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<p id="xdx_801_eus-gaap--OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock_zywkqoGqEyme" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">NOTE 1 – Nature of Operations and Summary of Significant Accounting Policies Hour Loop, Inc. (“Hour Loop” or the “Company”) is a rapidly growing technology-enabled consumer products company that uses machine learning and data analytics to design, develop, market and sell products. Hour Loop predominantly operates through online retail channels such as Amazon, Walmart, and Hourloop.com. The Company, as an Internet marketplace seller, is selling products in multiple categories, including home/garden décor, toys, kitchenware, apparels, and electronics. The Company has only one segment, which is online retail (e-commerce). The Company was incorporated on January 13, 2015 under the laws of the State of Washington. On April 7, 2021, the Company was converted from a Washington corporation to a Delaware corporation. In 2019, Hour Loop formed a wholly owned subsidiary, Flywheel E-commerce Co., Ltd. (“Flywheel”), to provide business operating consulting services, exclusively to Hour Loop. Reorganization – On June 30, 2021, the Company completed a corporate reorganization to convert its status from an S corporation (10,000,000 common shares issued and outstanding) to a C corporation (10,000,000 common shares issued and outstanding) with an effective date of July 27, 2021 (the “Reorganization”). The Reorganization did not change the ownership of the Company and the Company’s two stockholders (Sam Lai and Maggie Yu) each continue to own 50% of the Company. The discussion and presentation of the financial statements herein assumes the Reorganization had become effective as of the beginning of the first period presented in the accompanying consolidated financial statements. Consistent with Section 1362 of the Internal Revenue Code of 1986, as amended (the “Code”), the retained earnings as of July 27, 2021 were distributed to the S corporation stockholders. The stockholders and the Company have entered into an agreement for this amount to be loaned to the Company. The amount of this distribution is $4,170,418 and the annual interest rate is 2%. The loan is due on December 31, 2022. On September 27, 2021, the Company completed a stock split such that each outstanding stock was sub-divided and converted into 4.44 shares of common stock. As result of the stock split, the total number of shares outstanding became 44,400,000. On December 3, 2021, the Company completed a reverse stock split such that each outstanding stock was sub-divided and converted into 0.75 shares of common stock. As a result of the reverse stock split, the total number of shares outstanding became 33,300,000. These shares were retrospectively adjusted for prior periods. Basis of Presentation – The consolidated financial statements and accompanying notes of the Company have been prepared in accordance with the accounting principles generally accepted in the United States of America (“US GAAP”). Principles of Consolidation – The consolidated financial statements include the accounts of Hour Loop and Flywheel. All material inter-company accounts and transactions were eliminated in consolidation. Foreign Currency and Currency Translation – The assets and liabilities of Flywheel, having a functional currency other than the U.S. dollar, are translated into U.S. dollars at exchange rates in effect at year-end, with resulting translation gains or losses included within other comprehensive income or loss. Revenues and expenses are translated into U.S. dollars at average monthly rates of exchange in effect during each year. All of the Company’s foreign operations use their local currency as their functional currency. Currency gains or losses resulting from transactions executed in currencies other than the functional currency are included in other income (expense) in the consolidated statement of operations and other comprehensive income. The Company is exposed to foreign currency exchange risk through its foreign subsidiary in Taiwan, which reports its earnings in Taiwan dollars. The Company translates the foreign assets and liabilities at exchange rates in effect at the consolidated balance sheet date, and translates the revenues and expenses using average rates during the year. The resulting foreign currency translation adjustments are recorded as a separate component of accumulated other comprehensive income or loss in the accompanying consolidated balance sheet and the consolidated statements of operations. The Company does not hedge foreign currency translation risk in the net assets and income reported from these sources. The relevant exchange rates are listed below: Schedule of Foreign Currency Exchange Rates <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_498_20211231_zZjlKKM1wk0k" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_499_20201231_z3dNpCiExWF3" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">For the fiscal year ended December 31</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr id="xdx_40E_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_hus-gaap--AwardTypeAxis__custom--PeriodNTDUSDExchangeRateMember_zvdQYhmWCEx1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Period NTD: USD exchange rate</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">27.630</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">28.430</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_hus-gaap--AwardTypeAxis__custom--PeriodAverageNTDUSDExchangeRateMember_zsdoiRLo2s4e" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Period Average NTD: USD exchange rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">27.706</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">29.483</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_hus-gaap--AwardTypeAxis__custom--PeriodAverageNTDUSDExchangeRateMember_zydq3ghTsMYa" style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: left">Foreign currency exchange rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">27.706</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">29.483</td><td style="text-align: left"> </td></tr> </table> Use of Estimates – The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Significant estimated include, but not limited to, estimates associated with the collectability of accounts receivable and inventory valuation. COVID-19 Pandemic – In March 2020, the World Health Organization recognized the novel strain of coronavirus (COVID-19) as a pandemic. This COVID-19 outbreak has severely restricted the level of economic activity around the world. In response to this COVID-19 outbreak, the governments of many countries, states, cities, and other geographic regions have taken preventative or protective actions, such as imposing restrictions on travel and business operations and advising or requiring individuals to limit or forego their time outside of their homes. The Company’s services, operating results and financial performance could be adversely affected by the overall impacts of the pandemic. Management has determined that there is no material uncertainty that casts substantial doubt on the Company’s ability to continue as a going concern. It is expected that COVID-19 might have some impact, though it is not anticipated to be significant. Cash and Cash Equivalents – The Company considers all highly liquid financial instruments purchased with original maturities of three months or less to be cash and cash equivalents. The carrying amount of cash and cash equivalents approximates fair value. Accounts Receivable and Allowance for Doubtful Accounts – Accounts receivable are stated at historical cost less allowance for doubtful accounts. On a periodic basis, management evaluates its accounts receivable and determines whether to provide an allowance or if any accounts should be written off based on a past history of write-offs, collections and current credit conditions. A receivable is considered past due if the Company has not received payments based on agreed-upon terms. The Company generally does not require any security or collateral to support its receivables. The collection is primarily through Amazon and collection period is usually less than 7 days. The Company performs on-going evaluations of its customers and maintains an allowance for bad and doubtful receivables. As of December 31, 2021 and 2020, the Company did not deem it necessary to have an allowance for bad debt or doubtful accounts. Inventory and Cost of Goods Sold – The Company’s inventory consists almost entirely of finished goods. Inventories are stated at the lower of cost or net realizable value. Cost is principally determined on a first- in first-out basis. The Company’s costs include the amounts it pays manufacturers for product, tariffs and duties associated with transporting product across national borders, and freight costs associated with transporting the product from its manufacturers to its warehouses, as applicable. The merchandise with terms of FOB shipping point from vendors was recorded as the inventory-in-transit when inventory left the shipping dock of the vendors but not yet reached the receiving dock of the Company. Management continually evaluates its estimates and judgments including those related to merchandise inventory. The “Cost of revenues” line item in the consolidated statements of operations is principally inventory sold to customers during the reporting period. The Company had inventory allowance balances of $184,720 and $431,313 as of December 31, 2021 and 2020, respectively. Full inventory allowance is recorded for the inventory sku not sold for more than one year. Fixed Assets – Fixed assets are recorded at cost and depreciated or amortized over the estimated useful life of the asset using the straight-line method. The Company elected to expense any individual property and equipment items under $2,500. Thus, the Company had fixed assets of $15,667 and $0 as of December 31, 2021 and 2020, respectively. The Company uses straight line depreciation. The major property and equipment is computers and estimated useful lives is 3 years. Fair Value Measurement – Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The carrying amounts reported in the Consolidated Balance Sheets for cash and cash equivalents, accounts receivable, accounts payable, long term liabilities, due to related parties and other current liabilities approximate fair value because of the immediate or short term maturity of these financial instruments. Revenue Recognition – The Company accounts for revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC Topic 606”). The Company adopted ASC Topic 606 as of January 1, 2019. The standard did not affect the Company’s consolidated financial position, or cash flows. There were no changes to the timing of revenue recognition as a result of the adoption. The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers, which provided a five-step model for recognizing revenue from contracts with customers as follows: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Identify the contract with a customer.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"/><td style="font: 10pt Times New Roman, Times, Serif">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Identify the performance obligations in the contract.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"/><td style="font: 10pt Times New Roman, Times, Serif">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Determine the transaction price.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"/><td style="font: 10pt Times New Roman, Times, Serif">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Allocate the transaction price to the performance obligations in the contract.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Recognize revenue when or as performance obligations are satisfied.</td></tr></table> The Company derives its revenue from the sale of consumer products. The Company sells its products directly to consumers through online retail channels. The Company considers customer order confirmations to be a contract with the customer. Customer confirmations are executed at the time an order is placed through third-party online channels. For all of the Company’s sales and distribution channels, revenue is recognized when control of the product is transferred to the customer (i.e., when the Company’s performance obligation is satisfied), which typically occurs at shipment date. As a result, the Company has a present and unconditional right to payment and record the amount due from the customer in accounts receivable. The Company evaluated principal versus agent considerations to determine whether it is appropriate to record platform fees paid to Amazon as an expense or as a reduction of revenue. Platform fees are recorded as sales and distribution expenses and are not recorded as a reduction of revenue because the Company owns and controls all the goods before they are transferred to the customer. The Company can, at any time, direct Amazon, similarly, other third-party logistics providers (“Logistics Providers”), to return the Company’s inventories to any location specified by the Company. It is the Company’s responsibility to make any returns made by customers directly to Logistic Providers and the Company retains the back-end inventory risk. Further, the Company is subject to credit risk (i.e., credit card chargebacks), establishes prices of its products, can determine who fulfills the goods to the customer (Amazon or the Company) and can limit quantities or stop selling the goods at any time. The customer can return the products within 30 days after the products are delivered and estimated sales returns are calculated based on the expected returns. Based on these considerations, the Company is the principal in this arrangement. The rates of sales return were 4.92% and 4.89% for the years ended of December 31, 2021 and 2020, respectively. The Company also offers price discounts. From time to time, the Company offers price discounts on certain selected items to stimulate the sales of those items. Revenue is measured as the amount of consideration for which the Company expects to be entitled in exchange for transferring goods. Consistent with this policy, the Company reduces the amount of these discounts from the gross revenue to calculate the net revenue recorded on the statement of operations. Performance Obligations. A performance obligation is a promise in a contract to transfer a distinct good to the customer and is the unit of account in ASC Topic 606. A contract’s transaction price is recognized as revenue when the performance obligation is satisfied. Each of the Company’s contracts have a single distinct performance obligation, which is the promise to transfer individual goods. For consumer product sales, the Company has elected to treat shipping and handling as fulfillment activities, and not a separate performance obligation. The Company has shipping and handling costs of $12,718,923 and $7,159,519 for 2021 and 2020, respectively, which were recorded in Selling and Marketing expenses. Accordingly, the Company recognizes revenue for its single performance obligation related to product sales at the time control of the merchandise passes to the customer, which is generally at the time of shipment. The Company bills customers for charges for shipping and handling on certain sales and such charges are recorded as part of net revenue. For each contract, the Company considers the promise to transfer products to be the only identified performance obligation. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to be entitled. The Company’s revenues for the years ended of December 31, 2021 and 2020 are recognized at a point in time. Income Taxes – Prior to 2021, the Company, with the stockholders’ consent, elected to be taxed as an “S corporation” under the provisions of the IRC and comparable state income tax law. As an S corporation, the Company was generally not subject to corporate income taxes, and the Company’s net income or loss is reported on the individual tax return of the stockholder of the Company. On July 27, 2021, the Company’s tax status changed to an C Corporation. Per ASC 740-10-45-19, when deferred tax accounts are recognized or derecognized as required by paragraphs 740-10-25-32 and 740-10-40-6 due to a change in tax status, the effect of recognizing or derecognizing the deferred tax liability of asset shall be included in income from continuing operations. The Company also complied with state tax codes, including California franchise tax. Management has evaluated its tax positions and has concluded that the Company had taken no uncertain tax positions that could require adjustment or disclosure in the financial statements to comply with provisions set forth in ASC section 740, Income Taxes. Presentation of Sales Taxes – Governmental authorities impose sales tax on all of the Company’s sales to nonexempt customers. The Company collects sales tax from customers and remits the entire amount to the governmental authorities. The Company’s accounting policy is to exclude the tax collected and remitted from revenues and cost of revenues. The Company makes an assessment of sales tax payable including any related interest and penalties and accrues these estimated on the financial statements. Pursuant to the Wayfair decision, each state enforces sales tax collection at different dates. The Company collects and remits sales tax in accordance with the state regulations. The Company estimates that as of December 31, 2021 and 2020, it owed $620,963 and $673,334, respectively in sales taxes along with penalties and interest. Concentrations of Risks – Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and accounts receivable. The Company maintains cash with various domestic and foreign financial institutions of high credit quality. The Company performs periodic evaluations of the relative credit standing of all of the aforementioned institutions. The Company’s accounts receivables are derived from sales contracts with a large number of customers. The Company maintains reserves for potential credit losses on customer accounts when deemed necessary. Significant customers are those which represent more than 10% of the Company’s total net revenue or gross accounts receivable balance at the balance sheet date. During the periods ended December 31, 2021 and 2020, the Company had no customers that accounted for 10% or more of total net revenues. In addition, as of December 31, 2021 and 2020, the Company had no customer that accounted for 10% or more of gross accounts receivable. As of December 31, 2021 and 2020, all of its accounts receivable are held by the Company’s sales platform agent, Amazon, which collects money on the Company’s behalf from its customers. Therefore, the Company’s accounts receivable are comprised of receivables due from Amazon and the reimbursement from Amazon to the Company usually takes 15 to 20 days. The Company’s business is reliant on one key vendor which currently provides the Company with its sales platform, logistics and fulfillment operations, including certain warehousing for the Company’s net goods, and invoicing and collection of its revenue from the Company’s end customers. In 2020, approximately <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20200101__20201231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerMember_zBB1mdao6dF" title="Concentration risk percentage">100% of the Company’s revenue was through or with the Amazon sales platform and in 2021, <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20210101__20211231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerMember_zmZBvsF5031f" title="Concentration risk percentage">100% of its net revenue was through or with the Amazon sales platform. Selling and Marketing – Selling and marketing are expensed as incurred in accordance with ASC 720-35. Among these, advertising and promotion expenses were $2,382,150 and $1,475,223 for the years ended December 31, 2021 and 2020, respectively. General and Administrative – General and administrative are expensed as incurred in accordance with ASC 720-35. Commitments and Contingencies – Liabilities for loss contingencies arising from claims, assessments, litigation, fines, penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. Related Parties – The Company accounts for related party transactions in accordance with ASC Topic 850 (Related Party Disclosures). A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party. Earnings per Share – The Company computes basic earnings per common share using the weighted-average number of shares of common stock outstanding during the period. For period in which the Company reports net losses, diluted net loss per share attributable to stockholders is the same as basic net loss per share attributable to stockholders, because potentially dilutive common shares are not assumed to have been issued if their effect is anti-dilutive. Revisions – The Company determined that previously issued consolidated financial statements for the years ended December 31, 2020 contained in the Company’s registration statement on Form S-1/A filed on January 4, 2022 should be amended to correctly include other income as part of operating income in each period. These revisions had no impact on the Company’s net income or and financial position. The Company evaluated these revisions in compliance with ASC 250-10-20 (definition in glossary) and ASC 250-10-45-22 to 45-28 as well as SAB 99 and concluded that the error in previously issued financial statements was immaterial both Quantitatively and qualitatively. Correcting the immaterial error was referred as to as “revisions” of prior period financial statements. As the effect of the error corrections on the prior periods was immaterial, column headings of “restatements” were not required. The effects of these accounts in the Company’s previously issued consolidated statements of operations and comprehensive income for the years ended December 31, 2020 are summarized as follows: Schedule of previously issued consolidated statements of operations and comprehensive income <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 95%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20200101__20201231__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_z2O7T7l2WPY" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Previously Reported</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20200101__20201231__srt--RestatementAxis__srt--RestatementAdjustmentMember_zRja5d4bJAkf" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Revisions</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_491_20200101__20201231_zaqpGmwCEvp1" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Revised</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Statement of Operations Data</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--CostOfGoodsAndServicesSold_iN_pp0p0_di_zLe2aGgqrfZf" style="vertical-align: bottom; background-color: White"> <td style="width: 46%; text-align: left">Total cost of goods sold</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">(16,639,491</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">153,721</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">(16,485,770</td><td style="width: 1%; text-align: left">)</td></tr> <tr id="xdx_40A_eus-gaap--GrossProfit_iTC_pp0p0" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Gross profit</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">22,015,773</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">153,721</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">22,169,494</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--OperatingIncomeLoss_iTC_pp0p0" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Income (loss) from operations</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,686,848</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">153,721</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,840,569</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--OtherNonoperatingIncomeExpense_i01TC_pp0p0" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total other non-operating income(Expense)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">138,541</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(153,721</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(15,180</td><td style="text-align: left">)</td></tr> </table>

