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

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portion of contingent note payable 362,779 - Total
Current Liabilities 11,105,291 12,432,466 Operating
lease liabilities, net of current portion 2,419,449 2,607,862 Finance
lease liabilities, net of current portion 831,570 455,905 Notes
payable, net of current portion 175,921 251,401 Convertible
notes payable, net of current portion 24,465,177 26,630,655 Contingent
note payable, net of current portion - 1,001,183 Deferred
tax liability, net 573,000 2,070,000 TOTAL
LIABILITIES 39,570,408 45,449,472 Mezzanine
Equity Series
A senior convertible preferred shares - 1,655,404 TOTAL
MEZZANINE EQUITY - 1,655,404 Shareholders’
Deficit Series A senior convertible preferred shares, no par value, 4,450,460 shares designated; 1,593,940 and 1,818,182 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively 1,338,746 - Series B senior convertible preferred shares, no par value, 583,334 shares designated; 464,899 and zero shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively 1,214,181 - Allocation shares, 1,000 shares authorized; 1,000 shares issued and outstanding as of September 30, 2022 and December 31, 2021 1,000 1,000 Common shares, $ 0.001 par value, 500,000,000 shares authorized; 4,079,137 and 1,210,918 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively 4,079 1,211 Distribution
receivable ( 2,000,000 ) ( 2,000,000 ) Additional
paid-in capital 43,962,606 21,723,042 Accumulated
deficit ( 36,648,788 ) ( 20,754,394 ) TOTAL
1847 HOLDINGS SHAREHOLDERS’ EQUITY (DEFICIT) 7,871,824 ( 1,029,141 ) NON-CONTROLLING
INTERESTS 474,312 930,812 TOTAL
SHAREHOLDERS’ EQUITY (DEFICIT) 8,346,136 ( 98,329 ) TOTAL
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY (DEFICIT) $ 47,916,544 $ 47,006,547 The
accompanying notes are an integral part of these condensed consolidated financial statements. 2 1847
HOLDINGS LLC CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three
Months Ended September 30, Nine
Months Ended September 30, 2022 2021 2022 2021 Revenues $ 14,472,361 $ 6,735,028 $ 39,437,482 $ 18,163,257 Operating
Expenses Cost of sales 9,596,387 4,573,123 25,109,863 12,348,594 Personnel 3,182,286 876,991 6,446,145 2,198,231 Depreciation
and amortization 516,414 299,477 1,526,759 547,655 General
and administrative 2,688,877 1,844,979 7,451,079 4,519,504 Total
Operating Expenses 15,983,964 7,594,570 40,533,846 19,613,984 LOSS
FROM OPERATIONS ( 1,511,603 ) ( 859,542 ) ( 1,096,364 ) ( 1,450,727 ) Other
Income (Expense) Other
income 2,756 3,539 3,431 - Interest
expense ( 1,875,757 ) ( 128,199 ) ( 3,714,623 ) ( 309,832 ) Gain
on forgiveness of debt - - - 360,302 Gain
on disposal of property and equipment 15,614 10,885 47,690 10,885 Gain
on disposition of subsidiary - - - 3,282,804 Loss
on extinguishment of debt ( 2,039,815 ) - ( 2,039,815 ) ( 757,792 ) Loss
on write-down of contingent note payable ( 158,817 ) - ( 158,817 ) - Total
Other Income (Expense) ( 4,056,019 ) ( 113,775 ) ( 5,862,134 ) 2,586,367 NET
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES ( 5,567,622 ) ( 973,317 ) ( 6,958,498 ) 1,135,640 INCOME
TAX BENEFIT FROM CONTINUING OPERATIONS 1,095,000 - 1,411,000 21,900 NET
INCOME (LOSS) FROM CONTINUING OPERATIONS ( 4,472,622 ) ( 973,317 ) ( 5,547,498 ) 1,157,540 NET
INCOME FROM DISCONTINUED OPERATIONS - - - 240,405 NET
INCOME (LOSS) $ ( 4,472,622 ) $ ( 973,317 ) $ ( 5,547,498 ) $ 1,397,945 NET
LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS FROM CONTINUING OPERATIONS ( 399,106 ) ( 65,008 ) ( 456,500 ) ( 106,628 ) NET
INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS FROM DISCONTINUED OPERATIONS - - - 108,182 NET
INCOME (LOSS) ATTRIBUTABLE TO 1847 HOLDINGS $ ( 4,073,516 ) $ ( 908,309 ) $ ( 5,090,998 ) $ 1,396,391 NET
INCOME (LOSS) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO 1847 HOLDINGS ( 4,073,516 ) ( 908,309 ) ( 5,090,998 ) 1,264,168 NET
