Hour Loop(US:HOUR)2025-11-12 13:06Revenue and Orders - For the three months ended September 30, 2025, the company generated net revenues of $33,424,703, representing an increase of $2,349,205, or 7.56%, compared to $31,075,498 in the same period in 2024[127]. - Total orders for the three months ended September 30, 2025 were approximately 1,656,681, an increase of 12.51% from 1,472,515 orders in the same period in 2024[131]. - For the nine months ended September 30, 2025, the company generated net revenues of $86,364,899, an increase of $2,537,572, or 3.03%, compared to $83,827,327 in the same period in 2024[136]. - Total orders for the nine months ended September 30, 2025 were approximately 4,140,448, representing an increase of 7.14% from 3,864,609 orders in the same period in 2024[136]. Costs and Expenses - Cost of goods sold for the three months ended September 30, 2025 totaled $16,249,395, compared to $14,036,187 for the same period in 2024[132]. - Operating expenses for the three months ended September 30, 2025 totaled $16,433,302, reflecting a $115,834, or 0.71%, increase from $16,317,468 in the same period in 2024[133]. - Cost of goods sold for the nine months ended September 30, 2025 totaled $39,546,941, compared to $36,710,400 for the same period in 2024[137]. - Operating expenses for the nine months ended September 30, 2025, totaled $43,534,236, a decrease of $385,480 or 0.88% from $43,919,716 for the same period in 2024, attributed to increased operating efficiency[138]. - Other expenses, net, decreased to $51,174 for the nine months ended September 30, 2025, from $76,963 in 2024, due to repayment of part of loans from stockholders, reducing interest expenses[139]. Income and Earnings - Net income for the three months ended September 30, 2025 was $530,591, compared to $469,647 in the same period in 2024[127]. - Total comprehensive income for the three months ended September 30, 2025 was $492,010, compared with $485,613 for the same period in 2024[135]. - Total comprehensive income increased to $2,464,931 for the nine months ended September 30, 2025, compared to $2,175,986 for the same period in 2024[140]. Cash Flow and Financing - Cash at the end of the period was $796,307 as of September 30, 2025, down from $1,194,239 in 2024[141]. - Cash used in operating activities amounted to $425,000 for the nine months ended September 30, 2025, compared to cash provided of $1,231,885 for the same period in 2024, driven by a strategic policy to front-load inventory[145]. - Cash used in investing activities increased to $48,963 for the nine months ended September 30, 2025, from $35,031 in 2024, reflecting higher purchases of property and equipment[146]. - Cash used in financing activities was $839,000 for the nine months ended September 30, 2025, compared to $0 in 2024, primarily due to repayments made to related parties[147]. - The outstanding balance under the Taishin line of credit was $658,003 as of September 30, 2025, compared to $610,967 as of December 31, 2024[150]. - As of September 30, 2025, the company had $2,660,418 due to related parties from loans and advances[151]. Inventory and Sales - The company recorded $499,752 and $560,293 as inventory write-downs to net realizable values as of September 30, 2025, and December 31, 2024, respectively[160]. - Revenue for the nine months ended September 30, 2025, was recognized at a point in time, with customer confirmations executed at the time an order is placed through third-party online channels[172]. - The estimated sales return rates were 7.09% and 6.00% of gross sales for the nine months ended September 30, 2025, and 2024, respectively[173]. - Shipping and handling costs were $19,232,988 and $18,749,793 for the nine months ended September 30, 2025, and 2024, respectively[175]. - Approximately 99% of the Company's revenue for the nine months ended September 30, 2025, was generated through the Amazon sales platform[182]. - Advertising and promotion expenses were $3,190,480 and $3,096,997 for the nine months ended September 30, 2025, and 2024, respectively[183]. Customer and Market Information - The Company had no customer that accounted for 10% or more of total net revenues during the three and nine months ended September 30, 2025, and 2024[181]. - The Company treats shipping and handling as fulfillment activities, not separate performance obligations[175]. - The Company has only one operating segment, which is online retail (e-commerce)[176]. - There were no dilutive securities or other items affecting earnings per share for the three and nine months ended September 30, 2025, and 2024[186]. - The Company maintains reserves for potential credit losses on customer accounts when deemed necessary[181].