Hour Loop(HOUR) - 2025 Q2 - Quarterly Report

PART I - FINANCIAL INFORMATION This section presents Hour Loop, Inc.'s unaudited consolidated financial statements and management's discussion and analysis for the periods ended June 30, 2025 Item 1. Financial Statements (unaudited) This section presents Hour Loop's unaudited consolidated financial statements, including balance sheets, income statements, equity, and cash flows, with detailed accounting notes Consolidated Balance Sheets This section provides a snapshot of Hour Loop's financial position, detailing assets, liabilities, and equity as of June 30, 2025, and December 31, 2024 | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :------------------ | | Total Assets | $22,960,533 | $19,966,964 | | Total Liabilities | $15,797,869 | $14,807,222 | | Total Stockholders' Equity | $7,162,664 | $5,159,742 | | Cash | $325,354 | $2,119,581 | | Inventory, net | $20,940,746 | $14,640,632 | Consolidated Statements of Operations and Comprehensive Income This section outlines Hour Loop's financial performance, presenting revenues, net income, and earnings per share for the three and six months ended June 30, 2025 and 2024 | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues, net | $27,103,106 | $28,070,707 | $52,940,196 | $52,751,829 | | Net income | $1,177,001 | $649,150 | $1,831,518 | $1,714,964 | | Basic and diluted income per share | $0.04 | $0.02 | $0.06 | $0.05 | Consolidated Statements of Stockholders' Equity This section details changes in Hour Loop's stockholders' equity, including common stock and retained earnings, for the periods ended June 30, 2025, and December 31, 2024 | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :------------------ | | Common Stock Shares Outstanding | 35,160,190 | 35,143,460 | | Total Stockholders' Equity | $7,162,664 | $5,159,742 | - The company issued 8,750 shares of common stock during the three months ended June 30, 2025, contributing $15,001 to additional paid-in capital[13] - Net income for the three months ended June 30, 2025, was $1,177,001, increasing retained earnings[13] Consolidated Statements of Cash Flows This section presents Hour Loop's cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024 | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | | Net cash (used in) provided by operating activities | $(925,430) | $949,175 | | Net cash used in investing activities | $(801) | $(34,593) | | Net cash used in financing activities | $(839,000) | $-0- | | Net change in cash | $(1,794,227) | $862,744 | | Cash at end of the period | $325,354 | $3,346,897 | Notes to Unaudited Consolidated Financial Statements This section provides detailed explanations of Hour Loop's business operations, significant accounting policies, and specific financial statement line items, including inventory, leases, and income taxes NOTE 1 - Nature of Operations and Summary of Significant Accounting Policies Hour Loop operates as a technology-enabled consumer products company primarily through online retail, with significant reliance on Amazon, detailing its accounting policies and business nature - Hour Loop, Inc. is a technology-enabled consumer products company operating predominantly through online retail channels such as Amazon, Walmart, and Hourloop.com, with a single e-commerce segment[19] - Approximately 99% of the Company's revenue for the six months ended June 30, 2025 and 2024, was generated through the Amazon sales platform[56] | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | | Sales returns rate (of gross sales) | 6.92% | 5.94% | | Shipping and handling costs | $11,659,356 | $11,886,764 | | Advertising and promotion expenses | $964,824 | $1,953,155 | NOTE 2 - Recent Accounting Pronouncements Adopted Hour Loop adopted ASU 2023-07 for segment disclosures and will adopt ASU 2023-09 for income tax disclosures in 2025, with no material financial impact expected - The Company adopted ASU 2023-07 on Improvements to Reportable Segment Disclosures beginning with interim periods in the fiscal year starting January 1, 2025, with no material impact expected on consolidated financial statements[63] - The Company will adopt ASU 2023-09 on Improvements to Income Tax Disclosures in fiscal year 2025 and is currently assessing the disclosure impact, with no material impact expected on results of operations, cash flows, and financial condition at the time of adoption[64] NOTE 3 - Inventory Inventory, primarily finished goods, is valued at the lower of cost or net realizable value, with an allowance for obsolete and slow-moving items | Inventory Component | June 30, 2025 | December 31, 2024 | | :------------------ | :------------ | :------------------ | | Inventory | $17,097,686 | $12,716,062 | | Inventory-in-transit | $4,259,256 | $2,484,863 | | Allowance | $(416,196) | $(560,293) | | Total Inventory | $20,940,746 | $14,640,632 | - The inventory allowance decreased from $560,293 as of December 31, 2024, to $416,196 as of June 30, 2025[65] NOTE 4 - Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets significantly increased, mainly due to higher advances to suppliers and other prepaid items | Asset Category | June 