arcee-ai/sec-data-full · Datasets at Hugging Face

text stringlengths 0 1.95M
cash used in financing activities from discontinued operations - ( 119,197 ) Net
cash provided by financing activities 822,706 54,362 NET
CHANGE IN CASH AND CASH EQUIVALENTS FROM CONTINUING OPERATIONS 255,391 758,544 NET
CHANGE IN CASH AND CASH EQUIVALENT FROM DISCONTINUED OPERATIONS - 292,060 CASH
AND CASH EQUIVALENTS AVAILABLE FROM DISCONTINUED OPERATIONS - ( 292,060 ) CASH
AND CASH EQUIVALENTS FROM CONTINUING OPERATIONS Beginning
of the period 1,383,533 1,380,349 End
of the period $ 1,638,924 $ 2,138,893 SUPPLEMENTAL
DISCLOSURES OF CASH FLOW INFORMATION Cash
paid for interest $ 484,360 $ - Cash
paid for income taxes $ - $ - NON-CASH
INVESTING AND FINANCING ACTIVITIES Issuance
of common shares upon conversion of series A preferred shares $ 111,986 $ - Financed
purchases of property and equipment $ 316,798 $ - The
accompanying notes are an integral part of these condensed consolidated financial statements. 5 1847
HOLDINGS LLC NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH
31, 2022 (UNAUDITED) NOTE
1—BASIS OF PRESENTATION The
accompanying unaudited condensed consolidated financial statements of 1847 Holdings LLC (the “Company,” “we,”
“us,” or “our”) have been prepared in accordance with accounting principles generally accepted in the United
States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q of Regulation S-X. They
do not include all information and footnotes required by GAAP for complete financial statements. The December 31, 2021 consolidated balance
sheet data were derived from audited financial statements but do not include all disclosures required by GAAP. However, except as disclosed
herein, there has been no material change in the information disclosed in the notes to the consolidated financial statements for the
year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission
on March 31, 2022. The interim unaudited condensed consolidated financial statements should be read in conjunction with those consolidated
financial statements included in the Form 10-K. In the opinion of management, all adjustments considered necessary for a fair statement
of the financial statements, consisting solely of normal recurring adjustments, have been made. Operating results for the three months
ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. Reclassifications Certain
reclassifications within property and equipment, notes payable, and preferred shares have been made to prior period’s financial
statements to conform to the current period financial statement presentation. There is no impact in total to the results of operations
and cash flows in all periods presented. Sequencing Under
ASC 815-40-35 (“ASC 815”), the Company has adopted a sequencing policy, whereby, in the event that reclassification of contracts
from equity to assets or liabilities is necessary pursuant to ASC 815 due to the Company’s inability to demonstrate it has sufficient
authorized shares as a result of certain securities with a potentially indeterminable number of shares, shares will be allocated on the
basis of the earliest maturity date of potentially dilutive instruments first, with the earliest maturity date of grants receiving the
first allocation of shares. Pursuant to ASC 815, issuances of securities to the Company’s employees and directors, or to compensate
grantees in a share-based payment arrangement, are not subject to the sequencing policy. NOTE
2—RECENT ACCOUNTING PRONOUCEMENTS The
Company considers the applicability and impact of all Accounting Standards Updates (“ASUs”) issued by the Financial Accounting
Standards Board (“FASB”). ASUs not listed below were assessed and determined to be either not applicable or are expected
to have minimal impact on the Company’s condensed consolidated financial statements. In
June 2016, the FASB issued ASU 2016-13 Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,
which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces
the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit
losses. ASU 2016-13 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019.
This pronouncement was amended under ASU 2019-10 to allow an extension on the adoption date for entities that qualify as a small reporting
company. The Company has elected this extension and the effective date for the Company to adopt this standard will be for fiscal years
beginning after December 15, 2022. The Company has not completed its assessment of the standard but does not expect the adoption to have
a material impact on our condensed consolidated financial statements. In August 2020, the FASB issued ASU 2020-06 Accounting for Convertible
Instruments and Contracts In An Entity’s Own Equity. ASU 2020-06 simplifies the accounting for certain convertible instruments by
removing the separation models for convertible debt with a cash conversion feature and for convertible instruments with a beneficial conversion
feature. As a result, more convertible debt instruments will be reported as a single liability instrument with no separate accounting
for embedded conversion features. Additionally, ASU 2020-06 amends the diluted earnings per share calculation for convertible instruments
