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

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adoption is permitted. The Company adopted this guidance on January 1, 2022. The Company’s adoption of this update did not have
a material impact on the condensed consolidated financial statements. 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 September 30, 2022, the Company had cash and cash equivalents of $ 1,584,499 . For the nine months ended September 30, 2022, the Company
incurred an operating loss of $ 1,096,364 (before deducting losses attributable to non-controlling interests), cash flows used in operations
of $ 3,977,286 , and working capital of $ 1,839,424 . 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 SEPTEMBER
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 nine months ended September 30, 2022 and 2021 are disaggregated as follows: Three
Months Ended September 30, 2022 Retail
and Appliances Construction Automotive Supplies Total Revenues Appliances $ 2,492,544 $ - $ - $ 2,492,544 Appliance accessories, parts,
and other 442,161 - - 442,161 Automotive horns - - 1,094,636 1,094,636 Automotive lighting - - 395,074 395,074 Custom cabinets and countertops - 2,990,767 - 2,990,767 Finished
carpentry - 7,057,179 - 7,057,179 Total Revenues $ 2,934,705 $ 10,047,946 $ 1,489,710 $ 14,472,361 Three
Months Ended September 30, 2021 Retail
and Appliances Construction Automotive Supplies Total Revenues Appliances $ 2,745,305 $ - $ - $ 2,745,305 Appliance accessories, parts,
and other 400,650 - - 400,650 Automotive horns - 1,694,928 1,694,928 Automotive lighting - - 555,717 555,717 Custom cabinets and countertops - 1,338,428 - 1,338,428 Finished
carpentry - - - - Total Revenues $ 3,145,955 $ 1,338,428 $ 2,250,645 $ 6,735,028 9 1847
HOLDINGS LLC NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER
30, 2022 (UNAUDITED) Nine
Months Ended September 30, 2022 Retail
and Appliances Construction Automotive Supplies Total Revenues Appliances $ 7,206,386 $ - $ - $ 7,206,386 Appliance accessories, parts,
and other 1,116,114 - - 1,116,114 Automotive horns - - 3,766,415 3,766,415 Automotive lighting - - 1,348,340 1,348,340 Custom cabinets and countertops - 10,288,711 - 10,288,711 Finished
carpentry - 15,711,516 - 15,711,516 Total Revenues $ 8,322,500 $ 26,000,227 $ 5,114,755 $ 39,437,482 Nine
Months Ended September 30, 2021 Retail
and Appliances Construction Automotive Supplies Total Revenues Appliances $ 8,587,939 $ - $ - $ 8,587,939 Appliance accessories, parts,
and other 1,175,000 - - 1,175,000 Automotive horns - - 3,326,835 3,326,835 Automotive lighting - - 904,178 904,178 Custom cabinets and countertops - 4,169,305 - 4,169,305 Finished
carpentry - - - - Total Revenues $ 9,762,939 $ 4,169,305 $ 4,231,013 $ 18,163,257 Segment information
for the three and nine months ended September 30, 2022 and 2021 is as follows: Three
Months Ended September 30, 2022 Retail
and Appliances Construction Automotive Supplies Corporate Services Total Revenues $ 2,934,705 $ 10,047,946 $ 1,489,710 $ - $ 14,472,361 Operating expenses Cost of sales 2,183,972 6,544,843 867,572 - 9,596,387 Personnel 202,443 2,406,195 277,398 296,250 3,182,286 Depreciation and amortization 48,019 416,525 51,870 - 516,414 General
and administrative 494,719 1,245,668 384,870 563,620 2,688,877 Total
Operating Expenses 2,929,153 10,613,231 1,581,710 859,870 15,983,964 Income (loss) from Operations $ 5,552 $ ( 565,285 ) $ ( 92,000 ) $ ( 859,870 ) $ ( 1,511,603 ) Three
Months Ended September 30, 2021 Retail
and Appliances Construction Automotive Supplies Corporate Services Total Revenues $ 3,145,955 $ 1,338,428 $ 2,250,645 $ - $ 6,735,028 Operating expenses Cost of sales 2,300,663 805,513 1,466,947 - 4,573,123 Personnel 196,592 273,366 407,034 - 876,992 Depreciation and amortization 47,104 83,112 169,260 - 299,476 General
and administrative 439,414 256,402 673,484 475,679 1,844,979 Total
