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10-K true 2024-12-31 --12-31 2024 false 001-41204 HOUR LOOP, INC. DE 47-2869399 8201 164th Ave. NE Redmond WA 98052-7615 (206) 385-0488 Common Stock HOUR NASDAQ No No Yes Yes Non-accelerated Filer true true false false false false 1611150 35151440 0.0001 None Cybersecurity Risk Management and Strategy The cybersecurity risk management program, processes and strategy outlined in this section are limited to the personal and business information belonging to or maintained by the Company (collectively, “Confidential Information”), the Company’s critical <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_90C_ecyd--CybersecurityRiskManagementThirdPartyEngagedFlag_dbT_c20240101__20241231_za2u10FqYjt9">third-party systems and services supporting or used by the Company (collectively, “Critical Systems”), and service providers. <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_90C_ecyd--CybersecurityRiskManagementProcessesIntegratedTextBlock_c20240101__20241231_z5R8jtbXcJRi">We will develop and <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_90C_ecyd--CybersecurityRiskManagementProcessesIntegratedFlag_dbT_c20240101__20241231_zABMptbicVUd">implement a cybersecurity risk management program to safeguard the confidentiality, integrity, and availability of our Confidential Information and Critical Systems. Our cybersecurity risk management program will be integrated into our broader enterprise risk management framework and includes a cybersecurity incident response plan. Our cybersecurity risk management program shall include: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 48px"> </td> <td style="width: 24px; text-align: justify">●</td> <td style="text-align: justify">risk assessments to identify material cybersecurity risks to our Confidential Information, Critical Systems and broader enterprise IT environment;</td></tr> <tr style="vertical-align: top"> <td> </td> <td style="text-align: justify"> </td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td style="text-align: justify">●</td> <td style="text-align: justify">a dedicated security team responsible for managing (1) cybersecurity risk assessment processes, (2) security controls, and (3) response to cybersecurity incidents;</td></tr> <tr style="vertical-align: top"> <td> </td> <td style="text-align: justify"> </td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td style="text-align: justify">●</td> <td style="text-align: justify">cybersecurity awareness training including spear-phishing resistance for employees, and senior management;</td></tr> <tr style="vertical-align: top"> <td> </td> <td style="text-align: justify"> </td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td style="text-align: justify">●</td> <td style="text-align: justify">a cybersecurity incident response plan outlining procedures for detecting, responding to, and mitigating cybersecurity incidents; and</td></tr> <tr style="vertical-align: top"> <td> </td> <td style="text-align: justify"> </td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td style="text-align: justify">●</td> <td style="text-align: justify">a vendor management policy to oversee cybersecurity risks associated with service providers.</td></tr> </table> true We will develop and <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_90C_ecyd--CybersecurityRiskManagementProcessesIntegratedFlag_dbT_c20240101__20241231_zABMptbicVUd">implement a cybersecurity risk management program to safeguard the confidentiality, integrity, and availability of our Confidential Information and Critical Systems. Our cybersecurity risk management program will be integrated into our broader enterprise risk management framework and includes a cybersecurity incident response plan. true false Cybersecurity Governance Our executive management team, in collaboration with our managed information technology service provider, is responsible for assessing and managing cybersecurity risks to the Company, including our Confidential Information and Critical Systems. The team holds primary responsibility for our cybersecurity risk management program and works closely with our IT service provider to ensure its effective implementation. Our management team meets regularly with our IT service provider to review current cybersecurity issues. These discussions may cover efforts to prevent, detect, mitigate, and remediate cybersecurity risks and incidents through various means, including: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 48px"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 24px">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">threat intelligence from governmental, public private, and external sources</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></td><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">alerts and reports generated by security tools deployed in the IT environment, including a spear-phishing report.</td></tr></table> <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_908_ecyd--CybersecurityRiskManagementPositionsOrCommitteesResponsibleTextBlock_c20240101__20241231_zuRORZZ8qwYg">Our Board incorporates cybersecurity risks into its broader risk oversight <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_902_ecyd--CybersecurityRiskManagementPositionsOrCommitteesResponsibleFlag_dbT_c20240101__20241231_zb47geJDIKm3">responsibility. <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_90A_ecyd--CybersecurityRiskProcessForInformingManagementOrCommitteesResponsibleTextBlock_i01_c20240101__20241231_zS0jSTTXLkjc">Our Board oversees the implementation of our cybersecurity risk management program. The executive management team provides updates to the Board, as needed, on significant cybersecurity incidents. Our <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_909_ecyd--CybersecurityRiskManagementPositionsOrCommitteesResponsibleReportToBoardFlag_i01_dbT_c20240101__20241231_zlU9MnA33jig">Board receives periodic reports from management on cybersecurity risks and the cybersecurity risk management program. Our Board incorporates cybersecurity risks into its broader risk oversight <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_902_ecyd--CybersecurityRiskManagementPositionsOrCommitteesResponsibleFlag_dbT_c20240101__20241231_zb47geJDIKm3">responsibility. true Our Board oversees the implementation of our cybersecurity risk management program. The executive management team provides updates to the Board, as needed, on significant cybersecurity incidents. true true 7000 We have audited the accompanying consolidated balance sheet of Hour Loop, Inc. and its subsidiaries (the “Company”) as of December 31, 2024 and 2023, and the related consolidated statement of operations and comprehensive income (loss), stockholders’ equity, and cash flows for the year ended December 31, 2024 and 2023, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the consolidated financial positions of the Company as of December 31, 2024 and 2023 and the consolidated results of its operations and its cash flows for the year ended December 31, 2024 and 2023, in conformity with accounting principles generally accepted in the United States of America. HTL International, LLC Houston, Texas

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<p id="xdx_80C_eus-gaap--OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock_zxbEHhnrqgN3" 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 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, sells products in multiple categories, including home/garden décor, toys, kitchenware, apparel, 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 Flywheel Consulting Ltd. (“Flywheel”), a wholly owned subsidiary located in Taiwan, to provide business operating consulting services exclusively to Hour Loop. Basis of Presentation - The audited 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 (“U.S. GAAP”). Principles of Consolidation - The audited 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 period-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 period. 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 General and administrative in the consolidated statement of operations and other comprehensive income. <p id="xdx_89F_eus-gaap--ScheduleOfForeignExchangeContractsStatementOfFinancialPositionTableTextBlock_zJSJ5ZVTQv2f" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">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="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2023</td><td style="padding-bottom: 1pt"> </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 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 id="xdx_984_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_c20241231__us-gaap--AwardTypeAxis__custom--PeriodNTDUSDExchangeRateMember_zB8m0NTeI3I5" style="width: 16%; text-align: right" title="Foreign currency exchange rate">32.735</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_980_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_c20231231__us-gaap--AwardTypeAxis__custom--PeriodNTDUSDExchangeRateMember_ztKVjr59hnT7" style="width: 16%; text-align: right" title="Foreign currency exchange rate">30.655</td><td style="width: 1%; text-align: left"> </td></tr> <tr 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 id="xdx_98B_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_c20241231__us-gaap--AwardTypeAxis__custom--PeriodAverageNTDUSDExchangeRateMember_zMmgKFZCptoh" style="text-align: right" title="Foreign currency exchange rate">32.526</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_c20231231__us-gaap--AwardTypeAxis__custom--PeriodAverageNTDUSDExchangeRateMember_zqi1w2Ra6jsi" style="text-align: right" title="Foreign currency exchange rate">31.221</td><td style="text-align: left"> </td></tr> </table> HOUR LOOP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2024 and 2023 Use of Estimates - The preparation of financial statements in conformity with U.S. 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 estimates, include but not limited to, estimates associated with the collectability of accounts receivable, useful life of property and equipment, impairment of long-lived assets, valuation allowance for deferred tax assets, inventory valuation and inventory provision. Cash and Cash Equivalents - The Company considers all highly liquid financial instruments purchased with original maturities of three months or less to be cash. Our cash is held in the bank and covered by the Federal Deposit Insurance Corporation (“FDIC”), subject to applicable limits. Deposits are insured up to $250,000 per depositor, per FDIC-insured bank, per ownership category. Cash equivalents and marketable securities are comprised of time deposits, money market funds, highly liquid government bonds, corporate debt securities, mortgage-backed and asset-backed securities, and marketable equity securities. Our cash and cash equivalents primarily consisted of cash and money market funds. Such amounts are recorded at fair value. Accounts Receivable and Allowance for Credit Losses - Accounts receivable are stated at historical cost less allowance for credit loss. On a periodic basis, management evaluates its accounts receivable and determines whether to provide an allowance for credit losses in accordance with the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) Topic 326. Credit losses are provided based on a past history of write-offs, collections, current credit conditions, current economic conditions, reasonable and supportable forecasts of future economic conditions. The evaluation is performed on a collective basis where similar characteristics exist, primarily based on similar services or products offerings. We adopted the standard effective January 1, 2023. The impact of the adoption was not considered material to the financial statements and primarily resulted in new/enhanced disclosures only. 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 the collection period is usually less than 7 days. The Company performs on-going evaluations of its customers and maintains an allowance for credit losses as the Company deems necessary or appropriate. As of December 31, 2024 and 2023, the Company did not deem it necessary to have an allowance for credit loss. Inventory and Cost of Goods Sold - The Company’s inventory consists mainly 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 audited consolidated statements of operations is principally inventory sold to customers during the reporting period. HOUR LOOP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2024 and 2023 Policy for inventory allowance: The Company writes down the cost of obsolete and slow-moving inventories to the estimated net realizable value, based on inventory obsolescence trends, historical experience, forecasted consumer demand and application of the specific identification method. As of December 31, 2024 and 2023, $560,293 and $675,886, respectively, were written down from the cost of inventories to their net realizable values. Full inventory allowance is recorded for the inventory SKU not sold for more than one year. Property and Equipment - Property and equipment 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. The majority of the Company’s property and equipment is computers, and the estimated useful life is 3 years. Impairment of Long-lived Assets- In accordance with ASC 360-10-35-17, if the carrying amount of an asset or asset group (in use or under development) is evaluated and found not to be fully recoverable (the carrying amount exceeds the estimated gross, undiscounted cash flows from use and disposition), then an impairment loss must be recognized. The impairment loss is measured as the excess of the carrying amount over the asset’s (or asset group’s) fair value. The Company did not record any impairment charges for the years ended December 31, 2024 and 2023. Leases - Leases are classified at lease commencement date as either a finance lease or an operating lease. A lease is a finance lease if it meets any of the following criteria: (a) the lease transfers ownership of the underlying asset to the lessee by the end of the lease term, (b) the lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise, (c) the lease term is for the major part of the remaining economic life of the underlying asset, (d) the present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not already reflected in the lease payments equals or exceeds substantially all of the fair value of the underlying asset or (e) the underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. When none of the foregoing criteria is met, the lease shall be classified as an operating lease. The Company typically utilizes operating leases for its office space requirements. This means that the Company leases office space, categorizing the lease arrangement as an operating lease. Under this arrangement, The Company does not hold ownership of the leased assets but instead pays rent for the right to use them. For a lessee, a lease is recognized as an operating lease right-of-use asset with a corresponding liability at lease commencement date. The lease liability is calculated at the present value of the lease payments not yet paid by using the lease term and discount rate determined at lease commencement. The operating lease right-of-use asset is calculated as the lease liability, increased by any initial direct costs, and prepaid lease payments, reduced by any lease incentives received before lease commencement. The operating lease right-of-use asset itself is amortized on a straight-line basis unless another systematic method better reflects how the underlying asset will be used by and benefits the lessee over the lease term. HOUR LOOP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2024 and 2023 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, due to related parties and short-term debt at fair value or cost, which approximates fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rates of interest. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px">i.</td> <td style="text-align: justify">Level 1 — Valuations based on quoted prices for identical assets and liabilities in active markets.</td></tr> <tr style="vertical-align: top"> <td> </td> <td> </td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td>ii.</td> <td style="text-align: justify">Level 2 — Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.</td></tr> <tr style="vertical-align: top"> <td> </td> <td> </td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td>iii.</td> <td style="text-align: justify">Level 3 — Valuations based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment.</td></tr> </table> Revenue Recognition - The Company accounts for revenue in accordance with 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, 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%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px">●</td> <td style="text-align: justify">Identify the contract with a customer.</td></tr> <tr style="vertical-align: top"> <td> </td> <td> </td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td>●</td> <td style="text-align: justify">Identify the performance obligations in the contract.</td></tr> <tr style="vertical-align: top"> <td> </td> <td> </td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td>●</td> <td style="text-align: justify">Determine the transaction price.</td></tr> <tr style="vertical-align: top"> <td> </td> <td> </td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td>●</td> <td style="text-align: justify">Allocate the transaction price to the performance obligations in the contract.</td></tr> <tr style="vertical-align: top"> <td> </td> <td> </td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td>●</td> <td style="text-align: justify">Recognize revenue when or as performance obligations are satisfied.</td></tr> </table> HOUR LOOP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2024 and 2023 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 as principal 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 Logistics 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. Based on these considerations, the Company is the principal in this arrangement. 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. For each contract, the promise to transfer products is identified as the sole performance obligation. Transaction prices are evaluated for potential refunds or adjustments, determining the net consideration expected. Revenues for the years ended December 31, 2024 and 2023 were recognized at a point in time. 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 customer can return the products within 30 days after the products are delivered and estimated sales returns are calculated based on the expected returns. The rates of sales returns were 7.19% and 6.45% of gross sales for the years ended December 31, 2024 and 2023, respectively. 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. A performance obligation, defined as the promise to transfer a distinct good, is the unit of account in ASC Topic 606. The Company treats shipping and handling as fulfillment activities, not separate performance obligations. Costs for shipping and handling were $31,480,104 and $31,187,009 for the years ended December 31, 2024 and 2023, respectively, recorded as selling and marketing expenses. HOUR LOOP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2024 and 2023 Segment Information – The Company has only one segment, which is online retail (e-commerce). The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. The Company’s chief operating decision maker has been identified as the chief executive officer of the Company who reviews financial information of separate operating segments based on U.S. GAAP. The chief operating decision maker now reviews results analyzed by customers. This analysis is only presented at the revenue level with no allocation of direct or indirect costs. Consequently, the Company has determined that it has only one operating segment. Income Taxes - Income tax expense includes U.S. (federal and state) and foreign income taxes. The Company also complied with state tax codes and regulations, including with respect to California franchise taxes. 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. Deferred tax assets represent amounts available to reduce income taxes payable in future periods. Deferred tax assets are evaluated for future realization and reduced by a valuation allowance to the extent we believe they will not be realized. We consider many factors when assessing the likelihood of future realization of our deferred tax assets, including recent cumulative loss experience and expectations of future earnings, capital gains and investment in such jurisdiction, the carry-forward periods available to us for tax reporting purposes, and other relevant factors. 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 assesses sales tax payable including any related interest and penalties and accrues these estimates on its 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 state regulations. The Company estimates that as of December 31, 2024 and 2023, it owed $-0- and $288,466, respectively, in sales taxes along with penalties and interest resulting from late filings. Concentration of Credit Risks - Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company maintains cash and cash equivalents 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. HOUR LOOP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2024 and 2023 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 years ended December 31, 2024 and 2023, the Company had no customer that accounted for 10% or more of total net revenues. In addition, as of December 31, 2024 and 2023, the Company had no customer that accounted for 10% or more of gross accounts receivable. As of December 31, 2024 and 2023, all of the Company’s accounts receivable were 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 less than 7 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. During the years ended December 31, 2024 and 2023, approximately <span id="xdx_90B_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20240101__20241231__srt--MajorCustomersAxis__custom--CustomerMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_z7nwFOdifxy7" title="Concentration risk percentage">99% and <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20230101__20231231__srt--MajorCustomersAxis__custom--CustomerMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_zkcbViRkPBEd" title="Concentration risk percentage">99%, respectively, of the Company’s revenue was through or with the Amazon sales platform. Foreign Currency Exchange Risk - The Company is exposed to foreign currency exchange risk through its foreign subsidiary in Taiwan. The Company does not hedge foreign currency translation risk in the net assets and income reported from these sources. Advertising and Promotion Expenses – Our policy is to recognize advertising costs as they are incurred. Advertising and promotion expenses were $5,323,886 and $4,605,629 for the years ended December 31, 2024 and 2023, respectively. 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 FASB 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 the 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. There were <span id="xdx_906_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_do_c20240101__20241231_zu6XIOmkuX24" title="Antidilutive securities excluded from computation of earnings per share, amount"><span id="xdx_907_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_do_c20230101__20231231_z7VutloX0Ldb" title="Antidilutive securities excluded from computation of earnings per share, amount">no dilutive securities or other items that would affect earnings per share for the years ended December 31, 2024 and 2023. Therefore, the diluted earnings per share is the same as the basic earnings per share. Shares Issued for Services – Stock-based compensation cost for all equity-classified stock awards expected to vest is measured at fair value on the date of grant and recognized over the service period. HOUR LOOP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2024 and 2023