by requiring the use of the if-converted method. The treasury stock method is no longer available. Entities may adopt the ASU 2020-06
using either a full or modified retrospective approach, and it is effective for interim and annual reporting periods beginning after December
15, 2021. Early adoption is permitted for interim and annual reporting periods beginning after December 15, 2020. The Company adopted
this guidance on January 1, 2022. In October 2021, the FASB issued ASU 2021-08
Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU amends
ASC 805 to require acquiring entities to apply ASC 606 to recognize and measure contract assets and contract liabilities in business
combinations. The ASU is effective for public entities for fiscal years beginning after December 15, 2022, including interim periods
within those fiscal years. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December
15, 2022, and early adoption is permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not
have a material impact on our condensed consolidated financial statements. 6 1847
HOLDINGS LLC NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH
31, 2022 (UNAUDITED) NOTE
3—LIQUIDITY AND GOING CONCERN ASSESSMENT Management
assesses liquidity and going concern uncertainty in the Company’s condensed consolidated financial statements to determine whether
there is sufficient cash on hand and working capital, including available borrowings on loans, to operate for a period of at least one
year from the date the consolidated financial statements are issued or available to be issued, which is referred to as the “look-forward
period”, as defined in GAAP. As part of this assessment, based on conditions that are known and reasonably knowable to management,
management will consider various scenarios, forecasts, projections, estimates and will make certain key assumptions, including the timing
and nature of projected cash expenditures or programs, its ability to delay or curtail expenditures or programs and its ability to raise
additional capital, if necessary, among other factors. Based on this assessment, as necessary or applicable, management makes certain
assumptions around implementing curtailments or delays in the nature and timing of programs and expenditures to the extent it deems probable
those implementations can be achieved and management has the proper authority to execute them within the look-forward period. As
of March 31, 2022, we had cash and cash equivalents of $ 1,638,924 . For the three months ended March 31, 2022, the Company incurred operating
income of $ 69,470 (before deducting losses attributable to non-controlling interests), cash flows used in operations of $ 536,260 , and
negative working capital of $ 924,324 . The Company has generated operating losses since its inception and has relied on cash on hand,
sales of securities, external bank lines of credit, and issuance of third-party and related party debt to support cashflow from operations. Management
has prepared estimates of operations for fiscal year 2022 and 2023 believes that sufficient funds will be generated from operations to
fund its operations and to service its debt obligations for one year from the date of the filing of these condensed consolidated financial
statements, which indicate improved operations and the Company’s ability to continue operations as a going concern. The impact
of COVID-19 on the Company’s business has been considered in these assumptions; however, it is too early to know the full impact
of COVID-19 or its timing on a return to more normal operations. The
accompanying condensed consolidated financial statements have been prepared on a going concern basis under which the Company is expected
to be able to realize its assets and satisfy its liabilities in the normal course of business. Management believes that based on relevant
conditions and events that are known and reasonably knowable that its forecasts for one year from the date of the filing of these condensed
consolidated financial statements. The Company has contingency plans to reduce or defer expenses and cash outlays should operations not
improve in the look forward period. NOTE
4—DISAGGREGATION OF REVENUES AND SEGMENT REPORTING The
Company has three reportable segments: The
Retail and Appliances Segment provides a wide variety of appliance products (laundry, refrigeration, cooking, dishwashers, outdoor, accessories,
parts, and other appliance related products) and services (delivery, installation, service and repair, extended warranties, and financing). The Construction Segment provides finished carpentry
products and services (door frames, base boards, crown molding, cabinetry, bathroom sinks and cabinets, bookcases, built-in closets,
fireplace mantles, windows, and custom design and build of cabinetry and countertops). The
Automotive Supplies Segment provides horn and safety products (electric, air, truck, marine, motorcycle, and industrial equipment), and
offers vehicle emergency and safety warning lights for cars, trucks, industrial equipment, and emergency vehicles. The