Operating Expenses 2,983,774 1,418,393 2,716,724 475,679 7,594,570 Income (Loss) from Operations $ 162,182 $ ( 79,965 ) $ ( 466,080 ) $ ( 475,679 ) $ ( 859,542 ) 10 1847
HOLDINGS LLC NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER
30, 2022 (UNAUDITED) Nine
Months Ended September 30, 2022 Retail
and Appliances Construction Automotive Supplies Corporate Services Total Revenues $ 8,322,500 $ 26,000,227 $ 5,114,755 $ - $ 39,437,482 Operating expenses Cost of sales 6,245,993 15,835,830 3,028,040 - 25,109,863 Personnel 587,073 4,715,419 847,403 296,250 6,446,145 Depreciation and amortization 175,835 1,195,314 155,610 - 1,526,759 General
and administrative 1,480,465 4,006,636 1,188,618 775,360 7,451,079 Total
Operating Expenses 8,489,366 25,753,199 5,219,671 1,071,610 40,533,846 Income (Loss) from Operations $ ( 166,866 ) $ 247,028 $ ( 104,916 ) $ ( 1,071,610 ) $ ( 1,096,364 ) Nine
Months Ended September 30, 2021 Retail
and Appliances Construction Automotive Supplies Corporate Services Total Revenues $ 9,762,939 $ 4,169,305 $ 4,231,013 $ - $ 18,163,257 Operating expenses - Cost of sales 7,409,913 2,280,009 2,658,672 - 12,348,594 Personnel 688,842 739,711 769,678 - 2,198,231 Depreciation and amortization 135,782 242,613 169,260 - 547,655 General
and administrative 1,270,655 705,674 1,570,070 973,105 4,519,504 Total
Operating Expenses 9,505,192 3,968,007 5,167,680 973,105 19,613,984 Income (Loss) from Operations $ 257,747 $ 201,298 $ ( 936,667 ) $ ( 973,105 ) $ ( 1,450,727 ) NOTE
5—PROPERTY AND EQUIPMENT Property
and equipment at September 30, 2022 and December 31, 2021 consisted of the followin September 30, 2022 December 31, 2021 Equipment and machinery $ 1,401,103 $ 808,592 Office furniture and equipment 156,544 105,203 Transportation equipment 911,426 864,121 Leasehold improvements 169,143 112,356 Total property and equipment 2,638,216 1,890,272 L Accumulated depreciation ( 588,720 ) ( 194,961 ) Property and equipment,
net $ 2,049,496 $ 1,695,311 Depreciation
expense for the three and nine months ended September 30, 2022 was $ 151,722 and $ 432,683 , respectively. Depreciation expense for the
three and nine months ended September 30, 2021 was $ 32,420 and $ 85,005 , respectively. NOTE
6—INTANGIBLE ASSETS Intangible
assets at September 30, 2022 and December 31, 2021 consisted of the followin September 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 ( 1,981,179 ) ( 887,103 ) Intangible assets, net $ 10,349,821 $ 11,443,897 11 1847
HOLDINGS LLC NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER
30, 2022 (UNAUDITED) Amortization
expense for the three and nine months ended September 30, 2022 was $ 364,692 and $ 1,094,076 , respectively. Amortization expense for the
three and nine months ended September 30, 2021 was $ 267,057 and $ 462,651 , respectively. Estimated
amortization expense for intangible assets for the next five years consists of the following as of September 30, 2022: Year Ending
December 31, Amount 2022 – remaining $ 364,704 2023 1,458,780 2024 1,458,750 2025 1,325,745 2026 1,157,523 Thereafter 4,584,319 Total $ 10,349,821 NOTE
7—SELECTED ACCOUNT INFORMATION Receivables
at September 30, 2022 and December 31, 2021 consisted of the followin September 30, 2022 December 31, 2021 Trade accounts receivable $ 5,110,116 $ 2,691,702 Vendor rebates receivable 139,322 126,118 Credit card payments in process of settlement - 116,187 Retainage 445,580 803,989 Total receivables 5,695,018 3,737,996 Allowance for doubtful
accounts ( 359,000 ) ( 359,000 ) Total receivables, net $ 5,336,018 $ 3,378,996 Inventories
at September 30, 2022 and December 31, 2021 consisted of the followin September 30, 2022 December 31, 2021 Appliances $ 2,146,254 $ 2,206,336 Automotive 1,248,947 2,064,834 Construction 1,749,250 1,543,980 Total inventories 5,144,451 5,815,150 Less reserve for obsolescence ( 387,848 ) ( 387,848 ) Total inventories, net $ 4,756,603 $ 5,427,302 Inventory
balances are composed of finished goods. Raw materials and work in process inventory are immaterial to the condensed consolidated financial

