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

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(or under-paid) Parent Management Fees received by (or owed to) the Manager as of the end of such fiscal quarter, and (iii) increased
by the amount of any outstanding accrued and unpaid Parent Management Fees. The Company expensed $0 in Parent Management Fees for the
six months ended June 30, 2022 and 2021. 1847 Neese entered into an offsetting management
services agreement with the Manager on March 3, 2017, which is included in discontinued operations, 1847 Asien entered into an offsetting
management services agreement with the Manager on May 28, 2020, 1847 Cabinet entered into an offsetting management services agreement
with the Manager on August 21, 2020 (which was amended and restated on October 8, 2021) and 1847 Wolo entered into an offsetting management
services agreement with the Manager on March 30, 2021. Pursuant to the offsetting management services agreements, 1847 Neese appointed
the Manager to provide certain services to it for a quarterly management fee equal to $62,500, 1847 Asien appointed the Manager to provide
certain services to it for a quarterly management fee equal to the greater of $75,000 or 2% of adjusted net assets (as defined in the
management services agreement), 1847 Cabinet appointed the Manager to provide certain services to it for a quarterly management fee equal
to the greater of $75,000 or 2% of adjusted net assets (as defined in the management services agreement), which was increased to $125,000
or 2% of adjusted net assets on October 8, 2021, and 1847 Wolo appointed the Manager to provide certain services to it for a quarterly
management fee equal to the greater of $75,000 or 2% of adjusted net assets (as defined in the management services agreement); provided,
however, in each case that if the aggregate amount of management fees paid or to be paid by such entities, together with all other management
fees paid or to be paid to the Manager under other offsetting management services agreements, exceeds, or is expected to exceed, 9.5%
of our gross income in any fiscal year or the Parent Management Fee in any fiscal quarter, then the management fee to be paid by such
entities shall be reduced, on a pro rata basis determined by reference to the other management fees to be paid to the Manager under other
offsetting management services agreements. Each of these subsidiaries shall also reimburse
the Manager for all of their costs and expenses which are specifically approved by their board of directors, including all out-of-pocket
costs and expenses, which are actually incurred by the Manager or its affiliates on behalf of these subsidiaries in connection with performing
services under the offsetting management services agreements. 1847 Asien expensed management fees of $75,000
and $150,000 for the three and six months ended June 30, 2022, respectively, and $75,000 and $150,000 for the three and six months ended
June 30, 2021, respectively. 1847 Cabinet expensed management fees of $125,000
and $250,000 for the three and six months ended June 30, 2022, respectively, and $75,000 and $150,000 for the three and six months ended
June 30, 2021, respectively. 1847 Wolo expensed management fees of $75,000
and $150,000 for the three and six months ended June 30, 2022, respectively, and $75,000 for the three and six months ended June 30,
2021. On a consolidated basis, the Company expensed
total management fees of $275,000 and $550,000 for the three and six months ended June 30, 2022, respectively, and $225,000 and $375,000
for the three and six months ended June 30, 2021, respectively. Segments The Financial Accounting Standards Board Accounting
Standard Codification Topic 280, Segment Reporting , requires that an enterprise report selected information about reportable segments
in its financial reports issued to its shareholders. As of June 30, 2022, we have three reportable segments - the retail and appliances
segment, which is operated by Asien’s, the construction segment, which is operated by Kyle’s, High Mountain and Innovative
Cabinets, and the automotive supplies segment, which is operated by Wolo. The retail and appliances segment is comprised
of the business of Asien’s, which is based in Santa Rosa, California, and provides a wide variety of appliance services including
sales, delivery, installation, service and repair, extended warranties, and financing. 30 The construction segment is comprised of
