HomesToLife Ltd Announces Financial Results for Fiscal Year 2024; Company to hold Conference Call to Discuss Results April 11 at 8:30 am ET

SINGAPORE, April 07, 2025 (GLOBE NEWSWIRE) -- HomesToLife Ltd $(HTLM)$ ("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 excited that we launched, on October 28, HTL Far East Pte. Ltd., or HTL Far East, our wholesale subsidiary business unit devoted to expanding our furniture business into the rest of Asia."

"Although this subsidiary made relatively minor contributions to our overall revenue during 2024, it has in the first quarter of 2025 produced revenue of over $4 million. As announced in February, we expect HTL Far East to contribute revenue of $12-14 million this year."

HomesToLife's total revenue for 2025 is expected to be between $16 million and $18 million, said Ms. Phua.

The following are highlights of the Company's financial performance in fiscal 2024 (all currency figures are expressed in U.S. dollars):

For the fiscal year ended December 31, 2024, the Company had net revenue of $4,173,028, an 18 percent decrease compared to net revenue of $5,072,320 for the fiscal year ended December 31, 2023.

The Company's decrease in net revenue was primarily due to a decline in revenue from sales of its leather and fabric upholstered home furniture products compared to such sales in 2023. This decline was driven by industry-specific challenges, including shifts in consumer spending habits, the impact of inflation on discretionary purchases, and intensified market competition, which affected HomesToLife Pte. Ltd., the Company's Singapore retail sector.

For fiscal 2024, the Company's gross profit margin was 65.8 percent as compared to 71.7 percent for fiscal 2023, a decline primarily attributable to a shift in the Company's sales mix and the implementation of lower pricing strategies to remain competitive in a highly intense market.

For fiscal 2024, HomesToLife Pte. Ltd.'s gross margin was 68.1 percent as compared to 71.7 percent for fiscal 2023. For 2024, HTL Far East, which commenced business in November 2024, had a gross margin of 12.5 percent.

For fiscal 2024, HomesToLife also saw an increase of $1,109,948, or 32 percent, in total operating expenses compared to fiscal 2023. This increase was primarily the result of listing expenses in fiscal 2024 of $1,062,815, consisting of $733,000 for an audit fee and $330,000 for a listing maintenance fee, compared to no such expenses in fiscal 2023. The increase in total operating expenses in fiscal 2024 also resulted from a rise in general and administrative expenses of $473,462, mainly consisting of $324,000 for salaries paid to increased office staff headcount, compared to fiscal 2023.

The increase in general and administrative expenses in fiscal 2024 was partially offset by a decrease of $426,329 in sales and distribution expenses, mainly due to marketing support from a related party for introducing new designs and products to the market.

The Company had a loss from operations of $1,788,938 during fiscal 2024, as compared to income from operations of $210,459 for fiscal 2023.

Adding other income, which amounted to $122,743 in fiscal 2024 and $27,040 in fiscal 2023, HomesToLife had a net loss of $1,666,195, or $(0.11) per share, for fiscal 2024, as compared to net income of $237,499, or $0.02 per share, for fiscal 2023.

Weighted average number of ordinary shares was 14,687,500 at December 31, 2024, and 13,250,000 at December 31, 2023.

Cash and cash equivalents at December 31, 2024 was $3,442,259, as compared to $1,366,231 at December 31, 2023.

Net cash used in operating activities during fiscal 2024 was $1,021,680, as compared to net cash provided by operating activities of $894,784 for fiscal 2023.

Total long-term liabilities at December 31, 2024 was $2,274,936, as compared to $2,224,047 at December 31, 2023.

In response to the fiscal 2024 operational losses experienced by HomesToLife Pte. Ltd., on April 1, 2025, HomesToLife Ltd commenced a comprehensive restructuring initiative designed to enhance financial performance. This initiative, led by CEO Phua Mei Ming, includes closing underperforming stores including the Tagore location, revamping of merchandise offered at some stores, and implementing strict expense controls, especially in marketing and advertising.

Conference Call

The Company plans to host a conference call on April 11, 2025, at 8:30 AM ET to discuss results for the fiscal year ended December 31, 2024. To participate in the conference call, please dial:

US toll free: 1-877-269-7751

International: 1-201-389-0908

Conference ID: HomesToLife

Please dial five to ten minutes prior to the scheduled time

If you would prefer to receive a call rather than dialing in, please register via the following link: Call me. Please use this option 15 minutes prior to the conference call start time.

For those unable to participate during the live call, a replay of this call will be available on April 11, 2025 at 11:30 a.m. ET for 7 days. To access the replay, please dial:

US toll free: 1-844-512-2921

International: 1-412-317-6671

Access ID: 13752874

About HomesToLife Ltd

The Company's major wholly owned subsidiary and operating company, HomesToLife Pte. Ltd., is one of the leading home furniture retailers that offers and sells customized furniture solutions in Singapore. Another subsidiary, HTL Far East Pte. Ltd., is dedicated to sourcing, distributing, and delivering premium furniture and related products to the business sector across the Asia-Pacific region.

HomesToLife Pte. Ltd. has six retail store locations. It has helped homeowners create living spaces that reflect their individuality since 2014. Its product offerings include leather and fabric upholstered furniture, case goods and accessories, and offers a one-stop shop for retail customers to furnish their homes. "HomesToLife" has a long-standing pledge to offer fair prices, great value, consistent and reliable quality, and on-time delivery to its customers. The Company's website, www.homestolife.com, offers consumers a seamless shopping experience online and post-sales customer service support.

