Hour Loop (HOUR) 10-Q 6 May 24 2024 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2024	May 06, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2024
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--12-31
Entity File Number	001-41204
Entity Registrant Name	Hour Loop, Inc.
Entity Central Index Key	0001874875
Entity Tax Identification Number	47-2869399
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	8201 164th Ave. NE
Entity Address, City or Town	Redmond
Entity Address, State or Province	VA
Entity Address, Postal Zip Code	98052-7615
City Area Code	(206)
Local Phone Number	385-0488
Title of 12(b) Security	Common Stock
Trading Symbol	HOUR
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		35,108,804

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Current assets
Cash and cash equivalents	$ 2,922,080	$ 2,484,153
Accounts receivable, net	537,517	747,650
Inventory, net	11,618,489	14,276,555
Prepaid expenses and other current assets	428,882	504,973
Total current assets	15,506,968	18,013,331
Property and equipment, net	125,451	148,788
Deferred tax assets	953,088	1,304,215
Operating lease right-of-use lease assets	159,983	83,946
Total non-current assets	1,238,522	1,536,949
TOTAL ASSETS	16,745,490	19,550,280
Current liabilities
Accounts payable	3,420,221	3,812,954
Credit cards payable	1,861,435	4,404,445
Short-term loan	625,978	652,422
Operating lease liabilities-current	144,288	82,269
Income taxes payable	82,374
Accrued expenses and other current liabilities	878,603	1,972,512
Total current liabilities	7,012,899	10,924,602
Non-current liabilities
Operating lease liabilities-non-current	23,995	2,363
Total non-current liabilities	4,194,413	4,172,781
Total liabilities	11,207,312	15,097,383
Commitments and contingencies
Stockholders’ equity
Preferred stock: $0.0001 par value, 10,000,000 shares authorized, none issued and outstanding as of March 31, 2024 and December 31, 2023
Common stock: $0.0001 par value, 300,000,000 shares authorized, 35,108,804 and 35,082,464 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively	3,510	3,508
Additional paid-in capital	5,763,648	5,727,650
Accumulated deficit	(186,808)	(1,252,622)
Accumulated other comprehensive loss	(42,172)	(25,639)
Total stockholders’ equity	5,538,178	4,452,897
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	16,745,490	19,550,280
Related Party [Member]
Non-current liabilities
Due to related parties	$ 4,170,418	$ 4,170,418

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	35,108,804	35,082,464
Common stock, shares outstanding	35,108,804	35,082,464

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Revenues, net	$ 24,681,122	$ 21,067,609
Cost of revenues	(10,228,916)	(11,451,907)
Gross profit	14,452,206	9,615,702
Operating expenses
Selling and marketing	11,174,191	9,506,971
General and administrative	1,739,843	1,720,990
Total operating expenses	12,914,034	11,227,961
Income (loss) from operations	1,538,172	(1,612,259)
Other (expenses) income
Other expense	(1,156)	(2,880)
Interest expense	(62,112)	(61,096)
Other income	28,034	16,035
Total other expenses, net	(35,234)	(47,941)
Income (loss) before income taxes	1,502,938	(1,660,200)
Income tax (expense) benefit	(437,124)	424,956
Net income (loss)	1,065,814	(1,235,244)
Other comprehensive (income) loss
Foreign currency translation adjustments	(16,533)	1,339
Total comprehensive income (loss)	$ 1,049,281	$ (1,233,905)
Basic - Income (loss) per common share	$ 0.03	$ (0.04)
Diluted - Income (loss) per common share	$ 0.03	$ (0.04)
Weighted-average number of common shares outstanding, basic	35,095,602	35,052,666
Weighted-average number of common shares outstanding, diluted	35,095,602	35,052,666

Consolidated Statements of Chan

Consolidated Statements of Changes of Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total
Balance at Dec. 31, 2022	$ 3,506	$ 5,675,320	$ 1,177,072	$ (23,042)	$ 6,832,856
Balance, shares at Dec. 31, 2022	35,047,828
Stock-based compensation		16,332			16,332
Stock-based compensation, shares	5,005
Currency translation adjustments				1,339	1,339
Net income (loss)			(1,235,244)		(1,235,244)
Balance at Mar. 31, 2023	$ 3,506	5,691,652	(58,172)	(21,703)	5,615,283
Balance, shares at Mar. 31, 2023	35,052,833
Balance at Dec. 31, 2023	$ 3,508	5,727,650	(1,252,622)	(25,639)	4,452,897
Balance, shares at Dec. 31, 2023	35,082,464
Stock-based compensation	$ 2	35,998			36,000
Stock-based compensation, shares	26,340
Currency translation adjustments				(16,533)	(16,533)
Net income (loss)			1,065,814		1,065,814
Balance at Mar. 31, 2024	$ 3,510	$ 5,763,648	$ (186,808)	$ (42,172)	$ 5,538,178
Balance, shares at Mar. 31, 2024	35,108,804

