as of March 31, 2019 and 2018, there was no impairment of its long-lived assets. |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Research and development costs are related primarily to the Company designing and testing its new products during the development stage. Research and development costs are recognized in general and administrative expenses and expensed as incurred. Research and development expense were $16,521 and $65,589 for the three months ended March 31, 2019 and 2018, respectively. |
Income Tax, Policy [Policy Text Block] | Income Taxes In its interim financial statements, the Company follows the guidance in ASC 270 “Interim Reporting” and ASC 740 “Income Taxes” whereby the Company utilizes the expected annual effective rate in determining its income tax provision. The income tax benefit for the three months ended March 31, 2019 is approximately $105,000 and is primarily related to quarter-to-date losses generated from U.S. operations. The income tax expense for the three months ended March 31, 2018 is approximately $247,000 and is primarily related to income from operations. Income taxes are accounted for using an asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The Company follows ASC Topic 740, which prescribes a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740 also provides guidance on recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Under the provisions of ASC Topic 740, when tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Nova Lifestyle, Inc. and Diamond Bar Outdoors, Inc. (“Diamond Bar”) are subject to U.S. federal and state income taxes. Nova Furniture BVI and Bright Swallow International Group Limited (“BSI”) were incorporated in the BVI, Nova Samoa was incorporated in Samoa and Nova Macau was incorporated in Macau. There is no income tax for companies domiciled in the BVI, Samoa and Macau. Accordingly, the Company’s consolidated financial statements do not present any income tax provision related to the BVI, Samoa and Macau tax jurisdiction where Nova Furniture BVI and BSI, Nova Samoa and Nova Macau are domiciled. The Tax Cuts and Jobs Act of 2017 (the “Act”) created new taxes on certain foreign-sourced earnings such as global intangible low-taxed income (“GILTI”) under IRC Section 951A, which is effective for the Company for tax years beginning after January 1, 2018. For the quarter ended March 31, 2019, the Company has calculated its best estimate of the impact of the GILTI in its income tax provision in accordance with its understanding of the Act and guidance available as of the date of this filing. A reconciliation of the January 1, 2019 through March 31, 2019, the amount of unrecognized tax benefits excluding interest and penalties (“Gross UTB”) is as follows: Gross UTB 2019 Balance $ 722,054 Decrease in unrecorded tax benefits taken (41 ) Balance – 722,013 At March 31, 2019 and December 31, 2018, the Company had cumulatively accrued approximately $643,000 and $619,000 for estimated interest and penalties related to unrecognized tax benefits, respectively. The Company recorded interest and penalties related to unrecognized tax benefits as a component of income tax expense, which totaled approximately $24,000 and $32,000 for the three months ended March 31, 2019, and 2018, respectively. The Company does not anticipate any significant changes to its unrecognized tax benefits within the next 12 months. As of March 31, 2019 and December 31, 2018, a total of $1.37 million and $1.34 million, respectively, of unrecognized tax benefit was recorded as long-term taxes payable, as ASC 740 specifies that tax positions for which the timing of the ultimate resolution is uncertain should be recognized as long-term liabilities. Other long-term taxes payable as of March 31, 2019 and December 31, 2018 consisted of an income tax payable of $2.01 million and $2.01 million, respectively, primarily arising from a one-time transition tax recognized in the fourth quarter of 2017 on our post-1986 foreign unremitted earnings. The Company elected to pay the one-time transition tax over eight years, commencing in April 2018. |
Revenue [Policy Text Block] | Revenue Recognition The Company recognizes revenues when its customer obtains control of promised goods or services, in an amount that reflects the consideration which it expects to receive in exchange for those goods. The Company recognizes revenues following the five step model prescribed under ASU No. 2014-09: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) we satisfy the performance obligation. Revenues from product sales are recognized when the customer obtains control of the Company’s product, which occurs at a point in time, typically upon delivery to the customer. The Company expenses incremental costs of obtaining a contract as and when incurred if the expected amortization period of the asset that it would have recognized is one year or less or the amount is immaterial. Revenues from product sales are recorded net of reserves established for applicable discounts and allowances that are offered within contracts with the Company’s customers. Product revenue reserves, which are classified as a reduction in product revenues, are generally characterized in the following categories: discounts, returns and rebates. These reserves are based on estimates of the amounts earned or to be claimed on the related sales and are classified as reductions of accounts receivable as the amount is payable to the Company’s customer. The Company’s sales policy allows for the return of product within the warranty period if the product is defective and the defects are the Company’s fault. As alternatives for the product return option, the customers have options of asking a discount from the Company for the products with quality issues or receiving replacement parts from the Company at no cost. The amount for return of products, the discount provided to the Company’s customers and the costs for replacement parts were immaterial for the three months ended March 31, 2019 and 2018. The Company generally expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within selling expenses on the Company’s consolidated statements of comprehensive income (loss). |
Cost of Goods and Service [Policy Text Block] | Cost of Sales Cost of sales consists primarily of costs of finished goods purchased from third-party manufacturers. Write-downs of inventory to the lower of cost or net realizable value is also recorded in the cost of sales. |
Shipping and Handling Cost, Policy [Policy Text Block] | Shipping and Handling Costs Shipping and handling costs related to delivery of finished goods are included in selling expenses. During the three months ended March 31, 2019 and 2018, shipping and handling costs were $409 and $184, respectively. |
Advertising Cost [Policy Text Block] | Advertising Advertising expenses consist primarily of costs of promotion and marketing for the Company’s image and products, and costs of direct advertising, and are included in selling expenses. The Company expenses all advertising costs as incurred. Advertising expense was $17,072 and $192,579 for the three months ended March 31, 2019 and 2018, respectively. |
Share-based Payment Arrangement [Policy Text Block] | Share-based compensation The Company accounts for share-based compensation awards to employees in accordance with FASB ASC Topic 718, “Compensation – Stock Compensation”, which requires that share-based payment transactions with employees be measured based on the grant-date fair value of the equity instrument issued and recognized as compensation expense over the requisite service period. The Company accounts for share-based compensation awards to non-employees in accordance with FASB ASC Topic 718 and FASB ASC Subtopic 505-50, “Equity-Based Payments to Non-employees”. Share-based compensation associated with the issuance of equity instruments to non-employees is measured at the fair value of the equity instrument issued or committed to be issued, as this is more reliable than the fair value of the services received. The fair value is measured at the date that the commitment for performance by the counterparty has been reached or the counterparty’s performance is complete. |
