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[8-K] Hour Loop, Inc. Reports Material Event

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Rhea-AI Filing Summary

Hour Loop, Inc. (Nasdaq: HOUR) filed an 8-K on 5 Aug 2025 announcing Addendum No. 5 to the employment agreements of CEO/Chairman/Interim CFO Sam Lai and SVP/Director Sau Kuen Yu. The addendums alter 2025 cash-bonus metrics:

  • Net profit � $1 million (pre-tax, pre-bonus) triggers a bonus equal to 50 % of base salary.
  • Net profit � $2 million triggers a bonus equal to 100 % of base salary.
Only one tier may be paid, based on FY-2025 results. Each executive is also entitled to a guaranteed $100,000 cash bonus on 22 Dec 2025, regardless of performance.

Lai and Yu are spouses and together beneficially own 33.35 million shares—about 95 % of voting power—raising governance considerations. Full terms are in Exhibits 10.1 and 10.2. No other material events or financial results were disclosed.

Hour Loop, Inc. (Nasdaq: HOUR) ha presentato un modulo 8-K il 5 agosto 2025, annunciando l'Addendum n. 5 agli accordi di lavoro del CEO/Presidente/Interim CFO Sam Lai e del SVP/Direttore Sau Kuen Yu. Gli addendum modificano i criteri per il bonus in contanti del 2025:

  • Utile netto � 1 milione di dollari (ante imposte e bonus) attiva un bonus pari al 50% dello stipendio base.
  • Utile netto � 2 milioni di dollari attiva un bonus pari al 100% dello stipendio base.
Verrà pagata solo una delle due soglie, in base ai risultati dell'anno fiscale 2025. Ogni dirigente ha inoltre diritto a un bonus in contanti garantito di 100.000 dollari il 22 dicembre 2025, indipendentemente dalle performance.

Lai e Yu sono coniugi e detengono insieme 33,35 milioni di azioni, pari a circa il 95% del potere di voto, sollevando questioni di governance. I termini completi sono disponibili negli Allegati 10.1 e 10.2. Non sono stati divulgati altri eventi materiali o risultati finanziari.

Hour Loop, Inc. (Nasdaq: HOUR) presentó un formulario 8-K el 5 de agosto de 2025, anunciando el Anexo No. 5 a los contratos laborales del CEO/Presidente/Interino CFO Sam Lai y del SVP/Director Sau Kuen Yu. Los anexos modifican los criterios para el bono en efectivo de 2025:

  • Utilidad neta � 1 millón de dólares (antes de impuestos y bonos) activa un bono equivalente al 50% del salario base.
  • Utilidad neta � 2 millones de dólares activa un bono equivalente al 100% del salario base.
Sólo se pagará uno de los niveles, basado en los resultados del año fiscal 2025. Cada ejecutivo también tiene derecho a un bono en efectivo garantizado de 100,000 dólares el 22 de diciembre de 2025, independientemente del desempeño.

Lai y Yu son cónyuges y poseen conjuntamente 33.35 millones de acciones, aproximadamente el 95% del poder de voto, lo que plantea consideraciones de gobernanza. Los términos completos están en los Anexos 10.1 y 10.2. No se divulgaron otros eventos materiales ni resultados financieros.

Hour Loop, Inc. (나스�: HOUR)� 2025� 8� 5� 8-K 서류� 제출하며 CEO/회장/임시 CFO� Sam Lai와 SVP/이사 Sau Kuen Yu� 고용 계약서에 대� 부� 5호를 발표했습니다. � 부록은 2025� 현금 보너� 기준� 변경합니다:

  • 순이� � 100� 달러 (세전, 보너� �) � 기본급의 50%� 해당하는 보너스가 지급됩니다.
  • 순이� � 200� 달러 � 기본급의 100%� 해당하는 보너스가 지급됩니다.
2025 회계연도 실적� 기준으로 � 단계� 지급됩니다. � 임원은 성과와 관계없� 2025� 12� 22일에 보장� 10� 달러 현금 보너�� 받을 권리가 있습니다.