Reorganization – On June 30, 2021, the Company completed a corporate reorganization to convert its status from an S corporation (10,000,000 common shares issued and outstanding) to a C corporation (10,000,000 common shares issued and outstanding) with an effective date of July 27, 2021 (the “Reorganization”). The Reorganization did not change the ownership of the Company and the Company’s two stockholders (Sam Lai and Maggie Yu) each continue to own 50% of the Company. The discussion and presentation of the financial statements herein assumes the Reorganization had become effective as of the beginning of the first period presented in the accompanying consolidated financial statements. Consistent with Section 1362 of the Internal Revenue Code of 1986, as amended (the “Code”), the retained earnings as of July 27, 2021 were distributed to the S corporation stockholders. The stockholders and the Company have entered into an agreement for this amount to be loaned to the Company. The amount of this distribution is $4,170,418 and the annual interest rate is 2%. The loan is due on December 31, 2022. On September 27, 2021, the Company completed a stock split such that each outstanding stock was sub-divided and converted into 4.44 shares of common stock. As result of the stock split, the total number of shares outstanding became 44,400,000. On December 3, 2021, the Company completed a reverse stock split such that each outstanding stock was sub-divided and converted into 0.75 shares of common stock. As a result of the reverse stock split, the total number of shares outstanding became 33,300,000. These shares were retrospectively adjusted for prior periods.

10000000

2021-07-27

0.50

4170418

0.02

2022-12-31

the Company completed a stock split such that each outstanding stock was sub-divided and converted into 4.44 shares of common stock

44400000

the Company completed a reverse stock split such that each outstanding stock was sub-divided and converted into 0.75 shares of common stock

33300000

Basis of Presentation – The consolidated financial statements and accompanying notes of the Company have been prepared in accordance with the accounting principles generally accepted in the United States of America (“US GAAP”).

Principles of Consolidation – The consolidated financial statements include the accounts of Hour Loop and Flywheel. All material inter-company accounts and transactions were eliminated in consolidation.

Foreign Currency and Currency Translation – The assets and liabilities of Flywheel, having a functional currency other than the U.S. dollar, are translated into U.S. dollars at exchange rates in effect at year-end, with resulting translation gains or losses included within other comprehensive income or loss. Revenues and expenses are translated into U.S. dollars at average monthly rates of exchange in effect during each year. All of the Company’s foreign operations use their local currency as their functional currency. Currency gains or losses resulting from transactions executed in currencies other than the functional currency are included in other income (expense) in the consolidated statement of operations and other comprehensive income. The Company is exposed to foreign currency exchange risk through its foreign subsidiary in Taiwan, which reports its earnings in Taiwan dollars. The Company translates the foreign assets and liabilities at exchange rates in effect at the consolidated balance sheet date, and translates the revenues and expenses using average rates during the year. The resulting foreign currency translation adjustments are recorded as a separate component of accumulated other comprehensive income or loss in the accompanying consolidated balance sheet and the consolidated statements of operations. The Company does not hedge foreign currency translation risk in the net assets and income reported from these sources. The relevant exchange rates are listed below: Schedule of Foreign Currency Exchange Rates <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_498_20211231_zZjlKKM1wk0k" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_499_20201231_z3dNpCiExWF3" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">For the fiscal year ended December 31</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr id="xdx_40E_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_hus-gaap--AwardTypeAxis__custom--PeriodNTDUSDExchangeRateMember_zvdQYhmWCEx1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Period NTD: USD exchange rate</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">27.630</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">28.430</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_hus-gaap--AwardTypeAxis__custom--PeriodAverageNTDUSDExchangeRateMember_zsdoiRLo2s4e" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Period Average NTD: USD exchange rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">27.706</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">29.483</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_hus-gaap--AwardTypeAxis__custom--PeriodAverageNTDUSDExchangeRateMember_zydq3ghTsMYa" style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: left">Foreign currency exchange rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">27.706</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">29.483</td><td style="text-align: left"> </td></tr> </table>

The relevant exchange rates are listed below: Schedule of Foreign Currency Exchange Rates <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_498_20211231_zZjlKKM1wk0k" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_499_20201231_z3dNpCiExWF3" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">For the fiscal year ended December 31</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr id="xdx_40E_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_hus-gaap--AwardTypeAxis__custom--PeriodNTDUSDExchangeRateMember_zvdQYhmWCEx1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Period NTD: USD exchange rate</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">27.630</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">28.430</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_hus-gaap--AwardTypeAxis__custom--PeriodAverageNTDUSDExchangeRateMember_zsdoiRLo2s4e" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Period Average NTD: USD exchange rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">27.706</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">29.483</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_hus-gaap--AwardTypeAxis__custom--PeriodAverageNTDUSDExchangeRateMember_zydq3ghTsMYa" style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: left">Foreign currency exchange rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">27.706</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">29.483</td><td style="text-align: left"> </td></tr> </table>

27.630

28.430

27.706

29.483

27.706

29.483

Use of Estimates – The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Significant estimated include, but not limited to, estimates associated with the collectability of accounts receivable and inventory valuation.