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities
Net income (loss)	$ 1,065,814	$ (1,235,244)
Reconciliation of net income (loss) to net cash used in operating activities:
Depreciation expenses	35,273	34,662
Amortization of operating lease right-of-use lease assets	42,892	95,635
Deferred tax assets	351,127	(424,956)
Stock-based compensation	36,000	16,332
Inventory allowance	637,058	642,145
Changes in operating assets and liabilities:
Accounts receivable	210,133	9,091
Inventory	2,021,008	4,588,505
Prepaid expenses and other current assets	76,091	(92,605)
Accounts payable	(392,733)	(1,881,078)
Credit cards payable	(2,543,010)	(3,977,569)
Accrued expenses and other current liabilities	(1,093,909)	(962,271)
Operating lease liabilities	(35,175)	(101,723)
Income taxes payable	82,374
Net cash provided by (used in) operating activities	492,943	(3,289,076)
Cash flows from investing activities:
Purchases of property and equipment	(17,798)	(3,379)
Net cash used in investing activities	(17,798)	(3,379)
Effect of changes in foreign currency exchange rates	(37,218)	4,657
Net change in cash and cash equivalents	437,927	(3,287,798)
Cash and cash equivalents at beginning of period	2,484,153	4,562,589
Cash and cash equivalents at end of period	2,922,080	1,274,791
Supplemental disclosures of cash flow information:
Cash paid for interest	3,380	161,798
Cash paid for income tax
Noncash investing and financing activities:
Operating lease right-of-use of assets and operating lease liabilities recognized	$ 123,107	$ 28,652

Nature of Operations and Summar

Nature of Operations and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Nature of Operations and Summary of Significant Accounting Policies	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 These unaudited consolidated financial statements have been prepared in accordance with rules and regulations of the Securities and Exchange Commission (“SEC”) and U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, we have included all adjustments considered necessary for a fair presentation and such adjustments are of a normal recurring nature. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements for the year ended December 31, 2023 and notes thereto and other pertinent information contained in our Annual Report on Form 10-K as filed with the SEC on March 26, 2024. HOUR LOOP, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Principles of Consolidation Foreign Currency and Currency Translation The relevant exchange rates are listed below: Schedule of Foreign Currency Exchange Rates March 31, 2024 December 31, 2023 March 31, 2023 Period NTD: USD exchange rate $ 31.950 $ 30.655 $ 30.400 Period Average NTD: USD exchange rate $ 31.641 $ 31.221 $ 30.507 Use of 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. Reclassification Cash and Cash Equivalents 250,000 HOUR LOOP, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Accounts Receivable and Allowance for Doubtful Accounts Inventory and Cost of Goods Sold The “Cost of revenues” line item in the unaudited consolidated statements of operations is principally inventory sold to customers during the reporting period. 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 March 31, 2024 and December 31, 2023, $ 637,058 675,886 Property and Equipment 2,500 The majority of the Company’s property and equipment is computers, and the estimated useful life is 3 Impairment of Long-lived Assets HOUR LOOP, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Leases 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 1,677,426 101,510 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: i. Level 1 — Valuations based on quoted prices for identical assets and liabilities in active markets. ii. 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. iii. 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. HOUR LOOP, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Revenue Recognition 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: ● Identify the contract with a customer. ● Identify the performance obligations in the contract. ● Determine the transaction price. ● Allocate the transaction price to the performance obligations in the contract. ● Recognize revenue when or as performance obligations are satisfied. 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 three months ended March 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. HOUR LOOP, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS 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 5.53 7.25 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 $ 5,705,385 5,037,251 Segment Information 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 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 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 March 31, 2024 and December 31, 2023, it owed $ 288,466 288,466 HOUR LOOP, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Concentration of Credit Risks 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 three months ended March 31, 2024 and 2023, the Company had no customer that accounted for 10% or more of total net revenues. In addition, as of March 31, 2024 and December 31, 2023, the Company had no customer that accounted for 10% or more of gross accounts receivable. 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 three months ended March 31, 2024 and 2023, approximately 99 100 Foreign Currency Exchange Risk Advertising and Promotion Expenses 884,000 784,266 Commitments and Contingencies Related Parties HOUR LOOP, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Earnings per Share Shares Issued for Services

Recent Accounting Pronouncement

Recent Accounting Pronouncements Not Yet Adopted	3 Months Ended
	Mar. 31, 2024
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements Not Yet Adopted	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 ASU is 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.

Inventory

Inventory	3 Months Ended
	Mar. 31, 2024
Inventory Disclosure [Abstract]
Inventory	NOTE 3 - Inventory Inventory was comprised of the following as of March 31, 2024 and December 31, 2023, respectively: Schedule of Inventory March 31, 2024 December 31, 2023 Inventory $ 10,690,662 $ 13,377,530 Inventory-in-transit 1,564,885 1,574,911 Allowance (637,058 ) (675,886 ) Total $ 11,618,489 $ 14,276,555 As of March 31, 2024 and December 31, 2023, $ 637,058 675,886 The allowance of inventory is recorded under cost of goods sold in the income statement. HOUR LOOP, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	3 Months Ended
	Mar. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid Expenses and Other Current Assets	NOTE 4 - Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets was comprised of the following as of March 31, 2024 and December 31, 2023, respectively: Schedule of Prepaid Expenses and Other Current Assets March 31, 2024 December 31, 2023 Advance to suppliers $ 224,101 $ 49,298 Prepaid expenses-insurance 76,875 5,302 Prepaid expenses-other 72,294 56,437 Lease refundable deposit 50,308 81,522 Tax receivable - 305,253 Other current assets 5,304 7,161 Total $ 428,882 $ 504,973 As of March 31, 2024 and December 31, 2023, there was a tax receivable of $- 0 305,253

