Leases

6 Months Ended

Jun. 30, 2025

Leases

Leases

NOTE 9 - Leases

The Company had two operating leases (Flywheel’s office leases in Taiwan) as of June 30, 2025. The leased assets in Flywheel are presented as operating lease right-of-use assets.

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 June 30, 2025:

	Flywheel			Flywheel
	June 2025			August 2024
Initial lease term	to June 2027			to July 2025
Initial recognition of operating lease right-of-use assets	$	134,648		$	73,175
Weighted-average remaining lease term (in years) at June 30, 2025		2.0			0.08
Weighted-average discount rate at June 30, 2025		3.33	%		3.33	%

HOUR LOOP, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Operating lease liabilities-current as of June 30, 2025 and December 31, 2024 were $75,897 and $114,540, respectively. The operating lease right-of-use assets balance as of June 30, 2025 and December 31, 2024, were $137,465 and $111,409, respectively.

For the six months ended June 30, 2025 and 2024, the amortization of the operating lease right-of-use asset was $122,018 and $98,773, respectively. These amounts were recorded in general and administrative expenses. Additionally, for the six months ended June 30, 2025 and 2024, the Company made lease payments of $125,712 and $92,899, respectively, which were included in the operating cash flows statements.

The future minimum lease payment schedule for all operating leases as of June 30, 2025, is as disclosed below.

For the Six Months Ending June 30,	Amount
2025	$	42,003
2026		70,330
2027		29,304
2028 and thereafter		-
Total minimum lease payments		141,637
Less: effect of discounting		(4,406	)
Present value of the future minimum lease payment		137,231
Less: operating lease liabilities-current		(75,897	)
Total operating lease liabilities-non-current	$	61,334