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

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of June 30, 2022, the Company had cash and cash equivalents of $ 1,326,736 . For the six months ended June 30, 2022, the Company incurred operating
income of $ 415,239 (before deducting losses attributable to non-controlling interests), cash flows used in operations of $ 615,446 , and
negative working capital of $ 1,020,990 . 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. 8 1847 HOLDINGS LLC NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 (UNAUDITED) 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
Company provides general corporate services to its segments; however, these services are not considered when making operating decisions
and assessing segment performance. These services are reported under “Corporate Services” below and these include costs associated
with executive management, financing activities and public company compliance. The
Company’s revenues for the three and six months ended June 30, 2022 and 2021 are disaggregated as follows: Three
Months Ended June 30, 2022 Retail
and Appliances Construction Automotive
Supplies Total Revenues Appliances $ 2,509,217 $ - $ - $ 2,509,217 Appliance accessories, parts,
and other 357,794 - - 357,794 Automotive horns - - 1,471,923 1,471,923 Automotive lighting - - 511,131 511,131 Custom cabinets and countertops - 3,130,143 - 3,130,143 Finished
carpentry - 4,911,035 - 4,911,035 Total Revenues $ 2,867,011 $ 8,041,178 $ 1,983,054 $ 12,891,243 Three
Months Ended June 30, 2021 Retail
and Appliances Construction Automotive
Supplies Total Revenues Appliances $ 2,943,273 $ - $ - $ 2,943,273 Appliance accessories, parts,
and other 409,345 - - 409,345 Automotive horns - - 1,631,907 1,631,907 Automotive lighting - - 348,461 348,461 Custom cabinets and countertops - 1,314,968 - 1,314,968 Finished
carpentry - - - - Total Revenues $ 3,352,618 $ 1,314,968 $ 1,980,368 $ 6,647,954 9 1847 HOLDINGS LLC NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 (UNAUDITED) Six
Months Ended June 30, 2022 Retail
and Appliances Construction Automotive
Supplies Total Revenues Appliances $ 4,713,842 $ - $ - $ 4,713,842 Appliance accessories, parts,
and other 673,953 - - 673,953 Automotive horns - - 2,671,779 2,671,779 Automotive lighting - - 953,266 953,266 Custom cabinets and countertops - 7,297,944 - 7,297,944 Finished
carpentry - 8,654,337 - 8,654,337 Total Revenues $ 5,387,795 $ 15,952,281 $ 3,625,045 $ 24,965,121 Six
Months Ended June 30, 2021 Retail
and Appliances Construction Automotive
Supplies Total Revenues Appliances $ 5,842,634 $ - $ - $ 5,842,634 Appliance accessories, parts,
and other 774,350 - - 774,350 Automotive horns - - 1,631,907 1,631,907 Automotive lighting - - 348,461 348,461 Custom cabinets and countertops - 2,830,877 - 2,830,877 Finished
carpentry - - - - Total Revenues $ 6,616,984 $ 2,830,877 $ 1,980,368 $ 11,428,229 Segment information
for the three and six months ended June 30, 2022 and 2021 is as follows: Three
Months Ended June 30, 2022 Retail
and Appliances Construction Automotive
Supplies Corporate
Services Total Revenues $ 2,867,011 $ 8,041,178 $ 1,983,054 $ - $ 12,891,243 Operating expenses Cost of sales 2,179,267 4,771,998 1,127,618 - 8,078,883 Personnel 213,736 1,281,293 269,677 ( 177,533 ) 1,587,173 Depreciation and amortization 48,019 399,085 51,870 - 498,974 General
and administrative 488,062 1,177,529 451,728 263,125 2,380,444 Total
Operating Expenses 2,929,084 7,629,905 1,900,893 85,592 12,545,474 Income (Loss) from Operations $ ( 62,073 ) $ 411,273 $ 82,161 $ ( 85,592 ) $ 345,769 Three
Months Ended June 30, 2021 Retail
and Appliances Construction Automotive
Supplies Corporate
Services Total Revenues $ 3,352,618 $ 1,314,968 $ 1,980,368 $ - $ 6,647,954 Operating expenses Cost of sales 2,602,598 720,466 1,191,725 - 4,514,789 Personnel 239,167 234,757 362,644 - 836,568 Depreciation and amortization 44,003 82,069 - - 126,072 General
and administrative 396,655 233,961 298,291 421,423 1,350,330 Total
Operating Expenses 3,282,423 1,271,253 1,852,660 421,423 6,827,759 Income (Loss) from Operations $ 70,195 $ 43,715 $ 127,708 $ ( 421,423 ) $ ( 179,805 ) 10 1847 HOLDINGS LLC NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 (UNAUDITED) Six
Months Ended June 30, 2022 Retail
and Appliances Construction Automotive
Supplies Corporate
Services Total Revenues $ 5,387,795 $ 15,952,281 $ 3,625,045 $ - $ 24,965,121 Operating expenses Cost of sales 4,050,717 9,651,589 2,125,707 - 15,828,013 Personnel 444,124 2,415,503 570,005 ( 264,759 ) 3,164,873 Depreciation and amortization 127,816 778,789 103,740 - 1,010,345 General
and administrative 937,556 2,294,087 838,509 476,499 4,546,651 Total
Operating Expenses 5,560,213 15,139,968 3,637,961 211,740 24,549,882 Income (Loss) from Operations $ ( 172,418 ) $ 812,313 $ ( 12,916 ) $ ( 211,740 ) $ 415,239 Six
Months Ended June 30, 2021 Retail
and Appliances Construction Automotive
Supplies Corporate