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2024
Property, Plant and Equipment [Abstract]
Property and Equipment	NOTE 5 - Property and Equipment Property and equipment were comprised of the following as of March 31, 2024 and December 31, 2023, respectively: Schedule of Property and Equipment March 31, 2024 December 31, 2023 Property and equipment $ 371,410 $ 368,729 Accumulated depreciation and amortization (245,959 ) (219,941 ) Total property and equipment, net $ 125,451 $ 148,788 For the three months ended March 31, 2024 and 2023, the Company purchased $ 17,798 3,379 For the three months ended March 31, 2024 and 2023, the Company had $ 35,273 34,662 HOUR LOOP, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS For the three months ended March 31, 2024 and 2023, the Company had no

Accounts Payable and Credit Car

Accounts Payable and Credit Cards Payable	3 Months Ended
	Mar. 31, 2024
Payables and Accruals [Abstract]
Accounts Payable and Credit Cards Payable	NOTE 6 - Accounts Payable and Credit Cards Payable Schedule of Accounts Payable and Credit Cards Payable March 31, 2024 December 31, 2023 Accounts payable $ 3,420,221 $ 3,812,954 Credit cards payable 1,861,435 4,404,445 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 March 31, 2024 and December 31, 2023, there were accounts payable of $ 3,420,221 3,812,954 The Company’s credit cards payable consisted of outstanding balances on credit cards held by the Company. As of March 31, 2024 and December 31, 2023, there were credit cards payable of $ 1,861,435 4,404,445

Short-Term Loan

Short-Term Loan	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Short-Term Loan	NOTE 7 - Short-Term Loan Line of Credit On June 18, 2019, the Company signed a line of credit agreement in the amount of $ 785,000 June 18, 2024 8.11 As of March 31, 2024 and December 31, 2023, the outstanding balance under the Bank of America line of credit was $- 0 0 27,996 June 18, 2024 On August 18, 2022, Flywheel entered into a line of credit agreement in the amount of $ 6,940,063 with Taishin International Bank. The line of credit initially matured on August 30, 2023 . On August 11, 2023, the term of the loan was extended for an additional year, revising the maturity date to August 30, 2024 3.2 As of March 31, 2024 and December 31, 2023, the outstanding balance under the Taishin International Bank line of credit was $ 625,978 652,422 1,646 HOUR LOOP, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	3 Months Ended
	Mar. 31, 2024
Payables and Accruals [Abstract]
Accrued Expenses and Other Current Liabilities	NOTE 8 - Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities were comprised of the following as of March 31, 2024 and December 31, 2023, respectively: Schedule of Accrued Expenses and Other Current Liabilities March 31, 2024 December 31, 2023 Sales tax payable $ 288,466 $ 288,466 Refund liability - 708,629 Accrued payroll 280,138 297,059 Accrued bonus - 399,067 Accrued expenses 205,792 215,485 Accrued interest 86,672 29,712 Other payables 17,535 34,094 Total $ 878,603 $ 1,972,512 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, $ 78,947 78,947 As of March 31, 2024 and December 31, 2023, the Company has accounted for refund liability in the amount of $- 0 708,629 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 $- 0 399,067 HOUR LOOP, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Leases

Leases	3 Months Ended
	Mar. 31, 2024
Leases
Leases	NOTE 9 - Leases The Company had four operating leases (Flywheel’s office leases in Taiwan) as of March 31, 2024. 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 March 31, 2024: Schedule of Operating Leases Cost Flywheel Flywheel Flywheel Flywheel June 2022 August 2022 February 2023 March 2024 Initial lease term to May 2024 to July 2024 to March 2025 to June 2025 Initial recognition of operating lease right-of-use assets $ 105,632 $ 147,547 $ 28,652 $ 123,107 Weighted-average remaining lease term at March 31, 2024 0.17 0.33 0.92 1.25 Weighted-average discount rate at March 31, 2024 8.11 % 2.50 % 3.20 % 3.20 % Operating lease liabilities-current as of March 31, 2024 and December 31, 2023 were $ 144,288 82,269 23,995 2,363 159,983 83,946 For the three months ended March 31, 2024 and 2023, the amortization of the operating lease right-of-use asset was $ 42,892 95,635 35,175 101,723 The future minimum lease payment schedule for all operating leases as of March 31, 2024, is as disclosed below. Schedule of Operating Lease Liabilities For the Period Ending March 31 Amount 2024 $ 119,159 2025 52,164 2026 - 2027 - 2028 - 2029 and thereafter - Total minimum lease payments 171,323 Less: effect of discounting (3,040 ) Present value of the future minimum lease payment 168,283 Less: operating lease liabilities-current (144,288 ) Total operating lease liabilities-non-current $ 23,995 HOUR LOOP, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Related Party Balances and Tran

Related Party Balances and Transactions	3 Months Ended
	Mar. 31, 2024
Related Party Transactions [Abstract]
Related Party Balances and Transactions	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 non-interest bearing and payable on demand. As of March 31, 2024 and December 31, 2023, the Company had $ 4,170,418 4,170,418 2 On December 28, 2022, 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. The annual interest rate is 5.5 57,030 On December 30, 2020, the Company and its then-sole stockholders (Sam Lai and Maggie Yu) entered into a loan agreement in the original principal amount of $ 1,041,353 2 For the three months ended March 31, 2024 and 2023, the Company made repayments to related parties of $- 0 0 HOUR LOOP, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Disaggregation of Revenue

