Currency Call Option – Intersindical RTVV http://www.intersindicalrtvv.com/ Wed, 25 May 2022 16:02:13 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://www.intersindicalrtvv.com/wp-content/uploads/2021/03/intersindicalrtvv-icon-70x70.png Currency Call Option – Intersindical RTVV http://www.intersindicalrtvv.com/ 32 32 Description of the Share Buyback Program Approved by the Combined General Meeting of Shareholders of May 25, 2022 https://www.intersindicalrtvv.com/description-of-the-share-buyback-program-approved-by-the-combined-general-meeting-of-shareholders-of-may-25-2022/ Wed, 25 May 2022 16:02:13 +0000 https://www.intersindicalrtvv.com/description-of-the-share-buyback-program-approved-by-the-combined-general-meeting-of-shareholders-of-may-25-2022/

Enter Wall Street with StreetInsider Premium. Claim your one week free trial here.


LIMOGES, France–(BUSINESS WIRE)–Regulatory News:

Legrand (Paris: LR) is the global specialist in electrical and digital building infrastructure. Its comprehensive offering of solutions for the commercial, industrial and residential markets makes it a benchmark for customers around the world. The Group captures technological and societal trends with a sustainable impact on buildings with the aim of improving life by transforming living, working and meeting spaces with electrical, digital infrastructures and simple, innovative and sustainable connected solutions. Based on an approach involving all teams and stakeholders, Legrand is pursuing its strategy of profitable and responsible growth, driven by acquisitions and innovation, with a steady flow of new offers, including products at higher high value in use (more buoyant segments: datacenters, energy efficiency offers and programs). Legrand achieved a turnover of 7.0 billion euros in 2021. The company is listed on Euronext Paris and is notably part of the CAC 40 and CAC 40 ESG indices. (ISIN code FR0010307819). https://www.legrandgroup.com

Legrand’s Board of Directors (“the Company”) met on May 25, 2022 and decided to set up a share buyback program as authorized by the Ordinary and Extraordinary General Meeting of May 25, 2022.

Drawn up in accordance with articles 241-1 et seq. of the general regulations of the Autorité des marchés financiers, this description is intended to specify the objectives and terms of the Legrand share buyback program set up by the Board of Directors. of Legrand met on May 25, 2022 (“the share buyback program”), in accordance with the authorization given by the aforementioned General Meeting of Shareholders.

I. Number of shares and percentage of share capital held by the Company

As of May 23, 2022, the Company’s share capital consisted of 266,817,746 shares.

On the same date, the Company held 550,060 of its own shares.

II. Breakdown by destination of securities held by the Company

On May 23, 2022, the 550,060 treasury shares held by the Company were allocated by destination as follows:

– 89,830 shares are allocated to a liquidity contract in accordance with the Code of Ethics recognized by the Autorité des Marchés Financiers (Financial Markets Authority) and is entered into with an independent investment services provider, and

– 465,230 shares are allocated to the implementation of any performance share plans under the provisions of Articles L. 225-197-1 and after. and L.22-10-59 and L.22-10-60 of the Commercial Code.

III. Objectives of the new share buyback program

Legrand plans to buy back or have its own shares bought back in order to:

  • ensure the liquidity and active functioning of the Company’s share market through an investment services provider, acting under a liquidity contract in accordance with applicable regulations,

  • implement (i) any Company stock option plan in accordance with Articles L.225-177 and following. of the French Commercial Code or any other similar plan, (ii) any employee shareholding operation reserved for members of a company or group savings plan in accordance with Articles L.3332-1 and following. of the Labor Code or providing for free allocations of shares in matching contribution and/or replacing the discount according to the applicable legal and regulatory provisions, (iii) free allocations of shares in application of Articles L.225-197-1 and following.L.22-10-59 and L.22-10-60 of the French Commercial Code, and carry out all hedging transactions relating to these transactions, on the occasion of the meeting of the Board of Directors or of the person acting for the account of the Board of Directors deems appropriate, (iv) the allocation of shares to employees and/or corporate officers of the Company or the Group under the applicable legal and regulatory conditions,

  • the retention and subsequent delivery of shares by way of exchange or payment in the context of external growth, merger, demerger or contribution in kind transactions, insofar as the number of shares acquired by the Company with a view to their retention and subsequent use in payment or in exchange for a merger, demerger or contribution in kind may not exceed 5% of the Company’s share capital,

  • the delivery of shares upon the exercise of rights attached to securities giving immediate or future access to shares of the Company, by reimbursement, conversion, exchange, presentation of a voucher or in any other way,

  • cancel all or part of the shares thus bought back, subject to the adoption of the seventeenth resolution submitted by the combined general meeting of shareholders of the Company on May 25, 2022, or

  • implement any other practices that may be authorized or recognized by law or by the Autorité des Marchés Financiers (Financial Markets Authority), or pursuing any other objective in accordance with the applicable regulations.

IV. Limitation of the percentage of capital that may be acquired and maximum number of securities that may be purchased under the Share Buyback Program, types of securities that may be acquired under the Share Buyback Program, maximum price and conditions of purchase

1. Maximum percentage of share capital that the Company may acquire and maximum number of securities that may be purchased under the Share Buyback Program

The limit of the portion of the share capital that can be bought back under the Share Buyback Program is set at 10% of the total number of shares representing the share capital on the date of the Combined General Meeting of shareholders of May 25 2022, it being specified that, when shares are purchased to ensure the market liquidity of Legrand shares under the conditions described above, the number taken into account for the calculation of this 10% limit will be the number of shares purchased minus the number of shares resold during the duration of the share buyback program.

In accordance with the provisions of articles L.22-10-62 and following. and L.225-210 and following. of the French Commercial Code, the number of shares that Legrand may hold, directly or indirectly, at any time, may not exceed 10% of the total number of shares making up the Company’s share capital on the date in question.

2. Types of securities likely to be acquired under the Share Buyback Program

The only securities likely to be acquired under this program are Legrand shares. The shares purchased and held by the Company will be deprived of their voting rights and will not give right to the dividend.

3. Maximum purchase price

The maximum price paid for purchases may not exceed 150 euros per Company share under the Share Buyback Program (excluding purchase costs) or the equivalent of this amount in any other currency or monetary unit established by reference to several currencies on the same date, insofar as this price will be adjusted if necessary according to capital transactions, in particular incorporation of reserves, free allocation of shares and/or division or consolidation of shares.

The maximum amount authorized for the implementation of the Share Buyback Program is 2 billion euros (or the equivalent of this amount in any other currency or monetary unit established by reference to several currencies on the same date) .

4. Terms and conditions of purchase

The acquisition, disposal, transfer or exchange of shares may be carried out, directly or indirectly, in particular by any third party acting on behalf of the Company, at any time within the limits authorized by legal and regulatory provisions, outside periods of public offers on the Company’s securities, on one or more occasions and by any means, on any market, off-market, including with systematic internalisers or by way of over-the-counter transactions, transfers en bloc, of public offers, by the use of any financial instrument, derivative product, in particular by the implementation of optional mechanisms, such as the purchase and sale of call or put options or by the delivery of shares following the issue of securities giving access to the Company’s capital by conversion, exchange, redemption, exercise of a warrant or in any other way, directly or indirectly through a service provider s of investment.

V. Duration of the share buyback program

The Share Buyback Program will be implemented for a period of eighteen months from the authorization given by the Combined General Meeting of shareholders of May 25, 2022, i.e. until November 26, 2023 at the latest.

VI. Investment services provider

Implementation of the share buyback program

The Company will appoint an investment services provider acting independently to assist it in the implementation of the Share Buyback Programme.

Liquidity contract

As part of an agreement signed on August 3, 2020, Legrand entrusted Exane with the implementation of a Legrand liquidity contract aimed at promoting the liquidity of the Legrand share and ensuring greater regularity. Exchanges. This contract complies with the decision of the Autorité des marchés financiers (AMF) n°2018-01 of July 2, 2018 relating to the introduction of equity liquidity contracts as an accepted market practice and the standard contract of the French Association of Financial Markets (AMAFI) of January 15, 2019.

The total amount of this liquidity contract is €20 million as of May 23, 2022.

VII. Transactions carried out under the previous share buyback program

The Combined General Meeting of May 26, 2021 authorized the Board of Directors to implement, with the option of subdelegation, a share buyback program for a period of eighteen months. A detailed description of the program implemented by the Board of Directors on May 26, 2021 within the framework of the authorization mentioned above is published on the Company’s website.

The Company has not used derivative products.

* * *

During the Share Buyback Program, any significant modification of any of the above information will be brought to the attention of the public as soon as possible in accordance with the provisions of Article 221-3 of the General Regulations of the Authority. financial markets. (Financial Markets Authority).

The reader is invited to verify the authenticity of Legrand press releases with the CertiDox application. More information on www.certidox.com

A French anonimous society with a capital of 1,067,270,984 euros

Registered at 128, avenue du Maréchal de Lattre de Tassigny – 87000 Limoges, France

421 259 615 RCS Limoges

Great

Source: Legrand

]]>
NATIXIS UK Regulatory Announcement: Form 8.3 – Brewin Dolphin Holdings Plc https://www.intersindicalrtvv.com/natixis-uk-regulatory-announcement-form-8-3-brewin-dolphin-holdings-plc/ Thu, 19 May 2022 12:34:00 +0000 https://www.intersindicalrtvv.com/natixis-uk-regulatory-announcement-form-8-3-brewin-dolphin-holdings-plc/

LONDON–(BUSINESS WIRE)–

FORM 8.3

DISCLOSURE OF OPEN POSITION TO THE PUBLIC / DISCLOSURE OF OPERATIONS BY

A PERSON HOLDING AN INTEREST IN RELEVANT SECURITIES REPRESENTING 1% OR MORE

Rule 8.3 of the Takeover Code (the “Code”)

1. KEY INFORMATION

(a) Full name of the discloser:

NATIXIS SA

(b) Owner or control of disclosed holdings and short positions, if different from 1(a):

The designation of nominees or vehicle companies is insufficient. For a trust, the trustee(s), settlor and beneficiaries must be named.

