8-K
Hour Loop, Inc (HOUR)
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of
the
Securities Exchange Act of 1934
Dateof report (Date of earliest event reported): May 12, 2025
HOUR
LOOP, INC.
(Exact name of registrant as specified in its charter)
| Delaware | 001-41204 | 47-2869399 |
|---|---|---|
| (State<br> or other jurisdiction<br><br> <br>of<br> incorporation) | (Commission<br><br> <br>File<br> Number) | (I.R.S.<br> Employer<br><br> <br>Identification<br> Number) |
8201164th Ave NE #200, Redmond, WA 98052-7615
(Address of principal executive offices)
(206)385-0488 ext. 100
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.)
| ☐ | Written<br> communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting<br> material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ☐ | Pre-commencement<br> communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement<br> communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common<br> Stock | HOUR | The<br> Nasdaq Capital Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item2.02. Results of Operations and Financial Condition.
On May 12, 2025, Hour Loop, Inc. (the “Company”) issued a press release announcing its financial and operational results for the quarter ended March 31, 2025. A copy of this press release is attached hereto as Exhibit 99.1 and incorporated herein by reference. The information contained in the website is not a part of this current report on Form 8-K.
In accordance with General Instruction B.2 of Form 8-K, the information included in this Item 2.02, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item9.01. Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description |
|---|---|
| 99.1 | Press release issued by the registrant on May 12, 2025. |
| 104 | Cover<br> Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| HOUR LOOP, INC. | ||
|---|---|---|
| Dated:<br> May 12, 2025 | By: | /s/ Sam Lai |
| Name: | Sam<br> Lai | |
| Title: | Chief<br> Executive Officer and Interim Chief Financial Officer |
Exhibit99.1
HourLoop Reports First Quarter of 2025 Results
ProfitabilityContinues Despite Challenges for the Overall Economy
Redmond,WA, May 12, 2025 – Hour Loop, Inc. (NASDAQ: HOUR) (“Hour Loop”), a leading online retailer, announces its financial and operational results for the quarter ended March 31, 2025.
FinancialHighlights for First Quarter of 2025:
| ● | Net<br> revenues increased 4.7% to $25.8 million, compared to $24.7 million in the year-ago period; |
|---|---|
| ● | Net<br> income decreased to $0.7 million, compared to $1.1 million for the three months ended March<br> 31, 2024; and |
| ● | Cash<br> used in operating activities was $0.02 million, compared with cash provided by operating<br> activities $0.5 million for the three months ended March 31, 2025 and 2024, respectively. |
ManagementCommentary
“We are pleased to report our results for the first quarter of 2025. During the first quarter of 2025, we continued to deliver good revenue growth, despite a more cautious consumer outlook due to rising tariffs and fees charged by the marketplace,” said Sam Lai, CEO and interim CFO of Hour Loop. “The revenue growth rate for the first quarter was 4.7%, compared with for the year-ago period.”
“However, our gross margin for the first quarter of 2025, compared with the year-ago period, was negatively affected by a challenging e-commerce environment and intense competition across the industry. Our operating expenses also increased mainly because we amended our profit-sharing frequency to quarterly for the purpose of talent retention. Overall, we believe we’ve built a solid foundation to continue generating steady growth while maintaining profitability.”
“Looking forward, we’re cautiously optimistic. Despite an uncertain economy, we continue to see strong demand for our products so far in 2025. We are confident in our ability to continue delivering values to our vendors, customers, and shareholders.”
FirstQuarter of 2025 Financial Results
Net revenues in the first quarter of 2025 were $25.8 million, compared to $24.7 million in the year-ago period. The increase was primarily due to continued growth and maturity in our personnel and operating model, despite the overall e-commerce traffic slowdown and intense competition.
Gross profit percentage for the first quarter of 2025 decreased 3.9% to 54.7%, compared to 58.6% of net revenues in the comparable period a year ago. The decrease was a function of increased market competition, and higher inbound costs.
Operating expenses as a percentage of net revenues decreased 1.1% to 51.2%, compared to 52.3% of net revenues in the year-ago period. The decrease reflected better management of platform fees.
Net income in the first quarter of 2025 was $0.7 million, or $0.02 per diluted share, compared to $1.1 million, or $0.03 per diluted share, in the comparable year-ago period. The decrease was driven by increased costs and expenses as a result of the reasons mentioned above.
As of March 31, 2025, the Company had $1.3 million in cash and cash equivalents, compared to $2.1 million as of December 31, 2024. This decrease was driven by the loan repayment and growth of inventory.
Inventories as of March 31, 2025, were $15.9 million, compared to $14.6 million as of December 31, 2024. The Company intentionally invested heavily in inventories for strategic reasons in the first quarter of 2025.
FullYear 2025 Financial Outlook
For the full year 2025, Hour Loop is not able to provide forward-looking guidance at this time due to ongoing economic uncertainty, primarily influenced by current tariff conditions.