Disaggregation of Revenue	3 Months Ended
	Mar. 31, 2024
Disaggregation Of Revenue
Disaggregation of Revenue	NOTE 11 – Disaggregation of Revenue Revenue was comprised of the following for the three months ended March 31, 2024 and 2023, respectively: Schedule of Revenue Three Months Ended March 31, 2024 Three Months Ended Revenue-America $ 25,459,691 $ 22,258,568 Revenue-International 869,695 714,692 Revenue-Other 120,556 88,835 Revenue 120,556 88,835 Sales returns (1,463,085 ) (1,672,322 ) Discounts (305,735 ) (322,163 ) Total $ 24,681,122 $ 21,067,609

Income Tax

Income Tax	3 Months Ended
	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Income Tax	NOTE 12 - Income Tax Schedule of Effective Tax Rate Reconciliation Effective Tax Rate Reconciliation, for the three months ended March 31, 2024 % $ Pretax Book Income 1,502,938 21.25 % 319,332 Permanent Differences 22,627 0.32 % 4,808 State income tax 85,997 7.59 % 114,055 Other Deferred adjustment - -0.07 % (1,071 ) Total Tax expense 29.08 % 437,124 HOUR LOOP, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Effective Tax Rate Reconciliation, for the three months ended March 31, 2023 % $ Pretax Book Loss (1,660,200 ) 21.98 % (364,837 ) Permanent Differences 85,465 -1.13 % 18,781 Other Deferred adjustment - 4.75 % (78,900 ) Total Tax benefits 25.6 % (424,956 ) Schedule of Tax Expense Summary Current Deferred Total Tax Expense Summary, for the three months ended March 31, 2024 Income Tax Expense Income Tax Expense Income Tax Expense Federal $ - $ 304,796 $ 304,796 State 85,997 46,331 132,328 Total tax expense $ 85,997 $ 351,127 $ 437,124 Current Deferred Total Tax Expense Summary, for the three months ended March 31, 2023 Income Tax Benefit Income Tax Expense Income Tax Benefit Federal $ - $ (361,568 ) $ (361,568 ) State - (63,388 ) (63,388 ) Total tax benefit $ - $ (424,956 ) $ (424,956 ) HOUR LOOP, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS The tax effects of temporary differences that give rise to significant portions of the deferred tax assets at March 31, 2024 and December 31, 2023 were as follows: Schedule of Deferred Tax Assets and Liabilities Deferred Tax Deferred Tax Assets Assets Deferred Tax Assets Summary March 31, 2024 December 31, 2023 Federal $ 797,040 $ 1,101,836 State 156,048 202,379 Total $ 953,088 $ 1,304,215 Deferred Tax Deferred Tax Assets Assets Deferred Tax Assets Summary March 31, 2024 December 31, 2023 Operating lease right of use lease assets $ 2,085 $ 172 Inventories allowance 159,975 169,725 Net loss carry forward 791,028 1,134,318 Total $ 953,088 $ 1,304,215 The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. Based on management’s evaluation, there was no For the three months ended March 31, 2024 and 2023, the Company reported net operating income (loss) of $ 1,065,814 (1,235,244) 20 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.

Stockholders_ Equity

Stockholders’ Equity	3 Months Ended
	Mar. 31, 2024
Equity [Abstract]
Stockholders’ Equity	NOTE 13 - Stockholders’ Equity Preferred Stock As of March 31, 2024 and December 31, 2023, the Company had 10,000,000 0.0001 no HOUR LOOP, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Common Stock As of March 31, 2024 and December 31, 2023, the Company had 300,000,000 0.0001 35,108,804 35,082,464 Share Issuances for Stock Compensation On January 4, 2023, the Company issued 1,001 2.9985 On April 3, 2023, the Company issued 1,365 1,365 1,365 1,365 1,365 606 2.1985 On June 30, 2023, the Company issued 1,752 1.7125 On October 2, 2023, the Company issued 1,948 1.5400 HOUR LOOP, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS On January 2, 2024, the Company issued 2,139 1.4025 On March 29, 2024, the Company issued 2,251 1.3330

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 14 - Commitments and Contingencies As of March 31, 2024 and December 31, 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 March 31, 2024 and December 31, 2023, the Company had no material pending legal proceedings. No amounts have been accrued in the unaudited consolidated financial statements with respect to any such matters.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2024
Subsequent Events
Subsequent Events	NOTE 15 - Subsequent Events The Company has evaluated subsequent events from the balance sheet date through May 6, 2024, the date at which the financial statements were available to be issued, and determined that there are no subsequent events to disclose.