Earnings Per Share, Policy [Policy Text Block] | Earnings per Share (EPS) Basic EPS is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS is computed similar to basic net income per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if all the potential common shares pertaining to warrants, stock options, and similar instruments had been issued and if the additional common shares were dilutive. Diluted earnings per share are based on the assumption that all dilutive convertible shares and stock options and warrants were converted or exercised. Dilution is computed by applying the treasury stock method for the outstanding unvested restricted stock, options and warrants, and the if-converted method for the outstanding convertible instruments. Under the treasury stock method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later) and as if funds obtained thereby were used to purchase common stock at the average market price during the period. Under the if-converted method, outstanding convertible instruments are assumed to be converted into common stock at the beginning of the period (or at the time of issuance, if later). The following table presents a reconciliation of basic and diluted (loss) income per share for the three months ended March 31, 2019 and 2018: Three Months Ended March 31, 201 9 201 8 Net (Loss) Income $ (147,531 ) $ 1,655,021 Weighted average shares outstanding – basic* 28,662,557 28,253,115 Dilutive stock options and unvested restricted stock - 440,364 Weighted average shares outstanding – diluted 28,662,557 28,693,479 Net (loss) income per share of common stock Basic $ (0.01 ) $ 0.06 Diluted $ (0.01 ) $ 0.06 * Including 889,967 and 821,534 shares that were granted and vested but not yet issued for the three months ended March 31, 2019 and 2018, respectively. For the three months ended March 31, 2019 and 2018, 858,334 shares purchasable under warrants were excluded from EPS calculation, as their effects were anti-dilutive. For the three months ended March 31, 2019, 90,000 unvested restricted stock were anti-dilutive and were excluded from EPS calculation. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk Financial instruments that potentially subject the Company to credit risk consist primarily of accounts and other receivables. The Company does not require collateral or other security to support these receivables. The Company conducts periodic reviews of the financial condition and payment practices of its customers to minimize collection risk on accounts receivable. A customer accounted for 59% of the Company’s sales for the three months ended March 31, 2019 and two customers accounted for 43% (27%, and 16% each) of the Company’s sales for the three months ended March 31, 2018. Gross accounts receivable from these customers were $6,278,074 and $7,852,123 as of March 31, 2019 and 2018, respectively. The Company purchased its products from four and three major vendors during the three months ended March 31, 2019 and 2018, accounting for a total of 84% (34%, 25%, 14%, and 11% each) and 93% (39%, 32% and 22% for each) of the Company’s purchases, respectively. Advances made to these vendors were $5,607,077 and $10,401,410 as of March 31, 2019 and 2018, respectively. Accounts payable to these vendors were $111,351 and $345,144 as of March 31, 2019 and 2018, respectively. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows: ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. The carrying value of cash, accounts receivable, advances to suppliers, other receivables, accounts payable, short-term line of credit, advance from customers, other payables and accrued liabilities approximate estimated fair values because of their short maturities. The estimated fair value of the long-term lines of credit approximated the carrying amount as the interest rates are considered as approximate to the current rate for comparable loans at the respective balance sheet dates. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation and Transactions The consolidated financial statements are presented in United States Dollar (“$” or “USD”), which is also the functional currency of Nova LifeStyle, Nova Furniture, Nova Samoa, Nova Macao, Bright Swallow, Diamond Bar and i Design. |
Segment Reporting, Policy [Policy Text Block] | Segment Reporting ASC Topic 280, “Segment Reporting,” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s chief operating decision maker organizes segments within the company for making operating decisions assessing performance and allocating resources. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. Management determined that the Company’s operations constitute a single reportable segment in accordance with ASC 280. The Company operates exclusively in one business and industry segment: the design and sale of furniture. Management concluded that the Company had one reportable segment under ASC 280 because Diamond Bar is a furniture distributor based in California focusing on customers in the US, Bright Swallow is a furniture distributor focusing on customers in Canada, and Nova Macao is a furniture distributor based in Macao focusing on international customers. They are all operated under the same senior management of the Company, and management views the operations of Diamond Bar, Bright Swallow and Nova Macao as a whole for making business decisions. After the disposal of Nova Dongguan and its subsidiaries, all of the Company’s long-lived assets are mainly property, plant and equipment located in the United States for administrative purposes. Net sales to customers by geographic area are determined by reference to the physical locations of the Company’s customers. For example, if the products are delivered to a customer in the US, the sales are recorded as generated in the U.S.; if the customer directs us to ship its products to China, the sales are recorded as sold in China. |
Accounting Standards Update 2016-02 [Member] | |
Accounting Policies, by Policy (Policies) [Line Items] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Pronouncements On January 1, 2019, we adopted Accounting Standards Update No. 2016-02, Leases (Topic 842) (ASU 2016-02), as amended, which supersedes the lease accounting guidance under Topic 840, and generally requires lessees to recognize operating and financing lease liabilities and corresponding right-of-use (ROU) assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. We adopted the new guidance using the modified retrospective transition approach by applying the new standard to all leases existing at the date of initial application and not restating comparative periods. The most significant impact was the recognition of ROU assets and lease liabilities for operating leases. For information regarding the impact of Topic 842 adoption, see Significant Accounting Policies - Leases Significant Accounting Policies - Leases On January 1, 2019, we adopted Topic 842 using the modified retrospective transition approach by applying the new standard to all leases existing at the date of initial application. Results and disclosure requirements for reporting periods beginning after January 1, 2019 are presented under Topic 842, while prior period amounts have not been adjusted and continue to be reported in accordance with our historical accounting under Topic 840. We elected the package of practical expedients permitted under the transition guidance, which allowed us to carry forward our historical lease classification, our assessment on whether a contract was or contains a lease, and our initial direct costs for any leases that existed prior to January 1, 2019. We also elected to combine our lease and non-lease components and to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term. Additionally, for certain equipment leases, we apply a portfolio approach to effectively account for the operating lease ROU assets and liabilities. Upon adoption, we recognized total ROU assets of $3.13 million, with corresponding liabilities of $3.13 million on the condensed consolidated balance sheets. The ROU assets include adjustments for prepayments and accrued lease payments. The adoption did not impact our beginning retained earnings, or our prior year condensed consolidated statements of income and statements of cash flows. Under Topic 842, we determine if an arrangement is a lease at inception. ROU assets and liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. For this purpose, we consider only payments that are fixed and determinable at the time of commencement. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Our incremental borrowing rate is a hypothetical rate based on our understanding of what our credit rating would be. The ROU asset also includes any lease payments made prior to commencement and is recorded net of any lease incentives received. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise such options. Operating leases are included in operating lease right-of-use assets, operating lease liabilities, current and operating lease liabilities, non-current on our condensed consolidated balance sheets. Finance leases are included in property and equipment, net, accrued expenses and other current liabilities, and other liabilities on our condensed consolidated balance sheets. |
