v3.26.1
Income Tax (Tables)
6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Schedule of Effective Tax Rate Reconciliation

The components of income taxes expense are as follows:

 

Effective Tax Rate Reconciliation for the Six Months Ended June 30, 2026
Pretax book income  $2,390,816    21.00%  $502,071 
Permanent differences   43,855    0.39%   9,210 
Prior year federal permanent differences true-up   110,378    0.97%   23,179 
State income tax   127,407    4.19%   100,171 
Other deferred adjustment   -    -4.98%   (118,982)
Total tax expense        21.57%  $515,649 

 

 

HOUR LOOP, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

 

Effective Tax Rate Reconciliation for the Six Months Ended June 30, 2025
Pre-tax book income  $2,518,617    21.00%  $528,910 
Permanent differences   38,692    0.32%   8,125 
Prior year federal permanent differences true-up   117,653    0.98%   24,707 
State income tax   114,662    4.37%   110,143 
Other deferred adjustment   -    0.60%   15,214 
Total tax expense        27.28%  $687,099 
Schedule of Tax Expense Summary

 

   Current   Deferred
Income Tax
   Total 
   Income Tax   Expense   Income Tax 
Tax Expense Summary, for the Six Months Ended June 30, 2026  Expense   (Benefit)   Expense 
Federal  $88,964    299,758    388,722 
State   127,407    (480)   126,927 
Total tax expense  $216,371    299,278    515,649 

 

Tax Expense Summary, for the Six Months Ended June 30, 2025 

Current

Income Tax

Expense

  

Deferred

Income Tax

Expense

  

Total

Income Tax

Expense

 
Federal  $99,163   $473,274   $572,437 
State   21,521    93,141    114,662 
Total tax expense  $120,684    566,415   $687,099 
Schedule of Deferred Tax Assets

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets as of June 30, 2026 and December 31, 2025 were as follows:

 

Deferred Tax Assets Summary  June 30, 2026   December 31, 2025 
Federal  $220,706   $520,464 
State   71,837    71,357 
Foreign (non-U.S.)   546    18,143 
Total  $293,089   $609,964 

 

Deferred Tax Assets Summary  June 30, 2026   December 31, 2025 
Operating lease right of use lease assets  $1,166   $1,574 
Inventories allowance   93,207    112,518 
Net loss carry forward   198,716    495,872 
Total  $293,089   $609,964