Lai와 Yu� 부부로서 함께 3,335� 주를 보유하고 있으�, 이는 � 95%� 의결권에 해당하여 지배구� 관� 고려사항� 제기됩니�. 전체 조건은 부속서 10.1 � 10.2� 나와 있습니다. 다른 중요� 사건이나 재무 결과� 공개되지 않았습니�.

Hour Loop, Inc. (Nasdaq : HOUR) a déposé un formulaire 8-K le 5 août 2025, annonçant l'avenant n° 5 aux contrats de travail du PDG/Président/Directeur financier par intérim Sam Lai et du vice-président senior/Directeur Sau Kuen Yu. Ces avenants modifient les critères de bonus en espèces pour 2025 :

  • Bénéfice net � 1 million de dollars (avant impôts et bonus) déclenche un bonus équivalent à 50 % du salaire de base.
  • Bénéfice net � 2 millions de dollars déclenche un bonus équivalent à 100 % du salaire de base.
Un seul niveau peut être versé, basé sur les résultats de l'exercice 2025. Chaque cadre a également droit à un bonus en espèces garanti de 100 000 dollars le 22 décembre 2025, quelle que soit la performance.

Lai et Yu sont époux et détiennent ensemble 33,35 millions d'actions � environ 95 % du pouvoir de vote � soulevant des questions de gouvernance. Les conditions complètes figurent dans les Annexes 10.1 et 10.2. Aucun autre événement important ou résultat financier n’a été divulgué.

Hour Loop, Inc. (Nasdaq: HOUR) reichte am 5. August 2025 ein 8-K ein und kündigte Addendum Nr. 5 zu den Arbeitsverträgen von CEO/Vorsitzendem/Interim CFO Sam Lai und SVP/Direktor Sau Kuen Yu an. Die Addenda ändern die Kriterien für den Barbonus 2025:

  • Netto-Gewinn � 1 Million US-Dollar (vor Steuern und Bonus) löst einen Bonus in Höhe von 50 % des Grundgehalts aus.
  • Netto-Gewinn � 2 Millionen US-Dollar löst einen Bonus in Höhe von 100 % des Grundgehalts aus.
Es wird nur eine Stufe basierend auf den Ergebnissen des Geschäftsjahres 2025 ausgezahlt. Jeder Geschäftsführer hat außerdem Anspruch auf einen garantierten Barbonus von 100.000 US-Dollar am 22. Dezember 2025, unabhängig von der Leistung.

Lai und Yu sind Ehepartner und besitzen zusammen 33,35 Millionen Aktien � etwa 95 % der Stimmrechte �, was Governance-Aspekte aufwirft. Die vollständigen Bedingungen finden sich in den Anlagen 10.1 und 10.2. Weitere wesentliche Ereignisse oder Finanzergebnisse wurden nicht bekannt gegeben.

Positive
  • Performance-based bonus structure links executive pay to clearly defined 2025 net-profit milestones.
  • Transparency of profit thresholds gives investors a proxy for management’s internal targets.
Negative
  • $100k guaranteed bonuses regardless of performance add fixed costs and weaken pay-for-performance alignment.
  • Concentrated insider control (�95 % voting power) limits minority shareholder influence over compensation decisions.

Insights

TL;DR: Insider-controlled firm grants performance tiers plus guaranteed $100k bonuses; governance risk outweighs limited incentive alignment.

The addendums give Hour Loop’s controlling insiders upside via 50�100 % salary bonuses while also locking in $100k each irrespective of 2025 profit. Because Lai and Yu hold ~95 % voting power, minority shareholders have little recourse if payouts prove excessive. Linking bonuses to clearly stated net-profit thresholds is positive, yet the low $1�2 million hurdle and guaranteed payment dilute pay-for-performance discipline. Overall impact skews negative from a governance and cash-outflow perspective, though dollar amounts appear immaterial to balance-sheet strength.

TL;DR: Compensation tweaks are unlikely to move HOUR’s valuation; watch FY-25 profit to gauge bonus probability.

The disclosed targets provide insight into management’s profit aspirations. Achieving $2 million net profit would imply meaningful YoY growth for this micro-cap e-commerce reseller, but the cash obligation—even at the 100 % level—remains modest relative to potential earnings. Market reaction should be muted; however, guaranteed bonuses add a fixed cost during a period of margin pressure across online retail.