(vs) Name of offeror/offeree in relation to the securities concerned by this form:

Use a separate form for each offeror/participant

Brewin Dolphin Holdings plc

(D) If an exempt fund manager is related to an offeror/beneficiary, state this and provide the identity of the offeror/beneficiary:

(e) Date of position occupied/negotiation carried out:

For an open position disclosure, indicate the last practicable date before disclosure

May 18, 2022

(F) In addition to the company mentioned in 1(c) above, does the discloser make disclosures regarding any other party to the offer?

If it is a cash offer or a possible cash offer, indicate “N/A”

N / A

If YES, specify which ones:

2. POSITIONS OF THE PERSON MAKING THE DISCLOSURE

If there are positions or subscription rights to be disclosed in more than one class of relevant securities of the offeror or recipient named in 1(c), copy table 2(a) or (b) (depending on the case) for each additional category of relevant securities. Security.

(a) Interests and short positions in relevant securities of the offeror or recipient to which the disclosure relates following the transaction (if any)

Class of security concerned:

1p ordinary

Interests

Short positions

Number

%

Number

%

(1) Securities concerned held and/or controlled:

26,030,133

8.57

(2) Derivatives settled in cash:

26,030,133

8.57

(3) Derivatives settled in shares (including options) and purchase/sale contracts:

TOTAL:

26,030,133

8.57

26,030,133

8.57

All interests and short positions must be disclosed.

Details of all open equity-settled derivative positions (including traded options) or agreements to buy or sell the relevant securities must be provided on Supplementary Form 8 (Open Positions).

(b) Rights to subscribe for new securities (including options for directors and other employees)

Class of securities concerned in relation to which a subscription right exists:

Details, including the nature of the rights affected and the relevant percentages:

3. TRANSACTIONS (IF ANY) BY THE PERSON MAKING THE DISCLOSURE

Where there have been transactions in more than one class of relevant securities of the originator or recipient named in 1(c), copy table 3(a), (b), (c) or (d) ) (as applicable) for each class of relevant securities traded.

The currency of all prices and other monetary amounts must be stated.

(a) Purchases and sales

Relevant security class

Buy Sell

Number of titles

Price per unit

1p ordinary

To buy

3,089,604

GBX 515.00

(b) Cash-settled derivative transactions

Relevant security class

Product Description

for example CFDs

Type of transaction

e.g. open/close a long/short position, increase/decrease a long/short position

Number of reference titles

Price per unit

1p ordinary

TRS

Increase a short position

3,089,604

GBX 515.00

(vs) Equity-settled derivative transactions (including options)

(I) Write, sell, buy or vary

Relevant security class

Product Description for example call option

Write, buy, sell, vary etc.

Number of shares on which the option relates

Strike price per unit

Type

for example American, European, etc.

Expiration date

Option amount paid/received per unit

(ii) Exercise

Relevant security class

Product Description

for example call option

Exercise / exercise against

Number of titles

Strike price per share

(D) Other transactions (including subscription of new securities)

Relevant security class

Type of transaction

e.g. subscription, conversion

Details

Unit price (if applicable)

4. OTHER INFORMATION

(a) Indemnity and other business arrangements

Details of any indemnification or option agreement, or any agreement or understanding, formal or informal, relating to the relevant securities which may be an inducement to trade or refrain from trading entered into by the person making the disclosure and any party to the offer or any person acting in concert with a party to the offer:

Irrevocable commitments and letters of intent should not be included. If there are no such agreements, arrangements or understandings, indicate “none”

NOTHING

(b) Agreements, Arrangements or Agreements Relating to Options or Derivatives

Details of any agreement, arrangement or understanding, formal or informal, between the person making the disclosure and any other person regarding:

(I) the voting rights of any relevant security under any option; or

(ii) voting rights or the future acquisition or disposal of any relevant security to which any derivative is referenced:

If there are no such agreements, arrangements or understandings, indicate “none”

NOTHING

(vs) Attachments

Is an additional form 8 (open positions) attached?

NOPE

Disclosure date:

May 19, 2022

Name of the contact:

Roger DA ROCHA

Phone number*:

+33 1 58 19 98 07

Public disclosures under rule 8 of the code must be made to a regulatory information service.

The Panel’s Market Surveillance Unit can be consulted about the Code’s disclosure requirements on +44 (0)20 7638 0129.

*If the discloser is a natural person, it is not necessary to include a telephone number, provided the contact details have been provided to the market surveillance unit of the panel.

The Code can be viewed on the Group’s website at www.thetakeoverpanel.org.uk.

Category code: RET

Sequence number: 859201

Received time (offset from UTC): 20220519T133148+0100

]]>
Lessons from the UST-luna disaster for crypto https://www.intersindicalrtvv.com/lessons-from-the-ust-luna-disaster-for-crypto/ Tue, 17 May 2022 13:32:04 +0000 https://www.intersindicalrtvv.com/lessons-from-the-ust-luna-disaster-for-crypto/

Hello and welcome to Protocol Fintech. This Tuesday: Stablecoin Recovery, Crypto Sanctions, and Sam Bankman-Fried vs. Jack Dorsey.

out of the chain

“Just because you dreamed it doesn’t make it any less real.” No, it’s not Do Kwon trying to reassure American shoppers: it’s RuPaul, my muse, in his 2018 advice book, “GuRu.” Crypto investors might find words of consolation and common ground here. RuPaul first suggested tipping drag queens in bitcoin in 2013. Can we call her a girly adopter?

—Owen Thomas (E-mail | Twitter)

Can this stablecoin be saved?

For a brief moment on Monday, the UST appeared to rally. After dropping as low as a penny, the value of the stablecoin has risen again – to 12 cents. That won’t be enough: it’s still well below the $1 anchor that the UST was meant to hold. Meanwhile, its sister cryptocurrency luna has somehow fallen further, for two hundredths of a hundred.

An effort to rescue the embattled token appears to be going nowhere, marking the biggest implosion in the crypto crash of 2022. Even Do Kwon, the co-founder of Terraform Labs, looks set to ditch the UST — though he still guards, improbably, hopes for Luna.

The reserves are exhausted. The Luna Foundation Guard, the non-profit organization started by Kwon to support Luna and UST, squandered the bitcoin reserves it had built up.

  • LFG said on Monday it was short of bitcoin after frantically trading the cryptocurrency for UST and performing other maneuvers to defend the dollar peg. From over 80,000 bitcoins in early May, he had only 313 left.
  • The foundation said it hopes “to use its remaining assets to compensate the remaining users of the UST, the smallest holders first.” Kwon also offered to essentially drop the UST. The Terra blockchain on which UST and luna operated, it said in a tweet“should be forked into a new chain without algorithmic stablecoins”.
  • He urged Terra developers to support the new fork, saying Terra “is my family. I will always be here no matter how hard it gets.

The fallout for other stablecoins is still ongoing. Circle CEO, Jeremy Allaire, whose firm backs stablecoin rival USDC, said UST was “literally a ticking time bomb.” Many in the industry think it’s too late to save it.

  • The fall of the UST shone a spotlight on stablecoins that use algorithms to dynamically control the supply of tokens to maintain a fixed price. USDC and Tether, on the other hand, maintain monetary reserves to prop up their pegs.
  • There was “curiosity” around algorithmic stablecoins, Allaire said, but the industry is now falling back on “what we understand, which is these full-reserve models, backed by trust funds, like the USDC.”
  • Other crypto leaders suggest that Kwon’s efforts to salvage something from the UST just aren’t worth it. “Failures can/will happen”, Changpeng Zhao, CEO of Binance said in a tweet. Binance lost $1.6 billion on paper from the UST it received as part of an early investment in Terraform Labs, and Zhao said Binance would not try to recover anything.

Maybe failure should be an option. The UST crash could have actually revealed “a new discovery [sic] resilience” in the crypto market, Zhao supported. Even some stablecoin critics agreed. Bill Nelson, chief economist at the Bank Policy Institute, said if “it all works out in a matter of days,” crypto advocates could argue that this shows how a crypto ecosystem “could safely implode.” It is a Darwinian vision of the market. But if failures are what it takes for crypto to scale, so be it.

—Benjamin Pimentel (E-mail | Twitter)

A MESSAGE FROM RIPPLE

Ripple harnesses the power of cryptocurrency and blockchain to help businesses in the United States and beyond innovate and grow. Find out how we provide game-changing crypto solutions for businesses in the United States and around the world.

Learn more

on the money

On protocol: The first case of crypto sanctions enforcement has emerged, and a DC magistrate is reveling in the proof he offers that digital assets aren’t as anonymous as some might think.

Cannabis banking is still problematic, but lawmakers could act this year. The are in different ways Congress could resolve the tension between state-level legalization and the federal ban on disentangling financial services for the sector.

Portugal is considering imposing capital gains taxes on crypto. the reduced tax treatment of crypto as a currency had made the country a kind of tax haven.

Also on Protocol: Everything you need to know about crypto crash.

MiamiCoin’s price has crashed and there is still no real use for the city-bound token. There is also concerns that the city’s crypto-friendly mayor, Francis Suarez, may have circumvented securities rules by promoting cryptocurrency.

Heard

Sam Bankman Fried scorned bitcoin in an interview with the FT, and Jack Dorsey was not happy. the FTX CEO said bitcoins was useful as a store of value, not for payments, and the Block head and rated maxi bitcoin asked him why he didn’t bring up the Lightning Payments Network.

Adrian Harrissuperintendent of the New York State Department of Financial Services, wants to be careful in regulating fintech that expands access to the underbanked. “There is a need for cash for underserved communities,” she told PYMNTS.com. We want to be careful to use a scalpel and not a hatchet.

Deal flow

The Flow Blockchain has raised an ecosystem fund of $725 million. Dapper Labs created the blockchain, which powers Dapper’s NBA Top Shot, NFL All Day, and UFC Strike NFT marketplaces, in addition to other Web3 applications. A16z, Coatue, Liberty City Ventures and Dapper Ventures have all backed the fund.

Solidus Labs raised an additional $45 million. The crypto asset watchdog says Series B funding will help it attract traditional financial institutions looking to expand into DeFi. Its investors include Liberty City Ventures, Evolution Equity Partners, Declaration Partners and angel investors Brian Brooks and Christopher Giancarlo.

Paddle has raised $200m in Series D funding. The London-based payments infrastructure company has now reached a valuation of $1.4 billion, with investors including Notion Capital, Kindred Capital and KKR.

Paymob raised $50 million in a Series B round. PayPal Ventures, Kora Capital and Clay Point led the round, bringing the Cairo payments startup’s total to $68.5 million.