30, 2025 | December 31, 2024 | | :----------------------------- | :------------ | :------------------ | | Advance to suppliers | $231,572 | $71,934 | | Prepaid expenses-insurance | $22,500 | $2,174 | | Prepaid expenses-other | $92,300 | $33,501 | | Lease refundable deposit | $70,212 | $49,939 | | Tax receivable | $95,925 | $157,538 | | Other current assets | $12,778 | $12,808 | | Total | $525,287 | $327,894 | NOTE 5 - Property and Equipment Net property and equipment decreased due to depreciation, with lower depreciation expenses recorded for the six months ended June 30, 2025 | Metric | June 30, 2025 | December 31, 2024 | | :--------------------------------- | :------------ | :------------------ | | Property and equipment, gross | $427,280 | $381,067 | | Accumulated depreciation and amortization | $(386,706) | $(324,270) | | Total property and equipment, net | $40,574 | $56,797 | | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | | Purchases of property and equipment | $801 | $34,593 | | Depreciation expense | $23,517 | $70,920 | NOTE 6 - Accounts Payable and Credit Cards Payable Accounts payable significantly increased, while credit cards payable decreased, indicating shifts in operational liabilities and payment timing | Liability Category | June 30, 2025 | December 31, 2024 | | :----------------- | :------------ | :------------------ | | Accounts payable | $8,584,090 | $4,176,305 | | Credit cards payable | $2,980,539 | $3,389,880 | NOTE 7 - Short-Term Loan Flywheel's line of credit with Taishin International Bank was extended to November 2025 at 3.33% interest, with an increased outstanding balance - The line of credit with Taishin International Bank has an annual interest rate of 3.33% and was extended to mature on November 19, 2025[75] | Metric | June 30, 2025 | December 31, 2024 | | :--------------- | :------------ | :------------------ | | Outstanding balance | $683,760 | $610,967 | NOTE 8 - Accrued Expenses and Other Current Liabilities Total accrued expenses and other current liabilities significantly decreased, mainly due to the elimination of refund liability and reduced accrued bonuses | Liability Category | June 30, 2025 | December 31, 2024 | | :------------------------- | :------------ | :------------------ | | Refund liability | $-0- | $766,721 | | Accrued payroll | $332,820 | $302,685 | | Accrued bonus | $102,564 | $963,800 | | Accrued expenses | $195,311 | $255,154 | | Accrued interest | $80,491 | $-0- | | Other payables | $21,181 | $34,175 | | Total | $732,367 | $2,322,535 | NOTE 9 - Leases Hour Loop holds two operating leases for Taiwan office space, with increased right-of-use assets, liabilities, amortization, and lease payments | Metric | June 30, 2025 | December 31, 2024 | | :--------------------------------- | :------------ | :------------------ | | Operating lease right-of-use assets | $137,465 | $111,409 | | Operating lease liabilities-current | $75,897 | $114,540 | | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | | Amortization of operating lease right-of-use asset | $122,018 | $98,773 | | Lease payments | $125,712 | $92,899 | | Future Minimum Lease Payments | Amount | | :---------------------------- | :----- | | 2025 | $42,003 | | 2026 | $70,330 | | 2027 | $29,304 | | Total minimum lease payments | $141,637 | NOTE 10 - Related Party Balances and Transactions Amounts due to related parties decreased due to repayments, and affiliated stockholder loans were extended to December 2025 at 5.5% interest | Metric | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :------------------ | | Due to related parties | $2,660,418 | $4,192,995 | - The company made repayments to related parties totaling $1,532,577 for the six months ended June 30, 2025, which included $839,000 in principal and $693,577 in bonus[87] - The affiliated loan from stockholders bears an annual interest rate of 5.5% and was extended to mature on December 31, 2025[86] NOTE 11 - Disaggregation of Revenue Revenue disaggregation shows slight six-month net revenue growth driven by U.S. and International sales, despite increased returns, while three-month net revenue decreased | Revenue Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue-U.S. | $28,308,512 | $29,285,554 | $54,911,059 | $54,745,245 | | Revenue-International | $1,138,830 | $889,278 | $2,090,269 | $1,758,973 | | Sales returns | $(2,198,454) | $(1,912,838) | $(3,966,013) | $(3,375,923) | | Discounts | $(183,149) | $(399,991) | $(434,740) | $(705,726) | | Total | $27,103,106 | $28,070,707 | $52,940,196 | $52,751,829 | NOTE 12 - Income Tax Total income tax expense and effective tax rate decreased for the six months, with a reduction in federal and state deferred tax assets and recognition of foreign deferred tax assets | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------- | :------------------------------- | :------------------------------- | | Total tax expense | $687,099 | $717,886 | | Effective Tax Rate | 27.28% | 29.51% | | 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 | $-0- | | Total | $513,152 | $1,060,104 | - As of June 30, 2025, the Company recognized deferred tax assets of $19,464 primarily related to