Hour Loop, Inc. (Nasdaq: HOUR) ha presentato un modulo 8-K il 5 agosto 2025, annunciando l'Addendum n. 5 agli accordi di lavoro del CEO/Presidente/Interim CFO Sam Lai e del SVP/Direttore Sau Kuen Yu. Gli addendum modificano i criteri per il bonus in contanti del 2025:

  • Utile netto � 1 milione di dollari (ante imposte e bonus) attiva un bonus pari al 50% dello stipendio base.
  • Utile netto � 2 milioni di dollari attiva un bonus pari al 100% dello stipendio base.
Verrà pagata solo una delle due soglie, in base ai risultati dell'anno fiscale 2025. Ogni dirigente ha inoltre diritto a un bonus in contanti garantito di 100.000 dollari il 22 dicembre 2025, indipendentemente dalle performance.

Lai e Yu sono coniugi e detengono insieme 33,35 milioni di azioni, pari a circa il 95% del potere di voto, sollevando questioni di governance. I termini completi sono disponibili negli Allegati 10.1 e 10.2. Non sono stati divulgati altri eventi materiali o risultati finanziari.

Hour Loop, Inc. (Nasdaq: HOUR) presentó un formulario 8-K el 5 de agosto de 2025, anunciando el Anexo No. 5 a los contratos laborales del CEO/Presidente/Interino CFO Sam Lai y del SVP/Director Sau Kuen Yu. Los anexos modifican los criterios para el bono en efectivo de 2025:

  • Utilidad neta � 1 millón de dólares (antes de impuestos y bonos) activa un bono equivalente al 50% del salario base.
  • Utilidad neta � 2 millones de dólares activa un bono equivalente al 100% del salario base.
Sólo se pagará uno de los niveles, basado en los resultados del año fiscal 2025. Cada ejecutivo también tiene derecho a un bono en efectivo garantizado de 100,000 dólares el 22 de diciembre de 2025, independientemente del desempeño.

Lai y Yu son cónyuges y poseen conjuntamente 33.35 millones de acciones, aproximadamente el 95% del poder de voto, lo que plantea consideraciones de gobernanza. Los términos completos están en los Anexos 10.1 y 10.2. No se divulgaron otros eventos materiales ni resultados financieros.

Hour Loop, Inc. (나스�: HOUR)� 2025� 8� 5� 8-K 서류� 제출하며 CEO/회장/임시 CFO� Sam Lai와 SVP/이사 Sau Kuen Yu� 고용 계약서에 대� 부� 5호를 발표했습니다. � 부록은 2025� 현금 보너� 기준� 변경합니다:

  • 순이� � 100� 달러 (세전, 보너� �) � 기본급의 50%� 해당하는 보너스가 지급됩니다.
  • 순이� � 200� 달러 � 기본급의 100%� 해당하는 보너스가 지급됩니다.
2025 회계연도 실적� 기준으로 � 단계� 지급됩니다. � 임원은 성과와 관계없� 2025� 12� 22일에 보장� 10� 달러 현금 보너�� 받을 권리가 있습니다.

Lai와 Yu� 부부로서 함께 3,335� 주를 보유하고 있으�, 이는 � 95%� 의결권에 해당하여 지배구� 관� 고려사항� 제기됩니�. 전체 조건은 부속서 10.1 � 10.2� 나와 있습니다. 다른 중요� 사건이나 재무 결과� 공개되지 않았습니�.

Hour Loop, Inc. (Nasdaq : HOUR) a déposé un formulaire 8-K le 5 août 2025, annonçant l'avenant n° 5 aux contrats de travail du PDG/Président/Directeur financier par intérim Sam Lai et du vice-président senior/Directeur Sau Kuen Yu. Ces avenants modifient les critères de bonus en espèces pour 2025 :

  • Bénéfice net � 1 million de dollars (avant impôts et bonus) déclenche un bonus équivalent à 50 % du salaire de base.
  • Bénéfice net � 2 millions de dollars déclenche un bonus équivalent à 100 % du salaire de base.
Un seul niveau peut être versé, basé sur les résultats de l'exercice 2025. Chaque cadre a également droit à un bonus en espèces garanti de 100 000 dollars le 22 décembre 2025, quelle que soit la performance.

Lai et Yu sont époux et détiennent ensemble 33,35 millions d'actions � environ 95 % du pouvoir de vote � soulevant des questions de gouvernance. Les conditions complètes figurent dans les Annexes 10.1 et 10.2. Aucun autre événement important ou résultat financier n’a été divulgué.

Hour Loop, Inc. (Nasdaq: HOUR) reichte am 5. August 2025 ein 8-K ein und kündigte Addendum Nr. 5 zu den Arbeitsverträgen von CEO/Vorsitzendem/Interim CFO Sam Lai und SVP/Direktor Sau Kuen Yu an. Die Addenda ändern die Kriterien für den Barbonus 2025:

  • Netto-Gewinn � 1 Million US-Dollar (vor Steuern und Bonus) löst einen Bonus in Höhe von 50 % des Grundgehalts aus.
  • Netto-Gewinn � 2 Millionen US-Dollar löst einen Bonus in Höhe von 100 % des Grundgehalts aus.
Es wird nur eine Stufe basierend auf den Ergebnissen des Geschäftsjahres 2025 ausgezahlt. Jeder Geschäftsführer hat außerdem Anspruch auf einen garantierten Barbonus von 100.000 US-Dollar am 22. Dezember 2025, unabhängig von der Leistung.

Lai und Yu sind Ehepartner und besitzen zusammen 33,35 Millionen Aktien � etwa 95 % der Stimmrechte �, was Governance-Aspekte aufwirft. Die vollständigen Bedingungen finden sich in den Anlagen 10.1 und 10.2. Weitere wesentliche Ereignisse oder Finanzergebnisse wurden nicht bekannt gegeben.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

 

Date of report (Date of earliest event reported): August 5, 2025

 

HOUR LOOP, INC.

(Exact name of registrant as specified in its charter)

 

Delaware   001-41204   47-2869399

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification Number)

 

8201 164th Ave NE #200, Redmond, WA 98052-7615

(Address of principal executive offices)

 

(206) 385-0488 ext. 100

(Registrant’s telephone number, including area code)

 

N/A

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.)

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
Common Stock   HOUR   The Nasdaq Capital Market

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 

 

 

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

 

Addendum No. 5 to Lai Employment Agreement

 

On August 5, 2025, Hour Loop, Inc. (the “Company”) entered into Addendum No. 5 (“Lai Addendum No. 5”) to Executive Employment Agreement, as amended, with Sam Lai (the “Lai Agreement”), the Company’s Chairman of the Board, Chief Executive Officer, interim Chief Financial Officer, and majority stockholder. As previously disclosed in the Company’s Current Report on Form 8-K filed on March 17, 2025 (the “Form 8-K”) with the Securities and Exchange Commission, on March 14, 2025, the Company and Mr. Lai entered into Addendum No. 4 to the Lai Agreement (“Lai Addendum No. 4”). Lai Addendum No. 4 set forth bonus targets and payments with respect to the fiscal year ending December 31, 2025 (“Fiscal 2025”). In Lai Addendum No. 5, the Company and Mr. Lai agreed to revise the bonus targets and payments with respect to Fiscal 2025.

 

Pursuant to the terms of Lai Addendum No. 5, Mr. Lai’s bonus targets and payments for Fiscal 2025 were set as follows:

 

  If the Company grows its net profits (excluding taxes and executives’ bonuses) to at least $1,000,000 during Fiscal 2025, Mr. Lai will receive a bonus equal to 50% of Base Salary (as defined in the Lai Agreement).
  If the Company grows its net profits (excluding taxes and executives’ bonuses) to at least $2,000,000 during Fiscal 2025, Mr. Lai will receive a bonus equal to 100% of Base Salary.

 

Satisfaction of the above conditions will be determined at the end of Fiscal 2025. For the avoidance of doubt, only one of the above bonus amounts, if at all, will be payable.

 

In addition, pursuant to the terms of Lai Addendum No. 5, Mr. Lai is entitled to receive a guaranteed bonus of $100,000 on December 22, 2025.

