| Summary of Significant Accounting Policies | Note
2 - Summary of Significant Accounting Policies Basis
of Presentation The
accompanying 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 (“SEC”)
regarding financial reporting. The audited 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. Reverse
split On
May 22, 2023, the Company filed a Certificate of Change with the Secretary of State of Nevada with an effective date of May 22, 2023,
at which time a 1-for-5 0.001 Amendments
to Articles of Incorporation On
September 5, 2023, the Company filed the Certificate of Change (the “Amendment”) with the Secretary of State for the State
of Nevada to amend its Articles of Incorporation to increase the amount of authorized shares of its common stock, par value $ 0.001 3,000,000 250,000,000 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 expected credit losses, 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. 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 and 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 assets 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 the Diamond Bar reporting unit. Accordingly, as of December 31, 2023 and
2022, the Company concluded there was no Intangible
Assets Intangible
assets consist primarily of computer software acquired for internal use. Acquired intangible assets are initially recorded at the
acquisition-date fair value. Intangible assets are amortized on a straight-line basis over their estimated useful lives and are
carried at cost less accumulated amortization. The estimated useful life of computer software are generally from 5
years. 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 arises 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 expected Schedule of Allowance for Credit Losses
Balance
at January 1, 2023 $ 2,914
(Reversal)
Provision for the year (2,382 )
Balance
at December 31, 2023 $ 532 The
expected credit losses (reversal) provision for the years ended December 31, 2023 and 2022 was ($ 2,382 1,870 provision for allowance for expected credit loss from discontinued operations
were $ 0 Advances
to Suppliers Advances
to suppliers represent amounts paid to suppliers in advance for goods that are yet to be delivered and from which future economic benefits
are expected to flow to the Company within the normal operating cycle. Based on its historical record and in normal circumstances, the
Company receives goods within 4 to 6 months from the date the advance payment is made. During the year ended December 31, 2023 and 2022,
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. For the year
ended December 31, 2023 and 2022, the Company wrote down $ 140,131 $ 12.90 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: Schedule of Plant, Property and Equipment Estimated Lives Under Straight - line Method
Computer
and office equipment 5 10
Decoration
and renovation 5 10 Impairment
of Long-Lived Assets Long-lived
assets, which include property, plant and equipment and operating lease right-of-use assets 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. The
Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the asset’s carrying
amount may not be recoverable. The Company conducts its long-lived asset impairment analyses in accordance with ASC 360-10-15, “Impairment
or Disposal of Long-Lived Assets.” ASC 360-10-15 requires the Company to group assets and liabilities at the lowest level for which
identifiable cash flows are largely independent of the cash flows of other assets and liabilities and evaluate the asset group against
the sum of the undiscounted future cash flows. If the undiscounted cash flows do not indicate the carrying amount of the asset is recoverable,
an impairment charge is measured as the amount by which the carrying amount of the asset group asset group exceeds its fair value based
on discounted cash flow analysis or appraisals. There was no Research
and Development Research
and development costs are related primarily to the Company designing and testing its new products during the development stage. In
addition, d 3.12 10,917 0 Income
Taxes 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 are subject to U.S. federal and state income taxes. Nova Furniture BVI was incorporated in the BVI
and Nova Samoa was incorporated in Samoa. There is no income tax for companies domiciled in the BVI and Samoa. Accordingly, the
Company’s consolidated financial statements do not present any income tax provisions related to the BVI and Samoa tax
jurisdictions where Nova Furniture BVI and Nova Samoa are domiciled. Nova Malaysia is incorporated in Malaysia and is subject to
Malaysia income taxes at the statutory rate of 24 16.5 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 year ended December 31, 2023, 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. On
December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Act”) was signed into law making significant changes to the Internal
Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35 21 On
March 27, 2020, the CARES Act was enacted in response to the COVID-19 pandemic. The CARES Act contains numerous income tax provisions,
such as relaxing limitations on the deductibility of interest and the use of net operating losses (NOLs) arising in taxable years beginning
after December 31, 2017. Beginning
in 2022, the Tax Cuts and Jobs Act of 2017 eliminates the option to deduct research and development expenditures immediately in the year
incurred and requires taxpayers to amortize such expenditures over five years. While it is possible that Congress may defer, modify,
or repeal this provision, potentially with retroactive effect, we have no assurance that this provision will be deferred, modified, or
repealed. Furthermore, in anticipation of the new provision taking effect, we have analyzed the provision and worked with our advisors
to evaluate its application to our business. Since all research and development expenditures were incurred within the U.S. and the amount
is immaterial, we do not anticipate it having any material impact to our provision. As
of December 31, 2023, the accumulated undistributed earnings generated by its foreign subsidiaries were approximately $ 25.4 As