deductible temporary differences at its foreign subsidiaries[93] NOTE 13 - Stockholders' Equity Common stock outstanding increased slightly due to shares issued as stock-based compensation to executives and directors in 2024 and 2025 | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :------------------ | | Common Stock Shares Outstanding | 35,160,190 | 35,143,460 | - The company issued 1,596 shares of common stock on January 2, 2025, and 1,750 shares on April 1, 2025, as stock-based compensation to executives and directors[100][101] NOTE 14 - Commitments and Contingencies As of June 30, 2025, Hour Loop had no material commitments or pending legal proceedings requiring financial statement accrual - The Company had no material or significant commitments outstanding as of June 30, 2025, and December 31, 2024[102] - No pending legal proceedings were identified that would require accrual in the unaudited consolidated financial statements as of June 30, 2025, and December 31, 2024[103] NOTE 15 - Subsequent Events On July 2, 2025, Hour Loop issued 2,275 shares of common stock to five executives/directors as compensation for services - On July 2, 2025, the Company issued 2,275 shares of common stock to each of Sam Lai, Maggie Yu, Michael Lenner, Alan Gao, and Hillary Bui as compensation for their services[104] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses Hour Loop's financial performance, condition, e-commerce model, market opportunities, competitive advantages, and responses to external factors for the periods ended June 30, 2025 Overview Hour Loop, an online retailer primarily on Amazon, leverages a wholesale model, operational advantages, and proprietary software, while proactively managing tariff impacts Our Business Hour Loop operates as a U.S. online retailer, primarily on Amazon and Walmart, managing over 100,000 SKUs across diverse categories, with plans for expansion - Hour Loop operates as an online retailer in the U.S. market, primarily as a third-party seller on Amazon.com since 2013 and Walmart.com since 2020[110] - The company manages over 100,000 Stock-Keeping Units (SKUs) across categories including home/garden décor, toys, kitchenware, apparel, and electronics[110] Business Model Hour Loop utilizes a wholesale reselling model on Amazon, buying products in bulk for resale, offering advantages in scalability and brand presence - Hour Loop's business model is wholesale (reselling), involving buying products in bulk directly from brands or manufacturers at wholesale prices and selling them on Amazon[111] - Advantages of the wholesale model include purchasing lower unit quantities, easier scalability compared to retail arbitrage, and the ability to provide broader Amazon presence for brands[112] Market Description/Opportunities The U.S. retail market reached $7.42 trillion in 2024, with e-commerce at 16.07% of sales, and Amazon dominating 40% of U.S. e-commerce | Metric | 2024 | 2023 | | :--------------------------------- | :----------- | :----------- | | Total U.S. retail sales | $7.42 trillion | $7.24 trillion | | Online spending with U.S. merchants | $1,192.29 billion | - | | E-commerce % of total U.S. retail sales | 16.07% | 15.45% | - Amazon accounts for approximately 40% of all e-commerce in the United States[114] Formation Founded in 2013, Hour Loop achieved significant sales growth by 2024, incorporated in Washington, established a Taiwan subsidiary, and converted to a Delaware corporation - Hour Loop was founded in 2013 by Sam Lai and Maggie Yu, with sales growing from $0 in 2013 to $138,252,861 in 2024[115] - The company formed Flywheel Consulting Ltd., a wholly-owned subsidiary in Taiwan, in 2019 to provide exclusive business operating consulting services[116] Competitive Advantage Hour Loop's competitive advantages include strong operations and sales teams, complemented by proprietary software that optimizes operations and inventory management - The Company's competitive advantages include strong operations and sales teams experienced in listing, shipment, advertising, reconciliation, and sales[120] - A proprietary software system provides an advantage by collecting and processing large amounts of data daily to optimize operations and sales, identifying product gaps and ensuring year-round stock[120] Tariff Impact and Response Measures Hour Loop responded to tariffs by expanding domestic inventory coverage, strategically front-loading China exports during a relief window, and implementing price increases to manage costs - In response to tariff increases, the Company expanded its domestic inventory procurement policy to keep inventory coverage from 1.5-2 months to 3-6 months as of April 2025[118][121] - The Company initially suspended containerized exports from China but resumed and front-loaded 2025 sales-related inventory during a 90-day tariff relief window to avoid elevated duties[122] - Measured price increases were implemented on select finished goods inventory to offset increased input costs and reduce the risk of stockouts, successfully securing adequate inventory for 2025 sales projections[123][124] Our Financial Position For Q2 2025, Hour Loop reported $27.1 million net revenues and $1.18 million net income, with $901,539 cash used in operations; six-month figures were $52.9 million net revenues and $1.83 million net income | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | | Net revenues | $27,103,106 | $28,070,707 | | Net income | $1,177,001 | $649,150 | | Cash flow (used in) provided by operating activities | $(901,539) | $456,232 | | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | | Net revenues | $52,940,196 | $52,751,829 | | Net income | $1,831,518 | $1,714,964 | | Cash flow (used in) provided by operating activities | $(925,430) | $949,175 | - As of June 30, 2025, the company had retained earnings of $1,236,343[127] Results of Operations Three-month revenues decreased by 3.45% but net income rose by 81.3% due to margin focus; six-month revenues increased by 0.36% and net income by 6.8% from growth and expense reductions For the three months ended June 30, 2025 compared to the three months ended June 30, 2024 Three-month revenues decreased by 3.45% to $27.1 million due to a margin expansion strategy, yet net income increased by 81.3% from reduced operating expenses | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Revenues, net | $27,103,106 | $28,070,707 | $(967,601) | -3.45% | | Total orders | 1,253,975 | 1,268,890 | (14,915) | -1.18% | | Net income | $1,177,001 | $649,150 | $527,851 | 81.3% | | Operating expenses | $13,876,501 | $14,688,214 | $(811,713) | -5.53% | - The decrease in revenues and orders was attributed to the Company's strategic shift toward prioritizing margin expansion in response to ongoing tariff uncertainties[130] - The decrease in operating expenses was caused by an increase in reimbursements paid by Amazon, reflecting enhanced recovery for lost shipments[132] For the six months ended June 30, 2025 compared to the six months ended June 30, 2024 Six-month revenues increased by 0.36% to $52.9 million and net income by 6.8%, driven by order growth, reduced operating expenses, and lower interest payments | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Revenues, net | $52,940,196 | $52,751,829 | $188,367 | 0.36% | | Total orders | 2,483,767 | 2,392,094 | 91,673 | 3.83% | | Net income | $1,831,518 | $1,714,964 | $116,554 | 6.8% | | Operating expenses | $27,100,934 | $27,602,248 | $(501,314) | -1.82% | | Other expenses, net | $23,099 | $42,518 | $(19,419) | -45.67% | - The increase in revenues was attributed to continued growth and maturity in the operating model, despite an overall e-commerce traffic slowdown and intense competition[135] - The decrease in other expenses, net, was due to the repayment of part of the loans from stockholders, leading to a reduction in interest expenses[138] Liquidity and Capital Resources Hour Loop's cash balance decreased due to increased cash used in operating and financing activities, relying on revenues, debt, and equity for liquidity, with existing contractual obligations | Metric | June 30, 2025 | June 30, 2024 | | :--------------------------------- | :------------ | :------------ | | Cash at end of the period | $325,354 | $3,346,897 | - Primary uses of cash include inventory, payments to Amazon for sales and shipping, marketing and advertising, and employee salaries[141] - Liquidity is generated from ongoing business revenues, and from debt and equity issuances[142] Net Cash Used in Operating Activities Cash used in operating activities for the six months ended June 30, 2025, totaled $925,430, a significant increase in outflow driven by inventory purchases | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | | Net cash (used in) provided by operating activities | $(925,430) | $949,175 | - The $1,874,605 increase in cash used in operating activities was primarily driven by an increase in inventory purchases[144] Net Cash Used in Investing Activities Cash used in investing activities significantly decreased to $801 for the six months ended June 30, 2025, reflecting lower property and equipment purchases | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | | Net cash used in investing activities | $(801) | $(34,593) | - The decrease in cash used in investing activities primarily reflects lower purchases of property and equipment[145] Net Cash Used in Financing Activities Cash used in financing activities totaled $839,000 for the six months ended June 30, 2025, primarily due to repayments to related parties | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | | Net cash used in financing activities | $(839,000) | $-0- | - The increase in cash outflows from financing activities was primarily due to repayments made to related parties[146] Off-balance sheet financing arrangements Hour Loop has no off-balance sheet arrangements, special purpose entities, guaranteed debts, or non-financial asset purchases - The Company has no obligations, assets, or liabilities considered off-balance sheet arrangements[147] Contractual Obligations Contractual obligations include a $683,760 line of credit with Taishin International Bank and $2,660,418 in affiliated stockholder loans, both maturing in 2025 - The Taishin International Bank line of credit has an outstanding