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:
Schedule of Effective Tax Rate Reconciliation
| Effective Tax Rate Reconciliation for the Six Months Ended June 30, 2026 |
| Pretax book income | |
$ | | |
| 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 | |
$ | | |
| 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 |
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:
Schedule
of Deferred Tax Assets
| 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 | |
|