of December 31, 2023 and 2022, unrecognized tax benefits were approximately $ 0 0 A
reconciliation of unrecognized tax benefits excluding interest and penalties (“Gross UTB”) for the year ended December 31,
2023 and 2022, is as follows: Schedule of Unrecognized Tax Benefits
Gross
UTB
2023 2022
Balance
– January 1
Foreign
exchange adjustment
Balance
– December 31 $ - $ - At
December 31, 2023 and 2022, the Company had cumulatively accrued approximately $ 0 0 0 Nova
Lifestyle and Diamond Bar are subject to U.S. federal and state income taxes and tax years 2020-2023 remain open to examination by tax
authorities in the U.S. Revenue
Recognition The
Company recognizes revenues when its customers obtain 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
ASC-606 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 shipment 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 product returns within the warranty period if the product is defective and the defects are the
Company’s fault. As alternatives to the product return option, the customers have the option of requesting a discount from the
Company for products with quality issues or of receiving replacement parts from the Company at no cost. The amount for product returns,
the discount provided to the Company’s customers, and the costs for replacement parts were immaterial for the years ended December
31, 2023 and 2022. In
February 2023, the Company entered into a sales contract to transfer its entire inventory of Jade Mats, with the net realized value of
$ 1.54 2.00 Cost
of Sales Cost
of sales consists primarily of costs of finished goods purchased from third-party manufacturers and write-downs of inventory. Shipping
and Handling Costs Shipping
and handling costs related to delivery of finished goods are included in selling expenses. During the years ended December 31, 2023
and 2022, shipping and handling costs were 1,682 2,096 During the years ended December 31,
2023 and 2022, shipping and handling costs from discontinued operations were $ 0 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 $ 1,053,197 1,213,836 During
the years ended December 31, 2023 and 2022, advertising expense from discontinued operation were $ 0 Share-based
Compensation The
Company accounts for share-based compensation awards to officers, directors, employees, and for acquiring goods and services from nonemployees
in accordance with FASB ASC Topic 718, “Compensation – Stock Compensation”, which requires that share-based payment
transactions be measured based on the grant-date fair value of the equity instrument issued and recognized as compensation expense over
the vesting period. The Company accounts for forfeitures when they occur. 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 per share for the years ended December 31, 2023 and
2022: Schedule of Reconciliations of Basic and Diluted Loss Per Share
2023 2022
Net
loss from continuing operations $ (7,723,257 ) $ (17,075,917 )
Net
loss from discontinued operations - (25,754 )
Net
loss $ (7,723,257 ) $ (17,101,671 )
Weighted
average shares outstanding – Basic and Diluted * 1,556,555 1,385,913
Net
loss from continuing operations per share of common stock
Basic
and Diluted (4.96 ) (12.32 )
Net
loss from discontinued operations income per share of common stock
Basic
and Diluted - (0.02 )
Net
loss per share of common stock
Basic
and Diluted $ (4.96 ) $ (12.34 )
* Including
0 For
the year ended December 31, 2023, 4,500 13,400 245,192 For
the year ended December 31, 2022, 4,500 134,000 1,225,959 Concentration
of Credit Risk Financial
instruments that potentially subject the Company to credit risk consist primarily of accounts receivable 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. One
customer accounted for 18 %
of the Company’s sales from continuing operations for the year ended December 31, 2023. No customer accounted for 10 %
or more of the Company’s sales from continuing operations for the year ended December 31, 2022. Three customers accounted for 26 23 19 66 %
and 13 %,
respectively, of the Company’s gross accounts receivable as of December 31, 2022. No
customer accounted for 10 The
Company purchased its products from two major vendors during the years ended December 31, 2023 and 2022, respectively, accounting for
a total of 44 26 18 42 %
for 2022 ( 21 %
and 21 %)
of the Company’s purchases from continuing operations, respectively. Advances
made to these major vendors were $ 0 266,652 62,251 No
vendor accounted for 10 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, advance from customers, other
payables and accrued liabilities approximate estimated fair values because of their short maturities. Foreign
Currency Translation and Transactions The
accompanying consolidated financial statements are presented in United States Dollar (“$” or “USD”), which is
also the functional currency of Nova LifeStyle, Nova Furniture, Nova Samoa, Diamond Bar, Nova HK and i Design. The
Company’s subsidiary with operations in Malaysia uses its local currency, the Malaysian Ringgit (“RM”), as its functional
currency. An entity’s functional currency is the currency of the primary economic environment in which it operates, which is the
currency of the environment in which the entity primarily generates and expends cash. Management’s judgment is essential to determine
the functional currency by assessing various indicators, such as cash flows, sales price and market, expenses, financing and inter-company
transactions and arrangements. Foreign
currency transactions denominated in currencies other than the functional currency are translated into the functional currency using
the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at
the balance sheet date are re-measured at the applicable rates of exchange in effect at that date. Gains and losses resulting from foreign
currency re-measurement are included in the statements of operations. The
financial statements are presented in U.S. dollars. Assets and liabilities are translated into U.S. dollars at the current exchange rate
in effect at the balance sheet date, and revenues and expenses are translated at the average of the exchange rates in effect during the