INCOME FROM DISCONTINUED OPERATIONS ATTRIBUTABLE TO 1847 HOLDINGS - - - 132,223 NET
INCOME (LOSS) ATTRIBUTABLE TO 1847 HOLDINGS $ ( 4,073,516 ) $ ( 908,309 ) $ ( 5,090,998 ) $ 1,396,391 PREFERRED SHARE
DIVIDENDS ( 353,816 ) ( 314,093 ) ( 697,312 ) ( 2,340,567 ) DEEMED
DIVIDEND RELATED TO DOWN ROUND PROVISION IN WARRANTS ( 9,012,730 ) - ( 9,012,730 ) - NET
LOSS ATTRIBUTABLE TO 1847 HOLDINGS COMMON SHAREHOLDERS $ ( 13,440,062 ) $ ( 1,222,402 ) $ ( 14,801,040 ) $ ( 944,176 ) LOSS
PER COMMON SHARE ATTRIBUTABLE TO 1847 HOLDINGS COMMON SHAREHOLDERS BASIC LOSS
PER COMMON SHARE FROM CONTINUING OPERATIONS $ ( 4.51 ) $ ( 1.01 ) $ ( 8.08 ) $ ( 0.91 ) EARNINGS
PER COMMON SHARE FROM DISCONTINUED OPERATIONS - - - 0.11 LOSS
PER COMMON SHARE $ ( 4.51 ) $ ( 1.01 ) $ ( 8.08 ) $ ( 0.80 ) DILUTED LOSS
PER COMMON SHARE FROM CONTINUING OPERATIONS $ ( 4.51 ) $ ( 1.01 ) $ ( 8.08 ) $ ( 0.52 ) EARNINGS
PER COMMON SHARE FROM DISCONTINUED OPERATIONS - - - 0.06 LOSS
PER COMMON SHARE $ ( 4.51 ) $ ( 1.01 ) $ ( 8.08 ) $ ( 0.46 ) WEIGHTED-AVERAGE
NUMBER OF COMMON SHARES OUTSTANDING BASIC 2,979,949 1,210,918 1,832,076 1,179,873 DILUTED 2,979,949 1,210,918 1,832,076 2,065,215 The
accompanying notes are an integral part of these condensed consolidated financial statements. 3 1847
HOLDINGS LLC CONDENSED
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (DEFICIT) (UNAUDITED) Three
and Nine Months Ended September 30, 2022 Series A Senior Convertible Preferred Shares Series B Senior Convertible Preferred Shares Allocation Common Shares Distribution Additional Paid-In Accumulated Non- Controlling Total Shareholders’ Shares Amount Shares Amount Shares Shares Amount Receivable Capital Deficit Interests (Deficit) Balance at December 31, 2021 - $ - - $ - $ 1,000 1,210,918 $ 1,211 $ ( 2,000,000 ) $ 21,723,042 $ ( 20,754,394 ) $ 930,812 $ ( 98,329 ) Issuance of common shares upon conversion of series A preferred shares - - - - - 38,096 38 - 111,948 - - 111,986 Issuance of series B convertible preferred shares and warrants - - - - - - - - 152,350 - - 152,350 Dividends - common shares - - - - - - - - - ( 249,762 ) - ( 249,762 ) Dividends - series A senior convertible preferred shares - - - - - - - - - ( 121,455 ) - ( 121,455 ) Dividends - series B senior convertible preferred shares - - - - - - - - - ( 13,760 ) - ( 13,760 ) Net loss - - - - - - - - - ( 873,030 ) ( 54,178 ) ( 927,208 ) Balance at March 31, 2022 - $ - - $ - $ 1,000 1,249,014 $ 1,249 $ ( 2,000,000 ) $ 21,987,340 $ ( 22,012,401 ) $ 876,634 $ ( 1,146,178 ) Issuance of series B convertible preferred shares and warrants - - - - - - - - 19,700 - - 19,700 Dividends - series A senior convertible preferred shares - - - - - - - - - ( 159,298 ) - ( 159,298 ) Dividends - series B senior convertible preferred shares - - - - - - - - - ( 48,983 ) - ( 48,983 ) Net loss - - - - - - - - - ( 144,452 ) ( 3,216 ) ( 147,668 ) Balance at June 30, 2022 - $ - - $ - $ 1,000 1,249,014 $ 1,249 $ ( 2,000,000 ) $ 22,007,040 $ ( 22,365,134 ) $ 873,418 $ ( 1,482,427 ) Issuance of warrants in connection with notes payable - - - - - - - - 402,650 - - 402,650 Issuance of common shares upon cashless exercise of warrants - - - - - 126,669 126 - ( 126 ) - - - Issuance of common shares upon partial extinguishment of convertible notes payable - - - - - 800,000 800 - 4,639,200 - - 4,640,000 Issuance of common shares upon partial extinguishment of contingent note payable - - - - - 189,815 190 - 1,100,737 - - 1,100,927 Issuance of common shares upon settlement of debt - - - - - 285,067 285 - 1,653,104 - - 1,653,389 Reclassification of preferred shares from mezzanine equity to permanent equity 1,684,849 1,415,100 481,566 1,257,650 - - - - - - - 2,672,750 Issuance of common shares and warrants in connection with a public offering - - - - - 1,428,572 1,429 - 5,147,271 - - 5,148,700 Redemption of series A senior convertible preferred shares ( 90,909 ) ( 76,354 ) - - - - - - - ( 132,737 ) - ( 209,091 ) Redemption of series B senior convertible preferred shares - - ( 16,667 ) ( 