the businesses of Kyle’s, High Mountain and Innovative Cabinets. Kyle’s, which is based in Boise, Idaho, provides a wide
variety of construction services including custom design and build of kitchen and bathroom cabinetry, delivery, installation, service
and repair, extended warranties, and financing. High Mountain, which is based in Reno, Nevada, specializes in all aspects of finished
carpentry products and services, including doors, door frames, base boards, crown molding, cabinetry, bathroom sinks and cabinets, bookcases,
built-in closets, and fireplace mantles, among others, as well as window installation. Innovative Cabinets, also based in Reno, Nevada,
specializes in custom cabinetry and countertops. The automotive supplies segment is comprised
of the business of Wolo, which is based in Deer Park, New York, and designs and sells 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. We provide general corporate services to our
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. Discontinued Operations On April 19, 2021, we entered into a stock purchase
agreement with Alan Neese and Katherine Neese, pursuant to which they purchased our 55% ownership interest in 1847 Neese for a purchase
price of $325,000 in cash. As a result of this transaction, 1847 Neese is no longer a subsidiary of the Company. All financial information
of 1847 Neese previously presented as part of land management services operations are classified as discontinued operations and not presented
as part of continuing operations for the three and six months ended June 30, 2021. Results of Operations Comparison of the Three Months Ended June
30, 2022 and 2021 The following table sets forth key components
of our results of operations during the three months ended June 30, 2022 and 2021, both in dollars and as a percentage of our revenues. Three Months
Ended June 30, 2022 2021 Amount %
of Revenues Amount %
of Revenues Revenues $ 12,891,243 100.0 % $ 6,647,954 100.0 % Operating Expenses Cost of sales 8,078,883 62.7 % 4,514,789 67.9 % Personnel 1,587,173 12.3 % 836,568 12.6 % Depreciation and amortization 498,974 3.9 % 126,072 1.9 % General and administrative 2,380,444 18.5 % 1,350,330 20.3 % Total Operating Expenses 12,545,474 97.3 % 6,827,759 102.7 % Income (Loss) From Operations 345,769 2.7 % (179,805 ) (2.7 )% Other Income (Expenses) Other income (expense) 357 0.0 % (3,539 ) (0.1 )% Interest expense (932,123 ) (7.2 )% (136,512 ) (2.1 )% Gain (loss) on sale of property and equipment (671 ) (0.0 )% - - Gain on disposition of subsidiary - - 3,282,804 49.4 % Total Other Income (Expense) (932,437 ) (7.2 )% 3,142,753 47.3 % Net Income (Loss) Before Income Taxes (586,668 ) (4.6 )% 2,962,948 44.6 % Income tax benefit 439,000 3.4 % 21,900 0.3 % Net Income (Loss) From Continuing Operations $ (147,668 ) (1.1 )% $ 2,984,848 44.9 % Revenues . Our total revenues were
$12,891,243 for the three months ended June 30, 2022, as compared to $6,647,954 for the three months ended June 30, 2021. 31 The retail and appliances segment generates revenue
through the sales of home furnishings, including appliances and related products. Revenues from the retail and appliances segment decreased
by $485,607, or 14.5%, to $2,867,011 for the three months ended June 30, 2022 from $3,352,618 for the three months ended June 30, 2021.
Such decrease was primarily due to ongoing supply chain delays with appliance manufactures and the increased time it takes to receive
products. The construction segment generates revenue through
the sale of finished carpentry products and services, including doors, door frames, base boards, crown molding, cabinetry, bathroom sinks
and cabinets, bookcases, built-in closets, and fireplace mantles, among others, as well as kitchen countertops. Revenues from the construction
segment increased by $6,726,210, or 511.5%, to $8,041,178 for the three months ended June 30, 2022 from $1,314,968 for the three months
ended June 30, 2021. Such increase was primarily due to the acquisitions of High Mountain and Innovative Cabinets, which were acquired
in the fourth quarter of 2021. Excluding these acquisitions, revenues from the construction segment increased by $225,618, or 17.2%.
Such increase was primarily due to increases in the average customer contract in the construction segment. The automotive supplies segment generates revenue