adoption is permitted. The Company adopted this guidance on January 1, 2022. The Company’s adoption of this update did not have

a material impact on the condensed consolidated financial statements. 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 September 30, 2022, the Company had cash and cash equivalents of $ 1,584,499 . For the nine months ended September 30, 2022, the Company

incurred an operating loss of $ 1,096,364 (before deducting losses attributable to non-controlling interests), cash flows used in operations

of $ 3,977,286 , and working capital of $ 1,839,424 . 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 SEPTEMBER

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 nine months ended September 30, 2022 and 2021 are disaggregated as follows: Three

Months Ended September 30, 2022 Retail

and Appliances Construction Automotive Supplies Total Revenues Appliances $ 2,492,544 $ - $ - $ 2,492,544 Appliance accessories, parts,

and other 442,161 - - 442,161 Automotive horns - - 1,094,636 1,094,636 Automotive lighting - - 395,074 395,074 Custom cabinets and countertops - 2,990,767 - 2,990,767 Finished

carpentry - 7,057,179 - 7,057,179 Total Revenues $ 2,934,705 $ 10,047,946 $ 1,489,710 $ 14,472,361 Three

Months Ended September 30, 2021 Retail

and Appliances Construction Automotive Supplies Total Revenues Appliances $ 2,745,305 $ - $ - $ 2,745,305 Appliance accessories, parts,

and other 400,650 - - 400,650 Automotive horns - 1,694,928 1,694,928 Automotive lighting - - 555,717 555,717 Custom cabinets and countertops - 1,338,428 - 1,338,428 Finished

carpentry - - - - Total Revenues $ 3,145,955 $ 1,338,428 $ 2,250,645 $ 6,735,028 9 1847

HOLDINGS LLC NOTES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER

30, 2022 (UNAUDITED) Nine

Months Ended September 30, 2022 Retail

and Appliances Construction Automotive Supplies Total Revenues Appliances $ 7,206,386 $ - $ - $ 7,206,386 Appliance accessories, parts,

and other 1,116,114 - - 1,116,114 Automotive horns - - 3,766,415 3,766,415 Automotive lighting - - 1,348,340 1,348,340 Custom cabinets and countertops - 10,288,711 - 10,288,711 Finished

carpentry - 15,711,516 - 15,711,516 Total Revenues $ 8,322,500 $ 26,000,227 $ 5,114,755 $ 39,437,482 Nine

Months Ended September 30, 2021 Retail

and Appliances Construction Automotive Supplies Total Revenues Appliances $ 8,587,939 $ - $ - $ 8,587,939 Appliance accessories, parts,

and other 1,175,000 - - 1,175,000 Automotive horns - - 3,326,835 3,326,835 Automotive lighting - - 904,178 904,178 Custom cabinets and countertops - 4,169,305 - 4,169,305 Finished

carpentry - - - - Total Revenues $ 9,762,939 $ 4,169,305 $ 4,231,013 $ 18,163,257 Segment information

for the three and nine months ended September 30, 2022 and 2021 is as follows: Three

Months Ended September 30, 2022 Retail

and Appliances Construction Automotive Supplies Corporate Services Total Revenues $ 2,934,705 $ 10,047,946 $ 1,489,710 $ - $ 14,472,361 Operating expenses Cost of sales 2,183,972 6,544,843 867,572 - 9,596,387 Personnel 202,443 2,406,195 277,398 296,250 3,182,286 Depreciation and amortization 48,019 416,525 51,870 - 516,414 General

and administrative 494,719 1,245,668 384,870 563,620 2,688,877 Total

Operating Expenses 2,929,153 10,613,231 1,581,710 859,870 15,983,964 Income (loss) from Operations $ 5,552 $ ( 565,285 ) $ ( 92,000 ) $ ( 859,870 ) $ ( 1,511,603 ) Three

Months Ended September 30, 2021 Retail

and Appliances Construction Automotive Supplies Corporate Services Total Revenues $ 3,145,955 $ 1,338,428 $ 2,250,645 $ - $ 6,735,028 Operating expenses Cost of sales 2,300,663 805,513 1,466,947 - 4,573,123 Personnel 196,592 273,366 407,034 - 876,992 Depreciation and amortization 47,104 83,112 169,260 - 299,476 General

and administrative 439,414 256,402 673,484 475,679 1,844,979 Total

Operating Expenses 2,983,774 1,418,393 2,716,724 475,679 7,594,570 Income (Loss) from Operations $ 162,182 $ ( 79,965 ) $ ( 466,080 ) $ ( 475,679 ) $ ( 859,542 ) 10 1847