43,469 ) - - - - - ( 14,032 ) - ( 57,501 ) Dividends - common shares - - - - - - - - - ( 843,592 ) - ( 843,592 ) Dividends - series A senior convertible preferred shares - - - - - - - - - ( 156,738 ) - ( 156,738 ) Dividends - series B senior convertible preferred shares - - - - - - - - - ( 50,309 ) - ( 50,309 ) Deemed dividends - down round provision in warrants - - - - - - - - 9,012,730 ( 9,012,730 ) - - Net loss - - - - - - - - - ( 4,073,516 ) ( 399,106 ) ( 4,472,622 ) Balance at September 30, 2022 1,593,940 $ 1,338,746 464,899 $ 1,214,181 $ 1,000 4,079,137 $ 4,079 $ ( 2,000,000 ) $ 43,962,606 $ ( 36,648,788 ) $ 474,312 $ 8,346,136 4 1847 HOLDINGS LLC CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’
EQUITY (DEFICIT) (UNAUDITED) Three
and Nine Months Ended September 30, 2021 Series A Senior Convertible Preferred Shares Series B Senior Convertible Preferred Shares Allocation Common Shares Distribution Additional Paid-In Accumulated Non- Controlling Total Shareholders’ Shares Amount Shares Amount Shares Shares Amount Receivable Capital Deficit Interests (Deficit) Balance at December 31, 2020 - $ - - $ - $ 1,000 1,111,208 $ 1,111 $ ( 2,000,000 ) $ 17,008,824 $ ( 13,856,973 ) $ ( 879,239 ) $ 274,723 Issuance of series A senior convertible preferred shares and warrants - - - - - - - - 3,000,000 ( 1,527,086 ) - 1,472,914 Issuance of common adjustment shares - - - - - 99,710 100 - 757,692 - - 757,792 Dividends - series A senior convertible preferred shares - - - - - - - - - ( 188,709 ) - ( 188,709 ) Net loss - - - - - - - - - ( 730,441 ) 54,959 ( 675,482 ) Balance at March 31, 2021 - $ - - $ - $ 1,000 1,210,918 $ 1,211 $ ( 2,000,000 ) $ 20,766,516 $ ( 16,303,209 ) $ ( 824,280 ) $ 1,641,238 Accrued dividend payable - - - - - - - - ( 310,679 ) - ( 310,679 ) Net loss - - - - - - - - - 3,035,140 11,603 3,046,743 Balance at June 30, 2021 - $ - - $ - $ 1,000 1,210,918 $ 1,211 $ ( 2,000,000 ) $ 20,766,516 ( 13,578,748 ) $ ( 812,677 ) $ 4,377,302 Accrued dividend payable - - - - - - - - - ( 314,093 ) - ( 314,093 ) Net loss - - - - - - - - - ( 908,309 ) ( 65,008 ) ( 973,317 ) Balance at September 30, 2021 - $ - - $ - $ 1,000 1,210,918 $ 1,211 ( 2,000,000 ) 20,766,516 ( 14,801,150 ) ( 877,685 ) 3,089,892 The
accompanying notes are an integral part of these condensed consolidated financial statements. 5 1847
HOLDINGS LLC CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Nine
Months Ended September 30, 2022 2021 CASH FLOWS FROM
OPERATING ACTIVITIES Net
income (loss) $ ( 5,547,498 ) $ 1,397,945 Adjustments
to reconcile net income (loss) to net cash provided by (used in) operating activiti Loss
from discontinued operations - ( 240,405 ) Gain
on disposition of subsidiary - ( 3,282,804 ) Gain
on forgiveness of debt ( 360,302 ) Gain
on disposal of property and equipment ( 47,690 ) ( 10,885 ) Loss
on adjustment shares 757,792 Loss
on extinguishment of debt 2,039,815 Loss
on write-down of contingent note payable 158,817 Deferred
tax asset (liability) ( 1,497,000 ) ( 40,000 ) Depreciation
and amortization 1,526,759 547,656 Amortization
of debt discounts 1,697,572 27,537 Amortization
of right-of-use assets 409,641 90,322 Changes
in operating assets and liabiliti Receivables ( 1,957,022 ) 271,395 Contract
assets ( 39,996 ) - Inventories 670,699 ( 141,543 ) Prepaid
expenses and other current assets ( 280,129 ) 126,464 Other
assets 3,125 Accounts
payable and accrued expenses 1,689,185 439,723 Contract
liabilities ( 1,965,568 ) ( 106,561 ) Customer
deposits ( 488,593 ) 225,618 Due
to related parties - 3,569 Operating
lease liabilities ( 349,403 ) ( 86,867 ) Net
cash used in operating activities from continuing operations ( 3,977,286 ) ( 381,346 ) Net
cash used in operating activities from discontinued operations - ( 170,580 ) Net
cash used in operating activities ( 3,977,286 ) ( 551,926 ) CASH
FLOWS FROM INVESTING ACTIVITIES Net
paid in acquisitions - ( 5,378,346 ) Purchases
of property and equipment ( 255,930 ) ( 262,852 ) Proceeds