through the design and sale of horn and safety products (electric, air, truck, marine, motorcycle and industrial equipment), including
vehicle emergency and safety warning lights for cars, trucks, industrial equipment and emergency vehicles. Revenues from the automotive
supplies segment increased by $2,686, or 0.1%, to $1,983,054 for the three months ended June 30, 2022 from $1,980,368 for the three months
ended June 30, 2021. Cost of sales . Our total cost of
sales was $8,078,883 for the three months ended June 30, 2022, as compared to $4,514,789 for the three months ended June 30, 2021. Cost of sales for the retail and appliances segment
consists of the cost of purchased merchandise plus the cost of delivering merchandise and where applicable installation, net of promotional
rebates and other incentives received from vendors. Cost of sales for the retail and appliances segment decreased by $423,331, or 16.3%,
to $2,179,267 for the three months ended June 30, 2022 from $2,602,598 for the three months ended June 30, 2021. Such decrease was primarily
due to corresponding the decrease in revenues from the retail and appliance segment. As a percentage of retail and appliances revenues,
cost of sales for the retail and appliances segment was 76.0% and 77.6% for the three months ended June 30, 2022 and 2021, respectively. Cost of sales for the construction segment consists
of finished goods, lumber, hardware and materials and plus direct labor and related costs, net of any material discounts from vendors.
Cost of sales for the construction segment increased by $4,051,532, or 562.3%, to $4,771,998 for the three months ended June 30, 2022
from $720,466 for the three months ended June 30, 2021. Such increase was primarily due to the acquisitions of High Mountain and Innovative
Cabinets, which were acquired in the fourth quarter of 2021. Excluding these acquisitions, cost of sales for the construction segment
increased by $304,660, or 42.3%. Such increase was primarily due to corresponding the increase in revenues from the construction segment,
as well as increased product and delivery costs. As a percentage of construction revenues, cost of sales for the construction segment
was 59.3% and 54.8% for the three months ended June 30, 2022 and 2021, respectively. Cost of sales for the automotive supplies segment
consists of the costs of purchased finished goods plus freight and tariff costs. Cost of sales for the automotive supplies segment decreased
by $64,107, or 5.4%, to $1,127,618 for the three months ended June 30, 2022 from $1,191,725 for the three months ended June 30, 2021.
Such decrease was primarily due to decreased direct labor costs. As a percentage of automotive supplies revenues, cost of sales for the
automotive supplies segment was 56.9% and 60.2% for the three months ended June 30, 2022 and 2021, respectively. Personnel costs . Personnel costs
include employee salaries and bonuses plus related payroll taxes. It also includes health insurance premiums, 401(k) contributions, and
training costs. Our total personnel costs were $1,587,173 for the three months ended June 30, 2022, as compared to $836,568 for the three
months ended June 30, 2021. Personnel costs for the retail and appliances
segment decreased by $25,431, or 10.6%, to $213,736 for the three months ended June 30, 2022 from $239,167 for the three months ended
June 30, 2021. Such decrease was primarily due to decreased employee headcount as a result of decreased operations from the retail and
appliances segment. As a percentage of retail and appliances revenue, personnel costs for the retail and appliances segment were 7.5%
and 7.1% for the three months ended June 30, 2022 and 2021, respectively. Personnel costs for the construction segment
increased by $1,046,536, or 445.8%, to $1,281,293 for the three months ended June 30, 2022 from $234,757 for the three months ended June
30, 2021. Such increase was primarily due to the acquisitions of High Mountain and Innovative Cabinets, which were acquired in the fourth
quarter of 2021. Excluding these acquisitions, personnel costs for the construction segment decreased by $22,322, or 9.5%. Such decrease
was primarily due to decreased office personnel headcount in the construction segment. As a percentage of construction revenue, personnel
costs for the construction segment were 15.9% and 17.9% for the three months ended June 30, 2022 and 2021, respectively. 32 Personnel costs for the automotive supplies segment

