Business Expansion and Market Strategy - The company operates six physical retail stores in Singapore and plans to expand into new markets, including Taiwan, Korea, Indonesia, and Malaysia within the next six months [44][48]. - Expansion into new geographic markets may involve significant upfront investments and face challenges such as local competition and regulatory compliance [46][49]. - The company targets the premium mass market and middle to upper-class consumers, relying heavily on consumer spending and housing market conditions [50]. - The company aims to enhance its "HomesToLife" brand through high-quality products and superior customer service, which may require substantial investments [40][41]. - HomesToLife Singapore intends to open additional retail stores in high-demand areas within Singapore to strengthen its market presence [200]. - The company has identified opportunities in the wholesale upholstered furniture market across various Asia-Pacific countries, including Japan, Korea, and Indonesia [195]. - HomesToLife Singapore's management team has over 40 years of experience in the furniture industry, providing a competitive edge in market understanding and supplier relationships [194]. - The company plans to explore mergers and acquisitions to deepen connections with local furniture suppliers in the Asia-Pacific region [201]. Financial Performance and Challenges - The company anticipates increased operating expenses due to growth efforts and public company status, which may lead to future net losses and challenges in achieving profitability [31]. - Revenue decreased from US$6.0 million in fiscal year ended December 31, 2022 to US$5.1 million in fiscal year ended December 31, 2023 due to the impact of COVID-19 [120]. - The ongoing COVID-19 pandemic has significantly disrupted global supply chains, affecting suppliers' ability to provide products in a timely manner, which may continue into 2025 [112]. - Economic conditions in Singapore have led to significant economic contraction and high unemployment rates during the years ended December 31, 2023 and 2022, although recovery appears to have begun in 2024 [121]. - The company incurs significant expenses due to public company obligations, which negatively impacts financial performance [135]. - The company may require additional debt financing to support business operations and future strategies [77]. - Rising interest rates could increase operational costs and limit financial flexibility, potentially affecting profitability [79]. Operational Risks and Management - The company faces risks related to managing growth effectively, including hiring and retaining qualified personnel [32][34]. - Increased competition from various retailers, including online marketplaces, poses a risk to the company's market position [54]. - Cybersecurity threats pose risks to the company's data and operations, necessitating robust cybersecurity measures [51]. - Cybersecurity incidents could lead to significant legal and financial exposure, adversely affecting the company's reputation and operations [53]. - The company is subject to risks related to product liability claims, which could harm its reputation and financial performance [68]. - Legal disputes and claims could divert resources and adversely affect the company's financial condition and operations [86]. - The company may face liabilities under anti-corruption laws, which could lead to significant legal and financial repercussions [99]. Supply Chain and Product Management - The company has experienced surges in orders during peak months, particularly in March, April, June, August, November, and December, which may strain operations [70]. - The company relies on third parties for payment processing, and any failure in compliance or data breaches could materially affect financial results [72]. - HomesToLife Singapore transitioned its major supply source from HTL Marketing to HTL Furniture (China) Co., LTD effective January 1, 2025, under a new supply agreement [62]. - The company relies on a limited number of key suppliers for leather and fabric upholstered furniture, making it vulnerable to negative publicity affecting these suppliers [113]. - Supply chain disruptions experienced during the COVID-19 pandemic may impact the ability to fulfill customer orders in a timely manner [104]. Customer Engagement and Sales Strategy - The company’s success depends on increasing net revenue per active customer and maintaining high levels of customer engagement [38]. - Customer acquisition costs are significant, with marketing expenses varying as the company tests new channels and refines strategies [35][36]. - HomesToLife Singapore offers free delivery for orders above SGD1,200, enhancing customer service for larger purchases [223]. - The average cycle time for custom furniture orders is approximately 8 to 12 weeks, which is faster than competitors, providing a competitive advantage [226]. - HomesToLife Singapore's sales staff follow up with potential customers after initial contact, emphasizing time-limited offers to close sales [222]. - Online sales contribute less than 1% of total sales for the fiscal years ended December 31, 2024, 2023, and 2022, indicating a strong preference for in-store purchases [206]. Regulatory and Compliance Issues - The management team has limited experience managing a public company listed in the U.S., which may impact compliance with regulatory obligations [85]. - The company is subject to evolving regulatory measures, which may increase compliance costs and divert management attention from revenue-generating activities [170]. - The company cannot assure compliance with Nasdaq's continued listing standards, which could lead to significant adverse consequences if delisted [172]. - Shareholders may face difficulties in enforcing judgments against the company or its directors due to the company's operations being primarily outside the United States [168]. - The company may be classified as a passive foreign investment company (PFIC) for U.S. federal income tax purposes, which could lead to adverse tax consequences for U.S. investors [161]. Market Conditions and Economic Factors - Inflationary pressures in Asia may lead to government actions that could significantly decrease profitability in the future [123]. - The company faces risks related to inflationary pressures on product procurement costs, wages, rental rates, and freight charges, which could adversely affect profit margins [107]. - Uncertain global economic conditions have resulted in lower net sales due to weakened demand and unfavorable changes in product price/mix [117]. - Any adverse changes in the Singapore market, such as economic recession or pandemic, could materially affect the company's business and financial condition [115]. - The company is exposed to foreign exchange fluctuations, particularly as purchases are settled in USD while sales are in Singapore dollars [89].