COVID-19 Pandemic – In March 2020, the World Health Organization recognized the novel strain of coronavirus (COVID-19) as a pandemic. This COVID-19 outbreak has severely restricted the level of economic activity around the world. In response to this COVID-19 outbreak, the governments of many countries, states, cities, and other geographic regions have taken preventative or protective actions, such as imposing restrictions on travel and business operations and advising or requiring individuals to limit or forego their time outside of their homes. The Company’s services, operating results and financial performance could be adversely affected by the overall impacts of the pandemic. Management has determined that there is no material uncertainty that casts substantial doubt on the Company’s ability to continue as a going concern. It is expected that COVID-19 might have some impact, though it is not anticipated to be significant.

Cash and Cash Equivalents – The Company considers all highly liquid financial instruments purchased with original maturities of three months or less to be cash and cash equivalents. The carrying amount of cash and cash equivalents approximates fair value.

Accounts Receivable and Allowance for Doubtful Accounts – Accounts receivable are stated at historical cost less allowance for doubtful accounts. On a periodic basis, management evaluates its accounts receivable and determines whether to provide an allowance or if any accounts should be written off based on a past history of write-offs, collections and current credit conditions. A receivable is considered past due if the Company has not received payments based on agreed-upon terms. The Company generally does not require any security or collateral to support its receivables. The collection is primarily through Amazon and collection period is usually less than 7 days. The Company performs on-going evaluations of its customers and maintains an allowance for bad and doubtful receivables. As of December 31, 2021 and 2020, the Company did not deem it necessary to have an allowance for bad debt or doubtful accounts.

Inventory and Cost of Goods Sold – The Company’s inventory consists almost entirely of finished goods. Inventories are stated at the lower of cost or net realizable value. Cost is principally determined on a first- in first-out basis. The Company’s costs include the amounts it pays manufacturers for product, tariffs and duties associated with transporting product across national borders, and freight costs associated with transporting the product from its manufacturers to its warehouses, as applicable. The merchandise with terms of FOB shipping point from vendors was recorded as the inventory-in-transit when inventory left the shipping dock of the vendors but not yet reached the receiving dock of the Company. Management continually evaluates its estimates and judgments including those related to merchandise inventory. The “Cost of revenues” line item in the consolidated statements of operations is principally inventory sold to customers during the reporting period. The Company had inventory allowance balances of $184,720 and $431,313 as of December 31, 2021 and 2020, respectively. Full inventory allowance is recorded for the inventory sku not sold for more than one year.

184720

431313

Fixed Assets – Fixed assets are recorded at cost and depreciated or amortized over the estimated useful life of the asset using the straight-line method. The Company elected to expense any individual property and equipment items under $2,500. Thus, the Company had fixed assets of $15,667 and $0 as of December 31, 2021 and 2020, respectively. The Company uses straight line depreciation. The major property and equipment is computers and estimated useful lives is 3 years.

2500

15667

Fair Value Measurement – Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The carrying amounts reported in the Consolidated Balance Sheets for cash and cash equivalents, accounts receivable, accounts payable, long term liabilities, due to related parties and other current liabilities approximate fair value because of the immediate or short term maturity of these financial instruments.

Revenue Recognition – The Company accounts for revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC Topic 606”). The Company adopted ASC Topic 606 as of January 1, 2019. The standard did not affect the Company’s consolidated financial position, or cash flows. There were no changes to the timing of revenue recognition as a result of the adoption. The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers, which provided a five-step model for recognizing revenue from contracts with customers as follows: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Identify the contract with a customer.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"/><td style="font: 10pt Times New Roman, Times, Serif">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Identify the performance obligations in the contract.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"/><td style="font: 10pt Times New Roman, Times, Serif">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Determine the transaction price.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"/><td style="font: 10pt Times New Roman, Times, Serif">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Allocate the transaction price to the performance obligations in the contract.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Recognize revenue when or as performance obligations are satisfied.</td></tr></table> The Company derives its revenue from the sale of consumer products. The Company sells its products directly to consumers through online retail channels. The Company considers customer order confirmations to be a contract with the customer. Customer confirmations are executed at the time an order is placed through third-party online channels. For all of the Company’s sales and distribution channels, revenue is recognized when control of the product is transferred to the customer (i.e., when the Company’s performance obligation is satisfied), which typically occurs at shipment date. As a result, the Company has a present and unconditional right to payment and record the amount due from the customer in accounts receivable. The Company evaluated principal versus agent considerations to determine whether it is appropriate to record platform fees paid to Amazon as an expense or as a reduction of revenue. Platform fees are recorded as sales and distribution expenses and are not recorded as a reduction of revenue because the Company owns and controls all the goods before they are transferred to the customer. The Company can, at any time, direct Amazon, similarly, other third-party logistics providers (“Logistics Providers”), to return the Company’s inventories to any location specified by the Company. It is the Company’s responsibility to make any returns made by customers directly to Logistic Providers and the Company retains the back-end inventory risk. Further, the Company is subject to credit risk (i.e., credit card chargebacks), establishes prices of its products, can determine who fulfills the goods to the customer (Amazon or the Company) and can limit quantities or stop selling the goods at any time. The customer can return the products within 30 days after the products are delivered and estimated sales returns are calculated based on the expected returns. Based on these considerations, the Company is the principal in this arrangement. The rates of sales return were 4.92% and 4.89% for the years ended of December 31, 2021 and 2020, respectively. The Company also offers price discounts. From time to time, the Company offers price discounts on certain selected items to stimulate the sales of those items. Revenue is measured as the amount of consideration for which the Company expects to be entitled in exchange for transferring goods. Consistent with this policy, the Company reduces the amount of these discounts from the gross revenue to calculate the net revenue recorded on the statement of operations. Performance Obligations. A performance obligation is a promise in a contract to transfer a distinct good to the customer and is the unit of account in ASC Topic 606. A contract’s transaction price is recognized as revenue when the performance obligation is satisfied. Each of the Company’s contracts have a single distinct performance obligation, which is the promise to transfer individual goods. For consumer product sales, the Company has elected to treat shipping and handling as fulfillment activities, and not a separate performance obligation. The Company has shipping and handling costs of $12,718,923 and $7,159,519 for 2021 and 2020, respectively, which were recorded in Selling and Marketing expenses. Accordingly, the Company recognizes revenue for its single performance obligation related to product sales at the time control of the merchandise passes to the customer, which is generally at the time of shipment. The Company bills customers for charges for shipping and handling on certain sales and such charges are recorded as part of net revenue. For each contract, the Company considers the promise to transfer products to be the only identified performance obligation. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to be entitled. The Company’s revenues for the years ended of December 31, 2021 and 2020 are recognized at a point in time.

0.0492 0.0489 12718923 7159519

Income Taxes – Prior to 2021, the Company, with the stockholders’ consent, elected to be taxed as an “S corporation” under the provisions of the IRC and comparable state income tax law. As an S corporation, the Company was generally not subject to corporate income taxes, and the Company’s net income or loss is reported on the individual tax return of the stockholder of the Company. On July 27, 2021, the Company’s tax status changed to an C Corporation. Per ASC 740-10-45-19, when deferred tax accounts are recognized or derecognized as required by paragraphs 740-10-25-32 and 740-10-40-6 due to a change in tax status, the effect of recognizing or derecognizing the deferred tax liability of asset shall be included in income from continuing operations. The Company also complied with state tax codes, including California franchise tax. Management has evaluated its tax positions and has concluded that the Company had taken no uncertain tax positions that could require adjustment or disclosure in the financial statements to comply with provisions set forth in ASC section 740, Income Taxes.

Presentation of Sales Taxes – Governmental authorities impose sales tax on all of the Company’s sales to nonexempt customers. The Company collects sales tax from customers and remits the entire amount to the governmental authorities. The Company’s accounting policy is to exclude the tax collected and remitted from revenues and cost of revenues. The Company makes an assessment of sales tax payable including any related interest and penalties and accrues these estimated on the financial statements. Pursuant to the Wayfair decision, each state enforces sales tax collection at different dates. The Company collects and remits sales tax in accordance with the state regulations. The Company estimates that as of December 31, 2021 and 2020, it owed $620,963 and $673,334, respectively in sales taxes along with penalties and interest.

620963

Concentrations of Risks – Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and accounts receivable. The Company maintains cash with various domestic and foreign financial institutions of high credit quality. The Company performs periodic evaluations of the relative credit standing of all of the aforementioned institutions. The Company’s accounts receivables are derived from sales contracts with a large number of customers. The Company maintains reserves for potential credit losses on customer accounts when deemed necessary. Significant customers are those which represent more than 10% of the Company’s total net revenue or gross accounts receivable balance at the balance sheet date. During the periods ended December 31, 2021 and 2020, the Company had no customers that accounted for 10% or more of total net revenues. In addition, as of December 31, 2021 and 2020, the Company had no customer that accounted for 10% or more of gross accounts receivable. As of December 31, 2021 and 2020, all of its accounts receivable are held by the Company’s sales platform agent, Amazon, which collects money on the Company’s behalf from its customers. Therefore, the Company’s accounts receivable are comprised of receivables due from Amazon and the reimbursement from Amazon to the Company usually takes 15 to 20 days. The Company’s business is reliant on one key vendor which currently provides the Company with its sales platform, logistics and fulfillment operations, including certain warehousing for the Company’s net goods, and invoicing and collection of its revenue from the Company’s end customers. In 2020, approximately <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20200101__20201231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerMember_zBB1mdao6dF" title="Concentration risk percentage">100% of the Company’s revenue was through or with the Amazon sales platform and in 2021, <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20210101__20211231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerMember_zmZBvsF5031f" title="Concentration risk percentage">100% of its net revenue was through or with the Amazon sales platform.

During the periods ended December 31, 2021 and 2020, the Company had no customers that accounted for 10% or more of total net revenues. In addition, as of December 31, 2021 and 2020, the Company had no customer that accounted for 10% or more of gross accounts receivable

Selling and Marketing – Selling and marketing are expensed as incurred in accordance with ASC 720-35. Among these, advertising and promotion expenses were $2,382,150 and $1,475,223 for the years ended December 31, 2021 and 2020, respectively.

2382150

1475223

General and Administrative – General and administrative are expensed as incurred in accordance with ASC 720-35.

Commitments and Contingencies – Liabilities for loss contingencies arising from claims, assessments, litigation, fines, penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred.

Related Parties – The Company accounts for related party transactions in accordance with ASC Topic 850 (Related Party Disclosures). A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party.

Earnings per Share – The Company computes basic earnings per common share using the weighted-average number of shares of common stock outstanding during the period. For period in which the Company reports net losses, diluted net loss per share attributable to stockholders is the same as basic net loss per share attributable to stockholders, because potentially dilutive common shares are not assumed to have been issued if their effect is anti-dilutive.

Revisions – The Company determined that previously issued consolidated financial statements for the years ended December 31, 2020 contained in the Company’s registration statement on Form S-1/A filed on January 4, 2022 should be amended to correctly include other income as part of operating income in each period. These revisions had no impact on the Company’s net income or and financial position. The Company evaluated these revisions in compliance with ASC 250-10-20 (definition in glossary) and ASC 250-10-45-22 to 45-28 as well as SAB 99 and concluded that the error in previously issued financial statements was immaterial both Quantitatively and qualitatively. Correcting the immaterial error was referred as to as “revisions” of prior period financial statements. As the effect of the error corrections on the prior periods was immaterial, column headings of “restatements” were not required. The effects of these accounts in the Company’s previously issued consolidated statements of operations and comprehensive income for the years ended December 31, 2020 are summarized as follows: Schedule of previously issued consolidated statements of operations and comprehensive income <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 95%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20200101__20201231__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_z2O7T7l2WPY" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Previously Reported</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20200101__20201231__srt--RestatementAxis__srt--RestatementAdjustmentMember_zRja5d4bJAkf" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Revisions</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_491_20200101__20201231_zaqpGmwCEvp1" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Revised</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Statement of Operations Data</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--CostOfGoodsAndServicesSold_iN_pp0p0_di_zLe2aGgqrfZf" style="vertical-align: bottom; background-color: White"> <td style="width: 46%; text-align: left">Total cost of goods sold</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">(16,639,491</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">153,721</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">(16,485,770</td><td style="width: 1%; text-align: left">)</td></tr> <tr id="xdx_40A_eus-gaap--GrossProfit_iTC_pp0p0" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Gross profit</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">22,015,773</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">153,721</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">22,169,494</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--OperatingIncomeLoss_iTC_pp0p0" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Income (loss) from operations</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,686,848</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">153,721</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,840,569</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--OtherNonoperatingIncomeExpense_i01TC_pp0p0" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total other non-operating income(Expense)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">138,541</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(153,721</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(15,180</td><td style="text-align: left">)</td></tr> </table>

The effects of these accounts in the Company’s previously issued consolidated statements of operations and comprehensive income for the years ended December 31, 2020 are summarized as follows: Schedule of previously issued consolidated statements of operations and comprehensive income <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 95%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20200101__20201231__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_z2O7T7l2WPY" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Previously Reported</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20200101__20201231__srt--RestatementAxis__srt--RestatementAdjustmentMember_zRja5d4bJAkf" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Revisions</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_491_20200101__20201231_zaqpGmwCEvp1" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Revised</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Statement of Operations Data</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--CostOfGoodsAndServicesSold_iN_pp0p0_di_zLe2aGgqrfZf" style="vertical-align: bottom; background-color: White"> <td style="width: 46%; text-align: left">Total cost of goods sold</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">(16,639,491</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">153,721</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">(16,485,770</td><td style="width: 1%; text-align: left">)</td></tr> <tr id="xdx_40A_eus-gaap--GrossProfit_iTC_pp0p0" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Gross profit</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">22,015,773</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">153,721</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">22,169,494</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--OperatingIncomeLoss_iTC_pp0p0" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Income (loss) from operations</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,686,848</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">153,721</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,840,569</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--OtherNonoperatingIncomeExpense_i01TC_pp0p0" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total other non-operating income(Expense)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">138,541</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(153,721</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(15,180</td><td style="text-align: left">)</td></tr> </table>

16639491

-153721

16485770

22015773

153721

22169494

3686848

153721

3840569

138541

-153721

-15180

NOTE 2 – Recent Accounting Pronouncements The FASB issues Accounting Standards Updates (“ASU”) to amend the authoritative literature in the ASC. There have been several ASUs to date that amend the original text of the ASCs. Other than those discussed below, the Company believes those ASUs issued to date either (i) provide supplemental guidance, (ii) are technical corrections, (iii) are not applicable to the Company or (iv) are not expected to have a significant impact on the Company. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes, as part of its Simplification Initiative to reduce the cost and complexity in accounting for income taxes. This standard removes certain exceptions related to the approach for intra period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. It also amends other aspects of the guidance to help simplify and promote consistent application of GAAP. The amendments in these ASUs are effective for the Company’s fiscal years, and interim periods within those fiscal years beginning October 1, 2022. The Company does not expect to early adopt this guidance and is in the process of evaluating the impact of adoption of this guidance on the Company’s consolidated financial statements.

NOTE 3 – Cash and Cash Equivalents Cash and cash equivalents is comprised of the following as of December 31: Schedule of Cash and Cash Equivalents <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_494_20211231_z4CprPAw5QBh" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="font-weight: bold"> </td><td> </td> <td colspan="2" id="xdx_49E_20201231_zStma00AnXL2" style="border-bottom: Black 1.5pt solid; text-align: center">2020</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr id="xdx_40C_eus-gaap--CashAndDueFromBanks_iI_maCACEAzIoZ_zaVvJVQymr7b" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Checking account</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 14%; font-weight: bold; text-align: right">10,591,158</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">4,966,471</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--InterestBearingDepositsInBanks_iI_maCACEAzIoZ_zKAdqZuAi5b9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Savings account and Cash</td><td style="font-weight: bold"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">1,414</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,593</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--CashAndCashEquivalentsAtCarryingValue_iTI_mtCACEAzIoZ_zyPnIaX2rnb6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Total</td><td style="font-weight: bold"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">10,592,572</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,968,064</td><td style="text-align: left"> </td></tr> </table>

Cash and cash equivalents is comprised of the following as of December 31: Schedule of Cash and Cash Equivalents <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_494_20211231_z4CprPAw5QBh" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="font-weight: bold"> </td><td> </td> <td colspan="2" id="xdx_49E_20201231_zStma00AnXL2" style="border-bottom: Black 1.5pt solid; text-align: center">2020</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr id="xdx_40C_eus-gaap--CashAndDueFromBanks_iI_maCACEAzIoZ_zaVvJVQymr7b" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Checking account</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 14%; font-weight: bold; text-align: right">10,591,158</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">4,966,471</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--InterestBearingDepositsInBanks_iI_maCACEAzIoZ_zKAdqZuAi5b9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Savings account and Cash</td><td style="font-weight: bold"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">1,414</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,593</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--CashAndCashEquivalentsAtCarryingValue_iTI_mtCACEAzIoZ_zyPnIaX2rnb6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Total</td><td style="font-weight: bold"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">10,592,572</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,968,064</td><td style="text-align: left"> </td></tr> </table>

10591158

4966471

1414

1593

10592572

4968064

NOTE 4 – Inventory Inventory was comprised of the following as of December 31: Schedule of Inventory <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49B_20211231_zbvQfuDKfyjj" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="font-weight: bold"> </td><td> </td> <td colspan="2" id="xdx_491_20201231_zgC8pXnYai8" style="border-bottom: Black 1.5pt solid; text-align: center">2020</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr id="xdx_405_eus-gaap--InventoryFinishedGoods_iI_maINzRTw_zgt8xPH2acSd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%">Inventory</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 14%; font-weight: bold; text-align: right">5,852,658</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">4,172,856</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--OtherInventoryInTransit_iI_maINzRTw_zVbu9FqaqDHf" style="vertical-align: bottom; background-color: White"> <td>Inventory-In-Transit</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">1,373,926</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">620,346</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--InventoryValuationReserves_iNI_di_msINzRTw_zsJkLTj7Oj7h" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Allowance</td><td style="font-weight: bold"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(184,720</td><td style="font-weight: bold; text-align: left">)</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(431,313</td><td style="text-align: left">)</td></tr> <tr id="xdx_400_eus-gaap--InventoryNet_iTI_mtINzRTw_zfycXSGdto77" style="vertical-align: bottom; background-color: White"> <td>Total</td><td style="font-weight: bold"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">7,041,864</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,361,889</td><td style="text-align: left"> </td></tr> </table> For the fiscal year December 31, 2021 and 2020, the Company recorded inventory provision as follow: Schedule of Inventory Provision <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Allowance of Inventory</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 64%; text-align: left">Beginning Balance</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_984_eus-gaap--InventoryValuationReserves_iS_c20210101__20211231_zQBFa85Ibaad" style="width: 14%; text-align: right" title="Allowance of Inventory, Beginning Balance">431,313</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_988_eus-gaap--InventoryValuationReserves_iS_c20200101__20201231_zh6JtXDTNdvd" style="width: 14%; text-align: right" title="Allowance of Inventory, Beginning Balance">625,814</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Provision</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_ecustom--InventoryProvision_c20210101__20211231_zPooQ87qGJP9" style="text-align: right" title="Provision">116,359</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_ecustom--InventoryProvision_c20200101__20201231_z8VZHgkib3M5" style="text-align: right" title="Provision">373,980</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Write off</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_985_ecustom--InventoryWriteOffValue_iN_di_c20210101__20211231_z966xODNAKDd" style="border-bottom: Black 1.5pt solid; text-align: right" title="Write off">(362,952</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_986_ecustom--InventoryWriteOffValue_iN_di_c20200101__20201231_zuq1FbypUTyl" style="border-bottom: Black 1.5pt solid; text-align: right" title="Write off">(568,481</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Ending Balance</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_988_eus-gaap--InventoryValuationReserves_iE_c20210101__20211231_z11VEKAVnpx4" style="border-bottom: Black 2.5pt double; text-align: right" title="Allowance of Inventory, Ending Balance">184,720</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98F_eus-gaap--InventoryValuationReserves_iE_c20200101__20201231_zuxV1OGXZaJ4" style="border-bottom: Black 2.5pt double; text-align: right" title="Allowance of Inventory, Ending Balance">431,313</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

Inventory was comprised of the following as of December 31: Schedule of Inventory <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49B_20211231_zbvQfuDKfyjj" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="font-weight: bold"> </td><td> </td> <td colspan="2" id="xdx_491_20201231_zgC8pXnYai8" style="border-bottom: Black 1.5pt solid; text-align: center">2020</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr id="xdx_405_eus-gaap--InventoryFinishedGoods_iI_maINzRTw_zgt8xPH2acSd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%">Inventory</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 14%; font-weight: bold; text-align: right">5,852,658</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">4,172,856</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--OtherInventoryInTransit_iI_maINzRTw_zVbu9FqaqDHf" style="vertical-align: bottom; background-color: White"> <td>Inventory-In-Transit</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">1,373,926</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">620,346</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--InventoryValuationReserves_iNI_di_msINzRTw_zsJkLTj7Oj7h" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Allowance</td><td style="font-weight: bold"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(184,720</td><td style="font-weight: bold; text-align: left">)</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(431,313</td><td style="text-align: left">)</td></tr> <tr id="xdx_400_eus-gaap--InventoryNet_iTI_mtINzRTw_zfycXSGdto77" style="vertical-align: bottom; background-color: White"> <td>Total</td><td style="font-weight: bold"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">7,041,864</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,361,889</td><td style="text-align: left"> </td></tr> </table>