 

Addendum No. 5 to Yu Employment Agreement

 

On August 5, 2025, the Company entered into Addendum No. 5 (“Yu Addendum No. 5”) to Executive Employment Agreement, as amended, with Sau Kuen Yu (the “Yu Agreement”), the Company’s Senior Vice President, director and majority stockholder. As previously disclosed in the Form 8-K, on March 14, 2025, the Company and Ms. Yu entered into Addendum No. 4 to the Yu Agreement (“Yu Addendum No. 4”). Yu Addendum No. 4 set forth bonus targets and payments with respect to Fiscal 2025. In Yu Addendum No. 5, the Company and Ms. Yu agreed to revise the bonus targets and payments with respect to Fiscal 2025.

 

Pursuant to the terms of Yu Addendum No. 5, Ms. Yu’s bonus targets and payments for Fiscal 2025 were set as follows:

 

  If the Company grows its net profits (excluding taxes and executives’ bonuses) to at least $1,000,000 during Fiscal 2025, Ms. Yu will receive a bonus equal to 50% of Base Salary (as defined in the Yu Agreement).
  If the Company grows its net profits (excluding taxes and executives’ bonuses) to at least $2,000,000 during Fiscal 2025, Ms. Yu will receive a bonus equal to 100% of Base Salary.

 

 

 

 

Satisfaction of the above conditions will be determined at the end of Fiscal 2025. For the avoidance of doubt, only one of the above bonus amounts, if at all, will be payable.

 

In addition, pursuant to the terms of Yu Addendum No. 5, Ms. Yu is entitled to receive a guaranteed bonus of $100,000 on December 22, 2025.

 

Mr. Lai and Ms. Yu are husband and wife, and together, they beneficially own 33,352,012 shares of the Company’s common stock, representing approximately 95% of the voting power of the Company’s outstanding common stock, with each of Mr. Lai and Ms. Yu beneficially holding 33,352,012 shares of the Company’s common stock, as each of them is deemed to indirectly beneficially own the other’s 16,676,006 shares.

 

The foregoing description of Lai Addendum No. 5 and Yu Addendum No. 5 is qualified in its entirety by reference to the complete terms and conditions of Lai Addendum No. 5 and Yu Addendum No. 5, copies of which are filed as Exhibits 10.1 and 10.2, respectively, to this Current Report on Form 8-K, and are incorporated by reference into this Item 5.02.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits.

 

Exhibit No.   Description
10.1   Addendum No. 5 to Executive Employment Agreement, dated as of August 5, 2025, by and between the registrant and Sam Lai.
10.2   Addendum No. 5 to Executive Employment Agreement, dated as of August 5, 2025, by and between the registrant and Sau Kuen Yu.
104   Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  HOUR LOOP, INC.
     
Dated: August 5, 2025 By: /s/ Sam Lai
  Name: Sam Lai
  Title: Chief Executive Officer and Interim Chief Financial Officer

 

 

 

 

 

FAQ

What did Hour Loop (HOUR) disclose in the 8-K dated August 5 2025?

The filing details revised 2025 cash-bonus terms for CEO Sam Lai and SVP Sau Kuen Yu, plus a guaranteed $100k bonus each.

What profit targets trigger bonuses for Hour Loop executives?

Bonuses equal to 50 % or 100 % of base salary are paid if net profit (pre-tax, pre-bonus) reaches $1 million or $2 million, respectively.

Are the bonuses for Sam Lai and Sau Kuen Yu guaranteed?

Each executive will receive a guaranteed $100,000 cash bonus on December 22 2025, regardless of profit performance.

How much voting power do the executives control?

Sam Lai and Sau Kuen Yu together beneficially own about 33.35 million shares, representing roughly 95 % of Hour Loop’s voting power.

Where can investors read the full addendum terms?

The complete agreements are filed as Exhibits 10.1 and 10.2 to the 8-K and are incorporated by reference.
Hour Loop Inc

NASDAQ:HOUR

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63.64M
1.71M
95.13%
0.1%
0.18%
Internet Retail
Retail-catalog & Mail-order Houses
United States
REDMOND