Leases

12 Months Ended

Dec. 31, 2024

Leases [Abstract]

Leases

NOTE 9 - Leases

The Company had four operating leases (Flywheel’s office leases in Taiwan) as of December 31, 2024. The leased assets in Flywheel are presented as operating lease right-of-use assets.

HOUR LOOP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024 and 2023

The table below reconciles the fixed component of the undiscounted cash flows for each of the first five years and the total remaining years to the operating lease liabilities recorded in the statements of financial position as of December 31, 2024:

	Flywheel			Flywheel			Flywheel			Flywheel
	February 2023			March 2024			June 2024			August 2024
Initial lease term	to March 2025			to June 2025			to May 2025			to July 2025
Initial recognition of operating lease right-of-use assets	$	28,652		$	123,107		$	52,434		$	73,175
Weighted-average remaining lease term at December 31, 2024		0.17			0.5			0.42			0.58
Weighted-average discount rate at December 31, 2024		3.20	%		3.20	%		3.33	%		3.33	%

Operating lease liabilities-current as of December 31, 2024 and 2023 were $114,540 and $82,269, respectively. Operating lease liabilities-non-current as of December 31, 2024 and 2023 were $-0- and $2,363, respectively. The operating lease right-of-use assets balance as of December 31, 2024 and 2023, were $111,409 and $83,946, respectively.

For the years ended December 31, 2024 and 2023, the amortization of the operating lease right-of-use asset was $211,348 and $387,446, respectively. These amounts were recorded in general and administrative expenses. Additionally, for the years ended December 31, 2024 and 2023, the Company made lease payments of $208,843 and $386,224, respectively, which were included in the operating cash flows statements.

The future minimum lease payment schedule for all operating leases as of December 31, 2024, is as disclosed below. 

For the Year Ending December 31,	Amount
2025	$	115,652
2026		-
2027		-
2028 and thereafter		-
Total minimum lease payments		115,652
Less: effect of discounting		(1,112	)
Present value of the future minimum lease payment		114,540
Less: operating lease liabilities-current		(114,540	)
Total operating lease liabilities-non-current	$	-

HOUR LOOP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024 and 2023