Note 2 - Summary of Significa_2
Note 2 - Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Note 2 - Summary of Significant Accounting Policies (Tables) [Line Items] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | An analysis of the allowance for doubtful accounts is as follows: Balance at January 1, 2019 $ 224,795 Reversal – recoveries by cash (169,432 ) Balance at March 31, 2019 $ 55,363 |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | A reconciliation of the January 1, 2019 through March 31, 2019, the amount of unrecognized tax benefits excluding interest and penalties (“Gross UTB”) is as follows: Gross UTB 2019 Balance $ 722,054 Decrease in unrecorded tax benefits taken (41 ) Balance – 722,013 |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table presents a reconciliation of basic and diluted (loss) income per share for the three months ended March 31, 2019 and 2018: Three Months Ended March 31, 201 9 201 8 Net (Loss) Income $ (147,531 ) $ 1,655,021 Weighted average shares outstanding – basic* 28,662,557 28,253,115 Dilutive stock options and unvested restricted stock - 440,364 Weighted average shares outstanding – diluted 28,662,557 28,693,479 Net (loss) income per share of common stock Basic $ (0.01 ) $ 0.06 Diluted $ (0.01 ) $ 0.06 * Including 889,967 and 821,534 shares that were granted and vested but not yet issued for the three months ended March 31, 2019 and 2018, respectively. |
Property Plant and Equipment Estimated Useful Lives [Member] | |
Note 2 - Summary of Significant Accounting Policies (Tables) [Line Items] | |
Property, Plant and Equipment [Table Text Block] | Depreciation of property and equipment is provided using the straight-line method for substantially all assets with no salvage value and estimated lives as follows: Computer and office equipment 5 years Decoration and renovation 10 years |
Note 4 - Plant, Property and _2
Note 4 - Plant, Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Member] | |
Note 4 - Plant, Property and Equipment, Net (Tables) [Line Items] | |
Property, Plant and Equipment [Table Text Block] | As of March 31, 2019 and December 31, 2018, plant, property and equipment consisted of the following: March 31, 201 9 December 31, 201 8 Computer and office equipment $ 345,151 $ 320,239 Decoration and renovation 118,858 118,858 Less: accumulated depreciation (301,370 ) (292,001 ) $ 162,639 $ 147,096 |
Note 5 - Intangible Assets, n_2
Note 5 - Intangible Assets, net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Text Block [Abstract] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Intangible assets consisted of the following as of March 31, 2019 and December 31, 2018: March 31, 201 9 December 31, 201 8 Customer relationship $ 6,150,559 $ 6,150,559 Trademarks 200,000 200,000 Less: accumulated amortization (2,656,331 ) (2,554,655 ) $ 3,694,228 $ 3,795,904 |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | Estimated amortization expense relating to the existing intangible assets with finite lives for each of the next five years is as follows: 12 months ending March 31, 2019 $ 406,704 2020 406,704 2021 406,704 2022 406,704 2023 406,704 |
Note 6 - Prepaid Expenses and_2
Note 6 - Prepaid Expenses and Other Receivables (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Current Assets [Table Text Block] | Prepaid Expenses and Other Receivables consisted of the following at March 31, 2019 and December 31, 2018: March 31, 201 9 December 31, 201 8 Prepaid expenses $ 42,626 $ 96,197 Other receivables 38,248 9,615 Total $ 80,874 $ 105,812 |
Note 7 - Accrued Liabilities _2
Note 7 - Accrued Liabilities and Other Payables (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | Accrued liabilities and other payables consisted of the following as of March 31, 2019 and December 31, 2018: March 31, 201 9 December 31, 201 8 Other payables $ 2,797 $ 49,441 Salary payable 40,479 46,081 Financed insurance premiums - 39,202 Accrued rents 9,930 2,951 Accrued commission 177,700 623,372 Accrued expenses, others 38,508 47,582 Total $ 269,414 $ 808,629 |
Note 10 - Stockholders_ Equity
Note 10 - Stockholders’ Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | The following is a summary of the warrant activity for the three months ended March 31, 2019: Number of Warrants Average Exercise Price Weighted Average Remaining Contractual Term in Years Outstanding at January 1, 2019 858,334 $ 2.71 1.92 Exercisable at January 1, 2019 858,334 2.71 1.92 Granted - - - Exercised / surrendered - - - Expired - - - Outstanding at March 31, 2019 858,334 $ 2.71 1.67 Exercisable at March 31, 2019 858,334 $ 2.71 1.67 |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Stock option activity under the Company’s stock-based compensation plans is shown below: Number of Average Aggregate Intrinsic (1) Weighted Outstanding at January 1, 2019 1,367,500 1.34 $ 3.96 Exercisable at January 1, 2019 1,125,000 1.37 $ 3.75 Granted - Exercised - Forfeited - - - Outstanding at March 31, 2019 1,367,500 $ 1.34 $ - $ 3.71 Exercisable at March 31, 2019 1,217,500 $ 1.36 $ - $ 3.60 (1) The intrinsic value of the stock options at March 29, 2019 is the amount by which the market value of the Company’s common stock of $0.88 as of March 29, 2019 exceeds the exercise price of the option. |
Note 11 - Geographical Sales (T
Note 11 - Geographical Sales (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Geographical distribution of sales consisted of the following for the three months ended March 31, 2019 and 2018: Three Months Ended March 31, 201 9 201 8 Geographical Areas North America $ 4,194,550 $ 12,717,485 China 6,278,704 - Australia - 3,660,465 Asia* - 5,925,522 Other countries 187,554 - $ 10,660,808 $ 22,303,472 * excluding China |
Note 12 - Commitments and Con_2
Note 12 - Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease, Cost [Table Text Block] | The components of lease costs, lease term and discount rate with respect of leases with an initial term of more than 12 months are as follows: Three Months Ended March 31, 2019 Operating lease cost $ 146,069 Weighted Average Remaining Lease Term - Operating leases 5.58 years Weighted Average Discount Rate - Operating leases 5 % |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | The following is a schedule, by years, of maturities of lease liabilities as of March 31, 2019: Operating Leases The remainder of 2019 $ 441,127 Fiscal year 2020 604,811 Fiscal year 2021 622,956 Fiscal year 2022 641,644 Fiscal year 2023 660,894 Thereafter 508,000 Total undiscounted cash flows 3,479,432 Less: imputed interest (454,153 ) Present value of lease liabilities $ 3,025,279 |
Note 2 - Summary of Significa_3
Note 2 - Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | |
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Operating Lease, Right-of-Use Asset | $ 3,025,279 | $ 3,130,000 | $ 0 | |
Operating Lease, Liability | 3,025,279 | $ 3,130,000 | ||
Accounts Receivable, Credit Loss Expense (Reversal) | (169,432) | $ 321,970 | ||
Research and Development Expense | 16,521 | 65,589 | ||