Co:Create has raised $25 million in seed funding. A16z led the transaction in remote-based striker NFT, joined by VaynerFund, Not Boring Capital and Amy Wu.

A MESSAGE FROM RIPPLE

Ripple is a crypto solutions company committed to sustainability – for our business, the crypto industry, and the planet. We are on track to achieve zero carbon by 2030 or sooner, while our payment solution runs on a carbon neutral blockchain today. Find out how we are helping to deliver a low-carbon future for encryption.

Learn more

Thanks for reading – see you tomorrow!

]]>
NOVA LIFESTYLE, INC. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Form 10-Q) https://www.intersindicalrtvv.com/nova-lifestyle-inc-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-q/ Fri, 13 May 2022 20:11:11 +0000 https://www.intersindicalrtvv.com/nova-lifestyle-inc-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-q/

Safe Harbor Statement




The following discussion and analysis are based upon our financial statements as
of the dates and for the periods presented in this section. You should read this
discussion and analysis in conjunction with the financial statements and notes
thereto found in Part I, Item 1 of this Form 10-Q and our consolidated financial
statements and notes thereto included in our annual report on Form 10-K for the
fiscal year ended December 31, 2021 (the "2021 Form 10-K"). All references to
the first quarter and first three months of 2022 and 2021 mean the three-month
periods ended March 31, 2022 and 2021. In addition to historical information,
the following discussion and other parts of this report contain certain
forward-looking information. When used in this discussion, the words,
"believes," "anticipates," "expects" and similar expressions are intended to
identify forward-looking statements. Such statements are subject to certain
risks and uncertainties, which could cause actual results to differ materially
from projected results, due to a number of risks, uncertainties and factors
beyond our control. We do not undertake to publicly update or revise any of
these forward-looking statements, even if experience or future changes show that
the indicated results or events will not be realized. Furthermore, we cannot
guarantee future results, events, levels of activity, performance, or
achievements. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof. Readers also
are urged to carefully review and consider our discussions regarding the various
factors that affect the company's business, which are described in this section
and elsewhere in this report. For more information, see our discussion of risk
factors located at Part I, Item 1A of our 2021 Form 10-K.



Overview



Nova LifeStyle, Inc. is a distributor of contemporary styled residential and
commercial furniture incorporated into a dynamic marketing and sales platform
offering retail as well as online selection and global purchase fulfillment. We
monitor popular trends and products to create design elements that are then
integrated into our product lines that can be used as both stand-alone or
whole-room and home furnishing solutions. Through our global network of
retailers, e-commerce platforms, stagers and hospitality providers, Nova
LifeStyle also sells (through an exclusive third-party manufacturing partner) a
managed variety of high quality bedding foundation components.



Nova LifeStyle’s the family of brands currently includes Nova LifestyleDiamond Sofa (www.diamondsofa.com) and Nova Living.




Our customers principally consist of distributors and retailers with specific
geographic territories that deploy middle to high end private label home
furnishings which have very little competitive overlap with our specific
furnishing products or product lines. Nova LifeStyle is constantly seeking to
integrate new sources of distribution and manufacturing that are properly
aligned with our growth strategy. This allows us to continually focus on
building both our overall distribution and manufacturing relationships through a
deployment of popular, as well as trend-based, furnishing solutions worldwide.



We are a U.S. holding company with no material assets in the U.S. other than the
ownership interests of our wholly owned subsidiaries through which we market,
design and sell residential and commercial furniture worldwide: Nova Furniture
Limited domiciled in the British Virgin Islands ("Nova Furniture"), Nova
Furniture Ltd. domiciled in Samoa ("Nova Samoa"), Diamond Bar Outdoors, Inc.
domiciled in California ("Diamond Bar"), Nova Living (M) SDN. BHD. domiciled in
Malaysia ("Nova Malaysia") and Nova Living (HK) Group Limited domiciled in Hong
Kong ("Nova HK"). The Company had two former subsidiaries Bright Swallow
International Group Limited domiciled in Hong Kong ("Bright Swallow" or "BSI")
which was sold in January 2020 and Nova Furniture Macao Commercial Offshore
Limited domiciled in Macao ("Nova Macao") which completed the de-registration
and liquidation process in January 2021.



22


  Table of Contents



On December 7, 2017, we 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. i Design is in the planning stage
and has had minimum operations to date. On December 12, 2019, we became the sole
shareholder of Nova Living (M) SDN. BHD. ("Nova Malaysia"), a company
incorporated on July 26, 2019 under the laws of Malaysia. Nova Malaysia is to
market and sell high-end physiotherapeutic jade mats for use in therapy clinics,
hospitality, and real estate projects in Malaysia and other regions in Southeast
Asia.


On January 7, 2020we transferred our entire stake in Bright Swallow to
Y-Tone (worldwide) limited an unrelated third party, for a cash consideration of
$2,500,000. We received payment on May 11, 2020.




On October 14, 2020, Nova Macao's offshore license was invalidated by the Macao
Trade and Investment Promotion Institute under the order of Repeal of Legal
Regime of the Offshore Services by Macao Special Administrative Region. Nova
Macao was de-registration and liquidation in January 2021 and its business was
taken over by Nova HK. Nova Macao completed the de-registration and liquidation
process in January 2021.



On November 5, 2020, Nova LifeStyle, Inc. acquired Nova Living (HK) Group
Limited ("Nova HK") which was incorporated in Hong Kong on November 6, 2019.
This company has had minimal operations. In February 2022, Nova HK also entered
a de-registration process and is in the process of transferring all its assets
and business to Nova Malaysia.



Our experience developing and marketing products for international markets has
enabled us to develop the scale, logistics, marketing, manufacturing
efficiencies and design expertise that serve as the foundation for us to expand
aggressively into the highly attractive U.S., Canada, Honduras, Panama,
Kazakhstan, Asian and Middle Eastern markets.



Due to the recent imposition of significant trade tariffs on importation from
China to the United States and the adverse effect such policies have on our
operations, we are actively pursuing alternative product lines with positive
growth potential. One such area pertains to the health-oriented furniture
segment which continues to experience popularity, particularly in Asia. Since
the second quarter of 2019, we have developed a line of high-end
physiotherapeutic jade mats with China-based manufacturing partners for use in
therapy clinics, hospitality, and real estate projects in Asia. We launched our
first flagship showroom/retail store in Kuala Lumpur, Malaysia in late 2019,
which, after a COVID-19 related closing, was reopened in May 2020. On August 28,
2020, after few months reopening, Malaysia government extended Movement Control
Order to prohibit the businesses to open to public until March 5, 2021 to
contain the spread of COVID-19. After the re-opening on March 5, 2021, Malaysia
imposed a new nationwide lockdown on May 12, 2021 until early June 2021 which
was subsequently extended to early October 2021. In October 2021, the Order was
lifted for people who are fully vaccinated and our store is reopened now. In
April 2022, Malaysia has reopened the border for foreign visitors. We expect
that our flagship showroom/retail store will serve as one of our primary
distribution channels in Malaysia. Marketing of jade mats will focus on their
premium therapeutic qualities and target health conscious general consumers and
professionals. We have limited experience with operations in Southeast Asia and
considerable management attention and resources may be required to manage these
new markets and product lines. We may be subject to additional risks including
credit risk, currency exchange rate fluctuations, foreign exchange controls,
import and export requirements, potentially adverse tax consequences and higher
costs associated with doing business internationally.



Beginning in early 2020, a strain of novel coronavirus ("COVID-19") has spread
globally including the U.S. and Malaysia. In March 2020, the World Health
Organization declared the COVID-19 a pandemic. In response to the evolving
dynamics related to the COVID-19 outbreak, the Company has been following the
guidelines of local authorities as it prioritizes the health and safety of its
employees, contractors, suppliers and retail partners. The Company's two
showrooms and warehouse in Malaysia was closed from March, 2020 to May, 2020.
The Los Angeles facility closed on March 16, 2020 and reopened in full operation
on June 1, 2020. On May 12, 2020, the Company's Kuala Lumpur office and
warehouse reopened for business. On August 28, 2020, the Malaysia government
extended the shutdown order to all business until March 5, 2021 After the
re-opening on March 5, 2021, Malaysia government imposed a new nationwide
lockdown on May 12, 2021 until early June 2021 which was subsequently extended
to early October 2021. In October 2021, the Order was lifted for people who are
fully vaccinated and our store is reopened now. In April 2022, Malaysia has
reopened the border for foreign visitors. The third-party contract manufacturers
that the Company utilizes in China were closed from the beginning of the Lunar
New Year Holiday at the end of January 2020 through the beginning of March 2020.
In 2022, there have been outbreaks of the Omicron variant of COVID-19 in Hong
Kong and many other cities in China, and travel restrictions, mandatory COVID-19
tests, quarantine requirements and/or temporary closure of office buildings and
facilities have been imposed by local governments. Although our suppliers in
China have not been materially and negatively impacted by such outbreaks , the
government authorities may issue new orders of office closure, travel and
transportation restrictions in China due to the resurgence of the COVID-19 and
outbreak of new variants, which could cause the delay of the delivery from our
suppliers in China.Certain of the Company's new products are being sourced from
manufacturers in India starting in 2020. The factories in India suspended their
operations as a result of the COVID-19 pandemic during March through early May
2020. Currently, the factories in India are open for operations. Shipping of
products from Asia has experienced significant delays since the onset of the
pandemic and the costs of shipping from Asia have increased since the onset; and
we have experienced and may continue to experience shipping disruptions in the
future. Finally, the Company expects that the impact of the COVID-19 outbreak on
the United States and world economies will continue to have a material adverse
impact on the demand for its products. Because of the significant uncertainties
surrounding the COVID-19 pandemic, the extent of the future business
interruption and the related financial impact cannot be reasonably estimated at
this time.



