NOTE 9 - Leases

The Company had two operating leases (Flywheel’s office leases in Taiwan) as of June 30, 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 June 30, 2026:

Schedule of Operating Leases Cost

Operating lease liabilities-current as of June 30, 2026 and December 31, 2025 were $91,142 and $92,362, respectively. Operating lease liabilities-non-current as of June 30, 2026 and December 31, 2025 were $38,357 and $83,271, respectively. The operating lease right-of-use assets balance as of June 30, 2026 and December 31, 2025, were $124,861 and $169,368, respectively.

For the six months ended June 30, 2026 and 2025, the amortization of the operating lease right-of-use asset was $42,575 and $122,018, respectively. These amounts were recorded in general and administrative expenses. Additionally, for the six months ended June 30, 2026 and 2025, the Company made lease payments of $44,130 and $125,712, respectively, which were included in the operating cash flows statements.

The future minimum lease payment schedule for all operating leases as of June 30, 2026, is as disclosed below.

 Schedule of Operating Lease Liabilities

HOUR LOOP, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS