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installment sale contracts pursuant to which it agreed to finance delivery trucks and equipment at rates of 3.74% with an aggregate remaining
principal amount of $17,242 as of June 30, 2022. Total Debt The following table shows aggregate figures for
the total debt, net of discounts, described above that is coming due in the short and long term as of June 30, 2022. See the above disclosures
for more details regarding these loans. Short-Term Long-Term Total Debt Secured Convertible Promissory Notes $ - $ 22,108,707 $ 22,108,707 6% Subordinated Convertible Promissory Notes - 5,025,248 5,025,248 6% Amortizing Promissory Note 581,963 - 581,963 Vesting Promissory Note - 1,001,183 1,001,183 Financing Leases 145,874 672,714 818,588 Vehicle Loans 103,251 197,216 300,467 Total $ 831,088 $ 29,005,068 $ 29,836,156 Contractual Obligations Our principal commitments consist mostly of obligations
under the loans described above and other contractual commitments described below. We have engaged the Manager to manage our day-to-day
operations and affairs. Our relationship with the Manager will be governed principally by the following agreements: ● the management
services agreement and offsetting management services agreements relating to the management
services the Manager will perform for us and the businesses we own and the management fee
to be paid to the Manager in respect thereof; and ● our operating
agreement setting forth the Manager’s rights with respect to the allocation shares
it owns, including the right to receive profit allocations from us, and the supplemental
put provision relating to the Manager’s right to cause us to purchase the allocation
shares it owns. Off-Balance Sheet Arrangements We have no off-balance sheet arrangements that
have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues
or expenses, results of operations, liquidity, capital expenditures or capital resources. 40 Critical Accounting Policies and Estimates The preparation of the unaudited condensed consolidated
financial statements requires our management to make estimates and assumptions that affect the reported amounts of assets, liabilities,
revenues and expenses, and related disclosure of contingent assets and liabilities. On a regular basis, we evaluate these estimates.
These estimates are based on management’s historical industry experience and on various other assumptions that are believed to
be reasonable under the circumstances. Actual results may differ from these estimates. For a description of the accounting policies
that, in management’s opinion, involve the most significant application of judgment or involve complex estimation and which could,
if different judgment or estimates were made, materially affect our reported financial position, results of operations, or cash flows,
see “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies”
in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 filed with the Securities and Exchange Commission (the
“SEC”) on March 31, 2022. ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK. Not applicable. ITEM 4. CONTROLS AND PROCEDURES. Evaluation of Disclosure Controls and Procedures We maintain disclosure controls and procedures
(as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). Disclosure controls
and procedures refer to controls and other procedures designed to ensure that information required to be disclosed in the reports we
file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules
and forms of the Securities and Exchange Commission and that such information is accumulated and communicated to our management, including
our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure. As required by Rule 13a-15(e) of the Exchange
Act, our management has carried out an evaluation, with the participation and under the supervision of our chief executive officer and
chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as of June 30, 2022.
Based upon, and as of the date of this evaluation, our chief executive officer and chief financial officer determined that, because of
the material weaknesses described in Item 9A “Controls and Procedures” of our Annual Report on Form 10-K for the fiscal year
ended December 31, 2021, which we are still in the process of remediating as of June 30, 2022, our disclosure controls and procedures
were not effective. Investors are directed to Item 9A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 for
the description of these weaknesses. Changes in Internal Control Over Financial Reporting We regularly review our system of internal control
over financial reporting and make changes to our processes and systems to improve controls and increase efficiency, while ensuring that
we maintain an effective internal control environment. Changes may include such activities as implementing new, more efficient systems,
consolidating activities, and migrating processes. 41 During its evaluation of the effectiveness of
our internal control over financial reporting as of June 30, 2022, our management identified the following material weakness ● We did not have
appropriate policies and procedures in place to evaluate the proper accounting and disclosures
of key documents and agreements. ● We do not have
adequate segregation of duties with our limited accounting personnel and rely upon outsourced
accounting services. ● We do not have
sufficient and skilled accounting personnel with an appropriate level of technical accounting
knowledge and experience in the application of GAAP commensurate with our financial reporting
requirements. As disclosed in our Annual Report on Form 10-K
for the fiscal year ended December 31, 2021, our management has identified the steps necessary to address the material weaknesses, and
in the second quarter of 2022, we continued to implement the following remedial procedu ● On September 7,
2021, we hired Vernice Howard as our Chief Financial Officer. Ms. Howard has over 30
years of experience in the fields of finance and accounting and has significant GAAP
and SEC reporting experience. ● We plan to make
necessary changes by providing training to our financial team and our other relevant personnel
on the GAAP accounting guidelines applicable to financial reporting requirements. ● In the first quarter
of 2022, we engaged a financial reporting consultant to provide outsourced accounting and
financial reporting services. ● In the first quarter
of 2022, we also put in place new policies and procedures at the subsidiary level to standardize
accounting procedures across all business units. We also plan to hire additional skilled
accounting personnel at the subsidiary companies to implement the policies and procedures. We intend to complete the remediation of the
material weaknesses discussed above as soon as practicable but we can give no assurance that we will be able to do so. Designing and
implementing an effective disclosure controls and procedures is a continuous effort that requires us to anticipate and react to changes
in our business and the economic and regulatory environments and to devote significant resources to maintain a financial reporting system
that adequately satisfies our reporting obligations. The remedial measures that we have taken and intend to take may not fully address
the material weaknesses that we have identified, and material weaknesses in our disclosure controls and procedures may be identified
in the future. Should we discover such conditions, we intend to remediate them as soon as practicable. We are committed to taking appropriate
steps for remediation, as needed. Other than in connection with the implementation
of the remedial measures described above, there were no changes in our internal controls over financial reporting during the second quarter
of 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. 42 PART II OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS. From time to time, we may become involved in
various lawsuits and legal proceedings, which arise, in the ordinary course of business. However, litigation is subject to inherent uncertainties,
and an adverse result in these, or other matters, may arise from time to time that may harm our business. We are currently not aware
of any such legal proceedings or claims that we believe will have a material adverse effect on our business, financial condition or operating
results. ITEM 1A. RISK FACTORS. Not applicable. ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES
AND USE OF PROCEEDS. We have not sold any equity securities during
the three months ended June 30, 2022 that were not previously disclosed in a current report on Form 8-K that was filed during the quarter. We did not repurchase any of our common
shares during the three months ended June 30, 2022. ITEM 3. DEFAULTS UPON SENIOR SECURITIES. None. ITEM 4. MINE SAFETY DISCLOSURES. Not applicable. ITEM 5. OTHER INFORMATION. We have no information to disclose that was required
to be in a report on Form 8-K during the second quarter of fiscal 2022 but was not reported. There have been no material changes to the
procedures by which security holders may recommend nominees to our board of directors. 43 ITEM 6. EXHIBITS. Exhibit No. Description
of Exhibit 3.1 Certificate of Formation of 1847 Holdings LLC (incorporated by reference to Exhibit 3.1 to the Registration Statement on Form S-1 filed on February 7, 2014) 3.2 Second Amended and Restated Operating Agreement of 1847 Holdings LLC, dated January 19, 2018 (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed on January 22, 2018) 3.3 Amendment No. 1 to Second Amended and Restated Operating Agreement of 1847 Holdings LLC, dated August 5, 2021 (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed on August 11, 2021) 4.1 Amended and Restated Share Designation of Series A Senior Convertible Preferred Shares (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed on April 1, 2021) 4.2 Amendment No. 1 to Amended and Restated Share Designation of Series A Senior Convertible Preferred Shares (incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K filed on October 5, 2021) 4.3 Share Designation of Series B Senior Convertible Preferred Shares (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed on March 2, 2022) 4.4 Form of Common Share Purchase Warrant relating to 2020 private placement (incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K filed on October 7, 2020) 4.5 Form of Common Share Purchase Warrant relating to 2021 private placement (incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K filed on April 1, 2021) 4.6 Form of Common Share Purchase Warrant relating to 2022 private placement (incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K filed on March 2, 2022) 4.7 Warrant for Common Shares issued by 1847 Holdings LLC to Leonite Capital LLC on October 8, 2021 (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed on October 13, 2021) 4.8 Warrant for Common Shares issued by 1847 Holdings LLC to Leonite Capital LLC on October 8, 2021 (incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K filed on October 13, 2021) 4.9 Common Share Purchase Warrant issued by 1847 Holdings LLC to Mast Hill Fund, L.P. on July 8, 2022 (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed on July 12, 2022) 4.10 Common Share Purchase Warrant issued to Craft Capital Management LLC on August 5, 2022 (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed on August 8, 2022) 4.11 Common Share Purchase Warrant issued to R.F. Lafferty & Co. Inc. on August 5, 2022 (incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K filed on August 8, 2022) 31.1* Certifications
of Principal Executive Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 31.2* Certifications
of Principal Financial and Accounting Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 32.1** Certifications
of Principal Executive Officer furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 32.2** Certifications
of Principal Financial and Accounting Officer furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 101.INS* Inline XBRL Instance Document 101.SCH* Inline XBRL Taxonomy Extension Schema Document 101.CAL* Inline XBRL Taxonomy Extension Calculation
Linkbase Document 101.DEF* Inline XBRL Taxonomy Extension Definition
Linkbase Document 101.LAB* Inline XBRL Taxonomy Extension Label Linkbase
Document 101.PRE* Inline XBRL Taxonomy Extension Presentation
Linkbase Document 104* Cover Page Interactive Data File (formatted
as Inline XBRL and contained in Exhibit 101) * Filed herewith ** Furnished herewith 44 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 thereunto
duly authorized. Date: August 12, 2022 1847 HOLDINGS LLC /s/ Ellery W. Roberts N Ellery W. Roberts Tit Chief Executive Officer (Principal Executive Officer) /s/ Vernice L. Howard N Vernice L. 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Washington, D.C. 20549 FORM 10−Q (Mark One) ☒ QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period end June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to
_____________ Commission File Numbe 001-41368 1847 HOLDINGS LLC (Exact name of registrant as specified in its charter) Delaware 38-3922937 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 590 Madison Avenue , 21st Floor , New York , NY 10022 (Address of principal executive offices) (Zip Code) (212) 417-9800 (Registrant’s telephone number, including area code) N/A (Former name, former address
and former fiscal year, if changed since last report) Securities registered pursuant to Section 12(b)
of the Ac Title of each class Trading Symbol(s) Name of each exchange on which registered Common Shares EFSH NYSE American LLC Indicate by check mark whether the registrant
(1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchan ge
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐ Indicate
by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule
405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐ Indicate