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Hour Loop Reports Full Year 2024 Results

1. HOUR's 2024 revenue increased 4.6% to $138.3 million. 2. Net income reached $0.66 million, recovering from a loss in 2023. 3. Gross profit margin improved to 52.1% due to cost management. 4. Cash provided by operations was $0.3 million, reversing prior losses. 5. 2025 guidance projects revenues between $145 million and $160 million.

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Why Bullish?

HOUR shows profitability recovery and growth potential, similar to past recovery stories like AMZN post-2019.

How important is it?

The article highlights significant profitability and revenue growth, casting a favorable view on HOUR's future.

Why Long Term?

Positive trends in revenue and profitability suggest sustained growth, akin to previously noted long-term gains in e-commerce.

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Profitability Continues Despite Challenges for the Overall Economy Provides Full Year 2025 Revenue and Net Income Guidance Redmond, WA, March 27, 2025 (GLOBE NEWSWIRE) -- Hour Loop, Inc. (NASDAQ: HOUR) (“Hour Loop”), a leading online retailer, announces its financial and operational results for the year ended December 31, 2024. Financial Highlights for 2024: Net revenues increased 4.6% to $138.3 million, compared to $132.1 million in 2023;Net income totaled $0.66 million, compared to net loss of $2.43 million in 2023; andCash provided by operating activities was $0.3 million, compared with cash used in operating activities $2.1 million for the year ended December 31, 2024 and 2023, respectively. Management Commentary “We are pleased to report our full year 2024 results, in which we continued to deliver good revenue growth, despite challenges for the overall economy and congested inbound logistics in the 4th quarter,” said Sam Lai, CEO and interim CFO of Hour Loop. “The revenue growth rate for 2024 was 4.6%, compared with 2023.” “Our gross margin and operating margin were both improved, compared with the year-ago period, because of efforts made for inventory quality and efficiency enhancement, operation efficiency improvement, as well as expenses management. Overall, we believe we’ve built a solid foundation to continue generating satisfactory growth while maintaining profitability.” “Looking forward, we’re cautiously optimistic. Despite an uncertain economy, we continue to see good demand for our products so far in 2025. We are confident in our ability to continue delivering value to our vendors, customers, and shareholders.” Full Year 2024 Financial Results Net revenues in 2024 were $138.3 million, compared to $132.1 million in 2023. The increase was primarily due to continued growth and maturity in our personnel and operating model, despite the overall e-commerce traffic slowdown, intense competition and congested inbound logistics in the 4th quarter. Gross profit percentage increased 1.8% to 52.1%, compared to 50.3% of net revenues in 2023. The increase was a function of improved product costs, enhanced inventory quality and efficiency, and efforts made on margin increase. Operating expenses as a percentage of net revenues in 2024 decreased by 1%, to 51.6%, compared to 52.6% of net revenues in 2023. The decrease reflected better management of normal and long-term storage fees despite a significant increase in inbound placement fees. Net income in 2024 was $0.66 million, or $0.02 per diluted share, compared to net loss of $2.43 million, or $0.07 per diluted share, in 2023. The increase was driven by reduced costs as a result of the reasons mentioned above and efforts made for expenses management. As of December 31, 2024, the Company had $2.1 million in cash and cash equivalents, compared to $2.5 million as of December 31, 2023. This decrease was mainly due to loan repayment. Inventories as of December 31, 2024, were $14.6 million, similar to $14.3 million as of December 31, 2023. Full Year 2025 Financial Outlook For the full year 2025, Hour Loop is providing guidance for net revenue to be in the range of $145 million to $160 million, representing about 5% to 15% year-over-year growth. The Company expects 2025 net income to be in the range of $0.5 million to $2 million. About Hour 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.com and 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-Looking Statements 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. Investor Contact Finance Department, Hour Loop, Inc.finance@hourloop.com HOUR LOOP, INC. CONSOLIDATED BALANCE SHEETS (In U.S. Dollars, except for share and per share data) As of December 31, 2024 and 2023   December 31, 2024  December 31, 2023        ASSETS        Current assets        Cash $2,119,581    $2,484,153 Accounts receivable, net  1,650,547    747,650 Inventory, net  14,640,632    14,276,555 Prepaid expenses and other current assets  327,894    504,973 Total current assets  18,738,654    18,013,331          Property and