Basis of Presentation - The audited 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 (“U.S. GAAP”).

Principles of Consolidation - The audited 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 period-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 period. 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 General and administrative in the consolidated statement of operations and other comprehensive income. <p id="xdx_89F_eus-gaap--ScheduleOfForeignExchangeContractsStatementOfFinancialPositionTableTextBlock_zJSJ5ZVTQv2f" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">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="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2023</td><td style="padding-bottom: 1pt"> </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 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 id="xdx_984_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_c20241231__us-gaap--AwardTypeAxis__custom--PeriodNTDUSDExchangeRateMember_zB8m0NTeI3I5" style="width: 16%; text-align: right" title="Foreign currency exchange rate">32.735</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_980_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_c20231231__us-gaap--AwardTypeAxis__custom--PeriodNTDUSDExchangeRateMember_ztKVjr59hnT7" style="width: 16%; text-align: right" title="Foreign currency exchange rate">30.655</td><td style="width: 1%; text-align: left"> </td></tr> <tr 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 id="xdx_98B_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_c20241231__us-gaap--AwardTypeAxis__custom--PeriodAverageNTDUSDExchangeRateMember_zMmgKFZCptoh" style="text-align: right" title="Foreign currency exchange rate">32.526</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_c20231231__us-gaap--AwardTypeAxis__custom--PeriodAverageNTDUSDExchangeRateMember_zqi1w2Ra6jsi" style="text-align: right" title="Foreign currency exchange rate">31.221</td><td style="text-align: left"> </td></tr> </table> HOUR LOOP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2024 and 2023

<p id="xdx_89F_eus-gaap--ScheduleOfForeignExchangeContractsStatementOfFinancialPositionTableTextBlock_zJSJ5ZVTQv2f" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">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="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2023</td><td style="padding-bottom: 1pt"> </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 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 id="xdx_984_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_c20241231__us-gaap--AwardTypeAxis__custom--PeriodNTDUSDExchangeRateMember_zB8m0NTeI3I5" style="width: 16%; text-align: right" title="Foreign currency exchange rate">32.735</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_980_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_c20231231__us-gaap--AwardTypeAxis__custom--PeriodNTDUSDExchangeRateMember_ztKVjr59hnT7" style="width: 16%; text-align: right" title="Foreign currency exchange rate">30.655</td><td style="width: 1%; text-align: left"> </td></tr> <tr 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 id="xdx_98B_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_c20241231__us-gaap--AwardTypeAxis__custom--PeriodAverageNTDUSDExchangeRateMember_zMmgKFZCptoh" style="text-align: right" title="Foreign currency exchange rate">32.526</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_c20231231__us-gaap--AwardTypeAxis__custom--PeriodAverageNTDUSDExchangeRateMember_zqi1w2Ra6jsi" style="text-align: right" title="Foreign currency exchange rate">31.221</td><td style="text-align: left"> </td></tr> </table>

32.735

30.655

32.526

31.221

Use of Estimates - The preparation of financial statements in conformity with U.S. 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 estimates, include but not limited to, estimates associated with the collectability of accounts receivable, useful life of property and equipment, impairment of long-lived assets, valuation allowance for deferred tax assets, inventory valuation and inventory provision.

Cash and Cash Equivalents - The Company considers all highly liquid financial instruments purchased with original maturities of three months or less to be cash. Our cash is held in the bank and covered by the Federal Deposit Insurance Corporation (“FDIC”), subject to applicable limits. Deposits are insured up to $250,000 per depositor, per FDIC-insured bank, per ownership category. Cash equivalents and marketable securities are comprised of time deposits, money market funds, highly liquid government bonds, corporate debt securities, mortgage-backed and asset-backed securities, and marketable equity securities. Our cash and cash equivalents primarily consisted of cash and money market funds. Such amounts are recorded at fair value.

250000

Accounts Receivable and Allowance for Credit Losses - Accounts receivable are stated at historical cost less allowance for credit loss. On a periodic basis, management evaluates its accounts receivable and determines whether to provide an allowance for credit losses in accordance with the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) Topic 326. Credit losses are provided based on a past history of write-offs, collections, current credit conditions, current economic conditions, reasonable and supportable forecasts of future economic conditions. The evaluation is performed on a collective basis where similar characteristics exist, primarily based on similar services or products offerings. We adopted the standard effective January 1, 2023. The impact of the adoption was not considered material to the financial statements and primarily resulted in new/enhanced disclosures only. 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 the collection period is usually less than 7 days. The Company performs on-going evaluations of its customers and maintains an allowance for credit losses as the Company deems necessary or appropriate. As of December 31, 2024 and 2023, the Company did not deem it necessary to have an allowance for credit loss.

Inventory and Cost of Goods Sold - The Company’s inventory consists mainly 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 audited consolidated statements of operations is principally inventory sold to customers during the reporting period. HOUR LOOP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2024 and 2023 Policy for inventory allowance: The Company writes down the cost of obsolete and slow-moving inventories to the estimated net realizable value, based on inventory obsolescence trends, historical experience, forecasted consumer demand and application of the specific identification method. As of December 31, 2024 and 2023, $560,293 and $675,886, respectively, were written down from the cost of inventories to their net realizable values. Full inventory allowance is recorded for the inventory SKU not sold for more than one year.

560293

675886

Property and Equipment - Property and equipment 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. The majority of the Company’s property and equipment is computers, and the estimated useful life is 3 years.

2500

P3Y

Impairment of Long-lived Assets- In accordance with ASC 360-10-35-17, if the carrying amount of an asset or asset group (in use or under development) is evaluated and found not to be fully recoverable (the carrying amount exceeds the estimated gross, undiscounted cash flows from use and disposition), then an impairment loss must be recognized. The impairment loss is measured as the excess of the carrying amount over the asset’s (or asset group’s) fair value. The Company did not record any impairment charges for the years ended December 31, 2024 and 2023.

Leases - Leases are classified at lease commencement date as either a finance lease or an operating lease. A lease is a finance lease if it meets any of the following criteria: (a) the lease transfers ownership of the underlying asset to the lessee by the end of the lease term, (b) the lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise, (c) the lease term is for the major part of the remaining economic life of the underlying asset, (d) the present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not already reflected in the lease payments equals or exceeds substantially all of the fair value of the underlying asset or (e) the underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. When none of the foregoing criteria is met, the lease shall be classified as an operating lease. The Company typically utilizes operating leases for its office space requirements. This means that the Company leases office space, categorizing the lease arrangement as an operating lease. Under this arrangement, The Company does not hold ownership of the leased assets but instead pays rent for the right to use them. For a lessee, a lease is recognized as an operating lease right-of-use asset with a corresponding liability at lease commencement date. The lease liability is calculated at the present value of the lease payments not yet paid by using the lease term and discount rate determined at lease commencement. The operating lease right-of-use asset is calculated as the lease liability, increased by any initial direct costs, and prepaid lease payments, reduced by any lease incentives received before lease commencement. The operating lease right-of-use asset itself is amortized on a straight-line basis unless another systematic method better reflects how the underlying asset will be used by and benefits the lessee over the lease term.

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, due to related parties and short-term debt at fair value or cost, which approximates fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rates of interest. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px">i.</td> <td style="text-align: justify">Level 1 — Valuations based on quoted prices for identical assets and liabilities in active markets.</td></tr> <tr style="vertical-align: top"> <td> </td> <td> </td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td>ii.</td> <td style="text-align: justify">Level 2 — Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.</td></tr> <tr style="vertical-align: top"> <td> </td> <td> </td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td>iii.</td> <td style="text-align: justify">Level 3 — Valuations based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment.</td></tr> </table>

Revenue Recognition - The Company accounts for revenue in accordance with 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, 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%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px">●</td> <td style="text-align: justify">Identify the contract with a customer.</td></tr> <tr style="vertical-align: top"> <td> </td> <td> </td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td>●</td> <td style="text-align: justify">Identify the performance obligations in the contract.</td></tr> <tr style="vertical-align: top"> <td> </td> <td> </td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td>●</td> <td style="text-align: justify">Determine the transaction price.</td></tr> <tr style="vertical-align: top"> <td> </td> <td> </td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td>●</td> <td style="text-align: justify">Allocate the transaction price to the performance obligations in the contract.</td></tr> <tr style="vertical-align: top"> <td> </td> <td> </td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td>●</td> <td style="text-align: justify">Recognize revenue when or as performance obligations are satisfied.</td></tr> </table> HOUR LOOP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2024 and 2023 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 as principal 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 Logistics 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. Based on these considerations, the Company is the principal in this arrangement. 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. For each contract, the promise to transfer products is identified as the sole performance obligation. Transaction prices are evaluated for potential refunds or adjustments, determining the net consideration expected. Revenues for the years ended December 31, 2024 and 2023 were recognized at a point in time. 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 customer can return the products within 30 days after the products are delivered and estimated sales returns are calculated based on the expected returns. The rates of sales returns were 7.19% and 6.45% of gross sales for the years ended December 31, 2024 and 2023, respectively. 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. A performance obligation, defined as the promise to transfer a distinct good, is the unit of account in ASC Topic 606. The Company treats shipping and handling as fulfillment activities, not separate performance obligations. Costs for shipping and handling were $31,480,104 and $31,187,009 for the years ended December 31, 2024 and 2023, respectively, recorded as selling and marketing expenses.

0.0719 0.0645 31480104 31187009

Segment Information – The Company has only one segment, which is online retail (e-commerce). The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. The Company’s chief operating decision maker has been identified as the chief executive officer of the Company who reviews financial information of separate operating segments based on U.S. GAAP. The chief operating decision maker now reviews results analyzed by customers. This analysis is only presented at the revenue level with no allocation of direct or indirect costs. Consequently, the Company has determined that it has only one operating segment.

Income Taxes - Income tax expense includes U.S. (federal and state) and foreign income taxes. The Company also complied with state tax codes and regulations, including with respect to California franchise taxes. 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. Deferred tax assets represent amounts available to reduce income taxes payable in future periods. Deferred tax assets are evaluated for future realization and reduced by a valuation allowance to the extent we believe they will not be realized. We consider many factors when assessing the likelihood of future realization of our deferred tax assets, including recent cumulative loss experience and expectations of future earnings, capital gains and investment in such jurisdiction, the carry-forward periods available to us for tax reporting purposes, and other relevant factors.

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 assesses sales tax payable including any related interest and penalties and accrues these estimates on its 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 state regulations. The Company estimates that as of December 31, 2024 and 2023, it owed $-0- and $288,466, respectively, in sales taxes along with penalties and interest resulting from late filings.

288466

Concentration of Credit Risks - Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company maintains cash and cash equivalents 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. HOUR LOOP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2024 and 2023 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 years ended December 31, 2024 and 2023, the Company had no customer that accounted for 10% or more of total net revenues. In addition, as of December 31, 2024 and 2023, the Company had no customer that accounted for 10% or more of gross accounts receivable. As of December 31, 2024 and 2023, all of the Company’s accounts receivable were 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 less than 7 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. During the years ended December 31, 2024 and 2023, approximately <span id="xdx_90B_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20240101__20241231__srt--MajorCustomersAxis__custom--CustomerMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_z7nwFOdifxy7" title="Concentration risk percentage">99% and <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20230101__20231231__srt--MajorCustomersAxis__custom--CustomerMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_zkcbViRkPBEd" title="Concentration risk percentage">99%, respectively, of the Company’s revenue was through or with the Amazon sales platform.

During the years ended December 31, 2024 and 2023, the Company had no customer that accounted for 10% or more of total net revenues. In addition, as of December 31, 2024 and 2023, the Company had no customer that accounted for 10% or more of gross accounts receivable.

0.99

Foreign Currency Exchange Risk - The Company is exposed to foreign currency exchange risk through its foreign subsidiary in Taiwan. The Company does not hedge foreign currency translation risk in the net assets and income reported from these sources.

Advertising and Promotion Expenses – Our policy is to recognize advertising costs as they are incurred. Advertising and promotion expenses were $5,323,886 and $4,605,629 for the years ended December 31, 2024 and 2023, respectively.

5323886

4605629

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 FASB 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 the 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. There were <span id="xdx_906_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_do_c20240101__20241231_zu6XIOmkuX24" title="Antidilutive securities excluded from computation of earnings per share, amount"><span id="xdx_907_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_do_c20230101__20231231_z7VutloX0Ldb" title="Antidilutive securities excluded from computation of earnings per share, amount">no dilutive securities or other items that would affect earnings per share for the years ended December 31, 2024 and 2023. Therefore, the diluted earnings per share is the same as the basic earnings per share.

