Hour Loop, Inc 8-K

What Happened

• Hour Loop, Inc. (HOUR) filed an Item 5.02 8-K on May 18, 2026 disclosing Addendum No. 7 to the executive employment agreements for Sam Lai and Sau Kuen (Maggie) Yu, dated May 15, 2026. The addenda revise each executive’s 2026 bonus targets and guarantee a cash payment later in the year. Mr. Lai serves as Chairman, CEO and interim CFO; Ms. Yu is Senior Vice President and a director.

Key Details

• Performance bonuses: if net profits (excluding taxes and executives’ bonuses) reach at least $1,000,000 in fiscal 2026, each executive receives a bonus equal to 50% of their Base Salary; if net profits reach at least $2,000,000, each receives 100% of Base Salary. Only one performance bonus level will be paid and achievement is determined at fiscal year-end 2026.
• Guaranteed cash: each of Mr. Lai and Ms. Yu is entitled to a guaranteed $100,000 bonus payable on December 22, 2026.
• Related-party ownership: Mr. Lai and Ms. Yu are husband and wife and together beneficially own 33,360,142 shares (approximately 94.8% of voting power); each is deemed to indirectly own the other’s 16,680,071 shares.

Why It Matters

• These amendments increase potential 2026 compensation tied to company net profit milestones and also guarantee near-term cash payouts. Because the executives involved are the company’s controlling shareholders, investors should note the materiality of related-party compensation decisions and potential cash outflows if the guaranteed payments are made. The changes were formally disclosed in the company’s 8-K.