Income Tax Expense (Benefit) | (104,919) | 247,257 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 643,000 | 619,000 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 24,000 | 32,000 | ||
Unrecognized Tax Benefits | 722,013 | 722,054 | ||
Deferred Tax Liabilities, Other | 2.01 | 2.01 | ||
Revenues | $ 10,660,808 | $ 22,303,472 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in Shares) | 889,967 | 821,534 | ||
Number of Operating Segments | 1 | |||
Customer Concentration Risk [Member] | ||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Accounts Receivable, before Allowance for Credit Loss, Current | $ 6,278,074 | $ 7,852,123 | ||
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | ||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Concentration Risk, Percentage | 59.00% | 43.00% | ||
Supplier Concentration Risk [Member] | Cost of Goods and Service Benchmark [Member] | ||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Concentration Risk, Percentage | 84.00% | 93.00% | ||
Accounts Receivable, before Allowance for Credit Loss | $ 5,607,077 | $ 10,401,410 | ||
Accounts Payable | 111,351 | 345,144 | ||
Continuing Operations [Member] | ||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Accounts Receivable, Credit Loss Expense (Reversal) | (169,432) | |||
Unrecognized Tax Benefits | 1,370,000 | $ 1,340,000 | ||
Advertising Expense | $ 17,072 | $ 192,579 | ||
Warrant [Member] | ||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | 3 | 858,334 | ||
Restricted Stock [Member] | ||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | 90,000 | |||
Diamond Bar [Member] | ||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Goodwill, Impairment Loss | $ 0 | $ 0 | ||
Major Vendor A [Member] | Customer Concentration Risk [Member] | Revenue Benchmark [Member] | ||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Concentration Risk, Percentage | 27.00% | |||
Major Customer B [Member] | Customer Concentration Risk [Member] | Revenue Benchmark [Member] | ||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Concentration Risk, Percentage | 16.00% | |||
Major Vendor A [Member] | Supplier Concentration Risk [Member] | Cost of Goods and Service Benchmark [Member] | ||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Concentration Risk, Percentage | 34.00% | 39.00% | ||
Major Vendor B [Member] | Supplier Concentration Risk [Member] | Cost of Goods and Service Benchmark [Member] | ||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Concentration Risk, Percentage | 25.00% | 32.00% | ||
Major Vendor C [Member] | Supplier Concentration Risk [Member] | Cost of Goods and Service Benchmark [Member] | ||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Concentration Risk, Percentage | 14.00% | 22.00% | ||
Major Vendor D [Member] | Supplier Concentration Risk [Member] | Cost of Goods and Service Benchmark [Member] | ||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Concentration Risk, Percentage | 11.00% | |||
Shipping and Handling [Member] | ||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Revenues | $ 409 | $ 184 |
Note 2 - Summary of Significa_4
Note 2 - Summary of Significant Accounting Policies (Details) - Schedule of Accounts, Notes, Loans and Financing Receivable - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Abstract] | ||
Balance at January 1, 2019 | $ 224,795 | |
Reversal – recoveries by cash | (169,432) | $ 321,970 |
Balance at March 31, 2019 | $ 55,363 |
Note 2 - Summary of Significa_5
Note 2 - Summary of Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives of Property and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment | 5 years |
Museum Decoration and Renovation [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment | 10 years |
Note 2 - Summary of Significa_6
Note 2 - Summary of Significant Accounting Policies (Details) - Schedule of Unrecognized Tax Benefits Roll Forward | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Schedule of Unrecognized Tax Benefits Roll Forward [Abstract] | |
Balance – January 1, 2019 | $ 722,054 |
Balance – March 31, 2019 | 722,013 |
Decrease in unrecorded tax benefits taken | $ (41) |
Note 2 - Summary of Significa_7
Note 2 - Summary of Significant Accounting Policies (Details) - Schedule of Earnings per Share, Basic and Diluted - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Schedule of Earnings per Share, Basic and Diluted [Abstract] | |||
Net (Loss) Income (in Dollars) | $ (147,531) | $ 1,655,021 | |
Weighted average shares outstanding – basic | [1] | 28,662,557 | 28,253,115 |
Dilutive stock options and unvested restricted stock | 0 | 440,364 | |
Weighted average shares outstanding – diluted | 28,662,557 | 28,693,479 | |
Basic (in Dollars per share) | $ (0.01) | $ 0.06 | |
Diluted (in Dollars per share) | $ (0.01) | $ 0.06 | |
[1] | Including 889,967 and 821,534 shares that were granted and vested but not yet issued for the three months ended March 31, 2019 and 2018, respectively. |
Note 3 - Inventories (Details)
Note 3 - Inventories (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Inventory, Net | $ 6,464,030 | $ 6,371,112 |
Note 4 - Plant, Property and _3
Note 4 - Plant, Property and Equipment, Net (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 9,369 | $ 10,341 |
Note 4 - Plant, Property and _4
Note 4 - Plant, Property and Equipment, Net (Details) - Schedule of Property, Plant and Equipment - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Less: accumulated depreciation | $ (301,370) | $ (292,001) |
Property, plant and equipment, net | 162,639 | 147,096 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 345,151 | 320,239 |
Museum Decoration and Renovation [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 118,858 | $ 118,858 |
Note 5 - Intangible Assets, n_3
Note 5 - Intangible Assets, net (Details) | Apr. 24, 2013USD ($) | Aug. 31, 2011USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) |
Note 5 - Intangible Assets, net (Details) [Line Items] | |||||
Amortization of Intangible Assets | $ 101,676 | $ 101,676 | |||
Customer Relationships [Member] | |||||
Note 5 - Intangible Assets, net (Details) [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 6,150,559 | $ 6,150,559 | |||
Trademarks [Member] | |||||
Note 5 - Intangible Assets, net (Details) [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | $ 200,000 | $ 200,000 | |||
Diamond Bar [Member] | Customer Relationships [Member] | |||||
Note 5 - Intangible Assets, net (Details) [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | $ 50,000 | ||||
Finite-Lived Intangible Assets, Amortization Method | straight-line method | ||||
Diamond Bar [Member] | Trademarks [Member] | |||||
Note 5 - Intangible Assets, net (Details) [Line Items] | |||||
Number of trademarks acquired | 2 | ||||
Payments to Acquire Intangible Assets | $ 200,000 | ||||
Finite-Lived Intangible Assets, Amortization Method | straight-line method | ||||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||||
Bright Swallow International Group Limited [Member] | Customer Relationships [Member] | |||||
Note 5 - Intangible Assets, net (Details) [Line Items] | |||||
Finite-Lived Intangible Assets, Amortization Method | straight-line method | ||||
Finite-Lived Intangible Asset, Useful Life | 15 years | ||||
Finite-lived Intangible Assets, Fair Value Disclosure | $ 6,100,559 |
Note 5 - Intangible Assets, n_4
Note 5 - Intangible Assets, net (Details) - Schedule of Finite-Lived Intangible Assets - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Less: accumulated amortization | $ (2,656,331) | $ (2,554,655) |
Intangible assets, net | 3,694,228 | 3,795,904 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 6,150,559 | 6,150,559 |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 200,000 | $ 200,000 |
Note 5 - Intangible Assets, n_5
Note 5 - Intangible Assets, net (Details) - Finite-lived Intangible Assets Amortization Expense | Dec. 31, 2018USD ($) |
Finite-lived Intangible Assets Amortization Expense [Abstract] | |
2019 | $ 406,704 |
2020 | 406,704 |
2021 | 406,704 |
2022 | 406,704 |
2023 | $ 406,704 |
Note 6 - Prepaid Expenses and_3
Note 6 - Prepaid Expenses and Other Receivables (Details) - Schedule of Other Current Assets - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule of Other Current Assets [Abstract] | ||