Shares Issued for Services – Stock-based compensation cost for all equity-classified stock awards expected to vest is measured at fair value on the date of grant and recognized over the service period.

NOTE 2 - Recent Accounting Pronouncements Not Yet Adopted In December 2023, the FASB issued Accounting Standards Update (“ASU”) 2023-07 on Improvements to Reportable Segment Disclosures for entities that are managed as a single reportable segment that governs when an entity is expected to conclude that consolidated net income is the measure of segment profit or loss consistent with U.S. GAAP. The ASU is effective for annual periods beginning after January 1, 2024. The Company will adopt and apply the guidance in fiscal year 2024. There is no material impact expected to our results of operations, cash flows and financial condition at the time of adoption, however the Company is still assessing the disclosure impact. In December 2023, the FASB issued ASU 2023-09 on Improvements to Income Tax Disclosures that require greater disaggregation of income tax disclosures to the income rate tax rate reconciliation and income taxes paid. The Updates are effective for annual periods beginning after December 15, 2024. The Company will adopt and apply the guidance in fiscal year 2025. There is no material impact expected to our results of operations, cash flows and financial condition at the time of adoption, however the Company is still assessing the disclosure impact. In December 2023, the FASB issued ASU 2023-09 on Improvements to Income Tax Disclosures that require greater disaggregation of income tax disclosures to the income tax rate reconciliation and income taxes paid. The Updates are effective for annual periods beginning after December 15, 2024. The Company will adopt and apply the guidance in fiscal year 2025. There is no material impact expected to our results of operations, cash flows, and financial condition at the time of adoption, however, the Company is still assessing the disclosure impact.

NOTE 3 - Inventory Inventory was comprised of the following as of December 31, 2024 and 2023, respectively: Schedule of Inventory <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: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_495_20241231_zfP3LlJQM1R6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49B_20231231_zbrwijVe2kUl" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2023</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr id="xdx_403_eus-gaap--InventoryFinishedGoods_iI_pp0p0_maINzbmz_zcSE6ErARnli" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Inventory</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 16%; font-weight: bold; text-align: right">12,716,062</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">13,377,530</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--OtherInventoryInTransit_iI_pp0p0_maINzbmz_zNJsk8iYZxLc" 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">2,484,863</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,574,911</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--InventoryValuationReserves_iNI_pp0p0_di_msINzbmz_zzrNoeRFa4k7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Allowance</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(560,293</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(675,886</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40E_eus-gaap--InventoryNet_iTI_pp0p0_mtINzbmz_z5slRloVe3T5" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">14,640,632</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">14,276,555</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> As of December 31, 2024 and 2023, $560,293 and $675,886 were written down from the cost of purchased inventory to their net realizable values, respectively. Full inventory allowance is recorded for the inventory SKU not sold for more than one year. The allowance of inventory is recorded under cost of goods sold in the statements of operations.

Inventory was comprised of the following as of December 31, 2024 and 2023, respectively: Schedule of Inventory <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: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_495_20241231_zfP3LlJQM1R6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49B_20231231_zbrwijVe2kUl" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2023</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr id="xdx_403_eus-gaap--InventoryFinishedGoods_iI_pp0p0_maINzbmz_zcSE6ErARnli" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Inventory</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 16%; font-weight: bold; text-align: right">12,716,062</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">13,377,530</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--OtherInventoryInTransit_iI_pp0p0_maINzbmz_zNJsk8iYZxLc" 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">2,484,863</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,574,911</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--InventoryValuationReserves_iNI_pp0p0_di_msINzbmz_zzrNoeRFa4k7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Allowance</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(560,293</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(675,886</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40E_eus-gaap--InventoryNet_iTI_pp0p0_mtINzbmz_z5slRloVe3T5" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">14,640,632</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">14,276,555</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

12716062

13377530

2484863

1574911

560293

675886

14640632

14276555

560293

675886

NOTE 4 - Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets were comprised of the following as of December 31, 2024 and 2023, respectively: 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 style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49B_20241231_z6xjEgPKEzj3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_498_20231231_zzMsZeJcLfs3" style="border-bottom: Black 1pt solid; text-align: center">December 31,2023</td><td style="padding-bottom: 1pt"> </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 id="xdx_409_eus-gaap--Supplies_iI_maPEAOAzgIu_za1Z8bTJeIwh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; 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">$</td><td style="width: 16%; font-weight: bold; text-align: right">71,934</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">49,298</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--PrepaidInsurance_iI_maPEAOAzgIu_zCSeks9DrST2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Prepaid expenses-insurance</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">2,174</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,302</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--OtherPrepaidExpenseCurrent_iI_maPEAOAzgIu_z8h0yGnE4cFl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Prepaid expenses-other</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">33,501</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">56,437</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_ecustom--LeaseRefundableDepositCurrent_iI_maPEAOAzgIu_ziE00k51OZii" style="vertical-align: bottom; background-color: White"> <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">49,939</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">81,522</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--PrepaidTaxes_iI_maPEAOAzgIu_z6UI57GJa7Wj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <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">157,538</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">305,253</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--OtherAssetsCurrent_iI_maPEAOAzgIu_zrrblSCTTUGk" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Other current assets</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">12,808</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">7,161</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--PrepaidExpenseAndOtherAssetsCurrent_iTI_mtPEAOAzgIu_zFPR54H12aNh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">327,894</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">504,973</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> As of December 31, 2024 and 2023, there was a tax receivable of $157,538 and $305,253, respectively, due to income taxes prepaid by the Company.

Prepaid expenses and other current assets were comprised of the following as of December 31, 2024 and 2023, respectively: 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 style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49B_20241231_z6xjEgPKEzj3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_498_20231231_zzMsZeJcLfs3" style="border-bottom: Black 1pt solid; text-align: center">December 31,2023</td><td style="padding-bottom: 1pt"> </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 id="xdx_409_eus-gaap--Supplies_iI_maPEAOAzgIu_za1Z8bTJeIwh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; 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">$</td><td style="width: 16%; font-weight: bold; text-align: right">71,934</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">49,298</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--PrepaidInsurance_iI_maPEAOAzgIu_zCSeks9DrST2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Prepaid expenses-insurance</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">2,174</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,302</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--OtherPrepaidExpenseCurrent_iI_maPEAOAzgIu_z8h0yGnE4cFl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Prepaid expenses-other</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">33,501</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">56,437</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_ecustom--LeaseRefundableDepositCurrent_iI_maPEAOAzgIu_ziE00k51OZii" style="vertical-align: bottom; background-color: White"> <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">49,939</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">81,522</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--PrepaidTaxes_iI_maPEAOAzgIu_z6UI57GJa7Wj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <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">157,538</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">305,253</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--OtherAssetsCurrent_iI_maPEAOAzgIu_zrrblSCTTUGk" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Other current assets</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">12,808</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">7,161</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--PrepaidExpenseAndOtherAssetsCurrent_iTI_mtPEAOAzgIu_zFPR54H12aNh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">327,894</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">504,973</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

71934

49298

2174

5302

33501

56437

49939 81522

157538

305253

12808

7161

327894

504973

157538

305253

NOTE 5 - Property and Equipment Property and equipment were comprised of the following as of December 31, 2024 and 2023, respectively: Schedule of Property and Equipment <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: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_498_20241231_zyrQt16TPfI2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_499_20231231_znOndnrbnJjf" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2023</td><td style="padding-bottom: 1pt"> </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 id="xdx_408_eus-gaap--PropertyPlantAndEquipmentGross_iI_maPPAENzBtG_zu0M7AO404Ba" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Property and equipment</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 16%; font-weight: bold; text-align: right">381,067</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">368,729</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_msPPAENzBtG_z5Aw8Y6Gq8I7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Accumulated depreciation and amortization</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(324,270</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(219,941</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--PropertyPlantAndEquipmentNet_iTI_mtPPAENzBtG_z0RvyfbeAr98" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total property and equipment, net</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">56,797</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">148,788</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> HOUR LOOP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2024 and 2023 For the years ended December 31, 2024 and 2023, the Company purchased $35,996 and $14,823, of fixtures and office equipment, respectively. For the years ended December 31, 2024 and 2023, the Company had $119,064 and $138,001, recorded for depreciation, respectively. For the years ended December 31, 2024 and 2023, the Company had no disposal or pledge on property and equipment.

Property and equipment were comprised of the following as of December 31, 2024 and 2023, respectively: Schedule of Property and Equipment <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: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_498_20241231_zyrQt16TPfI2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_499_20231231_znOndnrbnJjf" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2023</td><td style="padding-bottom: 1pt"> </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 id="xdx_408_eus-gaap--PropertyPlantAndEquipmentGross_iI_maPPAENzBtG_zu0M7AO404Ba" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Property and equipment</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 16%; font-weight: bold; text-align: right">381,067</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">368,729</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_msPPAENzBtG_z5Aw8Y6Gq8I7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Accumulated depreciation and amortization</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(324,270</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(219,941</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--PropertyPlantAndEquipmentNet_iTI_mtPPAENzBtG_z0RvyfbeAr98" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total property and equipment, net</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">56,797</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">148,788</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

381067

368729

324270

219941

56797

148788

35996

14823

119064

138001

0 0

NOTE 6 - Accounts Payable and Credit Cards Payable Schedule of Accounts Payable and Credit Cards Payable <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: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49B_20241231_z5TPdvQ07Fj8" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20231231_zKt5n6JBfK51" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2023</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr id="xdx_407_eus-gaap--AccountsPayableCurrent_iI_zndKsawvpxBd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Accounts payable</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 16%; font-weight: bold; text-align: right">4,176,305</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">3,812,954</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_ecustom--CreditCardsPayable_iI_zNtgX5bpVpsc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Credit cards 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">3,389,880</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,404,445</td><td style="text-align: left"> </td></tr> </table> The Company’s accounts payable represent amounts owed to suppliers or other creditors for goods or services purchased but not yet paid for. As of December 31, 2024 and 2023, there were accounts payable of $4,176,305 and $3,812,954, respectively. The Company’s credit cards payable consisted of outstanding balances on credit cards held by the Company. As of December 31, 2024 and 2023, there were credit cards payable of $3,389,880 and $4,404,445, respectively.

Schedule of Accounts Payable and Credit Cards Payable <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: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49B_20241231_z5TPdvQ07Fj8" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20231231_zKt5n6JBfK51" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2023</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr id="xdx_407_eus-gaap--AccountsPayableCurrent_iI_zndKsawvpxBd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Accounts payable</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 16%; font-weight: bold; text-align: right">4,176,305</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">3,812,954</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_ecustom--CreditCardsPayable_iI_zNtgX5bpVpsc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Credit cards 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">3,389,880</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,404,445</td><td style="text-align: left"> </td></tr> </table>

4176305

3812954

3389880 4404445

4176305

3812954

3389880 4404445

NOTE 7 - Short-Term Loan Line of Credit On August 18, 2022, Flywheel entered into a line of credit agreement in the amount of $<span id="xdx_902_eus-gaap--LineOfCredit_iI_c20220818__us-gaap--CreditFacilityAxis__us-gaap--LineOfCreditMember__us-gaap--LineOfCreditFacilityAxis__custom--TaishinInternationalBankMember_zEnSnAjEl692" title="Line of credit">6,940,063 with Taishin of America Loa. The line of credit initially matured on <span id="xdx_90F_eus-gaap--LineOfCreditFacilityExpirationDate1_dd_c20220818__20220818__us-gaap--CreditFacilityAxis__us-gaap--LineOfCreditMember__us-gaap--LineOfCreditFacilityAxis__custom--TaishinInternationalBankMember_zrJaEQkz3sn8" title="Line of credit matured date">August 30, 2023. On August 11, 2023, the line of credit was extended for an additional year, revising the maturity date to <span id="xdx_905_eus-gaap--LineOfCreditFacilityExpirationDate1_dd_c20230811__20230811__us-gaap--CreditFacilityAxis__us-gaap--LineOfCreditMember__us-gaap--LineOfCreditFacilityAxis__custom--TaishinInternationalBankMember_zfudnP3DXttd" title="Line of credit matured date">August 30, 2024. On May 28, 2024, the term of the loan was revised such that maturity date was extended to <span id="xdx_900_eus-gaap--LineOfCreditFacilityExpirationDate1_dd_c20240528__20240528__us-gaap--CreditFacilityAxis__us-gaap--LineOfCreditMember__us-gaap--LineOfCreditFacilityAxis__custom--TaishinInternationalBankMember_zkWWFA1hrtwe" title="Line of credit matured date">November 24, 2024. On November 25, 2024, the term of the loan was revised such that maturity date was extended to <span id="xdx_906_eus-gaap--LineOfCreditFacilityExpirationDate1_dd_c20241125__20241125__us-gaap--CreditFacilityAxis__us-gaap--LineOfCreditMember__us-gaap--LineOfCreditFacilityAxis__custom--TaishinInternationalBankMember_zOvGnpvA4Rue" title="Line of credit, maturity date">May 23, 2025. The line of credit bears interest at a rate of <span id="xdx_90F_eus-gaap--LineOfCreditFacilityInterestRateAtPeriodEnd_iI_pid_dp_uPure_c20241125__us-gaap--CreditFacilityAxis__us-gaap--LineOfCreditMember__us-gaap--LineOfCreditFacilityAxis__custom--TaishinInternationalBankMember_zctcMMisLvr5" title="Line of credit, interest rate">3.33% per annum. As of December 31, 2024 and 2023, the outstanding balance under the Taishin line of credit was $<span id="xdx_909_eus-gaap--LineOfCredit_iI_c20241231__us-gaap--CreditFacilityAxis__us-gaap--LineOfCreditMember__us-gaap--LineOfCreditFacilityAxis__custom--TaishinInternationalBankMember_zDQgsKuwQ3r3" title="Line of credit">610,967 and $<span id="xdx_90B_eus-gaap--LineOfCredit_iI_c20231231__us-gaap--CreditFacilityAxis__us-gaap--LineOfCreditMember__us-gaap--LineOfCreditFacilityAxis__custom--TaishinInternationalBankMember_zrwyUuUjN8ha" title="Line of credit">652,422, respectively. HOUR LOOP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2024 and 2023

6940063

2023-08-30

2024-08-30

2024-11-24

2025-05-23

0.0333

610967

652422

NOTE 8 - Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities were comprised of the following as of December 31, 2024 and 2023, respectively: 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 style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20241231_zMIhlWwLxNs4" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49F_20231231_ztwfPCbPb8l1" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2023</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr id="xdx_40D_ecustom--AccruedSalesTaxPayableCurrent_iI_pp0p0_maALAOLzT7J_zzz2RgwY4fx3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; 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">$</td><td style="width: 16%; font-weight: bold; text-align: right">-</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">288,466</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--ContractWithCustomerRefundLiabilityCurrent_iI_pp0p0_d0_maALAOLzT7J_zOS5L0mNNNEb" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Refund liability</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">766,721</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">708,629</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--AccruedSalariesCurrent_iI_pp0p0_maALAOLzT7J_zu76VcPHEZBc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Accrued 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">302,685</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">297,059</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--AccruedBonusesCurrent_iI_pp0p0_d0_maALAOLzT7J_zs1PSyeoDkDg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accrued bonus</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">963,800</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">399,067</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--AccruedLiabilitiesCurrent_iI_pp0p0_maALAOLzT7J_zUxsqhmPR504" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <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">255,154</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">215,485</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--InterestAndDividendsPayableCurrent_iI_pp0p0_maALAOLzT7J_zM3nlGyuW1od" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accrued interest</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">29,712</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--AccountsPayableOtherCurrent_iI_pp0p0_maALAOLzT7J_zBeWNuqsZAHf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Other payables</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">34,175</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">34,094</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--AccruedLiabilitiesAndOtherLiabilities_iTI_pp0p0_mtALAOLzT7J_zMAy2YQHAY31" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">2,322,535</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,972,512</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The Company made an assessment of sales tax payable, including any related interest and penalties, and accrued those estimates on the financial statements. Of the sales tax payable, $-0- and $78,947 are related to interest and penalties as of December 31, 2024 and 2023, respectively. As of December 31, 2024 and 2023, the Company has accrued $766,721 and $708,629, respectively, in a proactive approach towards potential future refunds. A bonus expense is accrued on an annual basis, when the Company’s financial or operational performance meets the required performance level. The Company has $963,800 and $399,067 accrued for bonuses as of December 31, 2024 and 2023, respectively.

Accrued expenses and other current liabilities were comprised of the following as of December 31, 2024 and 2023, respectively: 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 style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20241231_zMIhlWwLxNs4" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49F_20231231_ztwfPCbPb8l1" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2023</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr id="xdx_40D_ecustom--AccruedSalesTaxPayableCurrent_iI_pp0p0_maALAOLzT7J_zzz2RgwY4fx3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; 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">$</td><td style="width: 16%; font-weight: bold; text-align: right">-</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">288,466</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--ContractWithCustomerRefundLiabilityCurrent_iI_pp0p0_d0_maALAOLzT7J_zOS5L0mNNNEb" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Refund liability</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">766,721</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">708,629</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--AccruedSalariesCurrent_iI_pp0p0_maALAOLzT7J_zu76VcPHEZBc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Accrued 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">302,685</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">297,059</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--AccruedBonusesCurrent_iI_pp0p0_d0_maALAOLzT7J_zs1PSyeoDkDg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accrued bonus</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">963,800</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">399,067</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--AccruedLiabilitiesCurrent_iI_pp0p0_maALAOLzT7J_zUxsqhmPR504" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <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">255,154</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">215,485</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--InterestAndDividendsPayableCurrent_iI_pp0p0_maALAOLzT7J_zM3nlGyuW1od" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accrued interest</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">29,712</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--AccountsPayableOtherCurrent_iI_pp0p0_maALAOLzT7J_zBeWNuqsZAHf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Other payables</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">34,175</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">34,094</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--AccruedLiabilitiesAndOtherLiabilities_iTI_pp0p0_mtALAOLzT7J_zMAy2YQHAY31" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">2,322,535</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,972,512</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

288466

766721

708629

302685

297059

963800

399067

255154

215485

29712

34175

34094

2322535

1972512

78947

766721

708629

963800

399067

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: Schedule of Operating Leases Cost <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Flywheel</td> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Flywheel</td> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Flywheel</td> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Flywheel</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td> <td> </td> <td colspan="2" style="text-align: center">February 2023</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center">March 2024</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center">June 2024</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center">August 2024</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1pt solid">Initial lease term</td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">to March 2025</td> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">to June 2025</td> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">to May 2025</td> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">to July 2025</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2" style="text-align: right"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: right"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: right"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 32%">Initial recognition of operating lease right-of-use assets</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td id="xdx_982_eus-gaap--OperatingLeaseRightOfUseAsset_iI_pp0p0_c20241231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__us-gaap--AwardDateAxis__custom--FebruaryTwoThousandTwentyThreeToMarchTwoThousandTwentyFiveMember_zRphdyOyih7g" style="width: 14%; text-align: right" title="Initial recognition of operating lease right-of-use assets">28,652</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td id="xdx_98C_eus-gaap--OperatingLeaseRightOfUseAsset_iI_pp0p0_c20241231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__us-gaap--AwardDateAxis__custom--MarchTwoThousandTwentyFourToJuneTwoThousandTwentyFiveMember_zMpul73oRh12" style="width: 14%; text-align: right" title="Initial recognition of operating lease right-of-use assets">123,107</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td id="xdx_98F_eus-gaap--OperatingLeaseRightOfUseAsset_iI_pp0p0_c20241231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__us-gaap--AwardDateAxis__custom--JuneTwoThousandTwentyFourToMayTwoThousandTwentyFiveMember_z8hdHJDneHRk" style="width: 14%; text-align: right" title="Initial recognition of operating lease right-of-use assets">52,434</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td id="xdx_988_eus-gaap--OperatingLeaseRightOfUseAsset_iI_pp0p0_c20241231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__us-gaap--AwardDateAxis__custom--AugustTwoThousandTwentyFourToJulyTwoThousandTwentyFiveMember_zztWtnmS1hz3" style="width: 14%; text-align: right" title="Initial recognition of operating lease right-of-use assets">73,175</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Weighted-average remaining lease term at December 31, 2024</td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_903_eus-gaap--OperatingLeaseWeightedAverageRemainingLeaseTerm1_iI_dtY_c20241231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__us-gaap--AwardDateAxis__custom--FebruaryTwoThousandTwentyThreeToMarchTwoThousandTwentyFiveMember_z8Zn8M65S1Tk" title="Weighted-average remaining lease term">0.17</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_902_eus-gaap--OperatingLeaseWeightedAverageRemainingLeaseTerm1_iI_dtY_c20241231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__us-gaap--AwardDateAxis__custom--MarchTwoThousandTwentyFourToJuneTwoThousandTwentyFiveMember_zvqV5GNSSlSh" title="Weighted-average remaining lease term">0.5</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_90D_eus-gaap--OperatingLeaseWeightedAverageRemainingLeaseTerm1_iI_dtY_c20241231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__us-gaap--AwardDateAxis__custom--JuneTwoThousandTwentyFourToMayTwoThousandTwentyFiveMember_zXTnS60xojn8" title="Weighted-average remaining lease term">0.42</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_906_eus-gaap--OperatingLeaseWeightedAverageRemainingLeaseTerm1_iI_dtY_c20241231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__us-gaap--AwardDateAxis__custom--AugustTwoThousandTwentyFourToJulyTwoThousandTwentyFiveMember_zQajAyPYe8i4" title="Weighted-average remaining lease term">0.58</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td>Weighted-average discount rate at December 31, 2024</td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_901_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_uPure_c20241231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__us-gaap--AwardDateAxis__custom--FebruaryTwoThousandTwentyThreeToMarchTwoThousandTwentyFiveMember_zLGw2nA6CTT4" title="Weighted-average discount rate">3.20</td> <td>%</td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_90D_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_uPure_c20241231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__us-gaap--AwardDateAxis__custom--MarchTwoThousandTwentyFourToJuneTwoThousandTwentyFiveMember_zvCiYhq90Rj5" title="Weighted-average discount rate">3.20</td> <td>%</td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_906_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_uPure_c20241231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__us-gaap--AwardDateAxis__custom--JuneTwoThousandTwentyFourToMayTwoThousandTwentyFiveMember_zupswPcC3Go2" title="Weighted-average discount rate">3.33</td> <td>%</td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_90B_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_uPure_c20241231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__us-gaap--AwardDateAxis__custom--AugustTwoThousandTwentyFourToJulyTwoThousandTwentyFiveMember_zedcMvAmZnU5" title="Weighted-average discount rate">3.33</td> <td>%</td></tr> </table> 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 $386,224, respectively, which were included in the operating cash flows statements. The future minimum lease payment schedule for all operating leases as of December 31, 2024, is as disclosed below. Schedule of Operating Lease Liabilities <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1pt solid; text-align: center">For the Year Ending December 31,</td> <td> </td> <td colspan="2" id="xdx_49B_20241231_zYjFCbBUnsXc" style="border-bottom: black 1pt solid; text-align: center">Amount</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td></tr> <tr id="xdx_40C_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_maLOLLPzOCH_zJfQJjt44lVk" style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 80%; text-align: center">2025</td> <td style="width: 2%"> </td> <td style="width: 1%">$</td> <td style="width: 16%; text-align: right">115,652</td> <td style="width: 1%"> </td></tr> <tr id="xdx_40F_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_maLOLLPzOCH_zoviSHvoPlej" style="vertical-align: bottom; background-color: white"> <td style="text-align: center">2026</td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td></tr> <tr id="xdx_404_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_maLOLLPzOCH_zSaq9pVamXKe" style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-align: center">2027</td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td></tr> <tr id="xdx_408_ecustom--LesseeOperatingLeaseLiabilityPaymentsDueYearFourAndThereAfter_iI_maLOLLPzOCH_z3VCJ9NEqth5" style="vertical-align: bottom; background-color: white"> <td style="text-align: center">2028 and thereafter</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td> </td></tr> <tr id="xdx_40D_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_mtLOLLPzOCH_zI7E3BEkf1a1" style="vertical-align: bottom; background-color: #CCEEFF"> <td>Total minimum lease payments</td> <td> </td> <td> </td> <td style="text-align: right">115,652</td> <td> </td></tr> <tr id="xdx_404_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_di_ziyDaZsWuha7" style="vertical-align: bottom; background-color: white"> <td>Less: effect of discounting</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(1,112</td> <td>)</td></tr> <tr id="xdx_40B_eus-gaap--OperatingLeaseLiability_iI_zAV0l70xmK0e" style="vertical-align: bottom; background-color: #CCEEFF"> <td>Present value of the future minimum lease payment</td> <td> </td> <td> </td> <td style="text-align: right">114,540</td> <td> </td></tr> <tr id="xdx_405_eus-gaap--OperatingLeaseLiabilityCurrent_iNI_di_ztTFPoDDEEKc" style="vertical-align: bottom; background-color: white"> <td>Less: operating lease liabilities-current</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(114,540</td> <td>)</td></tr> <tr id="xdx_408_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_zIfAkhi0eWA8" style="vertical-align: bottom; background-color: #CCEEFF"> <td>Total operating lease liabilities-non-current</td> <td> </td> <td style="border-bottom: black 1pt solid">$</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td> </td></tr> </table> 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: Schedule of Operating Leases Cost <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Flywheel</td> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Flywheel</td> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Flywheel</td> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Flywheel</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td> <td> </td> <td colspan="2" style="text-align: center">February 2023</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center">March 2024</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center">June 2024</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center">August 2024</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1pt solid">Initial lease term</td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">to March 2025</td> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">to June 2025</td> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">to May 2025</td> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">to July 2025</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2" style="text-align: right"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: right"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: right"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 32%">Initial recognition of operating lease right-of-use assets</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td id="xdx_982_eus-gaap--OperatingLeaseRightOfUseAsset_iI_pp0p0_c20241231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__us-gaap--AwardDateAxis__custom--FebruaryTwoThousandTwentyThreeToMarchTwoThousandTwentyFiveMember_zRphdyOyih7g" style="width: 14%; text-align: right" title="Initial recognition of operating lease right-of-use assets">28,652</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td id="xdx_98C_eus-gaap--OperatingLeaseRightOfUseAsset_iI_pp0p0_c20241231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__us-gaap--AwardDateAxis__custom--MarchTwoThousandTwentyFourToJuneTwoThousandTwentyFiveMember_zMpul73oRh12" style="width: 14%; text-align: right" title="Initial recognition of operating lease right-of-use assets">123,107</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td id="xdx_98F_eus-gaap--OperatingLeaseRightOfUseAsset_iI_pp0p0_c20241231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__us-gaap--AwardDateAxis__custom--JuneTwoThousandTwentyFourToMayTwoThousandTwentyFiveMember_z8hdHJDneHRk" style="width: 14%; text-align: right" title="Initial recognition of operating lease right-of-use assets">52,434</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td id="xdx_988_eus-gaap--OperatingLeaseRightOfUseAsset_iI_pp0p0_c20241231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__us-gaap--AwardDateAxis__custom--AugustTwoThousandTwentyFourToJulyTwoThousandTwentyFiveMember_zztWtnmS1hz3" style="width: 14%; text-align: right" title="Initial recognition of operating lease right-of-use assets">73,175</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Weighted-average remaining lease term at December 31, 2024</td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_903_eus-gaap--OperatingLeaseWeightedAverageRemainingLeaseTerm1_iI_dtY_c20241231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__us-gaap--AwardDateAxis__custom--FebruaryTwoThousandTwentyThreeToMarchTwoThousandTwentyFiveMember_z8Zn8M65S1Tk" title="Weighted-average remaining lease term">0.17</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_902_eus-gaap--OperatingLeaseWeightedAverageRemainingLeaseTerm1_iI_dtY_c20241231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__us-gaap--AwardDateAxis__custom--MarchTwoThousandTwentyFourToJuneTwoThousandTwentyFiveMember_zvqV5GNSSlSh" title="Weighted-average remaining lease term">0.5</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_90D_eus-gaap--OperatingLeaseWeightedAverageRemainingLeaseTerm1_iI_dtY_c20241231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__us-gaap--AwardDateAxis__custom--JuneTwoThousandTwentyFourToMayTwoThousandTwentyFiveMember_zXTnS60xojn8" title="Weighted-average remaining lease term">0.42</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_906_eus-gaap--OperatingLeaseWeightedAverageRemainingLeaseTerm1_iI_dtY_c20241231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__us-gaap--AwardDateAxis__custom--AugustTwoThousandTwentyFourToJulyTwoThousandTwentyFiveMember_zQajAyPYe8i4" title="Weighted-average remaining lease term">0.58</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td>Weighted-average discount rate at December 31, 2024</td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_901_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_uPure_c20241231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__us-gaap--AwardDateAxis__custom--FebruaryTwoThousandTwentyThreeToMarchTwoThousandTwentyFiveMember_zLGw2nA6CTT4" title="Weighted-average discount rate">3.20</td> <td>%</td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_90D_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_uPure_c20241231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__us-gaap--AwardDateAxis__custom--MarchTwoThousandTwentyFourToJuneTwoThousandTwentyFiveMember_zvCiYhq90Rj5" title="Weighted-average discount rate">3.20</td> <td>%</td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_906_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_uPure_c20241231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__us-gaap--AwardDateAxis__custom--JuneTwoThousandTwentyFourToMayTwoThousandTwentyFiveMember_zupswPcC3Go2" title="Weighted-average discount rate">3.33</td> <td>%</td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_90B_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_uPure_c20241231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__us-gaap--AwardDateAxis__custom--AugustTwoThousandTwentyFourToJulyTwoThousandTwentyFiveMember_zedcMvAmZnU5" title="Weighted-average discount rate">3.33</td> <td>%</td></tr> </table>