5852658

4172856

1373926

620346

184720

431313

7041864

4361889

For the fiscal year December 31, 2021 and 2020, the Company recorded inventory provision as follow: Schedule of Inventory Provision <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Allowance of Inventory</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 64%; text-align: left">Beginning Balance</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_984_eus-gaap--InventoryValuationReserves_iS_c20210101__20211231_zQBFa85Ibaad" style="width: 14%; text-align: right" title="Allowance of Inventory, Beginning Balance">431,313</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_988_eus-gaap--InventoryValuationReserves_iS_c20200101__20201231_zh6JtXDTNdvd" style="width: 14%; text-align: right" title="Allowance of Inventory, Beginning Balance">625,814</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Provision</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_ecustom--InventoryProvision_c20210101__20211231_zPooQ87qGJP9" style="text-align: right" title="Provision">116,359</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_ecustom--InventoryProvision_c20200101__20201231_z8VZHgkib3M5" style="text-align: right" title="Provision">373,980</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Write off</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_985_ecustom--InventoryWriteOffValue_iN_di_c20210101__20211231_z966xODNAKDd" style="border-bottom: Black 1.5pt solid; text-align: right" title="Write off">(362,952</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_986_ecustom--InventoryWriteOffValue_iN_di_c20200101__20201231_zuq1FbypUTyl" style="border-bottom: Black 1.5pt solid; text-align: right" title="Write off">(568,481</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Ending Balance</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_988_eus-gaap--InventoryValuationReserves_iE_c20210101__20211231_z11VEKAVnpx4" style="border-bottom: Black 2.5pt double; text-align: right" title="Allowance of Inventory, Ending Balance">184,720</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98F_eus-gaap--InventoryValuationReserves_iE_c20200101__20201231_zuxV1OGXZaJ4" style="border-bottom: Black 2.5pt double; text-align: right" title="Allowance of Inventory, Ending Balance">431,313</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

431313

625814

116359 373980 362952 568481

184720

431313

NOTE 5 – Prepaid expenses and other current assets Schedule of prepaid expenses and other current assets <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49A_20211231_zdT3WPyGBXvl" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="font-weight: bold"> </td><td> </td> <td colspan="2" id="xdx_498_20201231_zY6tEbXxCz61" style="border-bottom: Black 1.5pt solid; text-align: center">2020</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr id="xdx_40F_eus-gaap--Supplies_iI_maPEAOAzTIF_zGLMhEWL2UN" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Advance to suppliers</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 14%; font-weight: bold; text-align: right">78,875</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">138,855</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_ecustom--PrepaidExpenseBeforeIPOCostCurrent_iI_maPEAOAzTIF_zV9tbkxgB5D7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Prepaid expenses</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">120,899</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">55,707</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--OtherPrepaidExpenseCurrent_iI_maPEAOAzTIF_z5Q6mzbLhN36" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Prepaid expenses-IPO cost</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">576,168</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--PrepaidTaxes_iI_maPEAOAzTIF_zZINvieOtq32" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Tax receivable</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">114,640</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_ecustom--LeaseRefundableDepositCurrent_iI_maPEAOAzTIF_zqJPgcSvQwu" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Lease Refundable Deposit</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">70,554</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,331</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--OtherAssetsCurrent_iI_maPEAOAzTIF_zRGIubDw8GWf" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Other current assets</td><td style="font-weight: bold"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">4,162</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">129</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--PrepaidExpenseAndOtherAssetsCurrent_iTI_pp0p0_mtPEAOAzTIF_zLM2Jf3A8Ec" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Total</td><td style="font-weight: bold"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">965,298</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">201,022</td><td style="text-align: left"> </td></tr> </table>

Schedule of prepaid expenses and other current assets <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49A_20211231_zdT3WPyGBXvl" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="font-weight: bold"> </td><td> </td> <td colspan="2" id="xdx_498_20201231_zY6tEbXxCz61" style="border-bottom: Black 1.5pt solid; text-align: center">2020</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr id="xdx_40F_eus-gaap--Supplies_iI_maPEAOAzTIF_zGLMhEWL2UN" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Advance to suppliers</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 14%; font-weight: bold; text-align: right">78,875</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">138,855</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_ecustom--PrepaidExpenseBeforeIPOCostCurrent_iI_maPEAOAzTIF_zV9tbkxgB5D7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Prepaid expenses</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">120,899</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">55,707</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--OtherPrepaidExpenseCurrent_iI_maPEAOAzTIF_z5Q6mzbLhN36" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Prepaid expenses-IPO cost</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">576,168</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--PrepaidTaxes_iI_maPEAOAzTIF_zZINvieOtq32" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Tax receivable</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">114,640</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_ecustom--LeaseRefundableDepositCurrent_iI_maPEAOAzTIF_zqJPgcSvQwu" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Lease Refundable Deposit</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">70,554</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,331</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--OtherAssetsCurrent_iI_maPEAOAzTIF_zRGIubDw8GWf" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Other current assets</td><td style="font-weight: bold"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">4,162</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">129</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--PrepaidExpenseAndOtherAssetsCurrent_iTI_pp0p0_mtPEAOAzTIF_zLM2Jf3A8Ec" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Total</td><td style="font-weight: bold"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">965,298</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">201,022</td><td style="text-align: left"> </td></tr> </table>

78875

138855

120899 55707

576168

114640

70554 6331

4162

129

965298

201022

NOTE 6 – Accrued expenses and other current liabilities Accrued expenses and other current liabilities were comprised of the following as of December 31: Schedule of accrued expenses and other current liabilities <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_495_20211231_zcyAbF6eA3q" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="font-weight: bold"> </td><td> </td> <td colspan="2" id="xdx_49E_20201231_zCODeKJq3Ug9" style="border-bottom: Black 1.5pt solid; text-align: center">2020</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr id="xdx_40E_ecustom--AccruedSalesTaxPayableCurrent_iI_maAEAOCzZbc_zypSGAXzukg9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Sales Tax Payable</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 14%; font-weight: bold; text-align: right">620,963</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">673,334</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--AccruedPayrollTaxesCurrent_iI_maAEAOCzZbc_zPqtuCDgxTs6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Payroll Tax Payable</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">-</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">375,686</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--AccruedSalariesCurrent_iI_maAEAOCzZbc_zYf662Y04d27" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Accrue payroll</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">476,277</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">170,084</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--AccruedLiabilitiesCurrent_iI_maAEAOCzZbc_z4TH34KLIhzc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accrued Expenses</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">116,679</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">95,208</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--AccountsPayableOtherCurrent_iI_maAEAOCzZbc_zLXwZrpXovxh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Other Payable</td><td style="font-weight: bold"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">68,242</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">27,696</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--AccruedLiabilitiesAndOtherLiabilities_iTI_mtAEAOCzZbc_zcGafSiN3TD" style="vertical-align: bottom; background-color: White"> <td>Total</td><td style="font-weight: bold"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">1,282,161</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,342,008</td><td style="text-align: left"> </td></tr> </table>

Accrued expenses and other current liabilities were comprised of the following as of December 31: Schedule of accrued expenses and other current liabilities <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_495_20211231_zcyAbF6eA3q" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="font-weight: bold"> </td><td> </td> <td colspan="2" id="xdx_49E_20201231_zCODeKJq3Ug9" style="border-bottom: Black 1.5pt solid; text-align: center">2020</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr id="xdx_40E_ecustom--AccruedSalesTaxPayableCurrent_iI_maAEAOCzZbc_zypSGAXzukg9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Sales Tax Payable</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 14%; font-weight: bold; text-align: right">620,963</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">673,334</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--AccruedPayrollTaxesCurrent_iI_maAEAOCzZbc_zPqtuCDgxTs6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Payroll Tax Payable</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">-</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">375,686</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--AccruedSalariesCurrent_iI_maAEAOCzZbc_zYf662Y04d27" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Accrue payroll</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">476,277</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">170,084</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--AccruedLiabilitiesCurrent_iI_maAEAOCzZbc_z4TH34KLIhzc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accrued Expenses</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">116,679</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">95,208</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--AccountsPayableOtherCurrent_iI_maAEAOCzZbc_zLXwZrpXovxh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Other Payable</td><td style="font-weight: bold"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">68,242</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">27,696</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--AccruedLiabilitiesAndOtherLiabilities_iTI_mtAEAOCzZbc_zcGafSiN3TD" style="vertical-align: bottom; background-color: White"> <td>Total</td><td style="font-weight: bold"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">1,282,161</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,342,008</td><td style="text-align: left"> </td></tr> </table>

620963 673334

375686

476277

170084

116679

95208

68242

27696

1282161

1342008

NOTE 7 – Loans Line of Credit On June 19, 2019, the Company signed a line of credit agreement in the amount of $<span id="xdx_901_eus-gaap--LineOfCredit_iI_c20190619__us-gaap--CreditFacilityAxis__us-gaap--LineOfCreditMember__us-gaap--LineOfCreditFacilityAxis__custom--BankOfAmericaMember_zsiIANReOwqe" title="Line of credit">785,000 with Bank of America. The line of credit matures on <span id="xdx_909_eus-gaap--DebtInstrumentMaturityDate_dd_c20190618__20190619__us-gaap--CreditFacilityAxis__us-gaap--LineOfCreditMember__us-gaap--LineOfCreditFacilityAxis__custom--BankOfAmericaMember_zSSI6RQ3DJ4g" title="Maturity date">June 18, 2024 and bears interest at a rate of <span id="xdx_90C_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20190619__us-gaap--CreditFacilityAxis__us-gaap--LineOfCreditMember__us-gaap--LineOfCreditFacilityAxis__custom--BankOfAmericaMember_zlCXGeclQj23" title="Interest rate">8.11% per annum. As of December 31, 2021 and 2020, the outstanding balance under the Bank of America line of credit was $-0- and $-0-, respectively. Also, the Company has accrued interest expense $-<span id="xdx_90E_eus-gaap--InterestPayableCurrentAndNoncurrent_iI_c20211231__us-gaap--CreditFacilityAxis__us-gaap--LineOfCreditMember__us-gaap--LineOfCreditFacilityAxis__custom--BankOfAmericaMember_zClaTB2P4qY3" title="Accrued interest expense">0- and $<span id="xdx_904_eus-gaap--InterestPayableCurrentAndNoncurrent_iI_c20201231__us-gaap--CreditFacilityAxis__us-gaap--LineOfCreditMember__us-gaap--LineOfCreditFacilityAxis__custom--BankOfAmericaMember_zbVDsOS5epe5" title="Accrued interest expense">27,996 as of December 31, 2021 and 2020 , respectively. Accrued interest expense has been recorded in the accrued expenses on the balance sheet. PPP Loan On April 3, 2020, to supplement its cash balance, the Company submitted its application for a Paycheck Protection Program (“PPP”) loan (the “SBA Loan”) sponsored by the U.S. Small Business Administration in the amount of $27,012. On April 7, 2020, Company’s SBA Loan application was approved, and the Company received loan proceeds on April 8, 2020. The SBA loan has an interest rate of 0.98% and matures on April 6, 2022. The current and the long-term portions of the PPP loan balance at December 31, 2021 were $0 and $0, respectively. The current and the long-term portions of the PPP loan balance at December 31, 2020 were $20,958 and $6,054, respectively. Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) provides for forgiveness of up to the full principal amount of qualifying loans guaranteed under the PPP. The PPP and loan forgiveness are intended to provide economic relief to small businesses, such as the Company, that are adversely impacted under the COVID-19 Emergency Declaration issued by then-President Donald J. Trump on March 13, 2020. The Company’s PPP loan was forgiven on May 6, 2021 and the PPP loan has been recorded in the other income on the statement of operations and comprehensive loss.