portion of contingent note payable 362,779 - Total

Current Liabilities 11,105,291 12,432,466 Operating

lease liabilities, net of current portion 2,419,449 2,607,862 Finance

lease liabilities, net of current portion 831,570 455,905 Notes

payable, net of current portion 175,921 251,401 Convertible

notes payable, net of current portion 24,465,177 26,630,655 Contingent

note payable, net of current portion - 1,001,183 Deferred

tax liability, net 573,000 2,070,000 TOTAL

LIABILITIES 39,570,408 45,449,472 Mezzanine

Equity Series

A senior convertible preferred shares - 1,655,404 TOTAL

MEZZANINE EQUITY - 1,655,404 Shareholders’

Deficit Series A senior convertible preferred shares, no par value, 4,450,460 shares designated; 1,593,940 and 1,818,182 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively 1,338,746 - Series B senior convertible preferred shares, no par value, 583,334 shares designated; 464,899 and zero shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively 1,214,181 - Allocation shares, 1,000 shares authorized; 1,000 shares issued and outstanding as of September 30, 2022 and December 31, 2021 1,000 1,000 Common shares, $ 0.001 par value, 500,000,000 shares authorized; 4,079,137 and 1,210,918 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively 4,079 1,211 Distribution

receivable ( 2,000,000 ) ( 2,000,000 ) Additional

paid-in capital 43,962,606 21,723,042 Accumulated

deficit ( 36,648,788 ) ( 20,754,394 ) TOTAL

1847 HOLDINGS SHAREHOLDERS’ EQUITY (DEFICIT) 7,871,824 ( 1,029,141 ) NON-CONTROLLING

INTERESTS 474,312 930,812 TOTAL

SHAREHOLDERS’ EQUITY (DEFICIT) 8,346,136 ( 98,329 ) TOTAL

LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY (DEFICIT) $ 47,916,544 $ 47,006,547 The

accompanying notes are an integral part of these condensed consolidated financial statements. 2 1847

HOLDINGS LLC CONDENSED

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three

Months Ended September 30, Nine

Months Ended September 30, 2022 2021 2022 2021 Revenues $ 14,472,361 $ 6,735,028 $ 39,437,482 $ 18,163,257 Operating