Nature of Operations and Summ_2

Nature of Operations and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation These unaudited consolidated financial statements have been prepared in accordance with rules and regulations of the Securities and Exchange Commission (“SEC”) and U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, we have included all adjustments considered necessary for a fair presentation and such adjustments are of a normal recurring nature. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements for the year ended December 31, 2023 and notes thereto and other pertinent information contained in our Annual Report on Form 10-K as filed with the SEC on March 26, 2024. HOUR LOOP, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
Principles of Consolidation	Principles of Consolidation
Foreign Currency and Currency Translation	Foreign Currency and Currency Translation The relevant exchange rates are listed below: Schedule of Foreign Currency Exchange Rates March 31, 2024 December 31, 2023 March 31, 2023 Period NTD: USD exchange rate $ 31.950 $ 30.655 $ 30.400 Period Average NTD: USD exchange rate $ 31.641 $ 31.221 $ 30.507
Use of Estimates	Use of 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.
Reclassification	Reclassification
Cash and Cash Equivalents	Cash and Cash Equivalents 250,000 HOUR LOOP, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts
Inventory and Cost of Goods Sold	Inventory and Cost of Goods Sold The “Cost of revenues” line item in the unaudited consolidated statements of operations is principally inventory sold to customers during the reporting period. 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 March 31, 2024 and December 31, 2023, $ 637,058 675,886
Property and Equipment	Property and Equipment 2,500 The majority of the Company’s property and equipment is computers, and the estimated useful life is 3
Impairment of Long-lived Assets	Impairment of Long-lived Assets HOUR LOOP, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
Leases	Leases 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 Measurement 1,677,426 101,510 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: i. Level 1 — Valuations based on quoted prices for identical assets and liabilities in active markets. ii. 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. iii. 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. HOUR LOOP, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
Revenue Recognition	Revenue Recognition 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: ● Identify the contract with a customer. ● Identify the performance obligations in the contract. ● Determine the transaction price. ● Allocate the transaction price to the performance obligations in the contract. ● Recognize revenue when or as performance obligations are satisfied. 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 three months ended March 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. HOUR LOOP, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS 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 5.53 7.25 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 $ 5,705,385 5,037,251
Segment Information	Segment Information 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 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	Presentation of Sales Taxes 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 March 31, 2024 and December 31, 2023, it owed $ 288,466 288,466 HOUR LOOP, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
Concentration of Credit Risks	Concentration of Credit Risks 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 three months ended March 31, 2024 and 2023, the Company had no customer that accounted for 10% or more of total net revenues. In addition, as of March 31, 2024 and December 31, 2023, the Company had no customer that accounted for 10% or more of gross accounts receivable. 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 three months ended March 31, 2024 and 2023, approximately 99 100
Foreign Currency Exchange Risk	Foreign Currency Exchange Risk
Advertising and Promotion Expenses	Advertising and Promotion Expenses 884,000 784,266
Commitments and Contingencies	Commitments and Contingencies
Related Parties	Related Parties HOUR LOOP, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
Earnings per Share	Earnings per Share
Shares Issued for Services	Shares Issued for Services

Nature of Operations and Summ_3

Nature of Operations and Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Schedule of Foreign Currency Exchange Rates	The relevant exchange rates are listed below: Schedule of Foreign Currency Exchange Rates March 31, 2024 December 31, 2023 March 31, 2023 Period NTD: USD exchange rate $ 31.950 $ 30.655 $ 30.400 Period Average NTD: USD exchange rate $ 31.641 $ 31.221 $ 30.507

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Mar. 31, 2024
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventory was comprised of the following as of March 31, 2024 and December 31, 2023, respectively: Schedule of Inventory March 31, 2024 December 31, 2023 Inventory $ 10,690,662 $ 13,377,530 Inventory-in-transit 1,564,885 1,574,911 Allowance (637,058 ) (675,886 ) Total $ 11,618,489 $ 14,276,555

Prepaid Expenses and Other Cu_2

Prepaid Expenses and Other Current Assets (Tables)	3 Months Ended
	Mar. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets was comprised of the following as of March 31, 2024 and December 31, 2023, respectively: Schedule of Prepaid Expenses and Other Current Assets March 31, 2024 December 31, 2023 Advance to suppliers $ 224,101 $ 49,298 Prepaid expenses-insurance 76,875 5,302 Prepaid expenses-other 72,294 56,437 Lease refundable deposit 50,308 81,522 Tax receivable - 305,253 Other current assets 5,304 7,161 Total $ 428,882 $ 504,973

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2024
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment were comprised of the following as of March 31, 2024 and December 31, 2023, respectively: Schedule of Property and Equipment March 31, 2024 December 31, 2023 Property and equipment $ 371,410 $ 368,729 Accumulated depreciation and amortization (245,959 ) (219,941 ) Total property and equipment, net $ 125,451 $ 148,788

Accounts Payable and Credit C_2

Accounts Payable and Credit Cards Payable (Tables)	3 Months Ended
	Mar. 31, 2024
Payables and Accruals [Abstract]
Schedule of Accounts Payable and Credit Cards Payable	Schedule of Accounts Payable and Credit Cards Payable March 31, 2024 December 31, 2023 Accounts payable $ 3,420,221 $ 3,812,954 Credit cards payable 1,861,435 4,404,445

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities (Tables)	3 Months Ended
	Mar. 31, 2024
Payables and Accruals [Abstract]
Schedule of Accrued Expenses and Other Current Liabilities	Accrued expenses and other current liabilities were comprised of the following as of March 31, 2024 and December 31, 2023, respectively: Schedule of Accrued Expenses and Other Current Liabilities March 31, 2024 December 31, 2023 Sales tax payable $ 288,466 $ 288,466 Refund liability - 708,629 Accrued payroll 280,138 297,059 Accrued bonus - 399,067 Accrued expenses 205,792 215,485 Accrued interest 86,672 29,712 Other payables 17,535 34,094 Total $ 878,603 $ 1,972,512

