Leases

3 Months Ended

Mar. 31, 2026

NOTE 9 - Leases

The Company had two operating leases (Flywheel’s office leases in Taiwan) as of March 31, 2026. 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, 2026:

	Flywheel			Flywheel
	June 2025			December 2025
Initial lease term	to June 2027			to November 2028

Initial recognition of operating lease right-of-use assets	$	127,226		$	79,971
Weighted-average remaining lease term at March 31, 2026		1.25			2.67
Weighted-average discount rate at March 31, 2026		3.33	%		3.33	%

Operating lease liabilities-current as of March 31, 2026 and December 31, 2025 were $90,728 and $92,362, respectively. Operating lease liabilities-non-current as of March 31, 2026 and December 31, 2025 were $60,081 and $83,271, respectively. The operating lease right-of-use assets balance as of March 31, 2026 and December 31, 2025, were $145,424 and $169,368, respectively.

For the three months ended March 31, 2026 and 2025, the amortization of the operating lease right-of-use asset was $21,038 and $55,383, respectively. These amounts were recorded in general and administrative expenses. Additionally, for the three months ended March 31, 2026 and 2025, the Company made lease payments of $23,191 and $57,757, respectively, which were included in the operating cash flows statements.

HOUR LOOP, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

The future minimum lease payment schedule for all operating leases as of March 31, 2026, is as disclosed below.

Schedule of Operating Lease Liabilities

For the Year Ending March 31,	Amount

2026 (remainder)	$	69,279
2027		60,245
2028		26,414
2029 and thereafter		-
Total minimum lease payments		155,938
Less: effect of discounting		(5,129	)
Present value of the future minimum lease payment		150,809
Less: operating lease liabilities-current		(90,728	)
Total operating lease liabilities-non-current	$	60,081