HOLDINGS LLC NOTES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER

30, 2022 (UNAUDITED) Nine

Months Ended September 30, 2022 Retail

and Appliances Construction Automotive Supplies Corporate Services Total Revenues $ 8,322,500 $ 26,000,227 $ 5,114,755 $ - $ 39,437,482 Operating expenses Cost of sales 6,245,993 15,835,830 3,028,040 - 25,109,863 Personnel 587,073 4,715,419 847,403 296,250 6,446,145 Depreciation and amortization 175,835 1,195,314 155,610 - 1,526,759 General

and administrative 1,480,465 4,006,636 1,188,618 775,360 7,451,079 Total

Operating Expenses 8,489,366 25,753,199 5,219,671 1,071,610 40,533,846 Income (Loss) from Operations $ ( 166,866 ) $ 247,028 $ ( 104,916 ) $ ( 1,071,610 ) $ ( 1,096,364 ) Nine

Months Ended September 30, 2021 Retail

and Appliances Construction Automotive Supplies Corporate Services Total Revenues $ 9,762,939 $ 4,169,305 $ 4,231,013 $ - $ 18,163,257 Operating expenses - Cost of sales 7,409,913 2,280,009 2,658,672 - 12,348,594 Personnel 688,842 739,711 769,678 - 2,198,231 Depreciation and amortization 135,782 242,613 169,260 - 547,655 General

and administrative 1,270,655 705,674 1,570,070 973,105 4,519,504 Total

Operating Expenses 9,505,192 3,968,007 5,167,680 973,105 19,613,984 Income (Loss) from Operations $ 257,747 $ 201,298 $ ( 936,667 ) $ ( 973,105 ) $ ( 1,450,727 ) NOTE

5—PROPERTY AND EQUIPMENT Property

and equipment at September 30, 2022 and December 31, 2021 consisted of the followin September 30, 2022 December 31, 2021 Equipment and machinery $ 1,401,103 $ 808,592 Office furniture and equipment 156,544 105,203 Transportation equipment 911,426 864,121 Leasehold improvements 169,143 112,356 Total property and equipment 2,638,216 1,890,272 L Accumulated depreciation ( 588,720 ) ( 194,961 ) Property and equipment,

net $ 2,049,496 $ 1,695,311 Depreciation

expense for the three and nine months ended September 30, 2022 was $ 151,722 and $ 432,683 , respectively. Depreciation expense for the

three and nine months ended September 30, 2021 was $ 32,420 and $ 85,005 , respectively. NOTE

6—INTANGIBLE ASSETS Intangible

assets at September 30, 2022 and December 31, 2021 consisted of the followin September 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 ( 1,981,179 ) ( 887,103 ) Intangible assets, net $ 10,349,821 $ 11,443,897 11 1847

HOLDINGS LLC NOTES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER

30, 2022 (UNAUDITED) Amortization

expense for the three and nine months ended September 30, 2022 was $ 364,692 and $ 1,094,076 , respectively. Amortization expense for the

three and nine months ended September 30, 2021 was $ 267,057 and $ 462,651 , respectively. Estimated

amortization expense for intangible assets for the next five years consists of the following as of September 30, 2022: Year Ending

December 31, Amount 2022 – remaining $ 364,704 2023 1,458,780 2024 1,458,750 2025 1,325,745 2026 1,157,523 Thereafter 4,584,319 Total $ 10,349,821 NOTE

7—SELECTED ACCOUNT INFORMATION Receivables

at September 30, 2022 and December 31, 2021 consisted of the followin September 30, 2022 December 31, 2021 Trade accounts receivable $ 5,110,116 $ 2,691,702 Vendor rebates receivable 139,322 126,118 Credit card payments in process of settlement - 116,187 Retainage 445,580 803,989 Total receivables 5,695,018 3,737,996 Allowance for doubtful

accounts ( 359,000 ) ( 359,000 ) Total receivables, net $ 5,336,018 $ 3,378,996 Inventories

at September 30, 2022 and December 31, 2021 consisted of the followin September 30, 2022 December 31, 2021 Appliances $ 2,146,254 $ 2,206,336 Automotive 1,248,947 2,064,834 Construction 1,749,250 1,543,980 Total inventories 5,144,451 5,815,150 Less reserve for obsolescence ( 387,848 ) ( 387,848 ) Total inventories, net $ 4,756,603 $ 5,427,302 Inventory

balances are composed of finished goods. Raw materials and work in process inventory are immaterial to the condensed consolidated financial