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2024
Leases
Schedule of Operating Leases Cost	Schedule of Operating Leases Cost Flywheel Flywheel Flywheel Flywheel June 2022 August 2022 February 2023 March 2024 Initial lease term to May 2024 to July 2024 to March 2025 to June 2025 Initial recognition of operating lease right-of-use assets $ 105,632 $ 147,547 $ 28,652 $ 123,107 Weighted-average remaining lease term at March 31, 2024 0.17 0.33 0.92 1.25 Weighted-average discount rate at March 31, 2024 8.11 % 2.50 % 3.20 % 3.20 %
Schedule of Operating Lease Liabilities	The future minimum lease payment schedule for all operating leases as of March 31, 2024, is as disclosed below. Schedule of Operating Lease Liabilities For the Period Ending March 31 Amount 2024 $ 119,159 2025 52,164 2026 - 2027 - 2028 - 2029 and thereafter - Total minimum lease payments 171,323 Less: effect of discounting (3,040 ) Present value of the future minimum lease payment 168,283 Less: operating lease liabilities-current (144,288 ) Total operating lease liabilities-non-current $ 23,995

Disaggregation of Revenue (Tabl

Disaggregation of Revenue (Tables)	3 Months Ended
	Mar. 31, 2024
Disaggregation Of Revenue
Schedule of Revenue	Revenue was comprised of the following for the three months ended March 31, 2024 and 2023, respectively: Schedule of Revenue Three Months Ended March 31, 2024 Three Months Ended Revenue-America $ 25,459,691 $ 22,258,568 Revenue-International 869,695 714,692 Revenue-Other 120,556 88,835 Revenue 120,556 88,835 Sales returns (1,463,085 ) (1,672,322 ) Discounts (305,735 ) (322,163 ) Total $ 24,681,122 $ 21,067,609

Income Tax (Tables)

Income Tax (Tables)	3 Months Ended
	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Schedule of Effective Tax Rate Reconciliation	Schedule of Effective Tax Rate Reconciliation Effective Tax Rate Reconciliation, for the three months ended March 31, 2024 % $ Pretax Book Income 1,502,938 21.25 % 319,332 Permanent Differences 22,627 0.32 % 4,808 State income tax 85,997 7.59 % 114,055 Other Deferred adjustment - -0.07 % (1,071 ) Total Tax expense 29.08 % 437,124 HOUR LOOP, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Effective Tax Rate Reconciliation, for the three months ended March 31, 2023 % $ Pretax Book Loss (1,660,200 ) 21.98 % (364,837 ) Permanent Differences 85,465 -1.13 % 18,781 Other Deferred adjustment - 4.75 % (78,900 ) Total Tax benefits 25.6 % (424,956 )
Schedule of Tax Expense Summary	Schedule of Tax Expense Summary Current Deferred Total Tax Expense Summary, for the three months ended March 31, 2024 Income Tax Expense Income Tax Expense Income Tax Expense Federal $ - $ 304,796 $ 304,796 State 85,997 46,331 132,328 Total tax expense $ 85,997 $ 351,127 $ 437,124 Current Deferred Total Tax Expense Summary, for the three months ended March 31, 2023 Income Tax Benefit Income Tax Expense Income Tax Benefit Federal $ - $ (361,568 ) $ (361,568 ) State - (63,388 ) (63,388 ) Total tax benefit $ - $ (424,956 ) $ (424,956 )
Schedule of Deferred Tax Assets and Liabilities	The tax effects of temporary differences that give rise to significant portions of the deferred tax assets at March 31, 2024 and December 31, 2023 were as follows: Schedule of Deferred Tax Assets and Liabilities Deferred Tax Deferred Tax Assets Assets Deferred Tax Assets Summary March 31, 2024 December 31, 2023 Federal $ 797,040 $ 1,101,836 State 156,048 202,379 Total $ 953,088 $ 1,304,215 Deferred Tax Deferred Tax Assets Assets Deferred Tax Assets Summary March 31, 2024 December 31, 2023 Operating lease right of use lease assets $ 2,085 $ 172 Inventories allowance 159,975 169,725 Net loss carry forward 791,028 1,134,318 Total $ 953,088 $ 1,304,215

Schedule of Foreign Currency Ex

Schedule of Foreign Currency Exchange Rates (Details)	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023
Period NTD: USD Exchange Rate [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Foreign currency exchange rate	31.950	30.655	30.400
Period Average NTD: USD Exchange Rate [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Foreign currency exchange rate	31.641	31.221	30.507

Nature of Operations and Summ_4

Nature of Operations and Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Product Information [Line Items]
FDIC insured amount	$ 250,000
Inventory valuation reserves	637,058		$ 675,886
Cost of property repairs and maintenance	$ 2,500
Estimated useful life	3 years
Value of money market fund	$ 1,677,426		101,510
Sales return rate	5.53%	7.25%
Shipping and handling costs	$ 5,705,385	$ 5,037,251
Sales and excise tax payable	$ 288,466		$ 288,466
Concentration risk customer	During the three months ended March 31, 2024 and 2023, the Company had no customer that accounted for 10% or more of total net revenues. In addition, as of March 31, 2024 and December 31, 2023, the Company had no customer that accounted for 10% or more of gross accounts receivable.
Advertising and promotion expenses	$ 884,000	$ 784,266
Customer [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]
Product Information [Line Items]
Concentration risk percentage	99%	100%

Schedule of Inventory (Details)

Schedule of Inventory (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Inventory	$ 10,690,662	$ 13,377,530
Inventory-in-transit	1,564,885	1,574,911
Allowance	(637,058)	(675,886)
Total	$ 11,618,489	$ 14,276,555

Inventory (Details Narrative)