28652

123107

52434

73175

P0Y2M1D

P0Y6M

P0Y5M1D

P0Y6M29D

0.0320

0.0333

114540

82269

2363

111409

83946

211348

387446

208843

386224

The future minimum lease payment schedule for all operating leases as of December 31, 2024, is as disclosed below. Schedule of Operating Lease Liabilities <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1pt solid; text-align: center">For the Year Ending December 31,</td> <td> </td> <td colspan="2" id="xdx_49B_20241231_zYjFCbBUnsXc" style="border-bottom: black 1pt solid; text-align: center">Amount</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td></tr> <tr id="xdx_40C_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_maLOLLPzOCH_zJfQJjt44lVk" style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 80%; text-align: center">2025</td> <td style="width: 2%"> </td> <td style="width: 1%">$</td> <td style="width: 16%; text-align: right">115,652</td> <td style="width: 1%"> </td></tr> <tr id="xdx_40F_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_maLOLLPzOCH_zoviSHvoPlej" style="vertical-align: bottom; background-color: white"> <td style="text-align: center">2026</td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td></tr> <tr id="xdx_404_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_maLOLLPzOCH_zSaq9pVamXKe" style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-align: center">2027</td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td></tr> <tr id="xdx_408_ecustom--LesseeOperatingLeaseLiabilityPaymentsDueYearFourAndThereAfter_iI_maLOLLPzOCH_z3VCJ9NEqth5" style="vertical-align: bottom; background-color: white"> <td style="text-align: center">2028 and thereafter</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td> </td></tr> <tr id="xdx_40D_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_mtLOLLPzOCH_zI7E3BEkf1a1" style="vertical-align: bottom; background-color: #CCEEFF"> <td>Total minimum lease payments</td> <td> </td> <td> </td> <td style="text-align: right">115,652</td> <td> </td></tr> <tr id="xdx_404_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_di_ziyDaZsWuha7" style="vertical-align: bottom; background-color: white"> <td>Less: effect of discounting</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(1,112</td> <td>)</td></tr> <tr id="xdx_40B_eus-gaap--OperatingLeaseLiability_iI_zAV0l70xmK0e" style="vertical-align: bottom; background-color: #CCEEFF"> <td>Present value of the future minimum lease payment</td> <td> </td> <td> </td> <td style="text-align: right">114,540</td> <td> </td></tr> <tr id="xdx_405_eus-gaap--OperatingLeaseLiabilityCurrent_iNI_di_ztTFPoDDEEKc" style="vertical-align: bottom; background-color: white"> <td>Less: operating lease liabilities-current</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(114,540</td> <td>)</td></tr> <tr id="xdx_408_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_zIfAkhi0eWA8" style="vertical-align: bottom; background-color: #CCEEFF"> <td>Total operating lease liabilities-non-current</td> <td> </td> <td style="border-bottom: black 1pt solid">$</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td> </td></tr> </table>

115652

1112

114540

NOTE 10 - Related Party Balances and Transactions From time to time, the Company receives loans and advances from its stockholders to fund its operations. Stockholder loans and advances are payable on demand. As of December 31, 2024 and 2023, the Company had $4,192,995 and $4,170,418, respectively, due to related parties (Sam Lai, the Company’s Chairman of the Board, Chief Executive Officer and Interim Chief Financial Officer and a significant stockholder of the Company; and Maggie Yu, the Company’s Senior Vice President, a member of the Company’s Board of Directors and a significant stockholder of the Company). As of December 31, 2024, this amount included $3,499,418 in stockholder payables and $693,577 accrued for bonuses. The loan is memorialized in a Loan Agreement dated October 15, 2021. The annual interest rate was 2% and the initial repayment date was December 31, 2022. On December 28, 2022, <span id="xdx_900_eus-gaap--DebtInstrumentMaturityDateDescription_c20221227__20221228__us-gaap--TypeOfArrangementAxis__custom--LoanAgreementMember_zy7uzcusgT8e" title="Debt instrument, maturity date, description">the Company, Mr. Lai and Ms. Yu agreed to extend the term of the loan for another two years, with a revised maturity date of December 31, 2024. On December 31, 2024, the Company, Mr. Lai and Ms. Yu agreed to extend the term of the loan for another one year, with a revised maturity date of December 31, 2025. The annual interest rate is 5.5%. For the years ended December 31, 2024 and 2023, the Company made repayments to related parties of $<span id="xdx_90B_eus-gaap--RepaymentsOfRelatedPartyDebt_c20240101__20241231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_z888xXl7TjO" title="Payments to related parties">671,000 and $-<span id="xdx_90F_eus-gaap--RepaymentsOfRelatedPartyDebt_c20230101__20231231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zJxTQJOJfSV9" title="Payments to related parties">0-, respectively.

4192995

4170418

3499418

693577

0.02

the Company, Mr. Lai and Ms. Yu agreed to extend the term of the loan for another two years, with a revised maturity date of December 31, 2024. On December 31, 2024, the Company, Mr. Lai and Ms. Yu agreed to extend the term of the loan for another one year, with a revised maturity date of December 31, 2025. The annual interest rate is 5.5%.

671000

NOTE 11 – Disaggregation of Revenue Revenue was comprised of the following for the years ended December 31, 2024 and 2023, respectively: 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 style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20240101__20241231_zO1DZF87Tij6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_496_20230101__20231231_zt1BUXWV6z0c" style="border-bottom: Black 1pt solid; text-align: center">2023</td><td style="padding-bottom: 1pt"> </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_402_ecustom--RevenueGross_hsrt--StatementGeographicalAxis__srt--AmericasMember_zWRYD0oa23Qg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Revenue-America</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 16%; font-weight: bold; text-align: right">144,760,995</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">138,079,203</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_ecustom--RevenueGross_hsrt--StatementGeographicalAxis__custom--InternationalMember_zTozuly8aOka" style="vertical-align: bottom; background-color: White"> <td>Revenue-International</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">4,947,516</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,379,801</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_ecustom--RevenueGross_hsrt--StatementGeographicalAxis__custom--OtherMember_zJ7RlyvI98Q8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Revenue-Other</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">1,148,935</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">930,191</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_ecustom--RevenueGross_hsrt--StatementGeographicalAxis__custom--OtherMember_zcAJlcVVu4fl" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Revenue</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">1,148,935</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">930,191</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_ecustom--SalesReturns_iN_di_zDBTAgSQICfj" 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">(10,840,277</td><td style="font-weight: bold; text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(9,248,586</td><td style="text-align: left">)</td></tr> <tr id="xdx_40B_ecustom--Discounts_iN_di_zyqtV4XgYCpj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Discounts</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(1,764,308</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,016,407</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_zCmqZ0dYaRZf" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">138,252,861</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">132,124,202</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> HOUR LOOP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2024 and 2023

Revenue was comprised of the following for the years ended December 31, 2024 and 2023, respectively: 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 style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20240101__20241231_zO1DZF87Tij6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_496_20230101__20231231_zt1BUXWV6z0c" style="border-bottom: Black 1pt solid; text-align: center">2023</td><td style="padding-bottom: 1pt"> </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_402_ecustom--RevenueGross_hsrt--StatementGeographicalAxis__srt--AmericasMember_zWRYD0oa23Qg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Revenue-America</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 16%; font-weight: bold; text-align: right">144,760,995</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">138,079,203</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_ecustom--RevenueGross_hsrt--StatementGeographicalAxis__custom--InternationalMember_zTozuly8aOka" style="vertical-align: bottom; background-color: White"> <td>Revenue-International</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">4,947,516</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,379,801</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_ecustom--RevenueGross_hsrt--StatementGeographicalAxis__custom--OtherMember_zJ7RlyvI98Q8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Revenue-Other</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">1,148,935</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">930,191</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_ecustom--RevenueGross_hsrt--StatementGeographicalAxis__custom--OtherMember_zcAJlcVVu4fl" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Revenue</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">1,148,935</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">930,191</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_ecustom--SalesReturns_iN_di_zDBTAgSQICfj" 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">(10,840,277</td><td style="font-weight: bold; text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(9,248,586</td><td style="text-align: left">)</td></tr> <tr id="xdx_40B_ecustom--Discounts_iN_di_zyqtV4XgYCpj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Discounts</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(1,764,308</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,016,407</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_zCmqZ0dYaRZf" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">138,252,861</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">132,124,202</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

144760995 138079203 4947516 4379801 1148935 930191 1148935 930191 10840277 9248586 1764308 2016407

138252861

132124202

NOTE 12 - Income Tax The components of income taxes benefit are as follows: 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="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49C_20240101__20241231_ziZaqF9QfJH9" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">December 31, 2024</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_497_20230101__20231231_zZq40560EBhc" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">December 31, 2023</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td></tr> <tr id="xdx_406_eus-gaap--EffectiveIncomeTaxRateReconciliationTaxSettlementsDomestic_pid_dp_uPure_maTITP_zxJRZA6p6l1h" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Federal rate</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">21.00</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: 16%; text-align: right">21.00</td><td style="width: 1%; text-align: left">%</td></tr> <tr id="xdx_40F_eus-gaap--EffectiveIncomeTaxRateReconciliationTaxSettlementsStateAndLocal_pid_dp_uPure_maTITP_zWmci4yvzk85" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Blended state tax rate</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">4.12</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">%</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">4.11</td><td style="padding-bottom: 1pt; text-align: left">%</td></tr> <tr id="xdx_409_eus-gaap--EffectiveIncomeTaxRateReconciliationTaxSettlements_iT_pid_dp_uPure_mtTITP_z4wcltDj2qPb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Effective tax rate</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">25.12</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">%</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">25.11</td><td style="padding-bottom: 1pt; text-align: left">%</td></tr> </table> Schedule of Effective 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 colspan="13" style="border-bottom: black 1pt solid; text-align: center">Effective Tax Rate Reconciliation for the Year Ended December 31, 2024</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </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> <td> </td> <td colspan="2" style="text-align: center">$</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 55%">Pretax Book Income</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td id="xdx_98E_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest_c20240101__20241231_zFbEVrBERP14" style="width: 12%; text-align: right" title="Pretax book Income (Loss), net">959,561</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td id="xdx_98F_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_maTTBC_c20240101__20241231_z3xckXwHJDw9" style="width: 12%; text-align: right" title="Pretax book Income (Loss), percentage">21.00</td> <td style="width: 1%">%</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td id="xdx_986_eus-gaap--IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate_maTTBM_c20240101__20241231_zwYEaSCheuZe" style="width: 12%; text-align: right" title="Pretax book Income (Loss)">201,508</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Permanent Differences</td> <td> </td> <td> </td> <td id="xdx_98F_ecustom--IncomeTaxReconciliationChangeInEnactedTaxRateNet_c20240101__20241231_zKU9QfyGsAhd" style="text-align: right" title="Permanent differences, net">84,240</td> <td> </td> <td> </td> <td> </td> <td id="xdx_982_eus-gaap--EffectiveIncomeTaxRateReconciliationChangeInEnactedTaxRate_pid_dp_maTTBC_c20240101__20241231_z3A03AKlOMFh" style="text-align: right" title="Permanent differences, percentage">1.84</td> <td>%</td> <td> </td> <td> </td> <td id="xdx_98C_eus-gaap--IncomeTaxReconciliationChangeInEnactedTaxRate_maTTBM_c20240101__20241231_zfgUAXoDED45" style="text-align: right" title="Permanent differences">17,690</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td>PY Federal Perm True-up</td> <td> </td> <td> </td> <td id="xdx_98F_ecustom--IncomeTaxReconciliationTaxPriorYearIncome_c20240101__20241231_zsSNJ6Pb1i6h" style="text-align: right" title="PY Federal Perm True-up, net">117,653</td> <td> </td> <td> </td> <td> </td> <td id="xdx_982_eus-gaap--EffectiveIncomeTaxRateReconciliationPriorYearIncomeTaxes_pid_dp_maTTBC_c20240101__20241231_zeRYbhJVyVd" style="text-align: right" title="PY Federal Perm True-up, percentage">2.57</td> <td>%</td> <td> </td> <td> </td> <td id="xdx_988_eus-gaap--IncomeTaxReconciliationPriorYearIncomeTaxes_maTTBM_c20240101__20241231_zWvNe8PoGHnl" style="text-align: right" title="PY Federal Perm True-up">24,707</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>State income tax</td> <td> </td> <td> </td> <td id="xdx_984_ecustom--IncomeTaxReconciliationStateAndLocalIncomeTax_c20240101__20241231_z93L5VVbonal" style="text-align: right" title="State income tax, net">68,981</td> <td> </td> <td> </td> <td> </td> <td id="xdx_984_eus-gaap--EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes_pid_dp_maTTBC_c20240101__20241231_zHJFArNAPyQ4" style="text-align: right" title="State income tax, percentage">6.79</td> <td>%</td> <td> </td> <td> </td> <td id="xdx_986_eus-gaap--IncomeTaxReconciliationStateAndLocalIncomeTaxes_maTTBM_c20240101__20241231_zEXAYBHuIJgi" style="text-align: right" title="State income tax">65,198</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td>Other Deferred adjustment</td> <td> </td> <td> </td> <td id="xdx_98F_ecustom--IncomeTaxReconciliationOtherAdjustmentsNet_c20240101__20241231_zr083Q7rIUaf" style="text-align: right" title="Other deferred adjustment, net">-</td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td id="xdx_980_eus-gaap--EffectiveIncomeTaxRateReconciliationOtherAdjustments_pid_dp_maTTBC_c20240101__20241231_z5ZIKFDUlI8" style="border-bottom: black 1pt solid; text-align: right" title="Other deferred adjustment, percentage">-0.73</td> <td>%</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td id="xdx_98D_eus-gaap--IncomeTaxReconciliationOtherAdjustments_maTTBM_c20240101__20241231_zHOwP0wTrb9g" style="border-bottom: black 1pt solid; text-align: right" title="Other deferred adjustment">(6,989</td> <td>)</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Total Tax Expenses</td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_989_eus-gaap--EffectiveIncomeTaxRateContinuingOperations_iT_pid_dp_mtTTBC_c20240101__20241231_zMZtF965XKz9" style="text-align: right" title="Total Tax benefits, percentage">31.47</td> <td>%</td> <td> </td> <td> </td> <td id="xdx_986_eus-gaap--IncomeTaxExpenseBenefit_iT_mtTTBM_c20240101__20241231_z1iO87l93mye" style="text-align: right" title="Total Tax benefits">302,114</td> <td></td></tr> </table> HOUR LOOP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2024 and 2023 <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td colspan="13" style="border-bottom: black 1pt solid; text-align: center">Effective Tax Rate Reconciliation for the Year Ended December 31, 2023</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </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> <td> </td> <td colspan="2" style="text-align: center">$</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 55%">Pretax Book Income</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td id="xdx_98A_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest_c20230101__20231231_z59mt99qdmI9" style="width: 12%; text-align: right" title="Pretax book Income (Loss), net">(3,160,454</td> <td style="width: 1%">)</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td id="xdx_98B_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_maTTBC_c20230101__20231231_zVLRDaUnenUa" style="width: 12%; text-align: right" title="Pretax book Income (Loss), percentage">21.00</td> <td style="width: 1%">%</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td id="xdx_987_eus-gaap--IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate_maTTBM_c20230101__20231231_zXvwMAdfJCwe" style="width: 12%; text-align: right" title="Pretax book Income (Loss)">(663,695</td> <td style="width: 1%">)</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Permanent Differences</td> <td> </td> <td> </td> <td id="xdx_985_ecustom--IncomeTaxReconciliationChangeInEnactedTaxRateNet_c20230101__20231231_zpEtWmnm36lh" style="text-align: right" title="Permanent differences, net">78,048</td> <td> </td> <td> </td> <td> </td> <td id="xdx_986_eus-gaap--EffectiveIncomeTaxRateReconciliationChangeInEnactedTaxRate_pid_dp_maTTBC_c20230101__20231231_zn0Yh9uxXu3f" style="text-align: right" title="Permanent differences, percentage">-0.52</td> <td>%</td> <td> </td> <td> </td> <td id="xdx_984_eus-gaap--IncomeTaxReconciliationChangeInEnactedTaxRate_maTTBM_c20230101__20231231_znhBwbnhs7q1" style="text-align: right" title="Permanent differences">16,390</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td>PY Federal Perm True-up</td> <td> </td> <td> </td> <td id="xdx_98D_ecustom--IncomeTaxReconciliationTaxPriorYearIncome_c20230101__20231231_zcXiz7RLykf6" style="text-align: right" title="PY Federal Perm True-up, net">73,914</td> <td> </td> <td> </td> <td> </td> <td id="xdx_980_eus-gaap--EffectiveIncomeTaxRateReconciliationPriorYearIncomeTaxes_pid_dp_maTTBC_c20230101__20231231_zDwEn9XLkwra" style="text-align: right" title="PY Federal Perm True-up, percentage">-0.49</td> <td>%</td> <td> </td> <td> </td> <td id="xdx_98D_eus-gaap--IncomeTaxReconciliationPriorYearIncomeTaxes_maTTBM_c20230101__20231231_z2HM93NyeM1j" style="text-align: right" title="PY Federal Perm True-up">15,522</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>State income tax</td> <td> </td> <td> </td> <td id="xdx_98A_ecustom--IncomeTaxReconciliationStateAndLocalIncomeTax_c20230101__20231231_zxyvXzOM6pr8" style="text-align: right" title="State income tax, net">24,136</td> <td> </td> <td> </td> <td> </td> <td id="xdx_988_eus-gaap--EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes_pid_dp_maTTBC_c20230101__20231231_zl29p0GFPtCl" style="text-align: right" title="State income tax, percentage">3.12</td> <td>%</td> <td> </td> <td> </td> <td id="xdx_985_eus-gaap--IncomeTaxReconciliationStateAndLocalIncomeTaxes_maTTBM_c20230101__20231231_zF7ssLi6HV7f" style="text-align: right" title="State income tax">(98,586</td> <td>)</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td>Other Deferred adjustment</td> <td> </td> <td> </td> <td id="xdx_98C_ecustom--IncomeTaxReconciliationOtherAdjustmentsNet_c20230101__20231231_zJkKuh4DoGQi" style="text-align: right" title="Other deferred adjustment, net">-</td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td id="xdx_984_eus-gaap--EffectiveIncomeTaxRateReconciliationOtherAdjustments_pid_dp_maTTBC_c20230101__20231231_zVbSXq4mwu69" style="border-bottom: black 1pt solid; text-align: right" title="Other deferred adjustment, percentage">0.01</td> <td>%</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td id="xdx_985_eus-gaap--IncomeTaxReconciliationOtherAdjustments_maTTBM_c20230101__20231231_zzqR9SIWiXYe" style="border-bottom: black 1pt solid; text-align: right" title="Other deferred adjustment">(391</td> <td>)</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Total Tax benefits</td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_980_eus-gaap--EffectiveIncomeTaxRateContinuingOperations_iT_pid_dp_mtTTBC_c20230101__20231231_zp6QUIMnfnOk" style="text-align: right" title="Total Tax benefits, percentage">23.12</td> <td>%</td> <td> </td> <td> </td> <td id="xdx_98D_eus-gaap--IncomeTaxExpenseBenefit_iT_mtTTBM_c20230101__20231231_zE9VO73iJISa" style="text-align: right" title="Total Tax benefits">(730,760</td> <td>)</td></tr> </table> Schedule of Tax Expense Summary <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" style="font-weight: bold; text-align: center">Current</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Deferred</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Total</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="font-weight: bold; text-align: center">Income Tax</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Income Tax</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Income Tax</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold">Tax Expense Summary, for the Year Ended December 31, 2024</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Expense</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Expense</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Expense</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 55%">Federal</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_985_eus-gaap--CurrentFederalTaxExpenseBenefit_pp0p0_c20240101__20241231_zxHLrBxXWX79" style="width: 12%; text-align: right" title="Current Income Tax Expense, Federal">39,989</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_986_eus-gaap--DeferredFederalIncomeTaxExpenseBenefit_pp0p0_c20240101__20241231_za4xZqE6DnDc" style="width: 12%; text-align: right" title="Deferred Income Tax Benefit, Federal">193,145</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_981_eus-gaap--FederalIncomeTaxExpenseBenefitContinuingOperations_pp0p0_c20240101__20241231_zLoq6ohIGtd9" style="width: 12%; text-align: right" title="Total Income Tax Benefit, Federal">233,134</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">State</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--CurrentStateAndLocalTaxExpenseBenefit_pp0p0_c20240101__20241231_zL4oBV6GVVfg" style="border-bottom: Black 1pt solid; text-align: right" title="Current Income Tax Expense, State">18,013</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_989_eus-gaap--DeferredStateAndLocalIncomeTaxExpenseBenefit_pp0p0_c20240101__20241231_zavbxWr4iP21" style="border-bottom: Black 1pt solid; text-align: right" title="Deferred Income Tax Benefit, State">50,967</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--StateAndLocalIncomeTaxExpenseBenefitContinuingOperations_pp0p0_c20240101__20241231_zMveas3SgAf8" style="border-bottom: Black 1pt solid; text-align: right" title="Total Income Tax Benefit, State">68,980</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total Tax Expense</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_980_eus-gaap--CurrentIncomeTaxExpenseBenefit_pp0p0_c20240101__20241231_z2Anooyu9vAg" style="border-bottom: Black 2.5pt double; text-align: right" title="Current Income Tax Expense, Total tax expense (benefit)">58,002</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_985_eus-gaap--DeferredIncomeTaxExpenseBenefit_pp0p0_c20240101__20241231_znfP3Hf84VMb" style="border-bottom: Black 2.5pt double; text-align: right" title="Deferred Income Tax Benefit, Total tax expense (benefit)">244,112</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_986_eus-gaap--IncomeTaxExpenseBenefit_c20240101__20241231_zXliXxjNhvV9" style="border-bottom: Black 2.5pt double; text-align: right" title="Total Income Tax Benefit, Total tax expense (benefit)">302,114</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <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" style="font-weight: bold; text-align: center">Current</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Deferred</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Total</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="font-weight: bold; text-align: center">Income Tax</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Income Tax</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Income Tax</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold">Tax Expense Summary, for the Year Ended December 31, 2023</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Benefit</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Benefit</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Benefit</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 55%">Federal</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--CurrentFederalTaxExpenseBenefit_pp0p0_c20230101__20231231_zzZipGGkaAxk" style="width: 12%; text-align: right" title="Current Income Tax Expense, Federal">(637,242</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--DeferredFederalIncomeTaxExpenseBenefit_pp0p0_c20230101__20231231_zQI2zz1Kr16k" style="width: 12%; text-align: right" title="Deferred Income Tax Benefit, Federal">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--FederalIncomeTaxExpenseBenefitContinuingOperations_pp0p0_c20230101__20231231_zPmdtNg6Vkkg" style="width: 12%; text-align: right" title="Total Income Tax Benefit, Federal">(637,242</td><td style="width: 1%; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">State</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--CurrentStateAndLocalTaxExpenseBenefit_pp0p0_c20230101__20231231_zZhKfDgwDwk1" style="border-bottom: Black 1pt solid; text-align: right" title="Current Income Tax Expense, State">(117,654</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_982_eus-gaap--DeferredStateAndLocalIncomeTaxExpenseBenefit_pp0p0_c20230101__20231231_z7dyw0xybrmj" style="border-bottom: Black 1pt solid; text-align: right" title="Deferred Income Tax Benefit, State">24,136</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_980_eus-gaap--StateAndLocalIncomeTaxExpenseBenefitContinuingOperations_pp0p0_c20230101__20231231_zoM2M6KQsYR8" style="border-bottom: Black 1pt solid; text-align: right" title="Total Income Tax Benefit, State">(93,518</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total tax expense (benefit)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_984_eus-gaap--CurrentIncomeTaxExpenseBenefit_pp0p0_c20230101__20231231_zJgcRoS9GOxh" style="border-bottom: Black 2.5pt double; text-align: right" title="Current Income Tax Expense, Total tax expense (benefit)">(754,896</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">$</td><td id="xdx_984_eus-gaap--DeferredIncomeTaxExpenseBenefit_pp0p0_c20230101__20231231_zUkny3h7GaY4" style="border-bottom: Black 2.5pt double; text-align: right" title="Deferred Income Tax Benefit, Total tax expense (benefit)">24,136</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_980_eus-gaap--IncomeTaxExpenseBenefit_c20230101__20231231_zRUxD5teYIe7" style="border-bottom: Black 2.5pt double; text-align: right" title="Total Income Tax Benefit, Total tax expense (benefit)">(730,760</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> </table> HOUR LOOP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2024 and 2023 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets at December 31, 2024 and 2023 were as follows: Schedule of Deferred Tax Assets and 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_498_20241231_zRFFgPwGMr" 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_20231231_zcweCXVITqxk" 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 1pt solid; font-weight: bold">Deferred Tax Assets summary</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_406_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_hus-gaap--IncomeTaxAuthorityAxis__us-gaap--DomesticCountryMember_zPW2bLJfl8Hf" 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">$</td><td style="width: 16%; text-align: right">908,691</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,101,836</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_hus-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember_zfLus7DsKhn4" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">State</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">151,413</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">202,379</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_zZ3615QBFXV2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,060,104</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,304,215</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <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: center"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_499_20241231_zWZs5toYeMa7" 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_20231231_zvAIYzwahlS" 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 1pt solid; font-weight: bold">Deferred Tax Assets summary</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_408_ecustom--DeferredTaxAssetsOperatingLeaseRightOfUseAsset_iI_maDTANzoAA_z8C8eTpYkgEj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Operating lease right of use lease assets</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">787</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">172</td><td style="width: 1%; text-align: left"></td></tr> <tr id="xdx_409_eus-gaap--DeferredTaxAssetsInventory_iI_maDTANzoAA_z2VLmGCrMAR6" 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">140,743</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">169,725</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--OperatingLossCarryforwards_iI_maDTANzoAA_z5bFw9bbzV27" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Net loss carry forward</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">918,574</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,134,318</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--DeferredTaxAssetsNet_iTI_mtDTANzoAA_zcC9C9OI2H53" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,060,104</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,304,215</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The Company files income tax return in the U.S. federal jurisdiction and various state jurisdictions. Based on management’s evaluation, there is no provision necessary for material uncertain tax position for the Company at December 31, 2024 and 2023. For the years ended December 31, 2024 and 2023, the Company reported net operating income (loss) of $657,447 and $(2,429,694), respectively. The net operating loss carryforward is not subject to any expiration period under federal regulations, while at the state level, the expiration period usually ranges up to 20 years, or there may be no expiration period at all. The Company expects to generate sufficient taxable income in future periods against which the deferred tax assets can be utilized. Accordingly, a valuation allowance may not be needed. HOUR LOOP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2024 and 2023

The components of income taxes benefit are as follows: 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="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49C_20240101__20241231_ziZaqF9QfJH9" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">December 31, 2024</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_497_20230101__20231231_zZq40560EBhc" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">December 31, 2023</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td></tr> <tr id="xdx_406_eus-gaap--EffectiveIncomeTaxRateReconciliationTaxSettlementsDomestic_pid_dp_uPure_maTITP_zxJRZA6p6l1h" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Federal rate</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">21.00</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: 16%; text-align: right">21.00</td><td style="width: 1%; text-align: left">%</td></tr> <tr id="xdx_40F_eus-gaap--EffectiveIncomeTaxRateReconciliationTaxSettlementsStateAndLocal_pid_dp_uPure_maTITP_zWmci4yvzk85" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Blended state tax rate</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">4.12</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">%</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">4.11</td><td style="padding-bottom: 1pt; text-align: left">%</td></tr> <tr id="xdx_409_eus-gaap--EffectiveIncomeTaxRateReconciliationTaxSettlements_iT_pid_dp_uPure_mtTITP_z4wcltDj2qPb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Effective tax rate</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">25.12</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">%</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">25.11</td><td style="padding-bottom: 1pt; text-align: left">%</td></tr> </table>