reporting period. Stockholders’ equity accounts are translated using the historical exchange rates at the date the entry to stockholders’
equity was recorded, except for the change in retained earnings during the period, which is translated using the historical exchange
rates used to translate each period’s income statement. Differences resulting from translating functional currencies to the reporting
currency are recorded in accumulated other comprehensive income in the balance sheets. Translation
of amounts from RM into U.S. dollars has been made at the following exchange rates : Schedule of Exchange Rates
Balance
sheet items, except for equity accounts
December
31, 2023 RM
4.59
December
31, 2022 RM
4.40
Income
Statement and cash flow items
For
the year ended December 31, 2023 RM
4.56
For
the year ended December 31, 2022 RM
4.39 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 All
of the Company’s long-lived assets are mainly property, plant and equipment located in the United States and Malaysia and are utilized
for administrative purposes. Net
sales to customers by geographic area are determined by reference to the physical product shipment delivery locations requested by the
customers. For example, if the products are delivered to a customer in the United States, the sales are recorded as generated in the
United States; if the customer directs us to ship its products to China, the sales are recorded as sold in China. Leases The
Company determines if an arrangement is a lease or contains a lease at inception. Operating lease liabilities are recognized based on
the present value of the remaining lease payments, discounted using the discount rate for the lease at the commencement date. As the
rate implicit in the lease is not readily determinable for the operating lease, the Company generally uses an incremental borrowing rate
based on information available at the commencement date to determine the present value of future lease payments. Operating lease right-of-use
(“ROU assets”) assets represent the Company’s right to control the use of an identified asset for the lease term and
lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets are generally recognized
based on the amount of the initial measurement of the lease liability. Lease expense is recognized on a straight-line basis over the
lease term. ROU
assets are reviewed for impairment when indicators of impairment are present. ROU assets from operating and finance leases are subject
to the impairment guidance in ASC 360, Property, Plant, and Equipment, as ROU assets are long-lived nonfinancial assets. ROU
assets are tested for impairment individually or as part of an asset group if the cash flows related to the ROU asset are not independent
from the cash flows of other assets and liabilities. An asset group is the unit of accounting for long-lived assets to be held and used,
which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets
and liabilities. The
Company recognized no impairment of ROU assets as of December 31, 2023 and 2022. The
operating lease is included in operating lease right-of-use assets, operating lease liabilities-current and operating lease liabilities-non-current
on the consolidated balance sheets at December 31, 2023 and 2022. Reclassification Certain
prior period accounts have been reclassified in conformity with current period’s presentation. Recent
Accounting Pronouncements Recently
Adopted Accounting Standards In
June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial
Instruments, 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. ASU 2016-13 replaces the probable, incurred loss model and
is applicable to the measurement of credit losses on financial assets measured at amortized cost basis. Am entity should apply ASU 2016-13
on a modified-retrospective transition approach that would require a cumulative-effect adjustment to the opening retained earnings in
the balance sheets as of the date of adoption. In March 2022, the FASB issued ASU 2022-02, Financial Instruments – Credit Losses
(Topic 326): Troubled Debt Restructurings and Vintage Disclosures, which eliminates the accounting guidance for trouble debt restructurings
by creditors and enhances the disclosure requirements for modifications of loans to borrowers experiencing financial difficulty. Additionally,
ASU 2022-02 requires disclosure of gross write-offs by year of origination for receivables within the scope of Subtopic 326-20, Financial
Instruments - Credit Losses - Measured at Amortized Cost, which should be applied prospectively. Both ASU 2016-13 and ASU 2022-02 are
effective for smaller reporting companies for fiscal years beginning after December 15, 2022, including interim periods within those
fiscal years. The Company adopted ASU 2016-13 and ASU 2022-02 beginning January 1, 2023. The adoption of ASU 2016-13 and ASU 2022-02
did not have any material impact on our condensed consolidated financial statement presentation or disclosures. In
January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment
(“ASU 2017-04”). ASU 2017-04 eliminates Step 2 of the two-step goodwill impairment test, under which a goodwill impairment
loss was measured by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill.
ASU 2017-04 requires only a one-step quantitative impairment test, whereby a goodwill impairment loss is measured as the excess of a
reporting unit’s carrying amount over its fair value (not to exceed the total goodwill allocated to that reporting unit). This
Update is effective for smaller reporting companies for their annual or any interim goodwill impairment tests in fiscal years beginning
after December 15, 2022, which is required to be applied prospectively from the date of adoption. The Company adopted ASU 2017-04 for
its interim and annual goodwill impairment tests beginning January 1, 2023. The adoption of ASU 2017-04 did not have any impact on our
condensed consolidated financial statements. Recently
Issued But Not Yet Adopted Accounting Pronouncements In
March 2023, the FASB issued ASU 2023-01, Lease (Topic 842): Common Control Arrangements, which clarifies the accounting for leas |