785000

2024-06-18

0.0811

27996

27012

0.0098

2022-04-06

20958

6054

NOTE 8 – Related Party Transactions From time to time, the Company receives loans and advances from its stockholders to fund its operations. Stockholder loans and advances are non-interest bearing and payable on demand. As of December 31, 2021 and 2020, the Company had $5,214,794 and $1,041,353, respectively, of payables to its stockholders. On September 16, 2020, the Company and the stockholders modified the terms of the $1,041,353 loan payable and converted it into an interest-bearing (2%) loan with a repayment date of December 31, 2021. Additionally, the Company repaid all of this loan on January 18, 2022. Additionally, the Company had $4,170,418 in short term loan from related parties. The annual interest rate is 2% and repayment date is December 31,2022.

5214794

1041353

0.02

2021-12-31

4170418

0.02

2022-12-31

NOTE 9 – Leases As of January 1, 2019, the Company adopted ASC Topic 842, Leases, which allows the Company to apply the transition provision at the Company’s adoption date instead of at the earliest comparative period presented in the financial statements. Therefore, the Company recognized and measured leases existing at January 1, 2019 but without retrospective application. In addition, the Company elected the optional practical expedient permitted under the transition guidance which allows the Company to carry forward the historical accounting treatment for existing leases upon adoption. No impact was recorded to the beginning retained earnings for ASC Topic 842. The Company had three operating leases (Hour Loop’s Xiamen warehouse lease and Seattle warehouse lease, and Flywheel’s office lease in Taiwan). The leased assets in Hour Loop and Flywheel are presented as right-of-use assets. The following table outlines the details: Schedule of Operating Leases Cost <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Hour Loop</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Flywheel</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center">January 2019</td><td> </td><td> </td> <td colspan="2" style="text-align: center">September 2020</td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid">Initial lease term</td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">to January 2022</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">to September 2022</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Initial recognition of right-of-use assets</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98F_eus-gaap--OperatingLeaseRightOfUseAsset_iI_c20211231__srt--ConsolidatedEntitiesAxis__srt--ParentCompanyMember__us-gaap--AwardDateAxis__custom--JanuaryTwoThousandNineteenToJanuaryTwoThousandTwentyTwoMember_zQWHYOuyzIl7" style="width: 16%; text-align: right" title="Initial recognition of right-of-use assets">201,478</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--OperatingLeaseRightOfUseAsset_iI_c20201231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__us-gaap--AwardDateAxis__custom--SeptemberTwoThousandTwentyToSeptemberTwoThousandTwentyTwoMember_zmPSQUtzF22i" style="width: 16%; text-align: right" title="Initial recognition of right-of-use assets">66,432</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Weighted-average remaining lease term at December 31, 2020</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90F_eus-gaap--OperatingLeaseWeightedAverageRemainingLeaseTerm1_iI_dtY_c20201231__srt--ConsolidatedEntitiesAxis__srt--ParentCompanyMember__us-gaap--AwardDateAxis__custom--JanuaryTwoThousandNineteenToJanuaryTwoThousandTwentyTwoMember_zUmboOxeMSZg" title="Weighted-average remaining lease term">1.1</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90B_eus-gaap--OperatingLeaseWeightedAverageRemainingLeaseTerm1_iI_dtY_c20201231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__us-gaap--AwardDateAxis__custom--SeptemberTwoThousandTwentyToSeptemberTwoThousandTwentyTwoMember_zoQWpgbMpSK1" title="Weighted-average remaining lease term">1.7</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Weighted-average discount rate at December 31, 2020</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_c20201231__srt--ConsolidatedEntitiesAxis__srt--ParentCompanyMember__us-gaap--AwardDateAxis__custom--JanuaryTwoThousandNineteenToJanuaryTwoThousandTwentyTwoMember_zH7XJF0lWSpk" style="text-align: right" title="Weighted-average discount rat">8.11</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_c20201231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__us-gaap--AwardDateAxis__custom--SeptemberTwoThousandTwentyToSeptemberTwoThousandTwentyTwoMember_zUpynH7Z75b1" style="text-align: right" title="Weighted-average discount rat">8.11</td><td style="text-align: left">%</td></tr> </table> As of December 31, 2021 the Company has fully paid all lease liabilities. The right-of-use assets balance at December 31, 2021 were $30,111 and $99,452, respectively.

The following table outlines the details: Schedule of Operating Leases Cost <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Hour Loop</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Flywheel</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center">January 2019</td><td> </td><td> </td> <td colspan="2" style="text-align: center">September 2020</td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid">Initial lease term</td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">to January 2022</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">to September 2022</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Initial recognition of right-of-use assets</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98F_eus-gaap--OperatingLeaseRightOfUseAsset_iI_c20211231__srt--ConsolidatedEntitiesAxis__srt--ParentCompanyMember__us-gaap--AwardDateAxis__custom--JanuaryTwoThousandNineteenToJanuaryTwoThousandTwentyTwoMember_zQWHYOuyzIl7" style="width: 16%; text-align: right" title="Initial recognition of right-of-use assets">201,478</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--OperatingLeaseRightOfUseAsset_iI_c20201231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__us-gaap--AwardDateAxis__custom--SeptemberTwoThousandTwentyToSeptemberTwoThousandTwentyTwoMember_zmPSQUtzF22i" style="width: 16%; text-align: right" title="Initial recognition of right-of-use assets">66,432</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Weighted-average remaining lease term at December 31, 2020</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90F_eus-gaap--OperatingLeaseWeightedAverageRemainingLeaseTerm1_iI_dtY_c20201231__srt--ConsolidatedEntitiesAxis__srt--ParentCompanyMember__us-gaap--AwardDateAxis__custom--JanuaryTwoThousandNineteenToJanuaryTwoThousandTwentyTwoMember_zUmboOxeMSZg" title="Weighted-average remaining lease term">1.1</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90B_eus-gaap--OperatingLeaseWeightedAverageRemainingLeaseTerm1_iI_dtY_c20201231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__us-gaap--AwardDateAxis__custom--SeptemberTwoThousandTwentyToSeptemberTwoThousandTwentyTwoMember_zoQWpgbMpSK1" title="Weighted-average remaining lease term">1.7</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Weighted-average discount rate at December 31, 2020</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_c20201231__srt--ConsolidatedEntitiesAxis__srt--ParentCompanyMember__us-gaap--AwardDateAxis__custom--JanuaryTwoThousandNineteenToJanuaryTwoThousandTwentyTwoMember_zH7XJF0lWSpk" style="text-align: right" title="Weighted-average discount rat">8.11</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_c20201231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__us-gaap--AwardDateAxis__custom--SeptemberTwoThousandTwentyToSeptemberTwoThousandTwentyTwoMember_zUpynH7Z75b1" style="text-align: right" title="Weighted-average discount rat">8.11</td><td style="text-align: left">%</td></tr> </table>

201478

66432

P1Y1M6D

P1Y8M12D

0.0811

30111

99452

NOTE 10 – Income Tax The components of income tax provision (benefit) are as follows at December 31: Schedule of Effective Income Tax Rate Reconciliation <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" id="xdx_49E_20210101__20211231_z5vuk5Thfkg2" style="border-bottom: Black 1.5pt solid; text-align: center">2021</td><td> </td><td> </td> <td colspan="2" id="xdx_496_20200101__20201231_z5r6ucZmfcjb" style="border-bottom: Black 1.5pt solid; text-align: center">2020</td><td> </td></tr> <tr id="xdx_409_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_uPure_zh2XX9TfWwRf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Federal Rate</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">21.0000</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes_pid_dp_uPure_zqia6CnFZmDj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Blended State Tax Rate</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">4.0477</td><td style="text-align: left">%</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--EffectiveIncomeTaxRateContinuingOperations_pid_dp_uPure_zs9GtVlL6gN9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Effective Tax Rate</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">25.0477</td><td style="text-align: left">%</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="text-align: left"> </td></tr> </table> Schedule of Components of Income Tax Provision (Benefit) <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="text-align: center; font-weight: bold">Deferred</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="text-align: center; font-weight: bold">Deferred</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="text-align: center; font-weight: bold">Total</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="text-align: center; font-weight: bold">income tax</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="text-align: center; font-weight: bold">income tax</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="text-align: center; font-weight: bold">income tax</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold">Tax expense summary</td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">expense (benefit)</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">expense</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">expense</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%">Federal</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_981_eus-gaap--DeferredFederalIncomeTaxExpenseBenefit_c20210101__20211231_zM4uS1978206" style="width: 14%; text-align: right" title="Deferred income tax expense (benefit), Federal">(38,137</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_984_ecustom--DeferredFederalIncomeTaxExpense_c20210101__20211231_zIVOPdYKbfz2" style="width: 14%; text-align: right" title="Deferred income tax expense, Federal">595,360</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98C_eus-gaap--FederalIncomeTaxExpenseBenefitContinuingOperations_c20210101__20211231_z16tFOkY08c1" style="width: 14%; text-align: right" title="Total income tax expense, Federal">557,223</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>State</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_985_eus-gaap--DeferredStateAndLocalIncomeTaxExpenseBenefit_c20210101__20211231_zKzgarsSqbXj" style="border-bottom: Black 1.5pt solid; text-align: right" title="Deferred income tax expense (benefit), State">(7,351</td><td style="text-align: left">)</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98E_ecustom--DeferredStateAndLocalIncomeTaxExpense_c20210101__20211231_zPZhxnhLduv4" style="border-bottom: Black 1.5pt solid; text-align: right" title="Deferred income tax expense, State">159,333</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--StateAndLocalIncomeTaxExpenseBenefitContinuingOperations_c20210101__20211231_zPxSOpP8OVO2" style="border-bottom: Black 1.5pt solid; text-align: right" title="Total income tax expense, State">151,982</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total tax expense</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--DeferredIncomeTaxExpenseBenefit_c20210101__20211231_zyNvWehQXpVb" style="text-align: right" title="Deferred income tax expense (benefit)">(45,488</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_ecustom--DeferredIncomeTaxExpense_c20210101__20211231_zacmVaJpmOsf" style="text-align: right" title="Deferred income tax expense">754,693</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--IncomeTaxExpenseBenefit_c20210101__20211231_zJPkqbdzIJw8" style="text-align: right" title="Total income tax expense">709,205</td><td style="text-align: left"> </td></tr> </table> The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2021 and 2020 are presented below: Schedule of Deferred Tax Assets and Liabilities <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 85%"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_495_20211231_zHhNSn4KXBgk" style="font-weight: bold; text-align: center">Deferred Tax Assets</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_499_20201231_zdHlrvHv3VUi" style="font-weight: bold; text-align: center">Deferred Tax Assets</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold">Deferred Tax Assets summary</td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">12/31/2021</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">12/31/2020</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_40E_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_hus-gaap--IncomeTaxAuthorityAxis__us-gaap--DomesticCountryMember_z7cpo9BHYXRc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Federal</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">38,137</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">—</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_hus-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember_zxcjIbb4qCOg" style="vertical-align: bottom; background-color: White"> <td>State</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">7,351</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_zRu2jXDFSgT8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total Net DTA</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">45,488</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 85%"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_491_20211231_zymct48rtJI7" style="font-weight: bold; text-align: center">Deferred Tax Assets</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_491_20201231_zAp0XBkNTqy5" style="font-weight: bold; text-align: center">Deferred Tax Assets</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold">Deferred Tax Assets summary</td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">12/31/2021</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">12/31/2020</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_402_ecustom--DeferredTaxAssetsRightOfUseAsset_iI_maDTANzS2Y_zk1ym9LMzfO4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">ROU</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">(780</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">—</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--DeferredTaxAssetsInventory_iI_maDTANzS2Y_zqMovdfUmBC4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Inventories Allowance</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">46,268</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--DeferredTaxAssetsValuationAllowance_iI_msDTANzS2Y_zMJwU76exSX3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Valuation Allowance</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--DeferredTaxAssetsNet_iTI_mtDTANzS2Y_zQ9w7NgsoVsd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total Net DTA</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">45,488</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> </table> The Company files income tax returns in the U.S. federal jurisdiction and in Washington State. Based on management’s evaluation, there is no provision necessary for material uncertain tax position for the Company at December 31, 2021.