0.2100

0.0412

0.0411

0.2512

0.2511

Schedule of Effective 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 colspan="13" style="border-bottom: black 1pt solid; text-align: center">Effective Tax Rate Reconciliation for the Year Ended December 31, 2024</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </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> <td> </td> <td colspan="2" style="text-align: center">$</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 55%">Pretax Book Income</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td id="xdx_98E_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest_c20240101__20241231_zFbEVrBERP14" style="width: 12%; text-align: right" title="Pretax book Income (Loss), net">959,561</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td id="xdx_98F_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_maTTBC_c20240101__20241231_z3xckXwHJDw9" style="width: 12%; text-align: right" title="Pretax book Income (Loss), percentage">21.00</td> <td style="width: 1%">%</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td id="xdx_986_eus-gaap--IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate_maTTBM_c20240101__20241231_zwYEaSCheuZe" style="width: 12%; text-align: right" title="Pretax book Income (Loss)">201,508</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Permanent Differences</td> <td> </td> <td> </td> <td id="xdx_98F_ecustom--IncomeTaxReconciliationChangeInEnactedTaxRateNet_c20240101__20241231_zKU9QfyGsAhd" style="text-align: right" title="Permanent differences, net">84,240</td> <td> </td> <td> </td> <td> </td> <td id="xdx_982_eus-gaap--EffectiveIncomeTaxRateReconciliationChangeInEnactedTaxRate_pid_dp_maTTBC_c20240101__20241231_z3A03AKlOMFh" style="text-align: right" title="Permanent differences, percentage">1.84</td> <td>%</td> <td> </td> <td> </td> <td id="xdx_98C_eus-gaap--IncomeTaxReconciliationChangeInEnactedTaxRate_maTTBM_c20240101__20241231_zfgUAXoDED45" style="text-align: right" title="Permanent differences">17,690</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td>PY Federal Perm True-up</td> <td> </td> <td> </td> <td id="xdx_98F_ecustom--IncomeTaxReconciliationTaxPriorYearIncome_c20240101__20241231_zsSNJ6Pb1i6h" style="text-align: right" title="PY Federal Perm True-up, net">117,653</td> <td> </td> <td> </td> <td> </td> <td id="xdx_982_eus-gaap--EffectiveIncomeTaxRateReconciliationPriorYearIncomeTaxes_pid_dp_maTTBC_c20240101__20241231_zeRYbhJVyVd" style="text-align: right" title="PY Federal Perm True-up, percentage">2.57</td> <td>%</td> <td> </td> <td> </td> <td id="xdx_988_eus-gaap--IncomeTaxReconciliationPriorYearIncomeTaxes_maTTBM_c20240101__20241231_zWvNe8PoGHnl" style="text-align: right" title="PY Federal Perm True-up">24,707</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>State income tax</td> <td> </td> <td> </td> <td id="xdx_984_ecustom--IncomeTaxReconciliationStateAndLocalIncomeTax_c20240101__20241231_z93L5VVbonal" style="text-align: right" title="State income tax, net">68,981</td> <td> </td> <td> </td> <td> </td> <td id="xdx_984_eus-gaap--EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes_pid_dp_maTTBC_c20240101__20241231_zHJFArNAPyQ4" style="text-align: right" title="State income tax, percentage">6.79</td> <td>%</td> <td> </td> <td> </td> <td id="xdx_986_eus-gaap--IncomeTaxReconciliationStateAndLocalIncomeTaxes_maTTBM_c20240101__20241231_zEXAYBHuIJgi" style="text-align: right" title="State income tax">65,198</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td>Other Deferred adjustment</td> <td> </td> <td> </td> <td id="xdx_98F_ecustom--IncomeTaxReconciliationOtherAdjustmentsNet_c20240101__20241231_zr083Q7rIUaf" style="text-align: right" title="Other deferred adjustment, net">-</td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td id="xdx_980_eus-gaap--EffectiveIncomeTaxRateReconciliationOtherAdjustments_pid_dp_maTTBC_c20240101__20241231_z5ZIKFDUlI8" style="border-bottom: black 1pt solid; text-align: right" title="Other deferred adjustment, percentage">-0.73</td> <td>%</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td id="xdx_98D_eus-gaap--IncomeTaxReconciliationOtherAdjustments_maTTBM_c20240101__20241231_zHOwP0wTrb9g" style="border-bottom: black 1pt solid; text-align: right" title="Other deferred adjustment">(6,989</td> <td>)</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Total Tax Expenses</td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_989_eus-gaap--EffectiveIncomeTaxRateContinuingOperations_iT_pid_dp_mtTTBC_c20240101__20241231_zMZtF965XKz9" style="text-align: right" title="Total Tax benefits, percentage">31.47</td> <td>%</td> <td> </td> <td> </td> <td id="xdx_986_eus-gaap--IncomeTaxExpenseBenefit_iT_mtTTBM_c20240101__20241231_z1iO87l93mye" style="text-align: right" title="Total Tax benefits">302,114</td> <td></td></tr> </table> HOUR LOOP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2024 and 2023 <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td colspan="13" style="border-bottom: black 1pt solid; text-align: center">Effective Tax Rate Reconciliation for the Year Ended December 31, 2023</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </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> <td> </td> <td colspan="2" style="text-align: center">$</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 55%">Pretax Book Income</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td id="xdx_98A_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest_c20230101__20231231_z59mt99qdmI9" style="width: 12%; text-align: right" title="Pretax book Income (Loss), net">(3,160,454</td> <td style="width: 1%">)</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td id="xdx_98B_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_maTTBC_c20230101__20231231_zVLRDaUnenUa" style="width: 12%; text-align: right" title="Pretax book Income (Loss), percentage">21.00</td> <td style="width: 1%">%</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td id="xdx_987_eus-gaap--IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate_maTTBM_c20230101__20231231_zXvwMAdfJCwe" style="width: 12%; text-align: right" title="Pretax book Income (Loss)">(663,695</td> <td style="width: 1%">)</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Permanent Differences</td> <td> </td> <td> </td> <td id="xdx_985_ecustom--IncomeTaxReconciliationChangeInEnactedTaxRateNet_c20230101__20231231_zpEtWmnm36lh" style="text-align: right" title="Permanent differences, net">78,048</td> <td> </td> <td> </td> <td> </td> <td id="xdx_986_eus-gaap--EffectiveIncomeTaxRateReconciliationChangeInEnactedTaxRate_pid_dp_maTTBC_c20230101__20231231_zn0Yh9uxXu3f" style="text-align: right" title="Permanent differences, percentage">-0.52</td> <td>%</td> <td> </td> <td> </td> <td id="xdx_984_eus-gaap--IncomeTaxReconciliationChangeInEnactedTaxRate_maTTBM_c20230101__20231231_znhBwbnhs7q1" style="text-align: right" title="Permanent differences">16,390</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td>PY Federal Perm True-up</td> <td> </td> <td> </td> <td id="xdx_98D_ecustom--IncomeTaxReconciliationTaxPriorYearIncome_c20230101__20231231_zcXiz7RLykf6" style="text-align: right" title="PY Federal Perm True-up, net">73,914</td> <td> </td> <td> </td> <td> </td> <td id="xdx_980_eus-gaap--EffectiveIncomeTaxRateReconciliationPriorYearIncomeTaxes_pid_dp_maTTBC_c20230101__20231231_zDwEn9XLkwra" style="text-align: right" title="PY Federal Perm True-up, percentage">-0.49</td> <td>%</td> <td> </td> <td> </td> <td id="xdx_98D_eus-gaap--IncomeTaxReconciliationPriorYearIncomeTaxes_maTTBM_c20230101__20231231_z2HM93NyeM1j" style="text-align: right" title="PY Federal Perm True-up">15,522</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>State income tax</td> <td> </td> <td> </td> <td id="xdx_98A_ecustom--IncomeTaxReconciliationStateAndLocalIncomeTax_c20230101__20231231_zxyvXzOM6pr8" style="text-align: right" title="State income tax, net">24,136</td> <td> </td> <td> </td> <td> </td> <td id="xdx_988_eus-gaap--EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes_pid_dp_maTTBC_c20230101__20231231_zl29p0GFPtCl" style="text-align: right" title="State income tax, percentage">3.12</td> <td>%</td> <td> </td> <td> </td> <td id="xdx_985_eus-gaap--IncomeTaxReconciliationStateAndLocalIncomeTaxes_maTTBM_c20230101__20231231_zF7ssLi6HV7f" style="text-align: right" title="State income tax">(98,586</td> <td>)</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td>Other Deferred adjustment</td> <td> </td> <td> </td> <td id="xdx_98C_ecustom--IncomeTaxReconciliationOtherAdjustmentsNet_c20230101__20231231_zJkKuh4DoGQi" style="text-align: right" title="Other deferred adjustment, net">-</td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td id="xdx_984_eus-gaap--EffectiveIncomeTaxRateReconciliationOtherAdjustments_pid_dp_maTTBC_c20230101__20231231_zVbSXq4mwu69" style="border-bottom: black 1pt solid; text-align: right" title="Other deferred adjustment, percentage">0.01</td> <td>%</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td id="xdx_985_eus-gaap--IncomeTaxReconciliationOtherAdjustments_maTTBM_c20230101__20231231_zzqR9SIWiXYe" style="border-bottom: black 1pt solid; text-align: right" title="Other deferred adjustment">(391</td> <td>)</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Total Tax benefits</td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td> </td> <td id="xdx_980_eus-gaap--EffectiveIncomeTaxRateContinuingOperations_iT_pid_dp_mtTTBC_c20230101__20231231_zp6QUIMnfnOk" style="text-align: right" title="Total Tax benefits, percentage">23.12</td> <td>%</td> <td> </td> <td> </td> <td id="xdx_98D_eus-gaap--IncomeTaxExpenseBenefit_iT_mtTTBM_c20230101__20231231_zE9VO73iJISa" style="text-align: right" title="Total Tax benefits">(730,760</td> <td>)</td></tr> </table>

959561

0.2100

201508

84240

0.0184

17690

117653

0.0257

24707

68981

0.0679

65198

-0.0073

-6989

0.3147

302114

-3160454

0.2100

-663695

78048

-0.0052

16390

73914

-0.0049

15522

24136

0.0312

-98586

0.0001

-391

0.2312

-730760

Schedule of Tax Expense Summary <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" style="font-weight: bold; text-align: center">Current</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Deferred</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Total</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="font-weight: bold; text-align: center">Income Tax</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Income Tax</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Income Tax</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold">Tax Expense Summary, for the Year Ended December 31, 2024</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Expense</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Expense</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Expense</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 55%">Federal</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_985_eus-gaap--CurrentFederalTaxExpenseBenefit_pp0p0_c20240101__20241231_zxHLrBxXWX79" style="width: 12%; text-align: right" title="Current Income Tax Expense, Federal">39,989</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_986_eus-gaap--DeferredFederalIncomeTaxExpenseBenefit_pp0p0_c20240101__20241231_za4xZqE6DnDc" style="width: 12%; text-align: right" title="Deferred Income Tax Benefit, Federal">193,145</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_981_eus-gaap--FederalIncomeTaxExpenseBenefitContinuingOperations_pp0p0_c20240101__20241231_zLoq6ohIGtd9" style="width: 12%; text-align: right" title="Total Income Tax Benefit, Federal">233,134</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">State</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--CurrentStateAndLocalTaxExpenseBenefit_pp0p0_c20240101__20241231_zL4oBV6GVVfg" style="border-bottom: Black 1pt solid; text-align: right" title="Current Income Tax Expense, State">18,013</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_989_eus-gaap--DeferredStateAndLocalIncomeTaxExpenseBenefit_pp0p0_c20240101__20241231_zavbxWr4iP21" style="border-bottom: Black 1pt solid; text-align: right" title="Deferred Income Tax Benefit, State">50,967</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--StateAndLocalIncomeTaxExpenseBenefitContinuingOperations_pp0p0_c20240101__20241231_zMveas3SgAf8" style="border-bottom: Black 1pt solid; text-align: right" title="Total Income Tax Benefit, State">68,980</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total Tax Expense</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_980_eus-gaap--CurrentIncomeTaxExpenseBenefit_pp0p0_c20240101__20241231_z2Anooyu9vAg" style="border-bottom: Black 2.5pt double; text-align: right" title="Current Income Tax Expense, Total tax expense (benefit)">58,002</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_985_eus-gaap--DeferredIncomeTaxExpenseBenefit_pp0p0_c20240101__20241231_znfP3Hf84VMb" style="border-bottom: Black 2.5pt double; text-align: right" title="Deferred Income Tax Benefit, Total tax expense (benefit)">244,112</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_986_eus-gaap--IncomeTaxExpenseBenefit_c20240101__20241231_zXliXxjNhvV9" style="border-bottom: Black 2.5pt double; text-align: right" title="Total Income Tax Benefit, Total tax expense (benefit)">302,114</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <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" style="font-weight: bold; text-align: center">Current</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Deferred</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Total</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="font-weight: bold; text-align: center">Income Tax</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Income Tax</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Income Tax</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold">Tax Expense Summary, for the Year Ended December 31, 2023</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Benefit</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Benefit</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Benefit</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 55%">Federal</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--CurrentFederalTaxExpenseBenefit_pp0p0_c20230101__20231231_zzZipGGkaAxk" style="width: 12%; text-align: right" title="Current Income Tax Expense, Federal">(637,242</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--DeferredFederalIncomeTaxExpenseBenefit_pp0p0_c20230101__20231231_zQI2zz1Kr16k" style="width: 12%; text-align: right" title="Deferred Income Tax Benefit, Federal">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--FederalIncomeTaxExpenseBenefitContinuingOperations_pp0p0_c20230101__20231231_zPmdtNg6Vkkg" style="width: 12%; text-align: right" title="Total Income Tax Benefit, Federal">(637,242</td><td style="width: 1%; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">State</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--CurrentStateAndLocalTaxExpenseBenefit_pp0p0_c20230101__20231231_zZhKfDgwDwk1" style="border-bottom: Black 1pt solid; text-align: right" title="Current Income Tax Expense, State">(117,654</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_982_eus-gaap--DeferredStateAndLocalIncomeTaxExpenseBenefit_pp0p0_c20230101__20231231_z7dyw0xybrmj" style="border-bottom: Black 1pt solid; text-align: right" title="Deferred Income Tax Benefit, State">24,136</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_980_eus-gaap--StateAndLocalIncomeTaxExpenseBenefitContinuingOperations_pp0p0_c20230101__20231231_zoM2M6KQsYR8" style="border-bottom: Black 1pt solid; text-align: right" title="Total Income Tax Benefit, State">(93,518</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total tax expense (benefit)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_984_eus-gaap--CurrentIncomeTaxExpenseBenefit_pp0p0_c20230101__20231231_zJgcRoS9GOxh" style="border-bottom: Black 2.5pt double; text-align: right" title="Current Income Tax Expense, Total tax expense (benefit)">(754,896</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">$</td><td id="xdx_984_eus-gaap--DeferredIncomeTaxExpenseBenefit_pp0p0_c20230101__20231231_zUkny3h7GaY4" style="border-bottom: Black 2.5pt double; text-align: right" title="Deferred Income Tax Benefit, Total tax expense (benefit)">24,136</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_980_eus-gaap--IncomeTaxExpenseBenefit_c20230101__20231231_zRUxD5teYIe7" style="border-bottom: Black 2.5pt double; text-align: right" title="Total Income Tax Benefit, Total tax expense (benefit)">(730,760</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> </table>