Expenses Cost of sales 9,596,387 4,573,123 25,109,863 12,348,594 Personnel 3,182,286 876,991 6,446,145 2,198,231 Depreciation

and amortization 516,414 299,477 1,526,759 547,655 General

and administrative 2,688,877 1,844,979 7,451,079 4,519,504 Total

Operating Expenses 15,983,964 7,594,570 40,533,846 19,613,984 LOSS

FROM OPERATIONS ( 1,511,603 ) ( 859,542 ) ( 1,096,364 ) ( 1,450,727 ) Other

Income (Expense) Other

income 2,756 3,539 3,431 - Interest

expense ( 1,875,757 ) ( 128,199 ) ( 3,714,623 ) ( 309,832 ) Gain

on forgiveness of debt - - - 360,302 Gain

on disposal of property and equipment 15,614 10,885 47,690 10,885 Gain

on disposition of subsidiary - - - 3,282,804 Loss

on extinguishment of debt ( 2,039,815 ) - ( 2,039,815 ) ( 757,792 ) Loss

on write-down of contingent note payable ( 158,817 ) - ( 158,817 ) - Total

Other Income (Expense) ( 4,056,019 ) ( 113,775 ) ( 5,862,134 ) 2,586,367 NET

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES ( 5,567,622 ) ( 973,317 ) ( 6,958,498 ) 1,135,640 INCOME

TAX BENEFIT FROM CONTINUING OPERATIONS 1,095,000 - 1,411,000 21,900 NET

INCOME (LOSS) FROM CONTINUING OPERATIONS ( 4,472,622 ) ( 973,317 ) ( 5,547,498 ) 1,157,540 NET

INCOME FROM DISCONTINUED OPERATIONS - - - 240,405 NET

INCOME (LOSS) $ ( 4,472,622 ) $ ( 973,317 ) $ ( 5,547,498 ) $ 1,397,945 NET

LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS FROM CONTINUING OPERATIONS ( 399,106 ) ( 65,008 ) ( 456,500 ) ( 106,628 ) NET

INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS FROM DISCONTINUED OPERATIONS - - - 108,182 NET

INCOME (LOSS) ATTRIBUTABLE TO 1847 HOLDINGS $ ( 4,073,516 ) $ ( 908,309 ) $ ( 5,090,998 ) $ 1,396,391 NET

INCOME (LOSS) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO 1847 HOLDINGS ( 4,073,516 ) ( 908,309 ) ( 5,090,998 ) 1,264,168 NET

INCOME FROM DISCONTINUED OPERATIONS ATTRIBUTABLE TO 1847 HOLDINGS - - - 132,223 NET

INCOME (LOSS) ATTRIBUTABLE TO 1847 HOLDINGS $ ( 4,073,516 ) $ ( 908,309 ) $ ( 5,090,998 ) $ 1,396,391 PREFERRED SHARE

DIVIDENDS ( 353,816 ) ( 314,093 ) ( 697,312 ) ( 2,340,567 ) DEEMED

DIVIDEND RELATED TO DOWN ROUND PROVISION IN WARRANTS ( 9,012,730 ) - ( 9,012,730 ) - NET

LOSS ATTRIBUTABLE TO 1847 HOLDINGS COMMON SHAREHOLDERS $ ( 13,440,062 ) $ ( 1,222,402 ) $ ( 14,801,040 ) $ ( 944,176 ) LOSS

PER COMMON SHARE ATTRIBUTABLE TO 1847 HOLDINGS COMMON SHAREHOLDERS BASIC LOSS

PER COMMON SHARE FROM CONTINUING OPERATIONS $ ( 4.51 ) $ ( 1.01 ) $ ( 8.08 ) $ ( 0.91 ) EARNINGS

PER COMMON SHARE FROM DISCONTINUED OPERATIONS - - - 0.11 LOSS

PER COMMON SHARE $ ( 4.51 ) $ ( 1.01 ) $ ( 8.08 ) $ ( 0.80 ) DILUTED LOSS

PER COMMON SHARE FROM CONTINUING OPERATIONS $ ( 4.51 ) $ ( 1.01 ) $ ( 8.08 ) $ ( 0.52 ) EARNINGS

PER COMMON SHARE FROM DISCONTINUED OPERATIONS - - - 0.06 LOSS

PER COMMON SHARE $ ( 4.51 ) $ ( 1.01 ) $ ( 8.08 ) $ ( 0.46 ) WEIGHTED-AVERAGE

NUMBER OF COMMON SHARES OUTSTANDING BASIC 2,979,949 1,210,918 1,832,076 1,179,873 DILUTED 2,979,949 1,210,918 1,832,076 2,065,215 The

accompanying notes are an integral part of these condensed consolidated financial statements. 3 1847