23


  Table of Contents



We do not have access to a revolving credit facility. On May 4, 2020, the
Company received loan proceeds in the amount of approximately $139,802 under the
Paycheck Protection Program ("PPP"). The PPP, established as part of the
Coronavirus Aid, Relief and Economic Security Act ("CARES Act"), provides for
loans to qualifying businesses for amounts up to 2.5 times of the average
monthly payroll expenses of the qualifying business. On May 5, 2020, Diamond Bar
Outdoors Inc. ("Diamond Bar") was granted a loan from Cathay Bank in the
aggregate amount of $176,294, pursuant to the Paycheck Protection Program. In
June 19, 2020, Diamond Bar was granted a U.S. Small Business Administration
(SBA) loan in the aggregate amount of $150,000, pursuant to the Economic Injury
Disaster Loan. In July 2021, we completed a registered direct offering of our
shares of common stock and received offering gross proceeds of $3,120,622. We
currently believe that our financial resources will be adequate to finance our
operations through the outbreak. However, in the event that we do need to raise
capital in the future, the outbreak-related instability in the securities
markets could adversely affect our ability to raise additional capital.



Although there is no assurance, at this time we expect that the circumstances related to the epidemic will lead to significant write-downs of our jade mattress inventory in Malaysia which materially affect management’s judgments in assessing the fair value of our assets.

Main factors affecting our financial performance




At the beginning of 2019, we commenced a transition of our business. We began
moving away from low margin products. This move was intended to improve our
gross profit margin, receivable collections and net profitability, and to
increase our return on long-term equity. We decided to terminate sales and
marketing efforts to customers that represented a high purchase volume but low
profit margin, and we adjusted our product line, which included the launch of
our Summer 2019 Collection in the Las Vegas Market, with a view to attracting a
higher-end ultimate customer. We believe these new strategies, will provide us
with significant long term growth opportunities. The transition has and is
expected to continue to adversely impact our revenue and our net profit in the
short-term as we roll out new products and market those products to our existing
client base and to new potential customers better suited for the higher end
products, and as we assess our new products' market acceptance. Significant
factors that we believe could affect our operating results are the (i) prices of
our products to our international retailer and wholesaler customers and their
markups to end consumers; (ii) general economic conditions in the U.S., Chinese,
and other international markets; and (iii) trade tariffs imposed by the United
States on certain products manufactured in China; and (iv) the consequences of
the COVID-19 outbreak throughout the world; and (v) continued significant delays
in the receipt of shipments of our products from Asia and increased costs of
shipping from Asia. We believe most of our customers are willing to pay for our
high quality and stylish products, timely delivery, and strong production
capacity at price levels which we expect will allow us to maintain a relatively
high gross profit margin for our products. We do not manufacture our products,
but instead we utilize third-party manufacturers. In response to the tariffs
imposed by the United States on certain products manufactured in China, we are
in the process of shifting a portion of our product manufacturing from
third-party manufacturers located in China to third-party manufacturers located
in other parts of Asia, such as Vietnam, India and/or Malaysia, countries
unaffected by the tariffs. Implementation of a relocation of manufacturing
(which by necessity includes an assessment of the factory's ability to deliver
the quantity of the product, in accordance with the Company's specifications,
and in accordance with the Company's quality control requirements) is
time-consuming, but a portion of our manufacturing has been transitioned to
Malaysia and India starting in 2020 and we expect that more of our manufacturing
will be transitioned to one or more of these venues once the COVID-19 outbreak
dissipates. Some of our manufacturing will continue to be performed in China
because the intellectual know-how necessary to manufacture certain products is
not generally available in other Asian countries. Consumer preference trends
favoring high quality and stylish products and lifestyle-based furniture suites
should also allow us at least to maintain our gross profit margins. The markets
in North America (excluding the United States) and particularly in Europe remain
challenging because such markets are experiencing a slow-down and may be
entering a recession due to the COVID-19 pandemic and war in Ukraine.



Critical Accounting Policies


While our significant accounting policies are described more fully in Note 2 to
our accompanying unaudited condensed consolidated financial statements, we
believe the following accounting policies are the most critical to aid you in
fully understanding and evaluating this Management's Discussion and Analysis.



There have been no material changes in our critical accounting policies and estimates from the critical accounting policies and estimates described in our Annual Report on Form 10-K for the year ended December 31, 2021.




Basis of Presentation



The accompanying unaudited condensed consolidated financial statements have been
prepared in conformity with accounting principles generally accepted in the
United States of America ("U.S. GAAP") for Nova LifeStyle and its subsidiaries,
Diamond Bar, i Design, Nova Furniture, Nova Samoa, Nova Malaysia and Nova HK.



Use of Estimates


In preparing condensed consolidated financial statements in conformity with U.S.
GAAP, we make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosures of contingent assets and liabilities at
the dates of the condensed consolidated financial statements, as well as the
reported amounts of revenues and expenses during the reporting period.
Significant estimates and assumptions made by us, 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. Actual results could
differ from those estimates.



24


  Table of Contents



Accounts Receivable



Our accounts receivable arises from product sales. We do not adjust receivables
for the effects of a significant financing component at contract inception if we
expect to collect the receivables in one year or less from the time of sale. We
do not expect to collect receivables greater than one year from the time of
sale. Our policy is to maintain an allowance for potential credit losses on
accounts receivable. We review the composition of accounts receivable and
analyze historical bad debts, customer concentrations, customer credit
worthiness, current economic trends and changes in customer payment patterns to
evaluate the adequacy of these reserves. We maintained an allowance for bad debt
of $2,924 and $1,741 as of March 31, 2022 and 2021, respectively. During the
three months ended March 31, 2022 and 2021, bad debts provision (reversal) were
$1,880 and ($3,460), respectively. As of March 31, 2022, we had gross receivable
of $292,398 of which no amount was over 90 days past due. The allowance for
doubtful accounts is our best estimate of the amount of probable credit losses
in our existing trade accounts receivable. We determine the allowance based on
historical bad debt experience, customer concentrations, customer credit
worthiness, current economic trends and changes in customer payment patterns.



Advances to Suppliers


Advances to suppliers are reported net of allowance when we determine that
amounts outstanding are not likely to be collected in cash or utilized against
purchase of inventories. Based on our historical records and in normal
circumstances, we generally receive goods within 5 to 9 months from the date the
advance payment is made. Due to the COVID-19 pandemic, the freight
transportation of the products from our international suppliers have been
delayed or suspended during the outbreak. As such, no reserve on supplier
prepayments has been made or recorded by us. Any provisions for allowance for
advance to suppliers, if deemed necessary, will be included in general and
administrative expenses in the consolidated statements of operations.



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.



We follow 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 condensed 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.
Nova HK is incorporated in Hong Kong and is subject to Hong Kong income taxes.



The Tax Cuts and Jobs Act 2017 (the “Act”) created new taxes on certain foreign source income, such as Global Low Tax Intangible Income (“GILTI”) under Section 951A of the IRC, which applies to the company for tax years. starting after January 1, 2018. For the quarter ended March 31, 2022the Company has calculated its best estimate of the impact of GILTI on its income tax provision in accordance with its understanding of the Act and guidance available as of the date of this filing.



Revenue Recognition



We recognize revenues when our 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. We recognize 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.



25


  Table of Contents


Revenue from product sales is recognized when the customer obtains control of
our product, which typically occurs upon delivery to the customer. We expense
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 the sale of products are recognized net of reserves set aside for applicable discounts and rebates that are offered under contracts with our 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 our customer.



Our sales policy allows for the return of product within the warranty period if
the product is defective and the defects are our fault. As alternatives for the
product return option, the customers have the option of asking us for a discount
for products with quality issues, or of receiving replacement parts from us at
no cost. The amount of reserves for return of products, the discount provided to
the customers, and cost for the replacement parts were immaterial for the three
months ended March 31, 2022.



We generally expense sales commissions when incurred because the amortization
period would have been one year or less. These costs are recorded within selling
expenses on our condensed consolidated statements of operations.



Foreign Currency Conversion and Transactions

The accompanying unaudited condensed 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,
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 normally 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.



Conversion of RM amounts to WE dollars was made at the following exchange rates:




Balance sheet items, except for equity accounts
March 31, 2022                                      RM4.20 to 1
December 31, 2021                                   RM4.18 to 1

Income statement and cash flow items
For the three months ended March 31, 2022           RM4.19 to 1
For the three months ended March 31, 2021           RM4.07 to 1




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.



We have determined that our business constitutes a single segment for reporting in accordance with ASC 280. We operate exclusively in one business and industry segment: the design and sale of furniture.



26


  Table of Contents



We concluded that we had one reportable segment under ASC 280 because Diamond
Bar is a furniture distributor based in California focusing on customers in the
US, Nova HK was a furniture distributor based in Hong Kong focusing on
international customers and Nova Malaysia is a furniture retailer and
distributor focusing on customers primarily in Malaysia. Each of our
subsidiaries is operated under the same senior management of our company, and we
view the operations of Diamond Bar, Nova HK and Nova Malaysia as a whole for
making business decisions. Our long-lived assets are mainly property, plant and
equipment located in the United States and Malaysia for administrative purposes.



Net sales to customers by geographic area are determined by reference to the
physical product shipment delivery locations requested by our customers. For
example, if the products are delivered to a customer in the U.S., 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 Adopted Accounting Standards




In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt -
Modifications and Extinguishments (Subtopic 470-50), Compensation - Stock
Compensation (Topic 718), and Derivatives and Hedging - Contracts in Entity's
Own Equity (Subtopic 815-40): Issuer's Accounting for Certain Modifications or
Exchanges of Freestanding Equity-Classified Written Call Options ("ASU
2021-04"). ASU 2021-04 provides guidance as to how an issuer should account for
a modification of the terms or conditions or an exchange of a freestanding
equity-classified written call option (i.e., a warrant) that remains classified
after modification or exchange as an exchange of the original instrument for a
new instrument. An issuer should measure the effect of a modification or
exchange as the difference between the fair value of the modified or exchanged
warrant and the fair value of that warrant immediately before modification or
exchange and then apply a recognition model that comprises four categories of
transactions and the corresponding accounting treatment for each category
(equity issuance, debt origination, debt modification, and modifications
unrelated to equity issuance and debt origination or modification). ASU 2021-04
is effective for all entities for fiscal years beginning after December 15,
2021, including interim periods within those fiscal years. An entity should
apply the guidance provided in ASU 2021-04 prospectively to modifications or
exchanges occurring on or after the effective date. The Company applied the new
standard beginning January 1, 2022. The adoption of the new standard did not
have any impact on our condensed consolidated financial statement presentation
or disclosures.