Schedule of Effective Income Tax Rate Reconciliation <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" id="xdx_49E_20210101__20211231_z5vuk5Thfkg2" style="border-bottom: Black 1.5pt solid; text-align: center">2021</td><td> </td><td> </td> <td colspan="2" id="xdx_496_20200101__20201231_z5r6ucZmfcjb" style="border-bottom: Black 1.5pt solid; text-align: center">2020</td><td> </td></tr> <tr id="xdx_409_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_uPure_zh2XX9TfWwRf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Federal Rate</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">21.0000</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes_pid_dp_uPure_zqia6CnFZmDj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Blended State Tax Rate</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">4.0477</td><td style="text-align: left">%</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--EffectiveIncomeTaxRateContinuingOperations_pid_dp_uPure_zs9GtVlL6gN9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Effective Tax Rate</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">25.0477</td><td style="text-align: left">%</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="text-align: left"> </td></tr> </table>

0.210000

0.040477

0.250477

Schedule of Components of Income Tax Provision (Benefit) <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="text-align: center; font-weight: bold">Deferred</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="text-align: center; font-weight: bold">Deferred</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="text-align: center; font-weight: bold">Total</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="text-align: center; font-weight: bold">income tax</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="text-align: center; font-weight: bold">income tax</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="text-align: center; font-weight: bold">income tax</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold">Tax expense summary</td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">expense (benefit)</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">expense</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">expense</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%">Federal</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_981_eus-gaap--DeferredFederalIncomeTaxExpenseBenefit_c20210101__20211231_zM4uS1978206" style="width: 14%; text-align: right" title="Deferred income tax expense (benefit), Federal">(38,137</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_984_ecustom--DeferredFederalIncomeTaxExpense_c20210101__20211231_zIVOPdYKbfz2" style="width: 14%; text-align: right" title="Deferred income tax expense, Federal">595,360</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98C_eus-gaap--FederalIncomeTaxExpenseBenefitContinuingOperations_c20210101__20211231_z16tFOkY08c1" style="width: 14%; text-align: right" title="Total income tax expense, Federal">557,223</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>State</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_985_eus-gaap--DeferredStateAndLocalIncomeTaxExpenseBenefit_c20210101__20211231_zKzgarsSqbXj" style="border-bottom: Black 1.5pt solid; text-align: right" title="Deferred income tax expense (benefit), State">(7,351</td><td style="text-align: left">)</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98E_ecustom--DeferredStateAndLocalIncomeTaxExpense_c20210101__20211231_zPZhxnhLduv4" style="border-bottom: Black 1.5pt solid; text-align: right" title="Deferred income tax expense, State">159,333</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--StateAndLocalIncomeTaxExpenseBenefitContinuingOperations_c20210101__20211231_zPxSOpP8OVO2" style="border-bottom: Black 1.5pt solid; text-align: right" title="Total income tax expense, State">151,982</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total tax expense</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--DeferredIncomeTaxExpenseBenefit_c20210101__20211231_zyNvWehQXpVb" style="text-align: right" title="Deferred income tax expense (benefit)">(45,488</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_ecustom--DeferredIncomeTaxExpense_c20210101__20211231_zacmVaJpmOsf" style="text-align: right" title="Deferred income tax expense">754,693</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--IncomeTaxExpenseBenefit_c20210101__20211231_zJPkqbdzIJw8" style="text-align: right" title="Total income tax expense">709,205</td><td style="text-align: left"> </td></tr> </table>

-38137

595360

557223

-7351

159333

151982

-45488

754693

709205

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2021 and 2020 are presented below: Schedule of Deferred Tax Assets and Liabilities <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 85%"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_495_20211231_zHhNSn4KXBgk" style="font-weight: bold; text-align: center">Deferred Tax Assets</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_499_20201231_zdHlrvHv3VUi" style="font-weight: bold; text-align: center">Deferred Tax Assets</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold">Deferred Tax Assets summary</td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">12/31/2021</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">12/31/2020</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_40E_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_hus-gaap--IncomeTaxAuthorityAxis__us-gaap--DomesticCountryMember_z7cpo9BHYXRc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Federal</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">38,137</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">—</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_hus-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember_zxcjIbb4qCOg" style="vertical-align: bottom; background-color: White"> <td>State</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">7,351</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_zRu2jXDFSgT8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total Net DTA</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">45,488</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 85%"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_491_20211231_zymct48rtJI7" style="font-weight: bold; text-align: center">Deferred Tax Assets</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_491_20201231_zAp0XBkNTqy5" style="font-weight: bold; text-align: center">Deferred Tax Assets</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold">Deferred Tax Assets summary</td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">12/31/2021</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">12/31/2020</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_402_ecustom--DeferredTaxAssetsRightOfUseAsset_iI_maDTANzS2Y_zk1ym9LMzfO4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">ROU</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">(780</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">—</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--DeferredTaxAssetsInventory_iI_maDTANzS2Y_zqMovdfUmBC4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Inventories Allowance</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">46,268</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--DeferredTaxAssetsValuationAllowance_iI_msDTANzS2Y_zMJwU76exSX3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Valuation Allowance</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--DeferredTaxAssetsNet_iTI_mtDTANzS2Y_zQ9w7NgsoVsd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total Net DTA</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">45,488</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> </table>

38137

7351

45488

-780

46268

45488

NOTE 11 – Revenue Revenue was comprised of the following for the years ended December 31, 2021 and 2020: Schedule of Revenue <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49D_20210101__20211231_zO5ziFnYk05h" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_494_20200101__20201231_zMD3pkJsZRgd" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr id="xdx_40E_ecustom--RevenueGross_maRFCWCzrER_zYPzvdWEmXAe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Revenue</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 16%; font-weight: bold; text-align: right">66,833,003</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 2%; text-align: left">$</td><td style="width: 16%; text-align: right">41,092,944</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_ecustom--SalesReturns_iN_di_msRFCWCzrER_zioxDc9TCO24" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Sales returns</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(3,245,872</td><td style="font-weight: bold; text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,986,192</td><td style="text-align: left">)</td></tr> <tr id="xdx_40B_ecustom--Discounts_iN_di_msRFCWCzrER_zo9VVtPNYPAc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Discounts</td><td style="font-weight: bold"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(794,150</td><td style="font-weight: bold; text-align: left">)</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(451,488</td><td style="text-align: left">)</td></tr> <tr id="xdx_40D_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_iT_mtRFCWCzrER_zPywxWvfPnJb" style="vertical-align: bottom; background-color: White"> <td>Total</td><td style="font-weight: bold"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">62,792,981</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">38,655,264</td><td style="text-align: left"> </td></tr> </table>

Revenue was comprised of the following for the years ended December 31, 2021 and 2020: Schedule of Revenue <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49D_20210101__20211231_zO5ziFnYk05h" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_494_20200101__20201231_zMD3pkJsZRgd" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr id="xdx_40E_ecustom--RevenueGross_maRFCWCzrER_zYPzvdWEmXAe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Revenue</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 16%; font-weight: bold; text-align: right">66,833,003</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 2%; text-align: left">$</td><td style="width: 16%; text-align: right">41,092,944</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_ecustom--SalesReturns_iN_di_msRFCWCzrER_zioxDc9TCO24" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Sales returns</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(3,245,872</td><td style="font-weight: bold; text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,986,192</td><td style="text-align: left">)</td></tr> <tr id="xdx_40B_ecustom--Discounts_iN_di_msRFCWCzrER_zo9VVtPNYPAc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Discounts</td><td style="font-weight: bold"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(794,150</td><td style="font-weight: bold; text-align: left">)</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(451,488</td><td style="text-align: left">)</td></tr> <tr id="xdx_40D_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_iT_mtRFCWCzrER_zPywxWvfPnJb" style="vertical-align: bottom; background-color: White"> <td>Total</td><td style="font-weight: bold"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">62,792,981</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">38,655,264</td><td style="text-align: left"> </td></tr> </table>