(or under-paid) Parent Management Fees received by (or owed to) the Manager as of the end of such fiscal quarter, and (iii) increased

by the amount of any outstanding accrued and unpaid Parent Management Fees. The Company expensed $0 in Parent Management Fees for the

six months ended June 30, 2022 and 2021. 1847 Neese entered into an offsetting management

services agreement with the Manager on March 3, 2017, which is included in discontinued operations, 1847 Asien entered into an offsetting

management services agreement with the Manager on May 28, 2020, 1847 Cabinet entered into an offsetting management services agreement

with the Manager on August 21, 2020 (which was amended and restated on October 8, 2021) and 1847 Wolo entered into an offsetting management

services agreement with the Manager on March 30, 2021. Pursuant to the offsetting management services agreements, 1847 Neese appointed

the Manager to provide certain services to it for a quarterly management fee equal to $62,500, 1847 Asien appointed the Manager to provide

certain services to it for a quarterly management fee equal to the greater of $75,000 or 2% of adjusted net assets (as defined in the

management services agreement), 1847 Cabinet appointed the Manager to provide certain services to it for a quarterly management fee equal

to the greater of $75,000 or 2% of adjusted net assets (as defined in the management services agreement), which was increased to $125,000

or 2% of adjusted net assets on October 8, 2021, and 1847 Wolo appointed the Manager to provide certain services to it for a quarterly

management fee equal to the greater of $75,000 or 2% of adjusted net assets (as defined in the management services agreement); provided,

however, in each case that if the aggregate amount of management fees paid or to be paid by such entities, together with all other management

fees paid or to be paid to the Manager under other offsetting management services agreements, exceeds, or is expected to exceed, 9.5%

of our gross income in any fiscal year or the Parent Management Fee in any fiscal quarter, then the management fee to be paid by such

entities shall be reduced, on a pro rata basis determined by reference to the other management fees to be paid to the Manager under other

offsetting management services agreements. Each of these subsidiaries shall also reimburse

the Manager for all of their costs and expenses which are specifically approved by their board of directors, including all out-of-pocket

costs and expenses, which are actually incurred by the Manager or its affiliates on behalf of these subsidiaries in connection with performing

services under the offsetting management services agreements. 1847 Asien expensed management fees of $75,000

and $150,000 for the three and six months ended June 30, 2022, respectively, and $75,000 and $150,000 for the three and six months ended

June 30, 2021, respectively. 1847 Cabinet expensed management fees of $125,000

and $250,000 for the three and six months ended June 30, 2022, respectively, and $75,000 and $150,000 for the three and six months ended

June 30, 2021, respectively. 1847 Wolo expensed management fees of $75,000

and $150,000 for the three and six months ended June 30, 2022, respectively, and $75,000 for the three and six months ended June 30,

2021. On a consolidated basis, the Company expensed

total management fees of $275,000 and $550,000 for the three and six months ended June 30, 2022, respectively, and $225,000 and $375,000

for the three and six months ended June 30, 2021, respectively. Segments The Financial Accounting Standards Board Accounting

Standard Codification Topic 280, Segment Reporting , requires that an enterprise report selected information about reportable segments

in its financial reports issued to its shareholders. As of June 30, 2022, we have three reportable segments - the retail and appliances

segment, which is operated by Asien’s, the construction segment, which is operated by Kyle’s, High Mountain and Innovative

Cabinets, and the automotive supplies segment, which is operated by Wolo. The retail and appliances segment is comprised

of the business of Asien’s, which is based in Santa Rosa, California, and provides a wide variety of appliance services including

sales, delivery, installation, service and repair, extended warranties, and financing. 30 The construction segment is comprised of

the businesses of Kyle’s, High Mountain and Innovative Cabinets. Kyle’s, which is based in Boise, Idaho, provides a wide

variety of construction services including custom design and build of kitchen and bathroom cabinetry, delivery, installation, service

and repair, extended warranties, and financing. High Mountain, which is based in Reno, Nevada, specializes in all aspects of finished

carpentry products and services, including doors, door frames, base boards, crown molding, cabinetry, bathroom sinks and cabinets, bookcases,

built-in closets, and fireplace mantles, among others, as well as window installation. Innovative Cabinets, also based in Reno, Nevada,

specializes in custom cabinetry and countertops. The automotive supplies segment is comprised

of the business of Wolo, which is based in Deer Park, New York, and designs and sells 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. We provide general corporate services to our