In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic
832): Disclosures by Business Entities about Government Assistance. This update
requires certain annual disclosures about transactions with a government that
are accounted for by applying a grant or contribution accounting model by
analogy. This update is effective for annual periods beginning after December
15, 2021, and early application is permitted. This guidance should be applied
either prospectively to all transactions that are reflected in financial
statements at the date of initial application and new transactions that are
entered into after the date of initial application or retrospectively to those
transactions. The Company adopted ASU 2021-10 beginning January 1, 2022. The
adoption of ASU 2021-10 did not have any impact on our condensed consolidated
financial statements.


Accounting pronouncements recently issued but not yet adopted

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit
Losses (Topic 326) ("ASU 2016-13"), 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 existing incurred loss model and is
applicable to the measurement of credit losses on financial assets measured at
amortized cost. ASU 2016-13 is to be adopted on a modified retrospective basis.
As a smaller reporting company, ASU 2016-13 will be effective for the Company
for interim and annual reporting periods beginning after December 15, 2022. In
March 2022, the FASB issued ASU 2022-02, Topic 326. The ASU eliminates the
accounting guidance for trouble debt restructurings by creditors in Subtopic
310-40, and enhances the disclosure requirements for modifications of loans to
borrowers experiencing financial difficulty. Additionally, the ASU requires
disclosure of gross writeoffs of receivables by year of origination for
receivables within the scope of Subtopic 326-20, Financial Instruments - Credit
Losses - Measured at Amortized Cost. This ASU is effective for periods beginning
after December 15, 2022. We are currently evaluating the impact that the
adoption of ASU 2016-13 and ASU 2022-02 will have on our consolidated financial
statement presentations and disclosures.



In January 2017, the FASB issued ASU No. 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). Adoption of the ASUs is on a modified retrospective
basis. As a smaller reporting company, the standard will be effective for the
Company for interim and annual reporting periods beginning after December 15,
2022. We are currently evaluating the impact that the adoption of ASU 2017-04
will have on our consolidated financial statement presentation or disclosures.



We do not believe that any other recently issued but not yet effective authoritative guidance, if currently adopted, would have a material effect on the presentation or disclosure in our financial statements.



27


  Table of Contents



Results of Operations


Comparison of the three months ended March 31, 2022 and 2021




The following table sets forth the results of our operations for the three
months ended March 31, 2022 and 2021. Certain columns may not add due to
rounding.





                                                     Three Months Ended March 31,
                                               2022                               2021
                                   $                 % of Sales            $            % of Sales
Net sales                          $  3,665,946                       $  3,331,567
Cost of sales                        (2,137,618 )            (58 )%     (1,951,255 )            (59 )%
Gross profit                          1,528,328               42 %       1,380,312               41 %
Operating expenses                   (2,393,291 )            (65 )%     (2,146,415 )            (64 )%
Loss from operations                   (864,963 )            (24 )%       (766,103 )            (23 )%
Other (expenses) income, net            (33,084 )             (1 )%         12,242                0 %
Income tax expenses                           -                - %          (9,676 )              - %
Net loss                               (898,047 )            (25 )%       (763,537 )            (23 )%




Net Sales


Net sales for the three months ended March 31, 2022 were $3.67 million, an
increase of 10.0% from $3.33 million in the same period of 2021. This increase
in net sales resulted primarily from a 16.2% increase in average selling price,
partially offset by a 5.3% decrease in sales volume. Our three largest selling
product categories in the three months ended March 31, 2022 were sofas, beds and
chairs, which accounted for approximately 45%, 14% and 10% of sales,
respectively. In the three months ended March 31, 2021, the three largest
selling categories were sofas, beds and coffee tables, which accounted for
approximately 49%, 15% and 8% of sales, respectively.



The $0.33 million increase in net sales in the three months ended March 31,
2022, compared to the same period of 2021, was mainly due to increased sales to
North America. Sales to North America increased by 20.0% to $3.61 million in the
three months ended March 31, 2022, as compared to $3.01 million in the same
period of 2021. It was primarily due to the change of our sales strategy to seek
sales of products of higher margins. Sales to other countries decreased by
$92,920 to $53,934 in the three months ended March 31, 2022 from $146,854 in the
same period of 2021, primarily due to receiving less sales orders from our
customers in other countries. Sales to Asia decreased to $nil in the three
months ended March 31, 2022, compared to $178,282 in the same period of 2021,
primarily due to no sales orders from our customers in Malaysia because of the
rising of inflation rate that reduced consumers' purchasing power even though
there were recent signs of economy recovery from the COVID-19 outbreak and
lockdowns.



Cost of Sales


Cost of sales consists primarily of costs of finished goods purchased from
third-party manufacturers. Total cost of sales increased by 9.6% to $2.14
million in the three months ended March 31, 2022, compared to $1.95 million in
the same period of 2021. Cost of sales as a percentage of sales decreased to 58%
in the three months ended March 31, 2022, compared to 59% in the same period of
2021. The increase of cost of sales in dollar term primarily resulted from the
increase of the sales. The decrease in cost of sales as a percentage of sales
was a result that we focused on selling products with higher profit margin.


Gross Profit



Gross profit was $1.53 million in the three months ended March 31, 2022,
compared to gross profit of $1.38 million in the same period of 2021,
representing an increase in gross profit of $0.15 million. Our gross profit
margin was 42% in the three months ended March 31, 2022, compared to a gross
profit margin of 41% in the same period of 2021. The increase in gross profit
margin was a result that we focused on selling products with higher profit
margin.



Operating Expenses



Operating expenses consisted of selling, general and administrative expenses and
loss on disposal of fixed assets. Operating expenses were $2.39 million in the
three months ended March 31, 2022, compared to $2.15 million in the same period
of 2021. Selling expenses were $768,333 in the three months ended March 31,
2022, very close to $768,085 in the same period of 2021. In addition, general
and administrative expenses increased by 15.2%, or $0.21 million, to $1.59
million in the three months ended March 31, 2022, from $1.38 million in the same
period of 2021, primarily due to an increase in technology services fee and
consulting fees of $0.16 million and $0.12 million, respectively, while the
increase was partially offset by the decrease of $78,726  in auditing expenses.
Also, the increase in operating expenses was a result of a loss on disposal of
fixed assets of $36,549 due to the de-registration of our subsidiary Nova HK.



28


  Table of Contents



Other (Expenses) Income, Net


Other expenses, net, was $33,084 in the three months ended March 31, 2022,
compared with other income, net, of $12,242 in the same period of 2021,
representing an increase in other expenses of $45,326. The increase in other
expenses was due primarily to the decrease of foreign exchange gain to $17,763
for the three months ended March 31, 2022 from foreign exchange gain of $68,984
in the same period of 2021. The decrease in gain in March 31, 2022 was mainly a
result of the depreciation of Malaysian Ringgit against U.S. dollars on the
Company's assets in Malaysia. The increase in other expenses was partially
offset by the decrease in financial expense.



Income Tax Expenses



Income tax expense was $nil in the three months ended March 31, 2022, compared
with $9,676 in the same period of 2021. The income tax expenses were primarily
related to the foreign-sourced earnings from one of our subsidiaries, Nova HK
for the three months ended March 31, 2021.



Net Loss


As a result of the above, our net loss was $0.90 million within three months March 31, 2022compared to the net loss of $0.76 million for the same period of 2021.

Cash and capital resources

Our principal demands for liquidity are related to our efforts to increase sales
and purchase inventory, and for expenditures related to sales distribution and
general corporate purposes. We intend to meet our liquidity requirements,
including capital expenditures related to purchase of inventories and the
expansion of our business, primarily through cash flow provided by operations,
collections of accounts receivable, and credit facilities from banks.



We rely primarily on internally generated cash flow and available working
capital to support growth. We may seek additional financing in the form of bank
loans or other credit facilities or funds raised through offerings of our equity
or debt, if and when we determine such offerings are required. As of March 31,
2022, we do not have any credit facilities. We believe that our current cash and
cash equivalents and anticipated cash receipts from sales of products will be
sufficient to meet our anticipated working capital requirements and capital
expenditures for the next 12 months.



We had a net working capital of $23,028,776 on March 31, 2022a decrease of
$725,780 net working capital of $23,754,556 on December 31, 2021. The ratio of current assets to current liabilities was 11.06 to 1 over March 31, 2022.

The following is a summary of the cash provided or used in each of the types of activities indicated during the three months ended March 31, 2022 and 2021:



                                 2022           2021
Cash provided by (used in):
Operating activities          $ (856,595 )   $ (880,935 )
Investing activities                   -              -
Financing activities                   -              -



Net cash used in operating activities was $0.86 million within three months March 31, 2022a decrease in cash outflows of $24,340 from $0.88 million
cash used in operating activities during the same period of 2021.

The decrease of cash outflow was attributable primarily to the increase in cash
inflow for advance to suppliers of $0.41 million to $0.44 million cash inflow in
the three months ended March 31, 2022, compared to $30,806 cash inflow in the
same period of 2021, such increase in cash inflow being mainly due to less
deposits paid to our suppliers with more goods being received from them. Also,
the increase in cash inflow for accounts payable of $0.57 million to $0.32
million cash inflow in the three months ended March 31, 2022, compared to $0.25
million cash outflow in the same period of 2021, such increase in cash inflow
being mainly because more purchases were made on credit due to the increase of
sales. The decrease of cash outflow in the first quarter of 2022 was also
attributable to decreased cash outflow of $0.20 million from advance from
customers to $24,953 in the three months ended March 31, 2022, compared to $0.23
million in the same period of 2021. The change of cash outflow from accrued
liabilities and other payables of $64,427 in the three months ended March 31,
2021 to cash inflow of $0.19 million in the three months ended March 31, 2022.



The decrease in operating cash outflow was partially offset by (i) an increased
cash outflow of $0.54 million in accounts receivable to $0.19 million cash
outflow in the three months ended March 31, 2022, compared to $0.35 million cash
inflow in the same period of 2021, such increase in cash outflow being mainly a
result of the increase of our sales on credit in the first quarter of 2022,
compared to the same period of 2021; (ii) the increase in cash outflow for
inventories of $0.91 million to $1.04 million cash outflow in the three months
ended March 31, 2022, compared to $0.13 million in the same period of 2021, such
increase in cash outflow being mainly due to more purchase was made in the
three
months ended March 31, 2022.


Net cash from investing activities was nil for the three months ended
March 31, 2022 and 2021.