66833003 41092944 3245872 1986192 794150 451488

62792981

38655264

NOTE 12 – General and Administrative Expenses General and administrative expenses were comprised of the following for the years ended December 31, 2021 and 2020: Schedule of General and Administrative Expenses <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49C_20210101__20211231_zU3mLMymbvG6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_494_20200101__20201231_zN9hlQ6GCrw3" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr id="xdx_40E_eus-gaap--LaborAndRelatedExpense_maGAAEzsj1_zALi9FAyYhN1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Payroll</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">3,227,147</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,336,724</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_ecustom--OutsideServicesExpense_maGAAEzsj1_z9jqURCD0OPk" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Outside Services</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">170,876</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">158,631</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--GeneralInsuranceExpense_maGAAEzsj1_zY4s9jY0uHMe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Insurance Expense</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">158,185</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">95,513</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--OperatingLeaseExpense_maGAAEzsj1_zXPuRXy9DQeb" style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: left">Storage & Rental Fees</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 16%; font-weight: bold; text-align: right">126,718</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 2%; text-align: left"> </td><td style="width: 16%; text-align: right">235,222</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_404_ecustom--MealsAndEntertainmentExpense_maGAAEzsj1_zwQbWHNu0vnh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Meals and Entertainment Expense</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">88,125</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">74,736</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--TaxesOther_maGAAEzsj1_zSdtW686QuIj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Sales Taxes</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">84,914</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">92,579</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_ecustom--GeneralAndAdministrativeOfficeExpense_maGAAEzsj1_z9yhnQrsaSIg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Office Expense</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">70,431</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">31,395</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--ProfessionalFees_maGAAEzsj1_zfoI2VMqzACe" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Legal and Professional Fees</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">58,366</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">32,864</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_ecustom--GeneralAndAdministrativeSoftwareSubscriptionsExpense_maGAAEzsj1_zsiZcHWCdw04" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Software Subscriptions Expense</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">33,919</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">45,691</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_ecustom--GeneralAndAdministrativeEmployeeBenefits_maGAAEzsj1_zOQlZtqE362d" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Employee benefits</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">21,814</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">13,376</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_ecustom--ManpowerRecruitmentAdvertisingExpense_maGAAEzsj1_z7vZ8Nuk65sc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Manpower Recruitment Advertising Expense</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">19,343</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--OtherGeneralAndAdministrativeExpense_maGAAEzsj1_zSB500TXptE9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Other G&A Expenses</td><td style="font-weight: bold"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">176,162</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">56,108</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--GeneralAndAdministrativeExpense_iT_mtGAAEzsj1_zkmRFh3xSERk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Total</td><td style="font-weight: bold"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">4,236,000</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,172,839</td><td style="text-align: left"> </td></tr> </table> General and administrative expenses were comprised of the following for the years ended December 31, 2021 and 2020: Schedule of General and Administrative Expenses <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49C_20210101__20211231_zU3mLMymbvG6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_494_20200101__20201231_zN9hlQ6GCrw3" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr id="xdx_40E_eus-gaap--LaborAndRelatedExpense_maGAAEzsj1_zALi9FAyYhN1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Payroll</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">3,227,147</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">2,336,724</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_ecustom--OutsideServicesExpense_maGAAEzsj1_z9jqURCD0OPk" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Outside Services</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">170,876</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">158,631</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--GeneralInsuranceExpense_maGAAEzsj1_zY4s9jY0uHMe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Insurance Expense</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">158,185</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">95,513</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--OperatingLeaseExpense_maGAAEzsj1_zXPuRXy9DQeb" style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: left">Storage & Rental Fees</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 16%; font-weight: bold; text-align: right">126,718</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 2%; text-align: left"> </td><td style="width: 16%; text-align: right">235,222</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_404_ecustom--MealsAndEntertainmentExpense_maGAAEzsj1_zwQbWHNu0vnh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Meals and Entertainment Expense</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">88,125</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">74,736</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--TaxesOther_maGAAEzsj1_zSdtW686QuIj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Sales Taxes</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">84,914</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">92,579</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_ecustom--GeneralAndAdministrativeOfficeExpense_maGAAEzsj1_z9yhnQrsaSIg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Office Expense</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">70,431</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">31,395</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--ProfessionalFees_maGAAEzsj1_zfoI2VMqzACe" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Legal and Professional Fees</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">58,366</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">32,864</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_ecustom--GeneralAndAdministrativeSoftwareSubscriptionsExpense_maGAAEzsj1_zsiZcHWCdw04" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Software Subscriptions Expense</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">33,919</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">45,691</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_ecustom--GeneralAndAdministrativeEmployeeBenefits_maGAAEzsj1_zOQlZtqE362d" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Employee benefits</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">21,814</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">13,376</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_ecustom--ManpowerRecruitmentAdvertisingExpense_maGAAEzsj1_z7vZ8Nuk65sc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Manpower Recruitment Advertising Expense</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">19,343</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--OtherGeneralAndAdministrativeExpense_maGAAEzsj1_zSB500TXptE9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Other G&A Expenses</td><td style="font-weight: bold"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">176,162</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">56,108</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--GeneralAndAdministrativeExpense_iT_mtGAAEzsj1_zkmRFh3xSERk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Total</td><td style="font-weight: bold"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">4,236,000</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,172,839</td><td style="text-align: left"> </td></tr> </table>

3227147

2336724

170876 158631

158185

95513

126718

235222

88125 74736

84914

92579

70431 31395

58366

32864

33919 45691 21814 13376 19343

176162

56108

4236000

3172839

NOTE 13 – Stockholders’ Equity Preferred Stock The authorized capital stock of the Company was 10,000,000 shares of preferred stock, $0.0001 par value per share, as of December 31, 2021 and 2020. The Company did not have any preferred shares outstanding as of December 31, 2021 and 2020. The holders of the preferred stock are entitled to receive dividends, if and when declared by the Board of Directors. Common Stock As of December 31, 2021 and 2020, the authorized capital stock of the Company was 300,000,000 shares of common stock, $0.0001 par value per share, and there were 33,300,000 shares of common stock outstanding. Stock Split The authorized capital stock of the Company was 440,000,000 shares of common stock, $0.0001 par value per share before December 3, 2021. On December 3, 2021, the Company authorized a reverse stock split. Each existing share was split into 0.75 share of the Company’s common stock. This reverse stock split caused the number of shares outstanding to decrease from 44,400,000 to 33,300,000 . All per share amounts and number of shares in the consolidated financial statements and related notes have been retrospectively adjusted to reflect the reverse stock split.

10000000

0.0001

300000000

0.0001

33300000

440000000

0.0001

the Company authorized a reverse stock split. Each existing share was split into 0.75 share of the Company’s common stock

44400000

33300000

NOTE 14 – Commitments and Contingencies As of December 31, 2021 and 2020, the Company had no material or significant commitments outstanding. From time-to-time, the Company is subject to various litigation and other claims in the normal course of business. The Company establishes liabilities in connection with legal actions that management deems to be probable and estimable. As of December 31, 2021 and 2020, the Company had no pending legal proceeds outstanding. No amounts have been accrued in the financial statements with respect to any matters.

NOTE 15 – Subsequent Events Share issuance for stock compensation On January 3, 2022, the Company issued <span id="xdx_90D_eus-gaap--StockIssuedDuringPeriodSharesIssuedForServices_pid_c20220102__20220103__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__srt--TitleOfIndividualAxis__custom--SamLaiMember_zBlRwLtHmdaa" title="Stock issued for services, shares"><span id="xdx_90F_eus-gaap--StockIssuedDuringPeriodSharesIssuedForServices_pid_c20220102__20220103__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__srt--TitleOfIndividualAxis__custom--MaggieYuMember_zozi7yJTIb2l">1,772 shares of Company common stock to each of Sam Lai, our Chief Executive Officer, and Maggie Yu, our Senior Vice President, with a fair market value of $<span id="xdx_902_eus-gaap--SharesIssuedPricePerShare_iI_pid_c20220103__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__srt--TitleOfIndividualAxis__custom--SamLaiMember_zpy265Yikqs2" title="Shares issued price per share">4.00 per share as compensation for services to the Company pursuant to the terms of their Executive Employment Agreements with the Company. On January 3, 2022, the Company issued <span id="xdx_900_eus-gaap--StockIssuedDuringPeriodSharesIssuedForServices_pid_c20220102__20220103__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__srt--TitleOfIndividualAxis__custom--MichaelLennerMember_zIDLkhhaPzQd">1,750, <span id="xdx_903_eus-gaap--StockIssuedDuringPeriodSharesIssuedForServices_pid_c20220102__20220103__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__srt--TitleOfIndividualAxis__custom--DouglasBranchMember_zc3qdd1huEf8">1,750, and <span id="xdx_90D_eus-gaap--StockIssuedDuringPeriodSharesIssuedForServices_pid_c20220102__20220103__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__srt--TitleOfIndividualAxis__custom--AlanGaoMember_zJghbWvLRDG">709 shares of Company common stock to Michael Lenner, Douglas Branch, and Alan Gao, respectively, with a fair market value of $<span id="xdx_90A_eus-gaap--SharesIssuedPricePerShare_iI_pid_c20220103__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__srt--TitleOfIndividualAxis__custom--MichaelLennerMember_zZae5duXcppg"><span id="xdx_90D_eus-gaap--SharesIssuedPricePerShare_iI_pid_c20220103__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__srt--TitleOfIndividualAxis__custom--DouglasBranchMember_zuW2Zl2c4UGe">4.00 per share as compensation for services as directors to the Company pursuant to the terms of their Director Agreements with the Company. IPO proceeds On January 11, 2022, we closed our initial public offering of <span id="xdx_90A_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20220110__20220111__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_z5CK7Kjgnvih" title="Shares issued during initial public offering">1,725,000 shares of common stock, which included the full exercise of the underwriter’s over-allotment option, at a public offering price of $4.00 per share, for aggregate gross proceeds of $<span id="xdx_907_ecustom--GrossProceedsFromIssuanceInitialPublicOffering_pn5n6_c20220110__20220111__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_zfEIwHAcB5D" title="Gross proceeds from initial public offering">6.9 million, prior to deducting underwriting discounts, commissions, and other offering expenses. Our common stock began trading on The Nasdaq Capital Market on January 7, 2022, under the symbol “HOUR”. EF Hutton, division of Benchmark Investments, LLC (“EF Hutton”), acted as sole book-running manager for the offering. The net proceeds of the offering, after deducting expenses were $<span id="xdx_90D_eus-gaap--ProceedsFromIssuanceInitialPublicOffering_c20220110__20220111__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_z7ZEI8MYRzr6" title="Proceeds from initial public offering">6,156,360. As a result, common stock increased by $<span id="xdx_907_ecustom--IncreaseDecreaseInCommonStockValue_c20220110__20220111__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_zdXD0j3iFHW8" title="Incraese in common stock value">173, and additional paid in capital increased by $<span id="xdx_901_ecustom--IncreaseDecreaseInAdditionalPaidInCapital_c20220110__20220111__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_zv4WZ3EMEKb7" title="Increase in additional paid in capital">6,156,188. Lease Flywheel entering to a new lease agreement for office operating purpose in Taiwan in 2022 , the lease agreement period is January 01, 2022 to December 31,2023, and the total contract amount is $574,063. The Company has evaluated subsequent events through March 29, 2022 the date the financial statements were available to be issued. Except as noted above, no other matters were identified affecting the accompanying financial statements or related disclosures.

1772

4.00

1750

709

4.00

1725000

4.00

6900000

6156360

173 6156188

574063