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. Discontinued Operations On April 19, 2021, we entered into a stock purchase

agreement with Alan Neese and Katherine Neese, pursuant to which they purchased our 55% ownership interest in 1847 Neese for a purchase

price of $325,000 in cash. As a result of this transaction, 1847 Neese is no longer a subsidiary of the Company. All financial information

of 1847 Neese previously presented as part of land management services operations are classified as discontinued operations and not presented

as part of continuing operations for the three and six months ended June 30, 2021. Results of Operations Comparison of the Three Months Ended June

30, 2022 and 2021 The following table sets forth key components

of our results of operations during the three months ended June 30, 2022 and 2021, both in dollars and as a percentage of our revenues. Three Months

Ended June 30, 2022 2021 Amount %

of Revenues Amount %

of Revenues Revenues $ 12,891,243 100.0 % $ 6,647,954 100.0 % Operating Expenses Cost of sales 8,078,883 62.7 % 4,514,789 67.9 % Personnel 1,587,173 12.3 % 836,568 12.6 % Depreciation and amortization 498,974 3.9 % 126,072 1.9 % General and administrative 2,380,444 18.5 % 1,350,330 20.3 % Total Operating Expenses 12,545,474 97.3 % 6,827,759 102.7 % Income (Loss) From Operations 345,769 2.7 % (179,805 ) (2.7 )% Other Income (Expenses) Other income (expense) 357 0.0 % (3,539 ) (0.1 )% Interest expense (932,123 ) (7.2 )% (136,512 ) (2.1 )% Gain (loss) on sale of property and equipment (671 ) (0.0 )% - - Gain on disposition of subsidiary - - 3,282,804 49.4 % Total Other Income (Expense) (932,437 ) (7.2 )% 3,142,753 47.3 % Net Income (Loss) Before Income Taxes (586,668 ) (4.6 )% 2,962,948 44.6 % Income tax benefit 439,000 3.4 % 21,900 0.3 % Net Income (Loss) From Continuing Operations $ (147,668 ) (1.1 )% $ 2,984,848 44.9 % Revenues . Our total revenues were

$12,891,243 for the three months ended June 30, 2022, as compared to $6,647,954 for the three months ended June 30, 2021. 31 The retail and appliances segment generates revenue

through the sales of home furnishings, including appliances and related products. Revenues from the retail and appliances segment decreased

by $485,607, or 14.5%, to $2,867,011 for the three months ended June 30, 2022 from $3,352,618 for the three months ended June 30, 2021.

Such decrease was primarily due to ongoing supply chain delays with appliance manufactures and the increased time it takes to receive

products. The construction segment generates revenue through

the sale of finished carpentry products and services, including doors, door frames, base boards, crown molding, cabinetry, bathroom sinks

and cabinets, bookcases, built-in closets, and fireplace mantles, among others, as well as kitchen countertops. Revenues from the construction

segment increased by $6,726,210, or 511.5%, to $8,041,178 for the three months ended June 30, 2022 from $1,314,968 for the three months

ended June 30, 2021. Such increase was primarily due to the acquisitions of High Mountain and Innovative Cabinets, which were acquired

in the fourth quarter of 2021. Excluding these acquisitions, revenues from the construction segment increased by $225,618, or 17.2%.