Prepaid expenses | $ 42,626 | $ 96,197 |
Other receivables | 38,248 | 9,615 |
Total | $ 80,874 | $ 105,812 |
Note 7 - Accrued Liabilities _3
Note 7 - Accrued Liabilities and Other Payables (Details) - Schedule of Accrued Liabilitites - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule of Accrued Liabilitites [Abstract] | ||
Other payables | $ 2,797 | $ 49,441 |
Salary payable | 40,479 | 46,081 |
Financed insurance premiums | 0 | 39,202 |
Accrued rents | 9,930 | 2,951 |
Accrued commission | 177,700 | 623,372 |
Accrued expenses, others | 38,508 | 47,582 |
Total | $ 269,414 | $ 808,629 |
Note 8 - Lines of Credit (Detai
Note 8 - Lines of Credit (Details) - Diamond Bar [Member] - Line of Credit [Member] - USD ($) | Sep. 19, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 |
Note 8 - Lines of Credit (Details) [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 8,000,000 | |||
Line of Credit Facility, Expiration Date | Jun. 1, 2019 | |||
Line of Credit Facility, Interest Rate at Period End | 5.50% | |||
Line of Credit Facility, Collateral | The line of credit is secured by all of the assets of Diamond Bar and is guaranteed by Nova LifeStyle. | |||
Long-term Line of Credit | $ 0 | $ 6,248,162 | ||
Interest Expense, Debt | $ 35,444 | $ 31,582 | ||
Line of Credit Facility, Covenant Terms | The Diamond Bar loan has the following covenants: (i) maintain a minimum tangible net worth of not less than $20 million; (ii) maintain a ratio of debt to tangible net worth not in excess of 2.5 to 1.0; (iii) the pre-tax income must be not less than 1% of total revenue quarterly; and (iv) maintain a current ratio in excess of 1.25 to 1.00. | |||
Line of Credit Facility, Covenant Compliance | Diamond Bar was in compliance with the stated covenants. |
Note 9 - Related Party Transa_2
Note 9 - Related Party Transactions (Details) - USD ($) | Jan. 04, 2018 | Sep. 30, 2011 | Mar. 31, 2019 | Mar. 31, 2018 |
Chief Executive Officer and Chairman of the Board [Member] | ||||
Note 9 - Related Party Transactions (Details) [Line Items] | ||||
Consulting Agreement, Term | 2 years | |||
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | $ 44,042 | $ 20,405 | ||
Diamond Bar [Member] | Building [Member] | President [Member] | ||||
Note 9 - Related Party Transactions (Details) [Line Items] | ||||
Related Party Transaction, Description of Transaction | Diamond Bar leased a showroom in High Point, North Carolina from the Company’s president who is currently also our Chief Executive Officer and Chairman of the Board. | |||
Lessee, Operating Lease, Renewal Term | 1 year | |||
Operating Leases, Rent Expense, Minimum Rentals | $ 34,561 | |||
Operating Leases, Rent Expense | $ 17,281 | $ 0 |
Note 10 - Stockholders_ Equit_2
Note 10 - Stockholders’ Equity (Details) | Dec. 13, 2018USD ($)$ / sharesshares | Dec. 01, 2018shares | Nov. 16, 2018USD ($)$ / sharesshares | Nov. 07, 2018USD ($)$ / sharesshares | Aug. 24, 2018$ / sharesshares | Jun. 12, 2018 | Feb. 27, 2018USD ($)$ / sharesshares | Jan. 01, 2018 | Dec. 12, 2017USD ($) | Dec. 10, 2017USD ($) | Nov. 16, 2017$ / sharesshares | Sep. 26, 2017$ / sharesshares | Aug. 29, 2017$ / sharesshares | Apr. 10, 2017USD ($) | May 18, 2016USD ($)$ / sharesshares | Feb. 01, 2016USD ($)$ / sharesshares | May 28, 2015USD ($)$ / sharesshares | Jun. 30, 2017USD ($) | Mar. 31, 2019USD ($)$ / sharesshares | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($) |
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Stock Repurchase Program, Authorized Amount (in Dollars) | $ 5,000,000 | |||||||||||||||||||||
Stock Repurchase Program, Period in Force | 12 months | |||||||||||||||||||||
Stock Issued During Period, Value, Issued for Services (in Dollars) | $ 159,365 | $ 131,851 | ||||||||||||||||||||
Share Price (in Dollars per share) | $ / shares | $ 0.88 | |||||||||||||||||||||
Common Stock, Par or Stated Value Per Share (in Dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||||||||||||||||||||
Class of Warrants or Rights Exercised (in Shares) | shares | 0 | |||||||||||||||||||||
Shares Issued, Value, Share-based Payment Arrangement, before Forfeiture (in Dollars) | $ 5,775 | 34,050 | ||||||||||||||||||||
Share-based Payment Arrangement, Noncash Expense (in Dollars) | 175,962 | 595,677 | ||||||||||||||||||||
Statutory Equity Reserves (in Dollars) | 6,241 | $ 6,241 | ||||||||||||||||||||
Series A Warrants [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Class of Warrants or Rights Exercised (in Shares) | shares | 660,030 | |||||||||||||||||||||
Series C Warrants [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in Shares) | shares | 310,478 | |||||||||||||||||||||
Consulting Service Agreement #7 [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Consulting Agreement, Term | 24 months | |||||||||||||||||||||
Stock Issued During Period, Shares, Issued for Services (in Shares) | shares | 240,000 | |||||||||||||||||||||
Stock Issued During Period, Value, Issued for Services (in Dollars) | $ 326,400 | |||||||||||||||||||||
Shares Issued, Price Per Share (in Dollars per share) | $ / shares | $ 1.36 | |||||||||||||||||||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition (in Dollars) | 0 | 13,600 | ||||||||||||||||||||
Consulting Service Agreement #7 [Member] | Share-based Payment Arrangement, Tranche One [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 12.50% | |||||||||||||||||||||
Consulting Service Agreement #7 [Member] | Share-based Payment Arrangement, Tranche Two [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 12.50% | |||||||||||||||||||||
Consulting Service Agreement #7 [Member] | Share-based Payment Arrangement, Tranche Three [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 12.50% | |||||||||||||||||||||
Consulting Service Agreement #7 [Member] | Share-based Compensation Award, Tranche Four [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 12.50% | |||||||||||||||||||||
Consulting Service Agreement #7 [Member] | Share-based Compensation Award, Tranche Five[Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 12.50% | |||||||||||||||||||||
Consulting Service Agreement #7 [Member] | Share-based Compensation Award, Tranche Six[Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 12.50% | |||||||||||||||||||||
Consulting Service Agreement #7 [Member] | Share-based Compensation Award, Tranche Seven [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 12.50% | |||||||||||||||||||||
Consulting Service Agreement #7 [Member] | Share-based Compensation Award, Tranche Eight [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 12.50% | |||||||||||||||||||||
Consulting Service Agreement #12 [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Consulting Agreement, Term | 12 months | |||||||||||||||||||||
Stock Issued During Period, Value, Issued for Services (in Dollars) | $ 10,000 | |||||||||||||||||||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition (in Dollars) | 10,000 | 32,500 | ||||||||||||||||||||
Other Commitments, Description | On June 12, 2018, the Company renewed the agreement with the consultant for an additional year and agreed to compensate the consultant $10,000 worth of shares of the Company’s common stock per month starting from July 1, 2018 for a period of 12 | The Company also granted the consultant $10,000 worth of shares of the Company’s common stock per month starting from July 1, 2017 for a period of 12 months. | ||||||||||||||||||||
Consulting Agreement #13 [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Consulting Agreement, Term | 1 year | |||||||||||||||||||||
Stock Issued During Period, Shares, Issued for Services (in Shares) | shares | 100,000 | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 173000.00% | |||||||||||||||||||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition (in Dollars) | 0 | 42,658 | $ 3 | |||||||||||||||||||
Share Price (in Dollars per share) | $ / shares | $ 1.73 | |||||||||||||||||||||
Consulting Agreement #13 [Member] | Share-based Payment Arrangement, Tranche One [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||||||||||||||||