Core Viewpoint - HomesToLife Ltd reported a significant decline in financial performance for fiscal year 2024, with a net revenue decrease of 18% compared to the previous year, primarily due to industry-specific challenges and increased operating expenses [3][4][6]. Financial Performance Summary - For fiscal year 2024, HomesToLife had net revenue of $4,173,028, down from $5,072,320 in fiscal 2023 [3]. - The gross profit margin for fiscal 2024 was 65.8%, a decline from 71.7% in fiscal 2023, attributed to a shift in sales mix and competitive pricing strategies [5]. - Total operating expenses increased by $1,109,948, or 32%, primarily due to listing expenses and higher general and administrative costs [6]. - The company reported a loss from operations of $1,788,938 for fiscal 2024, compared to income from operations of $210,459 in fiscal 2023 [7]. - HomesToLife's net loss for fiscal 2024 was $1,666,195, or $(0.11) per share, compared to a net income of $237,499, or $0.02 per share, in fiscal 2023 [8][18]. Cash Flow and Liabilities - Cash and cash equivalents increased to $3,442,259 as of December 31, 2024, from $1,366,231 in 2023 [8]. - Net cash used in operating activities was $1,021,680 in fiscal 2024, contrasting with net cash provided by operating activities of $894,784 in fiscal 2023 [9]. - Total long-term liabilities rose to $2,274,936 as of December 31, 2024, compared to $2,224,047 in 2023 [9]. Strategic Initiatives - In response to fiscal 2024 losses, HomesToLife initiated a comprehensive restructuring plan on April 1, 2025, which includes closing underperforming stores and implementing strict expense controls [10]. Future Outlook - The company expects total revenue for 2025 to be between $16 million and $18 million, with its new subsidiary, HTL Far East, projected to contribute $12-14 million in revenue [2].

SINGAPORE, April 07, 2025 (GLOBE NEWSWIRE) -- HomesToLife Ltd (NASDAQ: HTLM) (“HomesToLife” or the “Company”), the holding company of one of the leading home furniture products retail chains in Singapore, today announced financial results for fiscal year ended December 31, 2024. “We are thrilled to be trading on Nasdaq for the past six months,” said Chief Executive Officer Ms. Phua Mei Ming. “Although certain global economic factors continued to impact our retail financial performance in 2024, we are excite ...

Singapore, March 31, 2025 (GLOBE NEWSWIRE) -- HomesToLife Ltd (NASDAQ: HTLM) ("HomesToLife" or the "Company"), the holding company of one of the leading home furniture products retail chains in Singapore, today announced that it plans to issue its financial results release for the fiscal year ended December 31, 2024 on Monday, April 7 before the market opens, and hold a conference call to review the financial results on Friday, April 11 at 8:30 a.m. ET. Conference Call Dial-in: International: 1-201-389-0908 ...

Core Insights - HomesToLife Ltd's subsidiary, HTL Far East, received sales orders exceeding US$1.5 million in January 2025 and is projected to generate revenue between US$12.0 million and US$14.0 million in 2025 due to strong demand [1] - The total revenue for HomesToLife in 2025 is expected to range from US$16.0 million to US$18.0 million, indicating a more than 300% increase compared to approximately US$1.99 million in the first six months of 2024 [2] Company Overview - HTL Far East, established in October 2024, focuses on sourcing, distributing, and delivering premium furniture and related products across the Asia-Pacific region [3] - The leadership team of HTL Far East includes Mr. Phua Yong Pin, Mr. Phua Yong Tat, and Ms. Phua Mei Ming, who hold key positions within HomesToLife [3] Market Demand and Growth - The formation of HTL Far East aims to meet the increasing demand for premium furniture at reasonable prices in the APAC region, with expectations for continued growth in 2025 [4] - The company anticipates that HTL Far East will enhance HomesToLife's presence in the furniture industry and provide significant long-term value for stakeholders [4] Product and Service Offering - HomesToLife Pte. Ltd. is a leading home furniture retailer in Singapore, offering customized furniture solutions and a variety of products including leather and fabric upholstered furniture, case goods, and accessories [5] - The company emphasizes fair pricing, great value, consistent quality, and reliable delivery, along with a seamless online shopping experience [5]

Core Viewpoint - HomesToLife Ltd reported a significant decline in net revenue for the first half of 2024, primarily due to adverse economic conditions affecting the home furniture market in Singapore [1][2]. Financial Performance - The company achieved net revenue of $1,993,323 for the first six months of 2024, representing a 21% decrease from $2,527,724 in the same period of 2023 [1]. - Gross profit margin decreased to 66.1% in the first half of 2024 from 68.8% in the first half of 2023, attributed to rising inward freight costs [3]. - Total operating expenses increased by $138,473, or 8.2%, compared to the first half of 2023, mainly due to a rise in general and administrative expenses [4]. - The company reported a loss from operations of $508,865 for the first half of 2024, compared to income from operations of $52,847 in the same period of 2023 [5]. - The net loss for the first half of 2024 was $452,438, or $(0.03) per share, compared to net income of $74,986, or $0.01 per share, for the same period in 2023 [5]. Cash Flow and Liabilities - Cash and cash equivalents decreased to $544,294 as of June 30, 2024, down from $1,366,956 at the end of 2023 [6]. - Net cash used in operating activities was $899,519 for the first half of 2024, contrasting with net cash provided by operating activities of $53,225 in the same period of 2023 [6]. - Total long-term liabilities increased to $2,985,724 as of June 30, 2024, compared to $2,225,228 at the end of 2023 [7]. Strategic Outlook - The CEO expressed optimism about new initiatives aimed at expanding the business into the rest of Asia, which are expected to enhance financial performance in the latter half of 2024 [8].