Such increase was primarily due to increases in the average customer contract in the construction segment. The automotive supplies segment generates revenue

through the design and sale of horn and safety products (electric, air, truck, marine, motorcycle and industrial equipment), including

vehicle emergency and safety warning lights for cars, trucks, industrial equipment and emergency vehicles. Revenues from the automotive

supplies segment increased by $2,686, or 0.1%, to $1,983,054 for the three months ended June 30, 2022 from $1,980,368 for the three months

ended June 30, 2021. Cost of sales . Our total cost of

sales was $8,078,883 for the three months ended June 30, 2022, as compared to $4,514,789 for the three months ended June 30, 2021. Cost of sales for the retail and appliances segment

consists of the cost of purchased merchandise plus the cost of delivering merchandise and where applicable installation, net of promotional

rebates and other incentives received from vendors. Cost of sales for the retail and appliances segment decreased by $423,331, or 16.3%,

to $2,179,267 for the three months ended June 30, 2022 from $2,602,598 for the three months ended June 30, 2021. Such decrease was primarily

due to corresponding the decrease in revenues from the retail and appliance segment. As a percentage of retail and appliances revenues,

cost of sales for the retail and appliances segment was 76.0% and 77.6% for the three months ended June 30, 2022 and 2021, respectively. Cost of sales for the construction segment consists

of finished goods, lumber, hardware and materials and plus direct labor and related costs, net of any material discounts from vendors.

Cost of sales for the construction segment increased by $4,051,532, or 562.3%, to $4,771,998 for the three months ended June 30, 2022

from $720,466 for the three months ended June 30, 2021. Such increase was primarily due to the acquisitions of High Mountain and Innovative

Cabinets, which were acquired in the fourth quarter of 2021. Excluding these acquisitions, cost of sales for the construction segment

increased by $304,660, or 42.3%. Such increase was primarily due to corresponding the increase in revenues from the construction segment,

as well as increased product and delivery costs. As a percentage of construction revenues, cost of sales for the construction segment

was 59.3% and 54.8% for the three months ended June 30, 2022 and 2021, respectively. Cost of sales for the automotive supplies segment

consists of the costs of purchased finished goods plus freight and tariff costs. Cost of sales for the automotive supplies segment decreased

by $64,107, or 5.4%, to $1,127,618 for the three months ended June 30, 2022 from $1,191,725 for the three months ended June 30, 2021.

Such decrease was primarily due to decreased direct labor costs. As a percentage of automotive supplies revenues, cost of sales for the

automotive supplies segment was 56.9% and 60.2% for the three months ended June 30, 2022 and 2021, respectively. Personnel costs . Personnel costs

include employee salaries and bonuses plus related payroll taxes. It also includes health insurance premiums, 401(k) contributions, and

training costs. Our total personnel costs were $1,587,173 for the three months ended June 30, 2022, as compared to $836,568 for the three

months ended June 30, 2021. Personnel costs for the retail and appliances

segment decreased by $25,431, or 10.6%, to $213,736 for the three months ended June 30, 2022 from $239,167 for the three months ended

June 30, 2021. Such decrease was primarily due to decreased employee headcount as a result of decreased operations from the retail and

appliances segment. As a percentage of retail and appliances revenue, personnel costs for the retail and appliances segment were 7.5%

and 7.1% for the three months ended June 30, 2022 and 2021, respectively. Personnel costs for the construction segment

increased by $1,046,536, or 445.8%, to $1,281,293 for the three months ended June 30, 2022 from $234,757 for the three months ended June

30, 2021. Such increase was primarily due to the acquisitions of High Mountain and Innovative Cabinets, which were acquired in the fourth

quarter of 2021. Excluding these acquisitions, personnel costs for the construction segment decreased by $22,322, or 9.5%. Such decrease

was primarily due to decreased office personnel headcount in the construction segment. As a percentage of construction revenue, personnel

costs for the construction segment were 15.9% and 17.9% for the three months ended June 30, 2022 and 2021, respectively. 32 Personnel costs for the automotive supplies segment