39989

193145

233134

18013

50967

68980

58002

244112

302114

-637242

-117654

24136

-93518

-754896

24136

-730760

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets at December 31, 2024 and 2023 were as follows: Schedule of Deferred Tax Assets and 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_498_20241231_zRFFgPwGMr" 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_20231231_zcweCXVITqxk" 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 1pt solid; font-weight: bold">Deferred Tax Assets summary</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_406_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_hus-gaap--IncomeTaxAuthorityAxis__us-gaap--DomesticCountryMember_zPW2bLJfl8Hf" 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">$</td><td style="width: 16%; text-align: right">908,691</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,101,836</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_hus-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember_zfLus7DsKhn4" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">State</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">151,413</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">202,379</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_zZ3615QBFXV2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,060,104</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,304,215</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <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: center"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_499_20241231_zWZs5toYeMa7" 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_20231231_zvAIYzwahlS" 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 1pt solid; font-weight: bold">Deferred Tax Assets summary</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_408_ecustom--DeferredTaxAssetsOperatingLeaseRightOfUseAsset_iI_maDTANzoAA_z8C8eTpYkgEj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Operating lease right of use lease assets</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">787</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">172</td><td style="width: 1%; text-align: left"></td></tr> <tr id="xdx_409_eus-gaap--DeferredTaxAssetsInventory_iI_maDTANzoAA_z2VLmGCrMAR6" 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">140,743</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">169,725</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--OperatingLossCarryforwards_iI_maDTANzoAA_z5bFw9bbzV27" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Net loss carry forward</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">918,574</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,134,318</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--DeferredTaxAssetsNet_iTI_mtDTANzoAA_zcC9C9OI2H53" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,060,104</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,304,215</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

908691

1101836

151413

202379

1060104

1304215

787 172

140743

169725

918574

1134318

1060104

1304215

657447

-2429694

P20Y

NOTE 13 - Stockholders’ Equity Preferred Stock As of December 31, 2024 and 2023, the Company had 10,000,000 shares of preferred stock, $0.0001 par value per share, authorized. The Company did not have any preferred shares issued and outstanding as of December 31, 2024 and 2023. 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, 2024 and 2023, the Company had 300,000,000 shares of common stock, $0.0001 par value per share, authorized. As of December 31, 2024 and 2023, there were 35,143,460 and 35,082,464 shares of common stock issued and outstanding, respectively. Share Issuances for Stock Compensation On January 4, 2023, the Company issued <span id="xdx_903_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_pid_c20230104__20230104__srt--TitleOfIndividualAxis__custom--AlanGaoMember__us-gaap--TypeOfArrangementAxis__custom--ExecutiveEmploymentAgreementsOrDirectorAgreementsMember_zsWMSHqJ1fJ" title="Number of shares vested, shares">1,001 shares of Company common stock to each of Sam Lai, Maggie Yu, Michael Lenner, Douglas Branch, and Alan Gao, with a fair market value of $<span id="xdx_90D_eus-gaap--SharesIssuedPricePerShare_iI_pid_c20230104__srt--TitleOfIndividualAxis__custom--AlanGaoMember__us-gaap--TypeOfArrangementAxis__custom--ExecutiveEmploymentAgreementsOrDirectorAgreementsMember_zbUqoBFluDb8" title="Shares issued price per share">2.9985 per share as compensation for the services as executives or directors to the Company pursuant to the terms of their respective Executive Employment Agreements or Director Agreements with the Company. On April 3, 2023, the Company issued <span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_pid_c20230401__20230403__srt--TitleOfIndividualAxis__custom--SamLaiMember__us-gaap--TypeOfArrangementAxis__custom--ExecutiveEmploymentAgreementsOrDirectorAgreementsMember_zBAGim6yzza7" title="Number of shares vested, shares">1,365, <span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_pid_c20230401__20230403__srt--TitleOfIndividualAxis__custom--MaggieYuMember__us-gaap--TypeOfArrangementAxis__custom--ExecutiveEmploymentAgreementsOrDirectorAgreementsMember_zH23ShFOOLn9" title="Number of shares vested, shares">1,365, <span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_pid_c20230401__20230403__srt--TitleOfIndividualAxis__custom--MichaelLennerMember__us-gaap--TypeOfArrangementAxis__custom--ExecutiveEmploymentAgreementsOrDirectorAgreementsMember_zWFVEnFa5U9g" title="Number of shares vested, shares">1,365, <span id="xdx_905_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_pid_c20230401__20230403__srt--TitleOfIndividualAxis__custom--DouglasBranchMember__us-gaap--TypeOfArrangementAxis__custom--ExecutiveEmploymentAgreementsOrDirectorAgreementsMember_z8kCK2u7DFPh" title="Number of shares vested, shares">1,365, <span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_pid_c20230401__20230403__srt--TitleOfIndividualAxis__custom--AlanGaoMember__us-gaap--TypeOfArrangementAxis__custom--ExecutiveEmploymentAgreementsOrDirectorAgreementsMember_za4YM4OSE8F6" title="Number of shares vested, shares">1,365 and <span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_pid_c20230401__20230403__srt--TitleOfIndividualAxis__custom--HillaryBuiMember__us-gaap--TypeOfArrangementAxis__custom--ExecutiveEmploymentAgreementsOrDirectorAgreementsMember_z5Z2URW1GPVh" title="Number of shares vested, shares">606 shares of Company common stock to each of Sam Lai, Maggie Yu, Michael Lenner, Douglas Branch, Alan Gao and Hillary Bui, respectively, with a fair market value of $<span id="xdx_90D_eus-gaap--SharesIssuedPricePerShare_iI_pid_c20230403__srt--TitleOfIndividualAxis__custom--HillaryBuiMember__us-gaap--TypeOfArrangementAxis__custom--ExecutiveEmploymentAgreementsOrDirectorAgreementsMember_z5nUDsFN7lRa" title="Shares issued price per share">2.1985 per share as compensation for the services as executives or directors of the Company pursuant to the terms of their respective Executive Employment Agreements or Director Agreements with the Company. On June 30, 2023, the Company issued <span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_pid_c20230628__20230630__srt--TitleOfIndividualAxis__custom--HillaryBuiMember__us-gaap--TypeOfArrangementAxis__custom--ExecutiveEmploymentAgreementsOrDirectorAgreementsMember_zFvGYWpXism5" title="Number of shares vested, shares">1,752 shares of Company common stock to each of Sam Lai, Maggie Yu, Michael Lenner, Douglas Branch, Alan Gao and Hillary Bui, with a fair market value of $<span id="xdx_902_eus-gaap--SharesIssuedPricePerShare_iI_c20230630__srt--TitleOfIndividualAxis__custom--HillaryBuiMember__us-gaap--TypeOfArrangementAxis__custom--ExecutiveEmploymentAgreementsOrDirectorAgreementsMember_zjKriwmA1L1l" title="Shares issued price per share">1.7125 per share as compensation for the services as executives or directors of the Company pursuant to the terms of their respective Executive Employment Agreements or Director Agreements with the Company. On October 2, 2023, the Company issued <span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_pid_c20231002__20231002__srt--TitleOfIndividualAxis__custom--HillaryBuiMember__us-gaap--TypeOfArrangementAxis__custom--ExecutiveEmploymentAgreementsOrDirectorAgreementsMember_zULNkZQ5zJ38" title="Number of shares vested, shares">1,948 shares of Company common stock to each of Sam Lai, Maggie Yu, Michael Lenner, Douglas Branch, Alan Gao and Hillary Bui, with a fair market value of $<span id="xdx_90D_eus-gaap--SharesIssuedPricePerShare_iI_pid_c20231002__srt--TitleOfIndividualAxis__custom--HillaryBuiMember__us-gaap--TypeOfArrangementAxis__custom--ExecutiveEmploymentAgreementsOrDirectorAgreementsMember_zw44o3vskQJk" title="Shares issued price per share">1.5400 per share as compensation for the services as executives or directors of the Company pursuant to the terms of their respective Executive Employment Agreements or Director Agreements with the Company. On January 2, 2024, the Company issued <span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_pid_c20240102__20240102__srt--TitleOfIndividualAxis__custom--HillaryBuiMember__us-gaap--TypeOfArrangementAxis__custom--ExecutiveEmploymentAgreementsOrDirectorAgreementsMember_zPSHgFivQD63" title="Number of shares vested, shares">2,139 shares of Company common stock to each of Sam Lai, Maggie Yu, Michael Lenner, Douglas Branch, Alan Gao and Hillary Bui, with a fair market value of $<span id="xdx_904_eus-gaap--SharesIssuedPricePerShare_iI_c20240102__srt--TitleOfIndividualAxis__custom--HillaryBuiMember__us-gaap--TypeOfArrangementAxis__custom--ExecutiveEmploymentAgreementsOrDirectorAgreementsMember_zGqFyZJP5uEh" title="Shares issued price per share">1.4025 per share as compensation for the services as executives or directors of the Company pursuant to the terms of their respective Executive Employment Agreements or Director Agreements with the Company. HOUR LOOP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2024 and 2023 On March 29, 2024, the Company issued <span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_pid_c20240329__20240329__srt--TitleOfIndividualAxis__custom--HillaryBuiMember__us-gaap--TypeOfArrangementAxis__custom--ExecutiveEmploymentAgreementsOrDirectorAgreementsMember_zlTYVNAd77Lf" title="Number of shares vested, shares">2,251 shares of Company common stock to each of Sam Lai, Maggie Yu, Michael Lenner, Douglas Branch, Alan Gao and Hillary Bui, with a fair market value of $<span id="xdx_906_eus-gaap--SharesIssuedPricePerShare_iI_c20240329__srt--TitleOfIndividualAxis__custom--HillaryBuiMember__us-gaap--TypeOfArrangementAxis__custom--ExecutiveEmploymentAgreementsOrDirectorAgreementsMember_zokZ2u1cpZlj" title="Shares issued price per share">1.3330 per share as compensation for the services as executives or directors of the Company pursuant to the terms of their respective Executive Employment Agreements or Director Agreements with the Company. On July 1, 2024, the Company issued <span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_pid_c20240701__20240701__srt--TitleOfIndividualAxis__custom--HillaryBuiMember__us-gaap--TypeOfArrangementAxis__custom--ExecutiveEmploymentAgreementsOrDirectorAgreementsMember_zfnhf7esKCh8" title="Number of shares vested, shares">2,946 shares of Company common stock to each of Sam Lai and Maggie Yu (both of whom are executive officers, directors and significant stockholders of the Company), and Michael Lenner, Douglas Branch, Alan Gao and Hillary Bui (each of whom was a director of the Company as of such date), with a fair market value of $<span id="xdx_90D_eus-gaap--SharesIssuedPricePerShare_iI_pid_c20240701__srt--TitleOfIndividualAxis__custom--HillaryBuiMember__us-gaap--TypeOfArrangementAxis__custom--ExecutiveEmploymentAgreementsOrDirectorAgreementsMember_zBsm1CyWhvk6" title="Shares issued price per share">1.0185 per share as compensation for the services as executives or directors of the Company pursuant to the terms of their respective Executive Employment Agreements or Director Agreements with the Company. Subsequently, on July 22, 2024, Mr. Branch resigned his position as a member of the Company’s Board of Directors. On July 25, 2024, following Mr. Branch’s resignation, the Company issued <span id="xdx_90E_eus-gaap--StockIssuedDuringPeriodSharesIssuedForServices_c20240725__20240725__srt--TitleOfIndividualAxis__custom--BranchMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_z7QZEuBzPgEk" title="Number of shares issued for services">6,000 shares of restricted common stock to Mr. Branch as compensation for services rendered. On October 1, 2024, the Company issued<span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_pid_c20241001__20241001__srt--TitleOfIndividualAxis__custom--HillaryBuiMember__us-gaap--TypeOfArrangementAxis__custom--ExecutiveEmploymentAgreementsOrDirectorAgreementsMember_zwGiG8PbN2L8" title="Number of shares vested, shares"> 2,196 shares of Company common stock to each of Sam Lai, Maggie Yu, Michael Lenner, Alan Gao and Hillary Bui, with a fair market value of $<span id="xdx_902_eus-gaap--SharesIssuedPricePerShare_iI_pid_c20241001__srt--TitleOfIndividualAxis__custom--HillaryBuiMember__us-gaap--TypeOfArrangementAxis__custom--ExecutiveEmploymentAgreementsOrDirectorAgreementsMember_zxkd6IUZ7Wxe" title="Shares issued price per share">1.3660 per share as compensation for the services as executives or directors of the Company pursuant to the terms of their respective Executive Employment Agreements or Director Agreements with the Company.

10000000

0.0001

300000000

0.0001

35143460

35082464

1001

2.9985

1365

606

2.1985

1752

1.7125

1948

1.5400

2139

1.4025

2251

1.3330

2946

1.0185

6000

2196

1.3660

NOTE 14 - Commitments and Contingencies As of December 31, 2024 and 2023, 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, 2024 and 2023, the Company had no pending legal proceedings. No amounts have been accrued in the audited consolidated financial statements with respect to any such matters.

NOTE 15 - Subsequent Events On January 2, 2025, the Company issued <span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_pid_c20250102__20250102__srt--TitleOfIndividualAxis__custom--AlanGaoMember__us-gaap--TypeOfArrangementAxis__custom--ExecutiveEmploymentAgreementsOrDirectorAgreementsMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zze6WdtPNYT4" title="Number of shares vested, shares">1,596 shares of Company common stock to each of Sam Lai, Maggie Yu, Michael Lenner, Alan Gao and Hillary Bui, with a fair market value of $<span id="xdx_90A_eus-gaap--SharesIssuedPricePerShare_iI_c20250102__srt--TitleOfIndividualAxis__custom--AlanGaoMember__us-gaap--TypeOfArrangementAxis__custom--ExecutiveEmploymentAgreementsOrDirectorAgreementsMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zJo93FAhulVj" title="Shares issued price per share">1.8799 per share as compensation for the services as executives or directors of the Company pursuant to the terms of their respective Executive Employment Agreements or Director Agreements with the Company. The Company has evaluated subsequent events from the balance sheet date through March 27, 2025, the date at which the financial statements were available to be issued, and determined that, apart from the events mentioned above, there are no other subsequent events to disclose.

1596

1.8799