Income Tax (Tables)

6 Months Ended

Jun. 30, 2025

Schedule of Effective Tax Rate Reconciliation

Effective Tax Rate Reconciliation for the Six Months Ended June 30, 2025
Description	Pre-tax Income		Effective Tax Rate			Tax Effect
Pre-tax book income	$	2,518,617		21.00	%	$	528,910
Permanent differences		38,692		0.32	%		8,125
Prior year federal permanent 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 expenses				27.28	%	$	687,099

Effective Tax Rate Reconciliation for the Six Months Ended June 30, 2024
Description	Pre-tax Income		Effective Tax Rate			Tax Effect
Pre-tax book income	$	2,432,850		21.00	%	$	510,898
Permanent differences		42,336		0.37	%		8,891
State income tax		146,590		8.15	%		198,186
Other deferred adjustment		-		0.00	%		(89	)
Total tax expense				29.51	%	$	717,886

Schedule of Tax Expense Summary

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

Tax Expense Summary, for the six months ended June 30, 2024	Current Income Tax Expense		Deferred Income Tax Expense		Total Income Tax Expense
Federal	$	-	$	488,916	$	488,916
State		146,590		82,380		228,970
Total tax expense	$	146,590	$	571,296	$	717,886

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets at June 30, 2025 and December 31, 2024 were as follows:

Deferred Tax Assets Summary	June 30, 2025		December 31, 2024
	Deferred Tax Assets
Deferred Tax Assets Summary	June 30, 2025		December 31, 2024
Federal	$	435,417	$	908,691
State		58,271		151,413
Foreign (non-U.S.)		19,464		-
Total	$	513,152	$	1,060,104

HOUR LOOP, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Deferred Tax Assets Summary	June 30, 2025		December 31, 2024
	Deferred Tax Assets
Deferred Tax Assets Summary	June 30, 2025		December 31, 2024
Operating lease right of use lease assets	$	-	$	787
Inventories allowance		104,547		140,743
Net loss carry forward		408,605		918,574
Total	$	513,152	$	1,060,104

Hour Loop, Inc 10-Q