Services Total Revenues $ 6,616,984 $ 2,830,877 $ 1,980,368 $ - $ 11,428,229 Operating expenses - Cost of sales 5,109,250 1,474,496 1,191,725 - 7,775,471 Personnel 492,250 466,346 362,644 - 1,321,240 Depreciation and amortization 88,678 159,500 - - 248,178 General
and administrative 831,242 449,272 896,586 497,426 2,674,526 Total
Operating Expenses 6,521,420 2,549,614 2,450,955 497,426 12,019,415 Income (Loss) from Operations $ 95,564 $ 281,263 $ ( 470,587 ) $ ( 497,426 ) $ ( 591,186 ) NOTE
5—PROPERTY AND EQUIPMENT Property
and equipment at June 30, 2022 and December 31, 2021 consisted of the followin June
30, 2022 December 31, 2021 Equipment and machinery $ 1,162,544 $ 808,592 Office furniture and equipment 152,529 105,203 Transportation equipment 911,426 864,121 Leasehold improvements 169,143 112,356 Total property and equipment 2,395,642 1,890,272 L Accumulated depreciation ( 471,412 ) ( 194,961 ) Property and equipment,
net $ 1,924,230 $ 1,695,311 Depreciation
expense for the three and six months ended June 30, 2022 was $ 134,282 and $ 280,961 , respectively. Depreciation expense for the three
and six months ended June 30, 2021 was $ 28,276 and $ 52,585 , respectively. NOTE
6—INTANGIBLE ASSETS Intangible
assets at June 30, 2022 and December 31, 2021 consisted of the followin June
30, 2022 December 31, 2021 Customer relationships $ 5,791,000 $ 5,791,000 Marketing related 5,917,000 5,917,000 Technology related 623,000 623,000 Total intangible assets 12,331,000 12,331,000 L accumulated amortization ( 1,616,487 ) ( 887,103 ) Intangible assets, net $ 10,714,513 $ 11,443,897 11 1847 HOLDINGS LLC NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 (UNAUDITED) Amortization
expense for the three and six months ended June 30, 2022 was $ 364,692 and $ 729,384 , respectively. Amortization expense for the three
and six months ended June 30, 2021 was $ 97,797 and $ 195,594 , respectively. Estimated
amortization expense for intangible assets for the next five years consists of the following as of June 30, 2022: Year Ending
December 31, Amount 2022 – remaining $ 729,396 2023 1,458,780 2024 1,458,750 2025 1,325,745 2026 1,157,523 Thereafter 4,584,319 Total $ 10,714,513 NOTE
7—SELECTED ACCOUNT INFORMATION Receivables
at June 30, 2022 and December 31, 2021 consisted of the followin June
30, 2022 December 31, 2021 Trade accounts receivable $ 5,086,003 $ 2,691,702 Vendor rebates receivable 125,111 126,118 Credit card payments in process of settlement - 116,187 Retainage 282,812 803,989 Total receivables 5,493,926 3,737,996 Allowance for doubtful
accounts ( 359,000 ) ( 359,000 ) Accounts receivable, net $ 5,134,926 $ 3,378,996 Inventories
at June 30, 2022 and December 31, 2021 consisted of the followin June
30, 2022 December 31, 2021 Appliances $ 2,425,649 $ 2,206,336 Automotive 1,440,082 2,064,834 Construction 1,517,526 1,543,980 Total inventories 5,383,257 5,815,150 Less reserve for obsolescence ( 387,848 ) ( 387,848 ) Total inventories, net $ 4,995,409 $ 5,427,302 Inventory
balances are composed of finished goods. Raw materials and work in process inventory are immaterial to the condensed consolidated financial
statements. Accounts
payable and accrued expenses at June 30, 2022 and December 31, 2021 consisted of the followin June
30, 2022 December
31, 2021 Trade accounts payable $ 4,609,126 $ 3,117,825 Credit cards payable 177,306 52,300 Accrued payroll liabilities 464,190 263,590 Accrued interest 980,373 711,258 Accrued dividends 154,239 242,160 Other accrued liabilities 502,803 431,539 Total accounts payable
and accrued expenses $ 6,888,037 $ 4,818,672 12 1847 HOLDINGS LLC NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 (UNAUDITED) NOTE
8—LEASES Operating
Leases In
April 2022, the Company entered into a lease amendment to renew their office and warehouse space in the automotive supplies segment,
located in Deer Park, New York. The lease renewal will commence on August 1, 2022 and shall expire on July 31, 2025. Under the terms

of June 30, 2022, the Company had cash and cash equivalents of $ 1,326,736 . For the six months ended June 30, 2022, the Company incurred operating

income of $ 415,239 (before deducting losses attributable to non-controlling interests), cash flows used in operations of $ 615,446 , and

negative working capital of $ 1,020,990 . 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. 8 1847 HOLDINGS LLC NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 (UNAUDITED) 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

Company provides general corporate services to its segments; however, these services are not considered when making operating decisions

and assessing segment performance. These services are reported under “Corporate Services” below and these include costs associated

with executive management, financing activities and public company compliance. The

Company’s revenues for the three and six months ended June 30, 2022 and 2021 are disaggregated as follows: Three

Months Ended June 30, 2022 Retail