Consulting Agreement #13 [Member] | Share-based Payment Arrangement, Tranche Two [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||||||||||||||||
Consulting Agreement #13 [Member] | Share-based Payment Arrangement, Tranche Three [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||||||||||||||||
Consulting Agreement #13 [Member] | Share-based Compensation Award, Tranche Four [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||||||||||||||||
Consulting Service Agreement [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Stock Issued During Period, Value, Issued for Services (in Dollars) | $ 15,000 | |||||||||||||||||||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition (in Dollars) | 0 | 48,750 | ||||||||||||||||||||
Other Commitments, Description | The Company also granted the consultant $15,000 worth of shares of the Company’s common stock per month starting from January 1, 2018 for 12 months. | The Company also granted the consultant $15,000 worth of shares of the Company’s common stock per month starting from January 1, 2018 for 12 months. | ||||||||||||||||||||
Consulting Agreement #14 [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Consulting Agreement, Term | 1 year | |||||||||||||||||||||
Stock Issued During Period, Shares, Issued for Services (in Shares) | shares | 100,000 | |||||||||||||||||||||
Stock Issued During Period, Value, Issued for Services (in Dollars) | $ 90,000 | |||||||||||||||||||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition (in Dollars) | 22,500 | |||||||||||||||||||||
Share Price (in Dollars per share) | $ / shares | $ 0.90 | |||||||||||||||||||||
Consulting Agreement #14 [Member] | Share-based Payment Arrangement, Tranche One [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||||||||||||||||
Consulting Agreement #14 [Member] | Share-based Payment Arrangement, Tranche Two [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||||||||||||||||
Consulting Agreement #14 [Member] | Share-based Payment Arrangement, Tranche Three [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||||||||||||||||
Consulting Agreement #14 [Member] | Share-based Compensation Award, Tranche Four [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||||||||||||||||
Consulting Agreement #15 [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Stock Issued During Period, Shares, Issued for Services (in Shares) | shares | 15,000 | |||||||||||||||||||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition (in Dollars) | 45,000 | |||||||||||||||||||||
Other Commitments, Description | The Company granted the consultant $15,000 worth of shares of the Company’s common stock per month starting from January 1, 2019 for 12 months | |||||||||||||||||||||
Agreement with Three Furniture Designers [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Consulting Agreement, Term | 24 months | |||||||||||||||||||||
Stock Issued During Period, Shares, Issued for Services (in Shares) | shares | 240,000 | |||||||||||||||||||||
Stock Issued During Period, Value, Issued for Services (in Dollars) | $ 388,800 | |||||||||||||||||||||
Shares Issued, Price Per Share (in Dollars per share) | $ / shares | $ 0.54 | |||||||||||||||||||||
Share-based Payment Arrangement, Noncash Expense (in Dollars) | 0 | 47,934 | ||||||||||||||||||||
Agreement with Three Furniture Designers [Member] | Share-based Payment Arrangement, Tranche One [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||||||||||||||||
Agreement with Three Furniture Designers [Member] | Share-based Payment Arrangement, Tranche Two [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||||||||||||||||
Agreement with Three Furniture Designers [Member] | Share-based Payment Arrangement, Tranche Three [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||||||||||||||||
Agreement with Three Furniture Designers [Member] | Share-based Compensation Award, Tranche Four [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||||||||||||||||
Consulting Service Agreement #5 [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | Twenty five percent (25%) of those shares vested on May 31, 2016, 25% on December 18, 2016, 25% on June 18, 2017 and the remaining 25% on December 18, 2017. | |||||||||||||||||||||
2014 Omnibus Long-Term Incentive Plan [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount (in Dollars) | 120,053 | |||||||||||||||||||||
2014 Omnibus Long-Term Incentive Plan [Member] | August 292017 [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Payment Arrangement, Noncash Expense (in Dollars) | $ 0 | 321,591 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | shares | 780,000 | |||||||||||||||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | $ / shares | $ 1.26 | |||||||||||||||||||||
Share Based Compensation, Options, Term | 5 years | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 10 years | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 84.00% | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.70% | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $ / shares | $ 643,182 | |||||||||||||||||||||
2014 Omnibus Long-Term Incentive Plan [Member] | Share-based Payment Arrangement, Tranche One [Member] | August 292017 [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | |||||||||||||||||||||
2014 Omnibus Long-Term Incentive Plan [Member] | Share-based Payment Arrangement, Tranche Two [Member] | August 292017 [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | |||||||||||||||||||||
Nova Macao [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Statutory reserve, after-tax income percentage | 10.00% | |||||||||||||||||||||
Nova Dongguan [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Statutory reserve, percentage of registered capital | 50.00% | |||||||||||||||||||||
Nova Dongguan [Member] | Minimum [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Common welfare fund, voluntary contribution | 5% | |||||||||||||||||||||
Nova Dongguan [Member] | Maximum [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Common welfare fund, voluntary contribution | 10% | |||||||||||||||||||||
Monthly Award [Member] | Consulting Service Agreement #7 [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Stock Issued During Period, Shares, Issued for Services (in Shares) | shares | 10,000 | |||||||||||||||||||||
Restricted Stock Units (RSUs) [Member] | 2014 Omnibus Long-Term Incentive Plan [Member] | Secretary and Director [Member] | February 27, 2018 [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share Price (in Dollars per share) | $ / shares | $ 2.27 | |||||||||||||||||||||
Shares Issued, Value, Share-based Payment Arrangement, before Forfeiture (in Dollars) | $ 68,100 | |||||||||||||||||||||
Share-based Payment Arrangement, Noncash Expense (in Dollars) | $ 10,821 | 6,157 | ||||||||||||||||||||
Employment Agreement Renewal Term | 1 year | |||||||||||||||||||||
Shares Issued, Shares, Share-based Payment Arrangement, before Forfeiture (in Shares) | shares | 30,000 | |||||||||||||||||||||
Restricted Stock Units (RSUs) [Member] | 2014 Omnibus Long-Term Incentive Plan [Member] | Secretary and Director [Member] | December 13, 2018 [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share Price (in Dollars per share) | $ / shares | $ 0.77 | |||||||||||||||||||||
Shares Issued, Value, Share-based Payment Arrangement, before Forfeiture (in Dollars) | $ 23,100 | |||||||||||||||||||||
Share-based Payment Arrangement, Noncash Expense (in Dollars) | 5,775 | |||||||||||||||||||||
Employment Agreement Renewal Term | 1 year | |||||||||||||||||||||
Shares Issued, Shares, Share-based Payment Arrangement, before Forfeiture (in Shares) | shares | 30,000 | |||||||||||||||||||||
Restricted Stock Units (RSUs) [Member] | 2014 Omnibus Long-Term Incentive Plan [Member] | Secretary and Director [Member] | Share-based Payment Arrangement, Tranche One [Member] | February 27, 2018 [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||||||||||||||||
Restricted Stock Units (RSUs) [Member] | 2014 Omnibus Long-Term Incentive Plan [Member] | Secretary and Director [Member] | Share-based Payment Arrangement, Tranche One [Member] | December 13, 2018 [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||||||||||||||||