HOLDINGS LLC CONDENSED

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (DEFICIT) (UNAUDITED) Three

and Nine Months Ended September 30, 2022 Series A Senior Convertible Preferred Shares Series B Senior Convertible Preferred Shares Allocation Common Shares Distribution Additional Paid-In Accumulated Non- Controlling Total Shareholders’ Shares Amount Shares Amount Shares Shares Amount Receivable Capital Deficit Interests (Deficit) Balance at December 31, 2021 - $ - - $ - $ 1,000 1,210,918 $ 1,211 $ ( 2,000,000 ) $ 21,723,042 $ ( 20,754,394 ) $ 930,812 $ ( 98,329 ) Issuance of common shares upon conversion of series A preferred shares - - - - - 38,096 38 - 111,948 - - 111,986 Issuance of series B convertible preferred shares and warrants - - - - - - - - 152,350 - - 152,350 Dividends - common shares - - - - - - - - - ( 249,762 ) - ( 249,762 ) Dividends - series A senior convertible preferred shares - - - - - - - - - ( 121,455 ) - ( 121,455 ) Dividends - series B senior convertible preferred shares - - - - - - - - - ( 13,760 ) - ( 13,760 ) Net loss - - - - - - - - - ( 873,030 ) ( 54,178 ) ( 927,208 ) Balance at March 31, 2022 - $ - - $ - $ 1,000 1,249,014 $ 1,249 $ ( 2,000,000 ) $ 21,987,340 $ ( 22,012,401 ) $ 876,634 $ ( 1,146,178 ) Issuance of series B convertible preferred shares and warrants - - - - - - - - 19,700 - - 19,700 Dividends - series A senior convertible preferred shares - - - - - - - - - ( 159,298 ) - ( 159,298 ) Dividends - series B senior convertible preferred shares - - - - - - - - - ( 48,983 ) - ( 48,983 ) Net loss - - - - - - - - - ( 144,452 ) ( 3,216 ) ( 147,668 ) Balance at June 30, 2022 - $ - - $ - $ 1,000 1,249,014 $ 1,249 $ ( 2,000,000 ) $ 22,007,040 $ ( 22,365,134 ) $ 873,418 $ ( 1,482,427 ) Issuance of warrants in connection with notes payable - - - - - - - - 402,650 - - 402,650 Issuance of common shares upon cashless exercise of warrants - - - - - 126,669 126 - ( 126 ) - - - Issuance of common shares upon partial extinguishment of convertible notes payable - - - - - 800,000 800 - 4,639,200 - - 4,640,000 Issuance of common shares upon partial extinguishment of contingent note payable - - - - - 189,815 190 - 1,100,737 - - 1,100,927 Issuance of common shares upon settlement of debt - - - - - 285,067 285 - 1,653,104 - - 1,653,389 Reclassification of preferred shares from mezzanine equity to permanent equity 1,684,849 1,415,100 481,566 1,257,650 - - - - - - - 2,672,750 Issuance of common shares and warrants in connection with a public offering - - - - - 1,428,572 1,429 - 5,147,271 - - 5,148,700 Redemption of series A senior convertible preferred shares ( 90,909 ) ( 76,354 ) - - - - - - - ( 132,737 ) - ( 209,091 ) Redemption of series B senior convertible preferred shares - - ( 16,667 ) ( 43,469 ) - - - - - ( 14,032 ) - ( 57,501 ) Dividends - common shares - - - - - - - - - ( 843,592 ) - ( 843,592 ) Dividends - series A senior convertible preferred shares - - - - - - - - - ( 156,738 ) - ( 156,738 ) Dividends - series B senior convertible preferred shares - - - - - - - - - ( 50,309 ) - ( 50,309 ) Deemed dividends - down round provision in warrants - - - - - - - - 9,012,730 ( 9,012,730 ) - - Net loss - - - - - - - - - ( 4,073,516 ) ( 399,106 ) ( 4,472,622 ) Balance at September 30, 2022 1,593,940 $ 1,338,746 464,899 $ 1,214,181 $ 1,000 4,079,137 $ 4,079 $ ( 2,000,000 ) $ 43,962,606 $ ( 36,648,788 ) $ 474,312 $ 8,346,136 4 1847 HOLDINGS LLC CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’