equipment, net  56,797    148,788 Deferred tax assets  1,060,104    1,304,215 Operating lease right-of-use lease assets  111,409     83,946 Total non-current assets  1,228,310    1,536,949 TOTAL ASSETS $19,966,964   $19,550,280          LIABILITIES AND STOCKHOLDERS’ EQUITY        Current liabilities        Accounts payable $4,176,305    $3,812,954 Credit cards payable  3,389,880     4,404,445 Short-term loan   610,967     652,422 Operating lease liabilities-current  114,540     82,269 Accrued expenses and other current liabilities  2,322,535    1,972,512 Due to related parties  4,192,995    - Total current liabilities  14,807,222    10,924,602          Non-current liabilities        Operating lease liabilities-non-current  -    2,363 Due to related parties   -    4,170,418 Total non-current liabilities  -    4,172,781 Total liabilities  14,807,222     15,097,383 Commitments and contingencies  -               Stockholders’ equity        Preferred stock: $0.0001 par value, 10,000,000 shares authorized, none issued and outstanding as of December 31, 2024 and 2023  -    - Common stock: $0.0001 par value, 300,000,000 shares authorized, 35,143,460 and 35,082,464 shares issued and outstanding as of December 31, 2024 and 2023, respectively  3,514    3,508 Additional paid-in capital  5,802,686     5,727,650 Accumulated deficit  (595,175)   (1,252,622)Accumulated other comprehensive loss  (51,283)   (25,639)Total stockholders’ equity  5,159,742    4,452,897          TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $19,966,964   $19,550,280  The accompanying notes are an integral part of these consolidated financial statements. HOUR LOOP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (In U.S. Dollars, except for share and per share data) For the Years Ended December 31, 2024 and 2023   2024  2023        Revenues, net $138,252,861  $132,124,202 Cost of revenues  (66,242,153)  (65,606,947)Gross profit  72,010,708   66,517,255          Operating expenses        Selling and marketing  61,808,979   61,135,227 General and administrative  9,470,789   8,385,451 Total operating expenses  71,279,768   69,520,678          Income (loss) from operations  730,940   (3,003,423)         Other (expenses) income        Other expense  (12,695)  (9,542)Interest expense  (249,587)  (248,779)Other income  490,903   101,290 Total other expenses, net  228,621   (157,031)         Income (loss) before income taxes  959,561   (3,160,454)Income tax (expense) benefit  (302,114)  730,760          Net income (loss)  657,447   (2,429,694)         Other comprehensive loss        Foreign currency translation adjustments  (25,644)  (2,597)         Total comprehensive income (loss) $631,803   (2,432,291)         Basic and diluted income (loss) per common share $0.02   (0.07)Weighted-average number of common shares outstanding  35,119,761   35,066,592  The accompanying notes are an integral part of these consolidated financial statements. HOUR LOOP, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In U.S. Dollars) For the Years Ended December 31, 2024 and 2023   2024  2023        Cash flows from operating activities        Net income (loss) $657,447  $(2,429,694)Reconciliation of net income (loss) to net cash used in operating activities:        Depreciation expenses  119,064   138,001 Amortization of operating lease right-of-use lease assets  211,348   387,446 Deferred tax assets  244,111   (754,895)Stock-based compensation  75,042   52,332 Inventory allowance  560,293   675,886 Unrealized Foreign Exchange Gain  (87,520)  - Changes in operating assets and liabilities:        Accounts receivable  (902,897)  (395,271)Inventory  (924,370)  3,849,088 Prepaid expenses and other current assets  177,079   236,270 Accounts payable  363,351   (2,838,767)Credit cards payable  (1,014,565)  (827,087)Accrued expenses and other current liabilities  1,043,600   229,540 Operating lease liabilities  (208,843)  (386,224)Net cash provided by (used in) operating activities  313,140   (2,063,375)         Cash flows from investing activities:        Purchases of property and equipment  (35,996)  (14,823)Net cash used in investing activities  (35,996)  (14,823)         Cash flows from financing activities:        Payments to related parties  (671,000)  - Net cash used in financing activities  (671,000)  -          Effect of changes in foreign currency exchange rates  29,284   (238)         Net change in cash  (364,572)  (2,078,436)         Cash at beginning of year  2,484,153   4,562,589          Cash at end of year $2,119,581  $2,484,153          Supplemental disclosures of cash flow information:        Cash paid for interest $249,296  $406,103 Cash paid for income tax $211,911  $1,696 Noncash investing and financing activities:        Operating lease right-of-use of assets and operating lease liabilities recognized $248,716  $27,249  The accompanying notes are an integral part of these consolidated financial statements.

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