Net cash provided by financing activities was nil during the three months ended
March 31, 2022 and 2021.



29


  Table of Contents



As of March 31, 2022, we had gross accounts receivable of $292,398, of which
$228,332 was not yet past due and $64,066 was less than 90 days past due. We had
an allowance for bad debt of $2,924. As of May 9, 2022, accounts receivable of
$264,988 outstanding as of March 31, 2022 had been collected.



All outstanding accounts receivable December 31, 2021 had been collected in 2022.

From March 31, 2022 and December 31, 2021we had advances to suppliers of
$267,920 and $707,264, respectively. These supplier prepayments are made for the goods before we actually receive them.




For a new product, the normal lead time from new product R&D, prototype, and
mass production to delivery of goods from our suppliers to us is approximately
six to nine months after we make advance payments to our suppliers. For other
products, the typical time is five months after our advance payment. Due to the
COVID-19 pandemic, freight transportation of products from our international
suppliers has been delayed or suspended during the outbreak. As such, no reserve
on supplier prepayments had been made or recorded by us. We will consider the
need for a reserve when and if a supplier fails to fulfill our orders within the
time frame as stipulated in the purchase contracts. As of March 31, 2022 and
December 31, 2021, no reserve on supplier prepayments had been made or recorded
by us.


From May 9, 202285% of our advances to suppliers in progress on March 31, 2022 had been delivered to us in the form of furniture purchases.



Shelf Registration



On October 8, 2020, the Company filed a shelf registration statement on Form S-3
under which the Company may, from time to time, sell securities in one or more
offerings up to a total dollar amount of $60,000,000. The shelf registration
statement was declared effective on October 15, 2020. On July 23, 2021, the
Company entered into a Securities Purchase Agreement with certain institutional
investors for the sale by the Company of 1,114,508 shares of common stock. The
shares were offered and sold by the Company pursuant to the effective shelf
registration statement on Form S-3. The offering gross proceeds were $3,120,622
before deducting placement agent's commissions and other offering costs, and the
net proceeds of the offering were approximately $2,760,000. The offering closed
on July 27, 2021.



Other Long-Term Liabilities


As of March 31, 2022, we recorded long-term taxes payable of $1.54 million,
consisting of an income tax payable of $1.54 million, primarily arising from a
one-time transition tax recognized in the fourth quarter of 2017 on our
post-1986 foreign unremitted earnings, and a $0.01 million unrecognized tax
benefit, as ASC 740 specifies that tax positions for which the timing of the
ultimate resolution is uncertain should be recognized as long-term liabilities.



We have chosen to pay the single transition tax over the eight years beginning
April 2018.

Off-balance sheet arrangements

There are no off-balance sheet arrangements between us and any other entity that
have, or are reasonably likely to have, a current or future effect on our
financial condition, changes in financial condition, revenues or expenses,
results of operations, liquidity, capital expenditures or capital resources
that
is material to shareholders.



We have not entered into any other financial guarantees or other commitments to
guarantee the payment obligations of any third parties. We have not entered into
any derivative contracts that are indexed to our shares and classified as
stockholders' equity or that are not reflected in our condensed consolidated
financial statements. Furthermore, we do not have any retained or contingent
interest in assets transferred to an unconsolidated entity that serves as
credit, liquidity or market risk support to such entity. We do not have any
variable interest in any unconsolidated entity that provides financing,
liquidity, market risk or credit support to us or engages in leasing, hedging or
research and development services with us.

© Edgar Online, source Previews

]]>
Melqart Asset Management UK Regulatory Announcement: Form 8.3 – Ideagen plc https://www.intersindicalrtvv.com/melqart-asset-management-uk-regulatory-announcement-form-8-3-ideagen-plc/ Tue, 10 May 2022 14:25:00 +0000 https://www.intersindicalrtvv.com/melqart-asset-management-uk-regulatory-announcement-form-8-3-ideagen-plc/ FORM 8.3 DISCLOSURE OF OPEN POSITION TO THE PUBLIC / DISCLOSURE OF OPERATIONS BY A PERSON HOLDING AN INTEREST IN RELEVANT SECURITIES REPRESENTING 1% OR MORE Rule 8.3 of the Takeover Code (the “Code”)

1

KEY INFORMATION (a) Full Name of Discloser:

MELQART ASSET MANAGEMENT (UK) LTD

(b) Owner or control of interests and short positions disclosed, if different from 1(a):

N / A

The designation of nominees or vehicle companies is insufficient. For a trust, the trustee(s), settlor and beneficiaries must be named. (c) Name of offeror/offeree in relation to the securities concerned by this form:

Ideagen plc

Use a separate form for each offeror/participant (d) If an exempt fund manager is related to an offeror/beneficiary, state this and provide the identity of the offeror/beneficiary:

N / A

(e) Date Position Held/Bargaining Started:

May 09, 2022

For an open position disclosure, indicate the last practicable date before disclosure (f) In addition to the company mentioned in 1(c) above, does the discloser make disclosures regarding any other party to the offer?

NOPE

If it is a cash offer or a possible cash offer, indicate “N/A”

If YES, specify which ones:

2

POSITIONS OF THE PERSON MAKING THE DISCLOSURE If there are positions or subscription rights to be disclosed in more than one class of relevant securities of the offeror or recipient named in 1(c), copy table 2(a) or (b) (depending on the case) for each additional category of relevant securities. Security. (a) Interests and short positions in relevant securities of the offeror or recipient to which the disclosure relates following the transaction (if any) Class of security concerned:

1p ordinary

Interests

Short positions

Number

%

Number

%

(1) Relevant securities held and/or controlled:

(2) Derivatives settled in cash:

3,275,000

1.11%

(3) Derivative instruments settled in shares (including options) and purchase/sale contracts:

TOTAL:

3,275,000

1.11%

All interests and short positions must be disclosed. Details of all open equity-settled derivative positions (including traded options) or agreements to buy or sell the relevant securities must be provided on Supplementary Form 8 (Open Positions). (b) Rights to subscribe for new securities (including options for directors and other employees) Class of securities concerned in relation to which a subscription right exists: Details, including the nature of the rights affected and the relevant percentages:

3

TRANSACTIONS (IF ANY) BY THE PERSON MAKING THE DISCLOSURE Where there have been transactions in more than one class of relevant securities of the originator or recipient named in 1(c), copy table 3(a), (b), (c) or (d) ) (as applicable) for each class of relevant securities traded. The currency of all prices and other monetary amounts must be stated. (a) Purchases and sales

Relevant security class

Buy Sell

Number of titles

Unit price (GBp)

(b) Cash-settled derivative transactions

Relevant security class

Product Description

Type of transaction

Number of reference titles

Unit price (GBp)

for example CFDs

e.g. open/close a long/short position, increase/decrease a long/short position

5p ordinary

CFDs

open a long position

2,875,000

356.87

5p ordinary

CFDs

increase a long position

50,000

356.00

5p ordinary

CFDs

increase a long position

350,000

356.00

(vs) Equity-settled derivative transactions (including options) (I) Write, sell, buy or vary Relevant security class Description of the product, e.g. purchase option Write, buy, sell, vary etc. Number of shares on which the option relates Strike price per share Type Expiration date Option amount paid/received per unit for example American, European, etc. (ii) Exercise Relevant security class Product Description Exercise / exercise against Number of titles Strike price per share for example call option (D) Other transactions (including subscription of new securities) Relevant security class Type of transaction Details Unit price (if applicable) e.g. subscription, conversion

4

OTHER INFORMATION (a) Indemnity and other business arrangements Details of any indemnification or option agreement, or any agreement or understanding, formal or informal, relating to the relevant securities which may be an inducement to trade or refrain from trading entered into by the person making the disclosure and any party to the offer or any person acting in concert with a party to the offer: Irrevocable commitments and letters of intent should not be included. If there are no such agreements, arrangements or understandings, indicate “none” Nothing (b) Agreements, Arrangements or Agreements Relating to Options or Derivatives Details of any agreement, arrangement or understanding, formal or informal, between the person making the disclosure and any other person regarding: (i) the voting rights of any relevant security under any option; or (ii) voting rights or the future acquisition or disposal of any relevant security to which any derivative is referenced: If there are no such agreements, arrangements or understandings, indicate “none” Nothing (vs) Attachments Is an additional form 8 (open positions) attached? NOPE Disclosure date:

May 10, 2022

Name of the contact:

Ben Sharp

Phone number:

+44 (0)20 3826 4493

Public disclosures under rule 8 of the code must be made to a regulatory information service. The Panel’s Market Surveillance Unit can be consulted about the Code’s disclosure requirements on +44 (0)20 7638 0129. The Code can be viewed on the Panel’s website at www.thetakeoverpanel.org.uk. ]]>
Apple increases its quarterly dividend by 5% but falls -2.2% after the results of the second quarter https://www.intersindicalrtvv.com/apple-increases-its-quarterly-dividend-by-5-but-falls-2-2-after-the-results-of-the-second-quarter/ Fri, 29 Apr 2022 17:52:14 +0000 https://www.intersindicalrtvv.com/apple-increases-its-quarterly-dividend-by-5-but-falls-2-2-after-the-results-of-the-second-quarter/

Apple Inc (NASDAQ:AAPL) reported second-quarter earnings Thursday after the market, beating consensus earnings expectations of +7% with EPS of $1.52 versus the ~$1.42 per share expected. Group revenue was $97.28 billion, beating forecasts with a beat of around $3.3 billion. The product segment beat estimates with revenue of $77.46 billion against consensus of around $73.9 billion, while the service segment was in line with expectations at $19.82 billion. dollars. The company’s gross margins were 43.7%, beating forecasts of approximately 43.1%.

Get the complete Henry Singleton series in PDF

Get the complete 4-part series on Henry Singleton in PDF. Save it to your desktop, read it on your tablet, or email it to co-workers

First Quarter 2022 Hedge Fund Letters, Talks and More

This special situations fund finds opportunities in healthcare

Health careDG Value funds were down 4.8% in the first quarter. The company’s equity investments contributed 96% of its performance, while the remaining 4% came from its credit investments. At the end of March, the DG Value Funds had a delta-adjusted net exposure of 76% equities and 45% credit. The HFRI Distressed/Restructuring Index Read more

In summary of product performance: iPads lagged with sales down slightly year-on-year, the iPhone segment grew slightly year-over-year, and Mac computers remained the top performers in the after.