cash used in financing activities from discontinued operations - ( 119,197 ) Net

cash provided by financing activities 822,706 54,362 NET

CHANGE IN CASH AND CASH EQUIVALENTS FROM CONTINUING OPERATIONS 255,391 758,544 NET

CHANGE IN CASH AND CASH EQUIVALENT FROM DISCONTINUED OPERATIONS - 292,060 CASH

AND CASH EQUIVALENTS AVAILABLE FROM DISCONTINUED OPERATIONS - ( 292,060 ) CASH

AND CASH EQUIVALENTS FROM CONTINUING OPERATIONS Beginning

of the period 1,383,533 1,380,349 End

of the period $ 1,638,924 $ 2,138,893 SUPPLEMENTAL

DISCLOSURES OF CASH FLOW INFORMATION Cash

paid for interest $ 484,360 $ - Cash

paid for income taxes $ - $ - NON-CASH

INVESTING AND FINANCING ACTIVITIES Issuance

of common shares upon conversion of series A preferred shares $ 111,986 $ - Financed

purchases of property and equipment $ 316,798 $ - The

accompanying notes are an integral part of these condensed consolidated financial statements. 5 1847

HOLDINGS LLC NOTES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH

31, 2022 (UNAUDITED) NOTE

1—BASIS OF PRESENTATION The

accompanying unaudited condensed consolidated financial statements of 1847 Holdings LLC (the “Company,” “we,”

“us,” or “our”) have been prepared in accordance with accounting principles generally accepted in the United

States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q of Regulation S-X. They

do not include all information and footnotes required by GAAP for complete financial statements. The December 31, 2021 consolidated balance

sheet data were derived from audited financial statements but do not include all disclosures required by GAAP. However, except as disclosed

herein, there has been no material change in the information disclosed in the notes to the consolidated financial statements for the

year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission

on March 31, 2022. The interim unaudited condensed consolidated financial statements should be read in conjunction with those consolidated

financial statements included in the Form 10-K. In the opinion of management, all adjustments considered necessary for a fair statement

of the financial statements, consisting solely of normal recurring adjustments, have been made. Operating results for the three months

ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. Reclassifications Certain

reclassifications within property and equipment, notes payable, and preferred shares have been made to prior period’s financial

statements to conform to the current period financial statement presentation. There is no impact in total to the results of operations

and cash flows in all periods presented. Sequencing Under

ASC 815-40-35 (“ASC 815”), the Company has adopted a sequencing policy, whereby, in the event that reclassification of contracts

from equity to assets or liabilities is necessary pursuant to ASC 815 due to the Company’s inability to demonstrate it has sufficient

authorized shares as a result of certain securities with a potentially indeterminable number of shares, shares will be allocated on the

basis of the earliest maturity date of potentially dilutive instruments first, with the earliest maturity date of grants receiving the

first allocation of shares. Pursuant to ASC 815, issuances of securities to the Company’s employees and directors, or to compensate

grantees in a share-based payment arrangement, are not subject to the sequencing policy. NOTE

2—RECENT ACCOUNTING PRONOUCEMENTS The

Company considers the applicability and impact of all Accounting Standards Updates (“ASUs”) issued by the Financial Accounting

Standards Board (“FASB”). ASUs not listed below were assessed and determined to be either not applicable or are expected

to have minimal impact on the Company’s condensed consolidated financial statements. In

June 2016, the FASB issued ASU 2016-13 Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,

which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces

the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit

losses. ASU 2016-13 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019.

This pronouncement was amended under ASU 2019-10 to allow an extension on the adoption date for entities that qualify as a small reporting

company. The Company has elected this extension and the effective date for the Company to adopt this standard will be for fiscal years

beginning after December 15, 2022. The Company has not completed its assessment of the standard but does not expect the adoption to have

a material impact on our condensed consolidated financial statements. In August 2020, the FASB issued ASU 2020-06 Accounting for Convertible