EQUITY (DEFICIT) (UNAUDITED) Three

and Nine Months Ended September 30, 2021 Series A Senior Convertible Preferred Shares Series B Senior Convertible Preferred Shares Allocation Common Shares Distribution Additional Paid-In Accumulated Non- Controlling Total Shareholders’ Shares Amount Shares Amount Shares Shares Amount Receivable Capital Deficit Interests (Deficit) Balance at December 31, 2020 - $ - - $ - $ 1,000 1,111,208 $ 1,111 $ ( 2,000,000 ) $ 17,008,824 $ ( 13,856,973 ) $ ( 879,239 ) $ 274,723 Issuance of series A senior convertible preferred shares and warrants - - - - - - - - 3,000,000 ( 1,527,086 ) - 1,472,914 Issuance of common adjustment shares - - - - - 99,710 100 - 757,692 - - 757,792 Dividends - series A senior convertible preferred shares - - - - - - - - - ( 188,709 ) - ( 188,709 ) Net loss - - - - - - - - - ( 730,441 ) 54,959 ( 675,482 ) Balance at March 31, 2021 - $ - - $ - $ 1,000 1,210,918 $ 1,211 $ ( 2,000,000 ) $ 20,766,516 $ ( 16,303,209 ) $ ( 824,280 ) $ 1,641,238 Accrued dividend payable - - - - - - - - ( 310,679 ) - ( 310,679 ) Net loss - - - - - - - - - 3,035,140 11,603 3,046,743 Balance at June 30, 2021 - $ - - $ - $ 1,000 1,210,918 $ 1,211 $ ( 2,000,000 ) $ 20,766,516 ( 13,578,748 ) $ ( 812,677 ) $ 4,377,302 Accrued dividend payable - - - - - - - - - ( 314,093 ) - ( 314,093 ) Net loss - - - - - - - - - ( 908,309 ) ( 65,008 ) ( 973,317 ) Balance at September 30, 2021 - $ - - $ - $ 1,000 1,210,918 $ 1,211 ( 2,000,000 ) 20,766,516 ( 14,801,150 ) ( 877,685 ) 3,089,892 The

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

HOLDINGS LLC CONDENSED

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Nine

Months Ended September 30, 2022 2021 CASH FLOWS FROM

OPERATING ACTIVITIES Net

income (loss) $ ( 5,547,498 ) $ 1,397,945 Adjustments

to reconcile net income (loss) to net cash provided by (used in) operating activiti Loss

from discontinued operations - ( 240,405 ) Gain

on disposition of subsidiary - ( 3,282,804 ) Gain

on forgiveness of debt ( 360,302 ) Gain

on disposal of property and equipment ( 47,690 ) ( 10,885 ) Loss

on adjustment shares 757,792 Loss

on extinguishment of debt 2,039,815 Loss

on write-down of contingent note payable 158,817 Deferred

tax asset (liability) ( 1,497,000 ) ( 40,000 ) Depreciation

and amortization 1,526,759 547,656 Amortization

of debt discounts 1,697,572 27,537 Amortization

of right-of-use assets 409,641 90,322 Changes

in operating assets and liabiliti Receivables ( 1,957,022 ) 271,395 Contract

assets ( 39,996 ) - Inventories 670,699 ( 141,543 ) Prepaid

expenses and other current assets ( 280,129 ) 126,464 Other

assets 3,125 Accounts

payable and accrued expenses 1,689,185 439,723 Contract

liabilities ( 1,965,568 ) ( 106,561 ) Customer

deposits ( 488,593 ) 225,618 Due

to related parties - 3,569 Operating

lease liabilities ( 349,403 ) ( 86,867 ) Net

cash used in operating activities from continuing operations ( 3,977,286 ) ( 381,346 ) Net

cash used in operating activities from discontinued operations - ( 170,580 ) Net

cash used in operating activities ( 3,977,286 ) ( 551,926 ) CASH

FLOWS FROM INVESTING ACTIVITIES Net

paid in acquisitions - ( 5,378,346 ) Purchases

of property and equipment ( 255,930 ) ( 262,852 ) Proceeds