AAPL shares have outperformed peer tech giants in the recent selloff, falling just -10% since the start of 2022. Over the past year, the stock has remained up +22.6% and remains a remarkable player in the market. The stock was up +4.5% yesterday in the day leading up to the results, but has since traded -2.2% after hours due to supply constraint concerns.

During the earnings call, Chief Financial Officer Luca Maestri spooked investors by warning the market of supply chain challenges he said could impact revenue of up to $8 billion in during the third trimester. While $8 billion seems like a big blow to revenue, it doesn’t keep us up at night knowing that supply chain issues will eventually subside and return to normal.

Apple doesn’t provide guidance for the third quarter when the result and attribute it to the uncertainty of the pandemic.

Dividend update and new redemption:

Adding to the results, AAPL increased its quarterly dividend by 5% to 23 cents from 22 cents previously. This brings the new annualized dividend yield to around 0.56%. Management also increased its share buyback program by an additional $90 billion, over the existing program currently underway. The share buyback should continue to support the share price over the next year.

AAPL will release its next quarterly results in early August. The market (before revising the estimates) was expecting

Analyst Comment:

Morgan Stanley’s Katy Huberty said March results were better than expected as demand remained strong. The company revised June sales estimates to around 3% lower and cut the price target to $195 from $210, solely due to Covid supply constraints.

Canaccord Genuity’s Michael Walkley believes Apple is well positioned to continue to benefit from the 5G upgrade cycle and anticipates strong growth trends. They remain rated “buy” with a firm target of $200.

Raymond James’ Chris Caso isn’t concerned about production issues, but will be keeping a close eye on currency issues and broader consumer demand fears.

Analysis:

AAPL currently holds a consensus rating of “overweight” with an average target price of $190, implying a +16% upside from the current stock price. It’s still too early to see how brokers have adjusted target prices, but they suspect some valuations may be cut in line with management comments.

We noticed that AAPL has a Quality/Value/Momentum score of 76.74. This is a score that combines the Cash Generating Efficiency, Relative Valuation, and Six-Month Momentum rankings into a single score. You can find out more by – click here.

We’ve included a chart below that shows several valuation metrics, presented relative to the stock price. The chart shows that the PE ratio of companies has fallen as the stock price has risen over the past 5 years. If you want to know more – Click here.

Apple

We also saw that AAPL has a Put/Call ratio of 0.91, indicating bullish sentiment on the stock. The Put/Call ratio shows the total number of disclosed open put options positions divided by the number of open call options. Since puts are generally a bearish bet and calls are a bullish bet, put/call ratios greater than 1 indicate bearish sentiment, and ratios less than one indicate bullish sentiment. We’ve included a chart below that shows how the ratio has tracked over the past year. You can read more about this ratio in – click here.

Apple

Article of Fintel

Updated

]]>
Crypto may change, but owners still want to pay https://www.intersindicalrtvv.com/crypto-may-change-but-owners-still-want-to-pay/ Wed, 27 Apr 2022 00:09:26 +0000 https://www.intersindicalrtvv.com/crypto-may-change-but-owners-still-want-to-pay/

Bitcoin plummeted on April 26, dropping more than 5% over the course of the day, reaching just under $38,000.

Which means that as of 5 p.m. EST, only 46% of all bitcoin holders were in the black with 12% breaking even, according to IntoTheBlock. Compare that to the start of the business day, when bitcoin was around $40,300 and 63% of bitcoin investors were in the black, and you’ll see why investing in cryptocurrencies can be a tough business.

Look at Ethereum, the #2 cryptocurrency, and you’ll see 63% in the black and 6% at par, down from 73% this morning. Now think of a merchant who accepts bitcoin online or on the ledger, and you see the headwinds that crypto faces as a payment currency.

These numbers are pretty solid: IntoTheBlock scans all bitcoins in each wallet address – everything is publicly available on the blockchain, but with no names attached – looks at the price paid for each bitcoin, averages the price of all bitcoins in this wallet coin, and offers a number for each bitcoin owner.

But IntoTheBlock said its numbers show over time that much of bitcoin’s price volatility is driven by short-term holders – traders, rather than investors.

This is worth considering in light of the recently published US Crypto Consumers study by PYMNTS, which showed that for at least part of the previous 12 months, 23% of all consumers purchased crypto, or a total of 59.6 million.

That’s about 18 million new crypto owners, in a time frame where bitcoin’s price has gone from over $60,000 to $29,000, climbing back to nearly $70,000 and now below $40,000.

Use is growing

At the same time, there is more than a little evidence that consumers who own crypto are using it to buy things.

This month, “The US Crypto Consumer: Cryptocurrency Use in Online and in-Store Purchases,” a study by PYMNTS and BitPay, found that 28% of consumers consider crypto as a payment option. That figure gets considerably higher if you exclude baby boomers and seniors — almost 39% — and without Gen X, it jumps to 42%.

Anecdotally, holders of Visa-branded crypto debit cards, which allow consumers to spend crypto at any merchant in the payment network, spent $1 billion in mid-2021, CNBC reported — and in the last three months of that year they spent $2.5 billion.

“To us, this indicates that consumers are seeing the value of having a Visa card linked to an account on a crypto platform,” said Vasant Prabhu, chief financial officer of Visa. “It helps to be able to access that cash, fund purchases and manage expenses, and do it instantly and transparently.”

This is getting easier and easier as crypto payment processors like BitPay expand their options. CEO Stephen Pair told Karen Webster of PYMNTS that crypto owners tend to spend when prices are high and hold when they are low, dollar-pegged stablecoins bought when bitcoin and others Cryptocurrencies are high being used as a hedge.

“Instead of buying bitcoin natively, when the price is high, they will convert to stablecoins,” Pair said.

Read more: Bitcoin’s Future as a Payment Tool Is Bright, Says BitPay CEO

“I think in 2022 you’ll see a lot more people – that next wave of people – taking an interest in crypto both from an investment perspective and from a ‘let’s try it for a payout’ [perspective],” he added. “There will be a lot more places with this service – that you can spend crypto and do it in person, which may make people feel more comfortable trying it out than maybe if it’s on a website where they’re not sure if they’re doing it right or wrong.

See also: BitPay CEO: Bitcoin Payments Will Explode in 2022 as Crypto Hits Inflection Point

Other payment processors see a growing market. Payments company Bitcoin Strike announced deals this month that will enable bitcoin payments on Shopify, with prepaid payments provider Blackhawk Network, and at NCR point-of-sale terminals.

Related: Integrate Bitcoin firmly into payments, Strike Partners with NCR, Shopify, Blackhawk

And in March, Stripe CEO John Collison announced that the payment processor was once again supporting crypto payments.

Read more: Stripe Returns to Crypto Payment Processing

——————————

NEW PYMNTS DATA: THE FUTURE OF BUSINESS SUPPLIER INNOVATION STUDY – APRIL 2022

Plastiq - The Future Of Business Payables Innovation: How New B2B Payment Options Can Transform The SMB Back Office - April 2022 - Find out how all-in-one payment solutions can help businesses streamline B2B transactions and eliminate transaction friction. AP and AR management

On: While more than half of SMBs believe an all-in-one payment platform can save them time and improve cash flow visibility, 56% believe the solution could be difficult to integrate with AP systems and existing ARs. The Future Of Business Payables innovation report, a collaboration between PYMNTS and Plastiq, surveyed 500 SMBs with revenues between $500,000 and $100 million to explore how all-in-one solutions can exceed customer expectations. SMEs and help sustain their activities.

]]>
Can’t fight crypto FOMO? Here are some ETFs to consider https://www.intersindicalrtvv.com/cant-fight-crypto-fomo-here-are-some-etfs-to-consider/ Mon, 25 Apr 2022 10:00:00 +0000 https://www.intersindicalrtvv.com/cant-fight-crypto-fomo-here-are-some-etfs-to-consider/

For many investors, crypto is a mysterious and unpredictable asset class.DADO RUVIC/Reuters

Canada has a well-deserved reputation as a pioneer in the development of low-cost exchange-traded funds, so it’s no surprise that it has established itself as the leader in the creation of cryptocurrency ETFs. .

While U.S. regulators have been wary of the crypto space, it has been embraced in Canada with 36 different funds in the segment (not including U.S. dollar and hedged versions), according to National Bank Financial.

For many investors, crypto is a mysterious and unpredictable asset class, but they want some exposure. Crypto proponents argue that bitcoin can be a better store of value than traditional currencies because there is a limited supply of coins. Soaring prices over the years tend to support this argument.

“It’s the biggest FOMO [fear of missing out] exercise you could never undertake,” says Yves Rebetez, ETF analyst and partner at Credo Consulting Inc. in Oakville, Ontario.

He does not currently invest in crypto funds, but held a small stake in blockchain, the core technology of crypto assets.

Rebetez advises ETF investors to add a small amount of crypto to their portfolio if they are driven by this fear of missing out.

ETFs offer an easy way to dive into investing in cyber currencies such as bitcoin or ethereum (ether) and store them in registered or unregistered portfolios. It is presented as having a low correlation with traditional assets such as stocks, bonds and cash; however, it remains a volatile asset class.

The crypto assets on which these ETFs are based are “highly speculative and risky,” says Tiffany Zhang, ETF analyst at National Bank Financial in Toronto.

Digital assets are volatile, often fluctuating huge amounts over a short period of time.

“We advise clients to exercise caution before investing in these products,” she says.

Although the Canadian crypto ETF space is barely a year old, fund companies have been busy innovators. The vast majority hold cash crypto assets (three funds invest in bitcoin futures), two use covered call options to increase yield, a few are “green” using carbon offsets, and a another invests in several ETFs of crypto assets and related stocks.

Bitcoin ETFs

The first crypto ETF launched in Canada (one day on February 18, 2021) was the Purpose Bitcoin ETF (BCCT-T), which has a management expense ratio (MER) of 1.48% and the unhedged version in Canadian dollars at $623. -million assets. It has fallen about 12% since the start of the year. (All figures from Morningstar as of April 20).