balance of $683,760 as of June 30, 2025, and was extended to mature on November 19, 2025, bearing a 3.33% annual interest rate[149][150] - As of June 30, 2025, the Company had $2,660,418 due to related parties from affiliated loans, which were extended to mature on December 31, 2025, with an annual interest rate of 5.5%[151][153] | Future Minimum Lease Payments | Amount | | :---------------------------- | :----- | | 2025 | $42,003 | | 2026 | $70,330 | | 2027 | $29,304 | | Total minimum lease payments | $141,637 | Critical Accounting Policies and Estimates This section reiterates Hour Loop's critical accounting policies and estimates, requiring significant management judgment across areas like revenue recognition, inventory, leases, and income taxes - The preparation of financial statements requires management to make estimates and assumptions affecting reported amounts, including collectability of accounts receivable, useful life of property and equipment, inventory valuation, and deferred tax assets[156][27] - The Company's revenue recognition follows a five-step model, recognizing revenue when control of the product is transferred to the customer, typically at shipment date[171][174] - The Company has only one operating segment, online retail (e-commerce), and uses the 'management approach' for determining reportable segments[178][179] Item 3. Quantitative and Qualitative Disclosures About Market Risk Quantitative and qualitative disclosures regarding market risk are not applicable to Hour Loop, Inc - This item is not applicable to Hour Loop, Inc[190] Item 4. Controls and Procedures Hour Loop's disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting during the quarter - The Chief Executive Officer and Interim Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[191] - No material changes in internal control over financial reporting occurred during the quarter ended June 30, 2025[192] PART II - OTHER INFORMATION This section provides additional information including legal proceedings, risk factors, equity sales, defaults, and other disclosures for Hour Loop, Inc Item 1. Legal Proceedings Hour Loop is involved in ordinary course legal actions, but management is unaware of any pending proceedings that would materially affect its business or financial position - There are no legal proceedings currently pending against Hour Loop, Inc. that management believes would have a material effect on its business, financial position, or results of operations[194] Item 1A. Risk Factors As a smaller reporting company, Hour Loop is not required to update risk factors in this quarterly report, referring readers to its 2024 Annual Report on Form 10-K - As a smaller reporting company, Hour Loop is not required to disclose material changes to risk factors in this Quarterly Report on Form 10-Q[195] - Readers are referred to the Annual Report on Form 10-K for the year ended December 31, 2024, for risk factor disclosures[195] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds On July 2, 2025, Hour Loop issued 2,275 shares of common stock to five executives/directors as compensation, exempt from registration requirements - On July 2, 2025, the Company issued 2,275 shares of common stock to each of Sam Lai, Maggie Yu, Michael Lenner, Alan Gao, and Hillary Bui as compensation for services[196] - These shares were issued pursuant to an exemption from the registration requirements of the Securities Act available by Section 4(a)(2)[196] Item 3. Defaults Upon Senior Securities There have been no material defaults on senior securities payments during the covered period - There have been no defaults in any material payments during the covered period[197] Item 4. Mine Safety Disclosures This item is not applicable to Hour Loop, Inc - This item is not applicable to Hour Loop, Inc[198] Item 5. Other Information This section confirms no other material information, no changes to director nominee procedures, and no Rule 10b5-1 trading arrangement changes by directors or officers - There have been no material changes to the procedures by which security holders may recommend nominees to the Board of Directors[199] - No director or officer adopted or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the registrant's last fiscal quarter[200] Item 6. Exhibits This section lists exhibits filed with Form 10-Q, including Rule 13a-14(a) certifications, Section 1350 certifications, and Inline XBRL documents - Exhibits include Rule 13a-14(a) Certifications of Principal Executive Officer and Principal Financial Officer, and Certification Pursuant to 18 U.S.C. Section 1350[201] - Various Inline XBRL documents (Instance, Schema, Calculation, Definition, Labels, Presentation Linkbases) and the Cover Page Interactive Data File are also listed as exhibits[201] Signatures The report was signed on August 12, 2025, by Sam Lai, serving as Chief Executive Officer, Interim Chief Financial Officer, and principal accounting officer - The report was signed on August 12, 2025, by Sam Lai, Chief Executive Officer and Interim Chief Financial Officer (principal executive officer, principal financial officer, and principal accounting officer)[207]