Inventory (Details Narrative) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Allowance written down	$ 637,058	$ 675,886

Schedule of Prepaid Expenses an

Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Advance to suppliers	$ 224,101	$ 49,298
Prepaid expenses-insurance	76,875	5,302
Prepaid expenses-other	72,294	56,437
Lease refundable deposit	50,308	81,522
Tax receivable		305,253
Other current assets	5,304	7,161
Total	$ 428,882	$ 504,973

Prepaid Expenses and Other Cu_3

Prepaid Expenses and Other Current Assets (Details Narrative) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Tax receivable	$ 0	$ 305,253

Schedule of Property and Equipm

Schedule of Property and Equipment (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Property, Plant and Equipment [Abstract]
Property and equipment	$ 371,410	$ 368,729
Accumulated depreciation and amortization	(245,959)	(219,941)
Total property and equipment, net	$ 125,451	$ 148,788

Property and Equipment (Details

Property and Equipment (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
Payment to acquire property and equipment	$ 17,798	$ 3,379
Depreciation expense	35,273	34,662
Disposal or pledge	$ 0	$ 0

Schedule of Accounts Payable an

Schedule of Accounts Payable and Credit Cards Payable (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Accounts payable	$ 3,420,221	$ 3,812,954
Credit cards payable	$ 1,861,435	$ 4,404,445

Accounts Payable and Credit C_3

Accounts Payable and Credit Cards Payable (Details Narrative) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Accounts payable	$ 3,420,221	$ 3,812,954
Credit cards payable	$ 1,861,435	$ 4,404,445

Short-Term Loan (Details Narrat

Short-Term Loan (Details Narrative) - Line of Credit [Member] - USD ($)					3 Months Ended
	Mar. 31, 2024	Aug. 11, 2023	Aug. 18, 2022	Jun. 18, 2019	Mar. 31, 2024	Dec. 31, 2023
Bank of America [Member]
Line of Credit Facility [Line Items]
Line of credit	$ 0			$ 785,000	$ 0	$ 0
Line of credit, maturity date				Jun. 18, 2024	Jun. 18, 2024
Line of credit, interest rate				8.11%
Accrued interest expense					$ 27,996
Taishin International Bank [Member]
Line of Credit Facility [Line Items]
Line of credit	625,978		$ 6,940,063		$ 625,978	$ 652,422
Line of credit, maturity date		Aug. 30, 2024	Aug. 30, 2023
Line of credit, interest rate		3.20%
Accrued interest expense	$ 1,646

Schedule of Accrued Expenses an

Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Sales tax payable	$ 288,466	$ 288,466
Refund liability	0	708,629
Accrued payroll	280,138	297,059
Accrued bonus	0	399,067
Accrued expenses	205,792	215,485
Accrued interest	86,672	29,712
Other payables	17,535	34,094
Total	$ 878,603	$ 1,972,512

Accrued Expenses and Other Cu_3

Accrued Expenses and Other Current Liabilities (Details Narrative) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Related interest and penalities	$ 78,947	$ 78,947
Refund liability amount	0	708,629
Accrued bonus	$ 0	$ 399,067

Schedule of Operating Leases Co

Schedule of Operating Leases Cost (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Initial recognition of right-of-use assets	$ 159,983	$ 83,946
Subsidiaries [Member] | June 2022 to May 2024 [Member]
Initial recognition of right-of-use assets	$ 105,632
Weighted-average remaining lease term	2 months 1 day
Weighted-average discount rate	8.11%
Subsidiaries [Member] | August 2022 to July 2024 [Member]
Initial recognition of right-of-use assets	$ 147,547
Weighted-average remaining lease term	3 months 29 days
Weighted-average discount rate	2.50%
Subsidiaries [Member] | February 2023 to March 2025 [Member]
Initial recognition of right-of-use assets	$ 28,652
Weighted-average remaining lease term	11 months 1 day
Weighted-average discount rate	3.20%
Subsidiaries [Member] | March 2024 to June 2025 [Member]
Initial recognition of right-of-use assets	$ 123,107
Weighted-average remaining lease term	1 year 3 months
Weighted-average discount rate	3.20%

Schedule of Operating Lease Lia

Schedule of Operating Lease Liabilities (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Leases
2024	$ 119,159
2025	52,164
2026
2027
2028
2029 and thereafter
Total minimum lease payments	171,323
Less: effect of discounting	(3,040)
Present value of the future minimum lease payment	168,283
Less: operating lease liabilities-current	(144,288)	$ (82,269)
Total operating lease liabilities-non-current	$ 23,995	$ 2,363

Leases (Details Narrative)

Leases (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Leases
Operating lease liabilities current	$ 144,288		$ 82,269
Operating lease liabilities non-current	23,995		2,363
Operating lease right-of-use assets	159,983		$ 83,946
Amortization of operating lease right-of-use asset	42,892	$ 95,635
Operating lease payments	$ 35,175	$ 101,723

Related Party Balances and Tr_2

Related Party Balances and Transactions (Details Narrative) - USD ($)		3 Months Ended
	Dec. 28, 2022	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Dec. 31, 2022	Dec. 30, 2020
Related Party Transaction [Line Items]
Accrued interest		$ 86,672		$ 29,712
Loan Agreement [Member]
Related Party Transaction [Line Items]
Loan interest rate	5.50%				2%	2%
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. The annual interest rate is 5.5%. The Company had accrued interest of $57,030 as of March 31, 2024.
Accrued interest		57,030
Original amount						$ 1,041,353
Related Party [Member]
Related Party Transaction [Line Items]
Due to related parties		4,170,418		$ 4,170,418
Payments to related parties		$ 0	$ 0