Restricted Stock Units (RSUs) [Member] | 2014 Omnibus Long-Term Incentive Plan [Member] | Secretary and Director [Member] | Share-based Payment Arrangement, Tranche Two [Member] | February 27, 2018 [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||||||||||||||||
Restricted Stock Units (RSUs) [Member] | 2014 Omnibus Long-Term Incentive Plan [Member] | Secretary and Director [Member] | Share-based Payment Arrangement, Tranche Two [Member] | December 13, 2018 [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||||||||||||||||
Restricted Stock Units (RSUs) [Member] | 2014 Omnibus Long-Term Incentive Plan [Member] | Secretary and Director [Member] | Share-based Payment Arrangement, Tranche Three [Member] | February 27, 2018 [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||||||||||||||||
Restricted Stock Units (RSUs) [Member] | 2014 Omnibus Long-Term Incentive Plan [Member] | Secretary and Director [Member] | Share-based Payment Arrangement, Tranche Three [Member] | December 13, 2018 [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||||||||||||||||
Restricted Stock Units (RSUs) [Member] | 2014 Omnibus Long-Term Incentive Plan [Member] | Secretary and Director [Member] | Share-based Compensation Award, Tranche Four [Member] | February 27, 2018 [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||||||||||||||||
Restricted Stock Units (RSUs) [Member] | 2014 Omnibus Long-Term Incentive Plan [Member] | Secretary and Director [Member] | Share-based Compensation Award, Tranche Four [Member] | December 13, 2018 [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||||||||||||||||
Director [Member] | 2014 Omnibus Long-Term Incentive Plan [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Stock Issued During Period, Value, Issued for Services (in Dollars) | $ 240,105 | |||||||||||||||||||||
Share-based Payment Arrangement, Noncash Expense (in Dollars) | 60,026 | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | shares | 300,000 | |||||||||||||||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | $ / shares | $ 1.18 | |||||||||||||||||||||
Share Based Compensation, Options, Term | 5 years | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 10 years | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 84.00% | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 3.07% | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | |||||||||||||||||||||
Number of Directors | 3 | |||||||||||||||||||||
Director [Member] | 2014 Omnibus Long-Term Incentive Plan [Member] | April 102017 [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Shares Issued, Value, Share-based Payment Arrangement, before Forfeiture (in Dollars) | $ 20,000 | |||||||||||||||||||||
Share-based Payment Arrangement, Noncash Expense (in Dollars) | 0 | 1,260 | ||||||||||||||||||||
Director [Member] | 2014 Omnibus Long-Term Incentive Plan [Member] | September 26, 2017 [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Payment Arrangement, Noncash Expense (in Dollars) | 0 | $ 81,227 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | shares | 300,000 | |||||||||||||||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | $ / shares | $ 1.65 | |||||||||||||||||||||
Share Based Compensation, Options, Term | 5 years | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 5 years | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 84.00% | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.87% | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | |||||||||||||||||||||
Option, Grant Date Fair Value (in Dollars) | $ 324,907 | |||||||||||||||||||||
Director [Member] | 2014 Omnibus Long-Term Incentive Plan [Member] | Share-based Payment Arrangement, Tranche One [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||||||||||||||||
Director [Member] | 2014 Omnibus Long-Term Incentive Plan [Member] | Share-based Payment Arrangement, Tranche One [Member] | April 102017 [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | |||||||||||||||||||||
Director [Member] | 2014 Omnibus Long-Term Incentive Plan [Member] | Share-based Payment Arrangement, Tranche One [Member] | September 26, 2017 [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||||||||||||||||
Director [Member] | 2014 Omnibus Long-Term Incentive Plan [Member] | Share-based Payment Arrangement, Tranche Two [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||||||||||||||||
Director [Member] | 2014 Omnibus Long-Term Incentive Plan [Member] | Share-based Payment Arrangement, Tranche Two [Member] | April 102017 [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | |||||||||||||||||||||
Director [Member] | 2014 Omnibus Long-Term Incentive Plan [Member] | Share-based Payment Arrangement, Tranche Two [Member] | September 26, 2017 [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||||||||||||||||
Director [Member] | 2014 Omnibus Long-Term Incentive Plan [Member] | Share-based Payment Arrangement, Tranche Three [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||||||||||||||||
Director [Member] | 2014 Omnibus Long-Term Incentive Plan [Member] | Share-based Payment Arrangement, Tranche Three [Member] | September 26, 2017 [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||||||||||||||||
Director [Member] | 2014 Omnibus Long-Term Incentive Plan [Member] | Share-based Compensation Award, Tranche Four [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||||||||||||||||
Director [Member] | 2014 Omnibus Long-Term Incentive Plan [Member] | Share-based Compensation Award, Tranche Four [Member] | September 26, 2017 [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||||||||||||||||
President [Member] | 2014 Omnibus Long-Term Incentive Plan [Member] | August 292017 [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | shares | 100,000 | |||||||||||||||||||||
Chief Financial Officer [Member] | 2014 Omnibus Long-Term Incentive Plan [Member] | August 292017 [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | shares | 35,000 | |||||||||||||||||||||
Chief Financial Officer [Member] | 2014 Omnibus Long-Term Incentive Plan [Member] | August 24, 2018 [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Payment Arrangement, Noncash Expense (in Dollars) | $ 21,840 | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | shares | 35,000 | |||||||||||||||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | $ / shares | $ 1.85 | |||||||||||||||||||||
Share Based Compensation, Options, Term | 5 years | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 10 years | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 84.00% | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.72% | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $ / shares | $ 43,680 | |||||||||||||||||||||
Chief Financial Officer [Member] | 2014 Omnibus Long-Term Incentive Plan [Member] | Share-based Payment Arrangement, Tranche One [Member] | August 24, 2018 [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | |||||||||||||||||||||
Chief Financial Officer [Member] | 2014 Omnibus Long-Term Incentive Plan [Member] | Share-based Payment Arrangement, Tranche Two [Member] | August 24, 2018 [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | |||||||||||||||||||||
Private Placement [Member] | ||||||||||||||||||||||
Note 10 - Stockholders’ Equity (Details) [Line Items] | ||||||||||||||||||||||
Private Placement Number of Shares Authorized (in Shares) | shares | 2,970,509 | |||||||||||||||||||||
Common Stock, Par or Stated Value Per Share (in Dollars per share) | $ / shares | $ 0.001 | |||||||||||||||||||||
Stock Issued During Period, Shares, New Issues (in Shares) | shares | 2,000,001 | |||||||||||||||||||||
Sale of Stock, Price Per Share (in Dollars per share) | $ / shares | $ 2 | |||||||||||||||||||||
Proceeds from Issuance of Private Placement (in Dollars) | $ 4,000,002 | |||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ / shares | $ 2.71 | |||||||||||||||||||||
Warrants, Term | 5 years | |||||||||||||||||||||
Share-based Goods and Nonemployee Services Transaction, Valuation Method, Expected Term | 5 years | |||||||||||||||||||||
Share-based Goods and Nonemployee Services Transaction, Valuation Method, Expected Volatility Rate | 107.00% | |||||||||||||||||||||