Instruments and Contracts In An Entity’s Own Equity. ASU 2020-06 simplifies the accounting for certain convertible instruments by

removing the separation models for convertible debt with a cash conversion feature and for convertible instruments with a beneficial conversion

feature. As a result, more convertible debt instruments will be reported as a single liability instrument with no separate accounting

for embedded conversion features. Additionally, ASU 2020-06 amends the diluted earnings per share calculation for convertible instruments

by requiring the use of the if-converted method. The treasury stock method is no longer available. Entities may adopt the ASU 2020-06

using either a full or modified retrospective approach, and it is effective for interim and annual reporting periods beginning after December

15, 2021. Early adoption is permitted for interim and annual reporting periods beginning after December 15, 2020. The Company adopted

this guidance on January 1, 2022. In October 2021, the FASB issued ASU 2021-08

Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU amends

ASC 805 to require acquiring entities to apply ASC 606 to recognize and measure contract assets and contract liabilities in business

combinations. The ASU is effective for public entities for fiscal years beginning after December 15, 2022, including interim periods

within those fiscal years. This ASU should be applied prospectively to acquisitions occurring on or after the effective date of December

15, 2022, and early adoption is permitted. The Company adopted this guidance on January 1, 2022. The adoption of this standard does not

have a material impact on our condensed consolidated financial statements. 6 1847

HOLDINGS LLC NOTES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH

31, 2022 (UNAUDITED) NOTE

3—LIQUIDITY AND GOING CONCERN ASSESSMENT Management

assesses liquidity and going concern uncertainty in the Company’s condensed consolidated financial statements to determine whether

there is sufficient cash on hand and working capital, including available borrowings on loans, to operate for a period of at least one

year from the date the consolidated financial statements are issued or available to be issued, which is referred to as the “look-forward

period”, as defined in GAAP. As part of this assessment, based on conditions that are known and reasonably knowable to management,

management will consider various scenarios, forecasts, projections, estimates and will make certain key assumptions, including the timing

and nature of projected cash expenditures or programs, its ability to delay or curtail expenditures or programs and its ability to raise

additional capital, if necessary, among other factors. Based on this assessment, as necessary or applicable, management makes certain

assumptions around implementing curtailments or delays in the nature and timing of programs and expenditures to the extent it deems probable

those implementations can be achieved and management has the proper authority to execute them within the look-forward period. As

of March 31, 2022, we had cash and cash equivalents of $ 1,638,924 . For the three months ended March 31, 2022, the Company incurred operating

income of $ 69,470 (before deducting losses attributable to non-controlling interests), cash flows used in operations of $ 536,260 , and

negative working capital of $ 924,324 . The Company has generated operating losses since its inception and has relied on cash on hand,

sales of securities, external bank lines of credit, and issuance of third-party and related party debt to support cashflow from operations. Management

has prepared estimates of operations for fiscal year 2022 and 2023 believes that sufficient funds will be generated from operations to

fund its operations and to service its debt obligations for one year from the date of the filing of these condensed consolidated financial

statements, which indicate improved operations and the Company’s ability to continue operations as a going concern. The impact

of COVID-19 on the Company’s business has been considered in these assumptions; however, it is too early to know the full impact

of COVID-19 or its timing on a return to more normal operations. The

accompanying condensed consolidated financial statements have been prepared on a going concern basis under which the Company is expected

to be able to realize its assets and satisfy its liabilities in the normal course of business. Management believes that based on relevant

conditions and events that are known and reasonably knowable that its forecasts for one year from the date of the filing of these condensed

consolidated financial statements. The Company has contingency plans to reduce or defer expenses and cash outlays should operations not

improve in the look forward period. NOTE

4—DISAGGREGATION OF REVENUES AND SEGMENT REPORTING The

Company has three reportable segments: The

Retail and Appliances Segment provides a wide variety of appliance products (laundry, refrigeration, cooking, dishwashers, outdoor, accessories,

parts, and other appliance related products) and services (delivery, installation, service and repair, extended warranties, and financing). The Construction Segment provides finished carpentry

products and services (door frames, base boards, crown molding, cabinetry, bathroom sinks and cabinets, bookcases, built-in closets,

fireplace mantles, windows, and custom design and build of cabinetry and countertops). The

Automotive Supplies Segment provides horn and safety products (electric, air, truck, marine, motorcycle, and industrial equipment), and

offers vehicle emergency and safety warning lights for cars, trucks, industrial equipment, and emergency vehicles. The