Here are a few analogies to describe XMax:

• It's like Ashley Furniture with a strong emphasis on online sales.
• Imagine a Pottery Barn that also manufactures and supplies furniture to other retailers.

• Residential and Commercial Furniture: Designs, manufactures, markets, and sells various upholstered, wood, and metal-based furniture pieces for living, dining, and bedrooms, as well as home offices.
• Physiotherapeutic Jade Mats: Provides specialized mats for use in therapy clinics, hospitality, and real estate projects.

XMax (Nova LifeStyle, Inc.) sells primarily to other companies.

Based on the provided background information, XMax's major customers are:

• Furniture distributors
• Furniture retailers
• Therapy clinics (for physiotherapeutic jade mats)
• Hospitality projects (for physiotherapeutic jade mats)
• Real estate projects (for physiotherapeutic jade mats)

The provided background does not list specific names of these customer companies, nor their stock symbols.

Xiaohua Lu, Chief Executive Officer, Director

Over two decades of leadership experience in consulting, investment, and project management. He holds a Bachelor's degree in Vehicle Engineering and Commercial Business English from Jilin University, China. He also holds the PMP Certificate (PMI, USA) and has completed executive courses from Yale University, Wharton, and HKUST.

Jeffery Chuang, Chief Financial Officer, Director

Has 22 years of experience in the accounting field. He holds a Bachelor of Science in Finance from California State University - Northridge and a Master of Science in Taxation from Golden Gate University, Los Angeles. He is a Certified Public Accountant and a member of the California Society of Certified Public Accountants. He is fluent in English and Chinese.

Tawny Lam, Chairperson of the Board, CEO of Diamond Bar Outdoors Inc.

Co-founder and former CEO of Diamond Sofa in 1992, which was acquired by Nova LifeStyle in August 2011. She has extensive experience in U.S. furniture product marketing and holds a Bachelor of Science in Business and Finance from California State University, Los Angeles.

Yizhou (Steven) Zhao, Chief Operating Officer, Corporate Secretary, Director

Joined the company as COO and Corporate Secretary on October 7, 2025. He specializes in statistical modeling, predictive analytics, and machine learning. His professional experience includes Bloomberg L.P. and Carrefour China. He holds an M.A. in Statistics from Columbia University and a B.Sc. in Statistics and Economics from Queen's University.

Mark Chapman, Vice President, Marketing

Has served as Sales Manager of Diamond Sofa since 2004 and possesses 20 years of experience in the furniture industry. He previously held the role of Director of Purchasing for ACE TV Rentals, Central Rents, and Day Page. He earned a Bachelor of Science Degree in Business Administration Management and Marketing from Augustana College.

The key risks to XMax (formerly Nova LifeStyle, Inc.) are primarily related to its persistent profitability challenges, its limited access to capital due to its small market capitalization, and the substantial risks associated with its recent strategic pivot into artificial intelligence.

1. Persistent Profitability Challenges and Volatile Gross Margins: XMax has demonstrated significant difficulties in achieving and maintaining consistent profitability. The company has reported volatile and often low gross margins, with a notable collapse to 23% for the nine months ended September 30, 2025, which is considerably below the industry average for furniture retail. This erosion was partly attributed to high-volume, low-margin sales to a single Hong Kong customer. Despite reporting revenue growth in some periods, gross profits have slipped, and gross margins have contracted, indicating worsening unit economics and ongoing operating losses. The company's financial results frequently show net losses, highlighting fundamental issues in its business model's ability to generate sustained profits.
2. Small Market Capitalization and Limited Access to Capital: As a micro-cap stock, XMax's small market capitalization (approximately $73.633 million as of November 2025) severely restricts its financial flexibility and ability to secure large-scale capital. This limitation often forces the company to resort to highly dilutive financing methods when raising funds. For example, a public offering in September 2025 for $8.71 million resulted in a four-fold increase in shares outstanding. This pattern of substantial shareholder dilution, with a 344% increase in shares outstanding in the past year, is a significant risk for investors and constrains the company's growth and operational resilience.
3. High-Risk Strategic Pivot into Artificial Intelligence: In March 2026, XMax approved a strategic expansion into artificial intelligence (AI) software and hardware, cloud and GPU compute infrastructure, AI model orchestration, and enterprise AI agents, alongside its existing furniture business. This pivot introduces substantial new risks, including significant execution challenges, capital deployment demands, regulatory hurdles, cybersecurity threats, and intellectual property risks. Undertaking such a complex and capital-intensive venture while the core furniture business faces profitability issues and the company operates with a small market capitalization significantly increases the overall business risk profile.

The emergence of direct-to-consumer (DTC) online furniture brands poses a significant threat to XMax. These online-native companies bypass traditional distribution channels, leveraging efficient digital marketing and supply chains to offer competitive pricing and a streamlined purchasing experience directly to consumers. This model directly challenges XMax's established reliance on furniture distributors and retailers, as well as the increasing consumer preference for purchasing large items directly online, potentially eroding market share and traditional sales channels.

Nova LifeStyle, Inc. (XMAX) operates in the residential furniture, commercial furniture, and physiotherapeutic jade mat markets. The addressable market sizes for its main products are as follows:

• Residential Furniture:

  • The global home furniture market was valued at approximately USD 690.10 billion in 2024.
  • The U.S. household furniture market was valued at USD 91.1 billion in 2024.

• Commercial Furniture:

  • The global contract furniture market was estimated at USD 154.10 billion in 2024.
  • The U.S. contract furniture and furnishing market size was valued at USD 15.41 billion in 2024.

• Physiotherapeutic Jade Mats:

  • The global physiotherapy equipment market, which would include physiotherapeutic jade mats, was valued at USD 25.16 billion in 2024.

Share Issuance

• Nova LifeStyle, Inc. increased its authorized common stock from 250 million to 5 billion shares and rebranded as XMax Inc. on November 3, 2025.
• On September 4, 2025, Nova LifeStyle, Inc. completed a public offering of 9,836,054 shares of common stock and 19,672,108 warrants, generating gross proceeds of approximately $9.0 million. The net proceeds were intended for working capital, marketing, short-term debt repayment, and capital expenditures.
• In October 2025, Nova LifeStyle, Inc. announced a registered direct offering for 3,708,500 shares of common stock at $3.78 per share, anticipating gross proceeds of about $14,018,130.
• As of May 14, 2026, XMax Inc. reported common shares outstanding of 63,602,326, with cash and cash equivalents increasing by $12.20 million due to common stock issued to investors.

Inbound Investments

• XMax Inc. announced a US$5 million convertible note financing on November 24, 2025.
• On April 16, 2026, XMax Inc. raised $3.1 million through a Regulation S share sale.

Outbound Investments

• On November 26, 2025, XMax Inc., through an indirectly wholly owned subsidiary, invested approximately US$5.60 million for a 99.82% interest in Preamble Capital I, which holds an interest in a fund owning shares of Space Exploration Technologies Corp. (SpaceX).
• XMax Inc. invested $400,000 in a cloud AI inference platform on April 8, 2026.
• As of May 15, 2026, XMax Inc. made new investments of $8.35 million in Preamble-managed funds with interests in SpaceX and xAI, and issued a new $5.3 million loan to a third party.

Capital Expenditures

• The company's trailing twelve months (TTM) capital expenditure was reported as $0.00.
• Proceeds from the $9.0 million public offering in September 2025 were designated, in part, for capital expenditures.