Share-based Goods and Nonemployee Services Transaction, Valuation Method, Risk Free Interest Rate | 1.55% | |||||||||||||||||||||
Share-based Goods and Nonemployee Services Transaction, Valuation Method, Expected Dividend Rate | 0.00% | |||||||||||||||||||||
Warrants, Fair Value of Warrants, Granted (in Dollars) | $ 3,147,530 |
Note 10 - Stockholders_ Equit_3
Note 10 - Stockholders’ Equity (Details) - Schedule of Stockholders' Equity Note, Warrants or Rights - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Schedule of Stockholders' Equity Note, Warrants or Rights [Abstract] | ||
Number of Warrants Outstanding | 858,334 | |
Warrants Outstanding, Average Exercise Price | $ 2.71 | $ 2.71 |
Warrants Outstanding, Weighted Average Remaining Contractual Term in Years | 1 year 244 days | 1 year 335 days |
Number of Warrants Exercisable | 858,334 | |
Warrants Exercisable, Average Exercise Price | $ 2.71 | $ 2.71 |
Warrants Exercisable, Weighted Average Remaining Contractual Term in Years | 1 year 244 days | 1 year 335 days |
Number of Warrants Granted | 0 | |
Warrants Granted, Average Exercise Price | $ 0 | |
Number of Warrants Exercised | 0 | |
Warrants Exercised, Average Exercise Price | $ 0 | |
Number of Warrants Expired | 0 | |
Warrants Expired, Average Exercise Price | $ 0 | |
Number of Warrants Outstanding | 858,334 | |
Number of Warrants Exercisable | 858,334 |
Note 10 - Stockholders_ Equit_4
Note 10 - Stockholders’ Equity (Details) - Share-based Compensation, Stock Options, Activity - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | ||
Share-based Compensation, Stock Options, Activity [Abstract] | |||
Number of Shares, Outstanding | 1,367,500 | ||
Average Exercise Price per Share, Outstanding | $ 1.34 | ||
Weighted Average Remaining Contractual Term in Years, Outstanding | 3 years 259 days | 3 years 350 days | |
Number of Shares, Exercisable | 1,125,000 | ||
Average Exercise Price per Share, Exercisable | $ 1.37 | ||
Weighted Average Remaining Contractual Term in Years, Exercisable | 3 years 219 days | 3 years 9 months | |
Number of Shares, Forfeited | 0 | ||
Average Exercise Price per Share, Forfeited | $ 0 | ||
Number of Shares, Outstanding | 1,367,500 | ||
Average Exercise Price per Share, Outstanding | $ 1.34 | ||
Aggregate Intrinsic Value, Outstanding | [1] | $ 0 | |
Number of Shares, Exercisable | 1,217,500 | ||
Average Exercise Price per Share, Exercisable | $ 1.36 | ||
Aggregate Intrinsic Value, Exercisable | [1] | $ 0 | |
[1] | The intrinsic value of the stock options at March 29, 2019 is the amount by which the market value of the Company's common stock of $0.88 as of March 29, 2019 exceeds the exercise price of the option. |
Note 11 - Geographical Sales (D
Note 11 - Geographical Sales (Details) - Schedule of Sales by Geographic Region - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Geographical Areas | |||
Sales | $ 10,660,808 | $ 22,303,472 | |
North America [Member] | |||
Geographical Areas | |||
Sales | 4,194,550 | 12,717,485 | |
CHINA | |||
Geographical Areas | |||
Sales | 6,278,704 | 0 | |
AUSTRALIA | |||
Geographical Areas | |||
Sales | 0 | 3,660,465 | |
Asia [Member] | |||
Geographical Areas | |||
Sales | [1] | 0 | 5,925,522 |
Other Countries [Member] | |||
Geographical Areas | |||
Sales | $ 187,554 | $ 0 | |
[1] | excluding China |
Note 12 - Commitments and Con_3
Note 12 - Commitments and Contingencies (Details) | Dec. 28, 2018 | Sep. 13, 2017USD ($) | Sep. 13, 2017HKD ($) | Jan. 07, 2014 | Jun. 17, 2013USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Apr. 23, 2018 |
Note 12 - Commitments and Contingencies (Details) [Line Items] | |||||||||
Description of Lessor Leasing Arrangements, Operating Leases | The Company subleased a portion of its warehouse space to one of its customers with a one-year term commencing on December 1, 2013 and expiring on November 30, 2014, which has been renewed every year with the current term expiring on October 31, 2018. | ||||||||
Operating Leases, Rent Expense | $ 291,439 | $ 199,069 | |||||||
Loss Contingency, Allegations | On December 28, 2018, a Federal class action complaint was filed by George Barney against the Company and its former and current CEOs and CFOs (Thanh H. Lam, Ya Ming Wong, Jeffery Chuang and Yuen Ching Ho) in the United States District Court for the Central District of California, claiming the Company violated federal securities laws and pursuing remedies under Sections 10(b) and 20(a) of the Security Exchange Act of 1934 and Rule 10b-5 (the “Complaint”). The Complaint seeks to recover compensatory damages caused by the Company’s alleged violations of federal security laws during the period from December 3, 2015 through December 20, 2018. In reliance solely on a blog appearing in Seeking Alpha on December 21, 2018, the Complaint states that the Company made false and/or misleading statements and/or failed to disclose that: (1) the Company overstated its purported strategic alliance with a customer in China to operate as lead designer and manufacturer for all furnishings in such customer’s planned $460 million senior care center in China; (2) the Company inflated its reported sales in 2016 and 2017 with the Company’s two major customers; and (3) as a result, the Company’s public statements were materially false and misleading at all relevant times.  The Audit Committee engaged the Company’s auditor to perform special procedures to confirm the reported sales.  Those procedures included but were not limited to the examination and testing of relevant documentation relating to the sales made by the Company to the customers identified in the purported research report for the periods 2015-2018, and 100% sampling of all transactions between the Company and the subject customers.  The Audit Committee finished its special procedures in March 2019 and the Company’s independent auditor has reported to the Audit Committee that, regarding the four subject customers mentioned in the purported research report, the special procedures resulted in no evidence of fictitious sales or of fictitious customers. | ||||||||
Diamond Bar [Member] | Land, Buildings and Improvements [Member] | |||||||||
Note 12 - Commitments and Contingencies (Details) [Line Items] | |||||||||
Lessee, Operating Lease, Term of Contract | 5 years | 36 months | |||||||
Lessee, Operating Lease, Renewal Term | 6 years | ||||||||
Operating Leases, Rent Expense, Minimum Rentals | $ 42,000 | ||||||||
Operating lease, annual rent expense increase | 3.00% | ||||||||
Diamond Bar [Member] | Building [Member] | |||||||||
Note 12 - Commitments and Contingencies (Details) [Line Items] | |||||||||
Rental Income, Nonoperating | $ 0 | $ 18,000 | |||||||
Diamond Bar [Member] | Monthly Sublease Income [Member] | Building [Member] | |||||||||
Note 12 - Commitments and Contingencies (Details) [Line Items] | |||||||||
Sublease Income | $ 6,000 | ||||||||
Bright Swallow International Group Limited [Member] | Land, Buildings and Improvements [Member] | |||||||||
Note 12 - Commitments and Contingencies (Details) [Line Items] | |||||||||
Lessee, Operating Lease, Term of Contract | 2 years | 2 years | |||||||
Operating Leases, Rent Expense, Minimum Rentals | $ 20,000 | $ 2,548 |
Note 12 - Commitments and Con_4
Note 12 - Commitments and Contingencies (Details) - Schedule of lease Cost | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Schedule of lease Cost [Abstract] | |
Operating lease cost | $ 146,069 |
Weighted Average Remaining Lease Term - Operating leases | 5 years 211 days |
Weighted Average Discount Rate - Operating leases | 5.00% |
Note 12 - Commitments and Con_5
Note 12 - Commitments and Contingencies (Details) - Schedule of Future Minimum Rental Payments for Operating Leases - USD ($) | Mar. 31, 2019 | Jan. 01, 2019 |
Schedule of Future Minimum Rental Payments for Operating Leases [Abstract] | ||
The remainder of 2019 | $ 441,127 | |
Fiscal year 2020 | 604,811 | |
Fiscal year 2021 | 622,956 | |
Fiscal year 2022 | 641,644 | |
Fiscal year 2023 | 660,894 | |
Thereafter | 508,000 | |
Total undiscounted cash flows | 3,479,432 | |
Less: imputed interest | (454,153) | |
Present value of lease liabilities | $ 3,025,279 | $ 3,130,000 |