FORWARD-LOOKING STATEMENTS

Certain statements in this press release are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or other similar expressions in this press release. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the SEC.

Contacts

HomesToLife Ltd Contact:

6 Raffles Boulevard, #02-01/02

Marina Square, Singapore 039594

Email: Investor@homestolife.com

Investor Relations Inquiries:

Skyline Corporate Communications Group, LLC

Scott Powell, President

Office: (646) 893-5835

Email: info@skylineccg.com

 
                 HOMESTOLIFE LTD AND SUBSIDIARIES 
             COMBINED AND CONSOLIDATED BALANCE SHEETS 
       (Currency expressed in United States Dollars ("US$"), 
                   except for number of shares) 
 
                                         As of December 31, 
                                     -------------------------- 
                                         2023          2024 
                                     ------------   ----------- 
 
ASSETS 
Current assets: 
Cash and cash equivalents               1,366,231     3,442,259 
Accounts receivables, net                 113,395       216,536 
Inventories, net                          674,529       601,900 
Amounts due from related parties          383,321         2,900 
Amount due from former shareholder        553,551             - 
Deposit, prepayments and other 
 receivables                              689,562       883,227 
                                      -----------   ----------- 
Total current assets                    3,780,589     5,146,822 
                                      -----------   ----------- 
 
Non-current assets: 
Plant and equipment, net                  225,565       220,603 
Right-of-use assets, net                3,111,037     3,250,835 
                                      -----------   ----------- 
Total non-current assets                3,336,602     3,471,438 
                                      -----------   ----------- 
 
TOTAL ASSETS                            7,117,191     8,618,260 
                                      -----------   ----------- 
 
LIABILITIES AND SHAREHOLDERS' 
EQUITY 
Current liabilities: 
Accounts payable                          993,547       267,792 

Customer deposits                         846,937       696,538 
Accrued liabilities and other 
 payables                                 216,596       498,027 
Lease liabilities                       1,237,165     1,437,055 
                                      -----------   ----------- 
Total current liabilities               3,294,245     2,899,412 
                                      -----------   ----------- 
 
Long-term liabilities: 
Other payables                             94,810        98,875 
Lease liabilities                       2,129,237     2,176,061 
                                      -----------   ----------- 
Total long-term liabilities             2,224,047     2,274,936 
                                      -----------   ----------- 
 
TOTAL LIABILITIES                       5,518,292     5,174,348 
                                      ===========   =========== 
 
Commitments and contingencies                   -             - 
 
Shareholders' equity 
Ordinary share, $0.0001 par value, 
 100,000,000 shares authorized, 
 13,250,000 and 14,687,500 shares 
 issued and outstanding as of 
 December 31, 2023* and 2024                1,325         1,469 
Additional paid-in capital             28,696,900    32,250,867 
Accumulated other comprehensive 
 loss                                  (3,401,649)   (3,444,552) 
Accumulated losses                    (23,697,677)  (25,363,872) 
                                      -----------   ----------- 
Total shareholders' equity              1,598,899     3,443,912 
                                      -----------   ----------- 
 
TOTAL LIABILITIES AND 
 SHAREHOLDERS' EQUITY                   7,117,191     8,618,260 
                                      ===========   =========== 
  *  The shares amounts are 
      presented on a retroactive 
      basis. 
 
 
                   HOMESTOLIFE LTD AND SUBSIDIARIES 
          COMBINED AND CONSOLIDATED STATEMENTS OF OPERATIONS 
                                  AND 
                      COMPREHENSIVE INCOME (LOSS) 
         (Currency expressed in United States Dollars ("US$"), 
                     except for number of shares) 
 
                                         Years ended December 31, 
                                        --------------------------- 
                                            2023           2024 
                                        -------------   ----------- 
 
Revenues, net                               5,072,320     4,173,028 
Cost of goods sold                         (1,436,172)   (1,426,329) 
                                         ------------   ----------- 
 
Gross profit                                3,636,148     2,746,699 
 
Operating expenses: 
Sales and distribution expenses            (2,292,629)   (1,866,300) 
General and administrative expenses        (1,133,060)   (2,669,337) 
                                         ------------   ----------- 
Total operating expenses                   (3,425,689)   (4,535,637) 
                                         ------------   ----------- 
 
Income (loss) from operations                 210,459    (1,788,938) 
 
Other income: 
Interest income                                 6,132             - 
Government subsidies                            8,564        15,552 
Sundry income                                  12,344       107,191 
                                         ------------   ----------- 
Total other income, net                        27,040       122,743 
                                         ------------   ----------- 
 
Income (loss) before income taxes             237,499    (1,666,195) 
 
Income tax expense                                  -             - 
                                         ------------   ----------- 
 
NET INCOME (LOSS)                             237,499    (1,666,195) 
                                         ============   =========== 
 
Other comprehensive income (loss): 
-- Foreign currency translation 
 adjustment                                    28,468       (42,903) 
                                         ------------   ----------- 
 
COMPREHENSIVE INCOME (LOSS)                   265,967    (1,709,098) 
                                         ============   =========== 
 
Weighted average number of ordinary 
shares: 
Basic and diluted *                        13,250,000    14,687,500 
                                         ============   =========== 
 
NET INCOME (LOSS) PER SHARE -- BASIC 
 AND DILUTED                                     0.02         (0.11) 
                                         ============   =========== 
 
 
*    The shares amounts are presented on a retroactive 
      basis. 
 

(END) Dow Jones Newswires

April 07, 2025 08:30 ET (12:30 GMT)