Schedule of Revenue (Details)

Schedule of Revenue (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Sales returns	$ (1,463,085)	$ (1,672,322)
Discounts	(305,735)	(322,163)
Total	24,681,122	21,067,609
Americas [Member]
Revenue	25,459,691	22,258,568
International [Member]
Revenue	869,695	714,692
Other [Member]
Revenue	$ 120,556	$ 88,835

Schedule of Effective Tax Rate

Schedule of Effective Tax Rate Reconciliation (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Pretax Book Income(Loss), Percentage	21.25%	21.98%
Pretax Book Income(Loss)	$ 319,332	$ (364,837)
Permanent Differences, Percentage	0.32%	(1.13%)
Permanent Differences	$ 4,808	$ 18,781
State income tax, Percentage	7.59%
State income tax	$ 114,055
Other Deferred adjustment, Percentage	(0.07%)	4.75%
Other Deferred adjustment	$ (1,071)	$ (78,900)
Total Tax benefits, Percentage	29.08%	25.60%
Total Tax benefits	$ 437,124	$ (424,956)

Schedule of Tax Expense Summary

Schedule of Tax Expense Summary (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Current Income Tax Expense, Federal
Deferred Income Tax Benefit, Federal	304,796	(361,568)
Total Income Tax Benefit, Federal	304,796	(361,568)
Current Income Tax Expense, State	85,997
Deferred Income Tax Benefit, State	46,331	(63,388)
Total Income Tax Benefit, State	132,328	(63,388)
Current Income Tax Expense, Total tax expense (benefit)	85,997
Deferred Income Tax Benefit, Total tax expense (benefit)	351,127	(424,956)
Total Income Tax Benefit, Total tax expense (benefit)	$ 437,124	$ (424,956)

Schedule of Deferred Tax Assets

Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Effective Income Tax Rate Reconciliation [Line Items]
Total	$ 953,088	$ 1,304,215
Operating lease right of use lease assets	2,085	172
Inventories allowance	159,975	169,725
Net loss carry forward	791,028	1,134,318
Total	953,088	1,304,215
Domestic Tax Jurisdiction [Member]
Effective Income Tax Rate Reconciliation [Line Items]
Total	797,040	1,101,836
State and Local Jurisdiction [Member]
Effective Income Tax Rate Reconciliation [Line Items]
Total	$ 156,048	$ 202,379

Income Tax (Details Narrative)

Income Tax (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Uncertain tax position	$ 0		$ 0
Net operating lossses	$ 1,065,814	$ (1,235,244)
Operating loss carry forward term	20 years

Stockholders_ Equity (Details N

Stockholders’ Equity (Details Narrative) - $ / shares	Mar. 29, 2024	Jan. 02, 2024	Oct. 02, 2023	Jun. 30, 2023	Apr. 03, 2023	Jan. 04, 2023	Mar. 31, 2024	Dec. 31, 2023
Preferred stock, shares authorized							10,000,000	10,000,000
Preferred stock, par value							$ 0.0001	$ 0.0001
Preferred stock, shares issued							0	0
Preferred stock, shares outstanding							0	0
Common stock, shares authorized							300,000,000	300,000,000
Common stock, par value							$ 0.0001	$ 0.0001
Common stock, shares issued							35,108,804	35,082,464
Common stock, shares outstanding							35,108,804	35,082,464
Sam Lai [Member] | Executive Employment Agreements or Director Agreements [Member]
Number of shares vested, shares	2,251	2,139	1,948	1,752	1,365	1,001
Shares issued price per share	$ 1.3330	$ 1.4025	$ 1.5400	$ 1.7125	$ 2.1985	$ 2.9985
Maggie Yu [Member] | Executive Employment Agreements or Director Agreements [Member]
Number of shares vested, shares	2,251	2,139	1,948	1,752	1,365	1,001
Shares issued price per share	$ 1.3330	$ 1.4025	$ 1.5400	$ 1.7125	$ 2.1985	$ 2.9985
Michael Lenner [Member] | Executive Employment Agreements or Director Agreements [Member]
Number of shares vested, shares	2,251	2,139	1,948	1,752	1,365	1,001
Shares issued price per share	$ 1.3330	$ 1.4025	$ 1.5400	$ 1.7125	$ 2.1985	$ 2.9985
Douglas Branch [Member] | Executive Employment Agreements or Director Agreements [Member]
Number of shares vested, shares	2,251	2,139	1,948	1,752	1,365	1,001
Shares issued price per share	$ 1.3330	$ 1.4025	$ 1.5400	$ 1.7125	$ 2.1985	$ 2.9985
Alan Gao [Member] | Executive Employment Agreements or Director Agreements [Member]
Number of shares vested, shares	2,251	2,139	1,948	1,752	1,365	1,001
Shares issued price per share	$ 1.3330	$ 1.4025	$ 1.5400	$ 1.7125	$ 2.1985	$ 2.9985
Hillary Bui [Member] | Executive Employment Agreements or Director Agreements [Member]
Number of shares vested, shares	2,251	2,139	1,948	1,752	606
Shares issued price per share	$ 1.3330	$ 1.4025	$ 1.5400	$ 1.7125	$ 2.1985