The fund’s top competitors in the space include the 3iQ CoinShares Bitcoin ETF (BTCQ-T), charging an MER of 1.25% and with $1.1 billion in assets; the CI Galaxy Bitcoin C$ Unhedged ETF (BTCX-BT), charging 0.85% and with $258 million in assets and; the Evolve Bitcoin ETF (EBIT-T), with fees of 1.8% and assets of $100.7 million. Each has lost around 12% so far this year.

Because these hold bitcoin spot assets, there is no big difference between them other than their individual MER and currency/hedged version.

Ether-based crypto ETFs

Toronto-based Purpose Investments, which rolled out five crypto ETFs in just over a year, was among four companies that launched ether-based crypto ETFs within days of each other in April this year. last. The Purpose Ether ETF (ETHH-T) charges 1.48% with $163.4 million in assets and has fallen 17% so far this year.

The ether category is dominated by the CI Galaxy Ethereum ($CA) ETF (ETXX-BT), charging 0.76% and with $550.5 million in assets. Others include the 3iQ Coinshares Ethereum ETF (ETHQ-T), with an MER of 1.24% and assets of $262 million, and the Evolve Ether ETF (C$ unhedged) (ETHR-T) charging 1.23% and with $78.7 million in assets. All of these are also down about 17% year-to-date.

Purpose’s Chief Investment Officer Greg Taylor noted that hedge funds were using crypto fund calls to generate yield, leading the company to adopt the strategy of launching yield-focused crypto ETFs in November. latest.

The Purpose Bitcoin Yield ETF (BTCY-T) charges 1.41% and has $26.7 million in assets. It has fallen 10% since the start of the year. The Purpose Ether Yield ETF (ETHY-T) charges 1.41% with $42.5 million in assets and is down 15% year-to-date.

According to the Purpose Investments website, BTCY (CAD hedged) returns 12.8%, BTCY.B (CAD unhedged) returns 12.9% and BTCY.U (USD) returns 16.2%. ETHY (CAD hedged) returns 15.4%, ETHY.B (CAD unhedged) returns 15.5% and ETHY.U (USD) returns 19.5%.

Larger Crypto ETFs

Investors looking for a broader crypto investment can choose from three funds: the recently launched CI Galaxy Multi-Crypto ETF (CMCX-T), which charges 0.50% with $2.6 million (down 5.7% since its creation on January 28); the Purpose Crypto Opportunities ETF (CRYP-T), which charges 1.58%, has $4 million in assets and is down about 7% year-to-date; and ETF Evolve Cryptocurrencies (ETC-T) with $29.1 million in assets and down 13% so far this year. (ETC is listed as having an MER of zero, but since it holds both EBIT and ETHR, a management fee of 0.75% will apply to the underlying ETF holdings).

The broader crypto funds differ in how they expose themselves: ETC owns two underlying crypto Evolve ETFs (EBIT and ETHR); the CMCX fund (unhedged Canadian and US dollar) holds 50-50 exposure to bitcoin and ethereum, and the actively managed fund CRYP holds primarily bitcoin and ethereum, with smaller amounts of related companies cryptography.

Investors in the United States cannot buy ETFs containing physical crypto. Currently, the only option is a trio of futures-based crypto-asset ETFs that have combined assets of approximately US$1.2 billion.

Crypto’s promise as a safe haven against market and currency fluctuations has not been confirmed so far, notes Neena Misha, director of ETF research at Zacks Investment Research in Chicago.

“We found that cryptocurrencies were strongly tied to these high-growth tech stocks and when those stocks fell, the cryptocurrencies also fell,” she says.

Still, she says investors may want to hold between 1% and 5% of their portfolio in crypto. She owns a small percentage of her personal investments: “It’s something new that I don’t want to miss.”

]]>
Analysis-Fears of slowing growth temper bullish trend in commodity currencies https://www.intersindicalrtvv.com/analysis-fears-of-slowing-growth-temper-bullish-trend-in-commodity-currencies/ Thu, 21 Apr 2022 17:08:31 +0000 https://www.intersindicalrtvv.com/analysis-fears-of-slowing-growth-temper-bullish-trend-in-commodity-currencies/

By Sujata Rao and Saikat Chatterjee

LONDON (Reuters) – After huge rallies fueled by surges in commodity prices, the tide could turn for currencies such as the Australian dollar and Colombian peso as fears of slowing global growth ease. settle in the markets.

As inflation and rising borrowing costs dampen business and consumer spending, the International Monetary Fund and World Bank this week slashed global growth forecasts by nearly a full percentage point and signaled the risk of further declines resulting from COVID lockdowns and China’s sanctions on Russia.

The warnings sent oil and metals prices tumbling, although tight supplies of most commodities have so far limited losses. Brent crude futures remain above $100 a barrel while the Refinitiv CRB commodity index is still up nearly a quarter this year.

Eight of the 30 best performing currencies this year in a group monitored by Societe Generale are linked to commodities. In a smaller G10 group, four of the top five come from commodity-exporting nations, according to Refinitiv data.

Societe Generale strategist Kenneth Broux, however, believes the rally is “running on fumes” with a big test for commodity currencies coming from US real yields – or US-adjusted 10-year Treasury yields. inflation – turning positive this week for the first time in two years.

Central banks are also tweaking their hawkish credentials, especially the US Federal Reserve.

A BofA investor survey this week predicted the Fed would hike rates more than seven times this year, up from four times in a March survey.

Anticipation of the resulting slower growth may already be gaining the upper hand in commodities and commodity-linked currencies like the Australian dollar, which gained 10% against the greenback between the end of January and end of March.

The Brazilian real has gained 18% this year and the Colombian peso 8%.

“Latin American energy exporters long and Asian importers short” have been the most concentrated currency exchanges this year, the head of a US bank’s currency desk said.

April, however, brought a turnaround. The Chilean peso, for example, lost nearly half of its first-quarter gains as copper prices fell, while signs of a Chinese slowdown weighed on the Australian and kiwi dollars.

Morgan Stanley’s proprietary FX positioning tracker, calculated from clients’ positions in the options market, reflects that shift, said James Lord, the bank’s global head of foreign exchange.

“Usually exchange rates tend to be highly correlated and tend to move in the same direction, but we’ve seen a huge decoupling between commodity exports and import currencies year-to-date.” , Lord said.

On Morgan Stanley’s minus 100 to plus 100 scale, where 0 is neutral, commodity currency positioning hit 75 in March, the highest according to data dating back to 2014. The score has since eased , albeit at a still bullish 62.

“Commodity exporter currencies could start to weaken from here because global growth is slowing,” Lord said, noting that extreme positioning means there’s “a lot of flow that can go in the other direction”.

A LOT OF OPTIMISM

The catalyst could be China.

The yuan, crucial to the trajectory of commodities, fell to a two-month low against a basket of currencies and a Reuters poll shows analysts are “short” the yuan for the first time since October.

With swathes of China under COVID lockdown, a gauge of hedge fund positioning compiled by the US CFTC shows a sharp drop in net Australian dollar buying – currently $2.1tn from six-year highs around $6.5 billion in January.

Net long positions in Brazilian real held up better, although they were also off early March record highs of nearly $1 billion. Hedge funds also stopped buying the kiwi and the Canadian dollar, according to the data.

If growth slows sharply, high currency valuations will be hard to justify – the value of the Norwegian krone on a trade-weighted basis is close to its highest, relative to its median, in the past 50 years.

The Australian dollar and kiwi are also well above historical averages on a trade-weighted basis, according to data from Refinitiv.

Current exchange rates are pricing up a lot, said Francesca Fornasari, head of currency solutions at Insight Investment, noting for example “when it comes to the Aussie, there’s a lot of optimism about China. , commodity markets and central bank rate trajectory.”

(Reporting by Sujata Rao and Saikat Chatterjee; Editing by Kirsten Donovan)

]]>
Zelenskyy asks Joe Biden to call Russia a ‘state sponsor of terrorism’ in the midst of war https://www.intersindicalrtvv.com/zelenskyy-asks-joe-biden-to-call-russia-a-state-sponsor-of-terrorism-in-the-midst-of-war/ Sat, 16 Apr 2022 06:30:00 +0000 https://www.intersindicalrtvv.com/zelenskyy-asks-joe-biden-to-call-russia-a-state-sponsor-of-terrorism-in-the-midst-of-war/

As the Russo-Ukrainian War entered its 52nd day, with relentless bombardment by Moscow of key Ukrainian cities, the war-torn nation’s President Volodymyr Zelenksyy urged the Biden administration to classify Russia as “State sponsor of terrorism,” two people familiar with the subject told NBC News. Zelenskyy made the request during a recent phone call with US President Joe Biden, the sources say.

Sources revealed that the proposal did not carry the same weight as urgent demands for more arms and energy restrictions against Russia.

According to a CNBC report, when asked in March whether the United States would consider designating Russia as a state sponsor of terrorism, White House press secretary Jen Psaki, as well as Secretary of State Antony Blinken, left an option open for the possibility. On March 17, Blinken remarked, “We are and will look into everything.”

‘State sponsor of terrorism’ designation results in some of US’ worst sanctions

On top of that, designation as a “State Sponsor of Terrorism” carries some of the worst sanctions the U.S. government can impose on a country, including limitations on financial transactions, defense exports and sales, and foreign aid. . Russia has already been subjected to significant financial and other sanctions by the Biden administration, including the blockade of about half of its foreign currency reserves. It’s unclear how a classification like this would affect the Russian economy, CNBC reported.

If Biden blacklists Russia as a terrorist sponsor, any company, individual or state that wins a judgment against Russia could seek access to any prohibited or frozen assets of the Russian administration or Russian billionaires, citing some legal experts, CNBC reported.

Putin may use tactical nukes in assault on Ukraine: Zelenskyy

Recently, Ukrainian President Zelenskyy told CNN in an interview on Friday that “every country in the world” must be ready if Russian President Putin uses tactical nuclear weapons in his assault on Ukraine. In the interview, Zelenskyy said Putin might use nuclear or chemical weapons because he doesn’t care about the lives of Ukrainians.

Zelenskyy claimed, “Not just me – everyone, every country should be concerned because this may not be real information, but it may be the truth,” CNN reported.

Additionally, US officials have warned that if Putin is forced to take a stand, he may resort to the use of tactical nuclear weapons in Ukraine. CIA Director Bill Burns said on Thursday that the agency was “watching this possibility closely”, although he stressed that the United States had seen no evidence that Russia was about to take such a decision.

(Picture: AP)

]]>