AboutHour Loop, Inc.
Hour Loop is an online retailer engaged in e-commerce retailing in the U.S. market. It has operated as a third-party seller on www.amazon.comand has sold merchandise on its website at www.hourloop.com since 2013. Hour Loop further expanded its operations to other marketplaces such as Walmart, eBay, and Etsy. To date, Hour Loop has generated practically all its revenue as a third-party seller on www.amazon.com and only a negligible amount of revenue from its own website and other marketplaces. Hour Loop manages more than 100,000 stock-keeping units (“SKUs”). Product categories include home/garden décor, toys, kitchenware, apparel, and electronics. Hour Loop’s primary strategy is to bring most of its vendors’ product selections to the customers. It has advanced software that assists Hour Loop in identifying product gaps so it can keep such products in stock year-round, including the entirety of the last quarter (holiday season) of the calendar year. In upcoming years, Hour Loop plans to expand its business rapidly by increasing the number of business managers, vendors, and SKUs.
Forward-LookingStatements
This press release contains statements that constitute “forward-looking statements,” including with respect to Hour Loop’s business strategy, product development and industry trends. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of Hour Loop. While Hour Loop believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to Hour Loop on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including, without limitation, those set forth in Hour Loop’s filings with the Securities and Exchange Commission, as the same may be updated from time to time. Thus, actual results could be materially different. Hour Loop undertakes no obligation to update these statements whether as a result of new information, future events or otherwise, after the date of this release, except as required by law.
InvestorContact
Finance Department, Hour Loop, Inc.
finance@hourloop.com
HOURLOOP, INC.
CONSOLIDATEDBALANCE SHEETS
(InU.S. Dollars, except for share and per share data)
Asof March 31, 2025 and December 31, 2024
(Unaudited)
| December<br> 31, 2024 | |||||
|---|---|---|---|---|---|
| ASSETS | |||||
| Current<br> assets | |||||
| Cash | 1,260,122 | $ | 2,119,581 | ||
| Accounts<br> receivable, net | 394,242 | 1,650,547 | |||
| Inventory,<br> net | 15,889,482 | 14,640,632 | |||
| Prepaid<br> expenses and other current assets | 614,685 | 327,894 | |||
| Total<br> current assets | 18,158,531 | 18,738,654 | |||
| Property<br> and equipment, net | 42,759 | 56,797 | |||
| Deferred<br> tax assets | 821,205 | 1,060,104 | |||
| Operating<br> lease right-of-use lease assets | 54,978 | 111,409 | |||
| Total<br> non-current assets | 918,942 | 1,228,310 | |||
| TOTAL<br> ASSETS | 19,077,473 | $ | 19,966,964 | ||
| LIABILITIES<br> AND STOCKHOLDERS’ EQUITY | |||||
| Current<br> liabilities | |||||
| Accounts<br> payable | 6,859,536 | $ | 4,176,305 | ||
| Credit<br> cards payable | 2,404,365 | 3,389,880 | |||
| Short-term<br> loan | 603,227 | 610,967 | |||
| Operating<br> lease liabilities-current | 56,478 | 114,540 | |||
| Accrued<br> expenses and other current liabilities | 677,726 | 2,322,535 | |||
| Due<br> to related parties | 2,660,418 | 4,192,995 | |||
| Total<br> current liabilities | 13,261,750 | 14,807,222 | |||
| Total<br> liabilities | 13,261,750 | 14,807,222 | |||
| Commitments<br> and contingencies | - | - | |||
| Stockholders’<br> equity | |||||
| Preferred<br> stock: 0.0001 par value, 10,000,000 shares authorized; none issued and outstanding as of March 31, 2025 and December 31, 2024, respectively | - | - | |||
| Common<br> stock: 0.0001 par value, 300,000,000 shares authorized; 35,151,440 and 35,143,460 shares issued and outstanding as of March 31,<br> 2025 and December 31, 2024, respectively | 3,515 | 3,514 | |||
| Additional<br> paid-in capital | 5,817,685 | 5,802,686 | |||
| Retained<br> earnings (accumulated deficit) | 59,342 | (595,175 | ) | ||
| Accumulated<br> other comprehensive loss | (64,819 | ) | (51,283 | ) | |
| Total<br> stockholders’ equity | 5,815,723 | 5,159,742 | |||
| TOTAL<br> LIABILITIES AND STOCKHOLDERS’ EQUITY | 19,077,473 | $ | 19,966,964 |
All values are in US Dollars.
Theaccompanying footnotes are an integral part of these unaudited consolidated financial statements.
HOURLOOP, INC.
CONSOLIDATEDSTATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(InU.S. Dollars, except for share and per share data)
Forthe Three Months Ended March 31, 2025 and 2024
(Unaudited)
| Three<br> Months Ended March 31, | ||||||
|---|---|---|---|---|---|---|
| 2025 | 2024 | |||||
| Revenues,<br> net | $ | 25,837,090 | $ | 24,681,122 | ||
| Cost<br> of revenues | (11,691,792 | ) | (10,228,916 | ) | ||
| Gross<br> profit | 14,145,298 | 14,452,206 | ||||
| Operating<br> expenses | ||||||
| Selling<br> and marketing | 11,246,997 | 11,174,191 | ||||
| General<br> and administrative | 1,977,436 | 1,739,843 | ||||
| Total<br> operating expenses | 13,224,433 | 12,914,034 | ||||
| Income<br> from operations | 920,865 | 1,538,172 | ||||
| Other<br> income (expense) | ||||||
| Other<br> income (expense) | 301 | (1,156 | ) | |||
| Interest<br> expense | (47,055 | ) | (62,112 | ) | ||
| Other<br> income | 61,825 | 28,034 | ||||
| Total<br> other income (expense), net | 15,071 | (35,234 | ) | |||
| Income<br> before income taxes | 935,936 | 1,502,938 | ||||
| Income<br> tax expense | (281,419 | ) | (437,124 | ) | ||
| Net<br> income | 654,517 | 1,065,814 | ||||
| Other<br> comprehensive loss | ||||||
| Foreign<br> currency translation adjustments | (13,536 | ) | (16,533 | ) | ||
| Total<br> comprehensive income | $ | 640,981 | $ | 1,049,281 | ||
| Basic<br> and diluted earnings per common share | $ | 0.02 | $ | 0.03 | ||
| Weighted-average<br> number of common shares outstanding | 35,151,351 | 35,095,602 |
Theaccompanying footnotes are an integral part of these unaudited consolidated financial statements.
HOURLOOP, INC.
CONSOLIDATEDSTATEMENTS OF CASH FLOWS
(InU.S. Dollars)
Forthe Three Months Ended March 31, 2025 and 2024
(Unaudited)
| Three<br> Months Ended March 31, | ||||||
|---|---|---|---|---|---|---|
| 2025 | 2024 | |||||
| Cash<br> flows from operating activities | ||||||
| Net<br> income | $ | 654,517 | $ | 1,065,814 | ||
| Reconciliation<br> of net income to net cash used in operating activities: | ||||||
| Depreciation<br> expenses | 14,126 | 35,273 | ||||
| Amortization<br> of operating lease right-of-use lease assets | 55,383 | 42,892 | ||||
| Deferred<br> tax assets | 238,899 | 351,127 | ||||
| Stock-based<br> compensation | 15,000 | 36,000 | ||||
| Inventory<br> allowance | 497,347 | 637,058 | ||||
| Unrealized<br> foreign exchange gain | (24,826 | ) | - | |||
| Changes<br> in operating assets and liabilities: | ||||||
| Accounts<br> receivable | 1,256,305 | 210,133 | ||||
| Inventory | (1,746,197 | ) | 2,021,008 | |||
| Prepaid<br> expenses and other current assets | (286,791 | ) | 76,091 | |||
| Accounts<br> payable | 2,683,231 | (392,733 | ) | |||
| Credit<br> cards payable | (985,515 | ) | (2,543,010 | ) | ||
| Accrued<br> expenses and other current liabilities | (2,338,386 | ) | (1,093,909 | ) | ||
| Operating<br> lease liabilities | (56,984 | ) | (35,175 | ) | ||
| Income<br> taxes payable | - | 82,374 | ||||
| Net<br> cash (used in) provided by operating activities | (23,891 | ) | 492,943 | |||
| Cash<br> flows from investing activities: | ||||||
| Purchases<br> of property and equipment | (720 | ) | (17,798 | ) | ||
| Net<br> cash used in investing activities | (720 | ) | (17,798 | ) | ||
| Cash<br> flows from financing activities: | ||||||
| Payments<br> to related parties | (839,000 | ) | - | |||
| Net<br> cash used in financing activities | (839,000 | ) | - | |||
| Effect<br> of changes in foreign currency exchange rates | 4,152 | (37,218 | ) | |||
| Net<br> change in cash | (859,459 | ) | 437,927 | |||
| Cash<br> at beginning of period | 2,119,581 | 2,484,153 | ||||
| Cash<br> at end of period | $ | 1,260,122 | $ | 2,922,080 | ||
| Supplemental<br> disclosures of cash flow information: | ||||||
| Cash<br> paid for interest | $ | 4,986 | $ | 3,380 | ||
| Cash<br> paid for income tax | $ | 6,230 | $ | - | ||
| Non-cash<br> investing and financing activities: | ||||||
| Operating<br> lease right-of-use of assets and operating lease liabilities recognized | $ | - | $ | 123,107 |
Theaccompanying footnotes are an integral part of these unaudited consolidated financial statements.