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

text stringlengths 0 1.95M
deposits ‒ The Company records customer deposits when payments are received in advance of the delivery of the merchandise. The
Company expects that substantially all of the customer deposits will be recognized within six months as the performance obligations
are satisfied. Construction
Segment The
Company’s construction segment revenues are derived primarily through contracts with customers whereby the Company specializes
in all aspects of products and services relating to finished carpentry, custom cabinetry, and countertops. The Company recognizes revenue
when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Company
expects to be entitled to in exchange for those goods or services. The Company accounts for a contract when it has approval and commitment
from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and
collectability of consideration is probable. F- 10 1847
HOLDINGS LLC NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS DECEMBER
31, 2022 AND 2021 A
contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance
obligation is satisfied. Since most contracts are bundled to include both material and installation services, the Company combines these
items into one performance obligation as the overall promise to transfer the individual goods or services is not separately identifiable
from other promises in the contract and, therefore, is not distinct. The Company does offer assurance-type warranties on certain of its
installed products and services that do not represent a separate performance obligation and, as such, do not impact the timing or extent
of revenue recognition. For
any contracts that are not complete at the reporting date, the Company recognizes revenue over time, because of the continuous transfer
of control to the customer as work is performed at the customer’s site and, therefore, the customer controls the asset as it is
being installed. The Company utilizes the output method to measure progress toward completion for the value of the goods and services
transferred to the customer as it believes this best depicts the transfer of control of assets to the customer. Additionally, external
factors such as weather, and customer delays may affect the progress of a project’s completion, and thus the timing and amount
of revenue recognition, cash flow, and profitability from a particular contract may be adversely affected. An
insignificant portion of sales, primarily retail sales, is accounted for on a point-in-time basis when the sale occurs. Sales taxes,
when incurred, are recorded as a liability and excluded from revenue on a net basis. Contracts
can be subject to modification to account for changes in contract specifications and requirements. The Company considers contract modifications
to exist when the modification either creates new, or changes the existing, enforceable rights and obligations. Most contract modifications
are for goods or services that are not distinct from the existing contract due to the significant integration service provided in the
context of the contract and are accounted for as if they were part of that existing contract. The effect of a contract modification on
the transaction price and the Company’s measure of progress for the performance obligation to which it relates, is recognized as
an adjustment to revenue on a cumulative catch-up basis. All
contracts are billed either contractually or as work is performed. Billing on long-term contracts occurs primarily on a monthly basis
throughout the contract period whereby the Company submits progress invoices for customer payment as work is performed. On some contracts,
the customer may withhold payment on an invoice equal to a percentage of the invoice amount, which will be subsequently paid after satisfactory
completion of each project. This amount is referred to as retainage and is common practice in the construction industry, as it allows
for customers to ensure the quality of the service performed prior to full payment. The retention provisions are not considered a significant
financing component. Cost
of revenues earned include all direct material and labor costs and those indirect costs related to contract performance. Contract
Assets and Contract Liabilities The
Company records a contract asset when it has satisfied its performance obligation prior to billing and a contract liability when a customer
payment is received prior to the satisfaction of the Company’s performance obligation. The difference between the beginning and
ending balances of contract assets and liabilities primarily results from the timing of the Company’s performance and the customer’s
payment. At times, the Company has a right to payment from previous performance that is conditional on something other than passage of
time, such as retainage, which is included in contract assets or contract liabilities, as determined on a contract-by-contract basis. Automotive
Supplies Segment The
Company’s automotive supplies segment 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.
Focused on the automotive and industrial after-market, the Company sells its products to big-box national retail chains, through specialty
and industrial distributors, as well as online/mail order retailers and original equipment manufacturers. The Company collects payment for internet and
phone orders, including tax, from the customer at the time the order is shipped. Customers placing orders with a purchase order through
the EDI (Electronic Data Interface) are allowed to purchase on credit and make payment after receipt of product on the agreed upon terms. F- 11 1847
HOLDINGS LLC NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS DECEMBER
31, 2022 AND 2021 Performance
Obligations – The revenue that the Company recognizes arises from orders it receives from contracts with customers. The Company’s
performance obligations under the customer orders correspond to each sale of merchandise that it makes to customers and each order generally
contains only one performance obligation based on the merchandise sale to be completed. Control of the delivery transfers to customers
when the customer can direct the use of, and obtain substantially all the benefits from, the Company’s products, which generally
occurs when the customer assumes the risk of loss. The transfer of control generally occurs at the point of shipment of the order. Once
this occurs, the Company has satisfied its performance obligation and it recognizes revenue. Transaction
Price ‒ The Company agrees with customers on the selling price of each transaction. This transaction price is generally based on
the agreed upon sales price. In the Company’s contracts with customers, it allocates the entire transaction price to the sales
price, which is the basis for the determination of the relative standalone selling price allocated to each performance obligation. Any
sales tax that the Company collects concurrently with revenue-producing activities are excluded from revenue. Cost
of revenues includes the cost of purchased merchandise plus freight, warehouse salaries, tariffs, and any applicable delivery charges from
the vendor to the Company. The Company had two major customers who represent a significant portion of revenue in the automotive segment.
These two customers represented 39.4 % of total revenue in the automotive segment for the year ended December 31, 2022. Warranties
vary and are typically 90 days to consumers and manufacturing defect warranty to are available to resellers. At times, depending on the
product, the Company can also offer a warranty up to 12 months. Receivables Receivables
consist of trade accounts receivable from customer, credit card transactions in the process of settlement, and vendor rebates receivable.
Vendor rebates receivable represent amounts due from manufactures from whom the Company purchases products. Rebates receivables are stated
at the amount that management expects to collect from manufacturers, net of accounts payable amounts due the vendor. Rebates are calculated
on product and model sales programs from specific vendors. The rebates are paid at intermittent periods either in cash or through issuance
of vendor credit memos, which can be applied against vendor accounts payable. Based on the Company’s assessment of the credit history
with its manufacturers, it has concluded that there should be no allowance for uncollectible accounts. The Company historically collects
substantially all of its outstanding rebates receivable. Retainage receivables represent the amount retained by customers to ensure
the quality of the installation and is received after satisfactory completion of each installation project. Management regularly reviews
aging of retainage receivables and changes in payment trends and records an allowance when collection of amounts due are considered
at risk. The allowance for doubtful accounts amounted to $ 359,000 for the years ended December 31, 2022 and 2021, respectively. Uncollectible
balances are expensed in the periods they are determined to be uncollectible. Inventory For
Asien’s, inventory mainly consists of appliances that are acquired for resale and is valued at the average cost determined on a
specific item basis. Inventory also consists of parts that are used in service and repairs and may or may not be charged to the customer
depending on warranty and contractual relationship. Kyle’s typically orders inventory on a job-by-job basis and those jobs are
put into production within hours of being received. Inventories consisting of materials and supplies are stated at lower of costs or
market. High Mountain and Innovative Cabinets’ inventory mainly consists of doors, door frames, baseboards, crown molding, cabinetry,
countertops, custom cabinets, closet shelving, and other related products. The Company values inventory at each balance sheet date to
ensure that it is carried at the lower of cost or net realizable value with cost determined based on the average cost basis. Wolo’s
inventory consists of finished goods acquired for resale and is valued at the weighted-average cost determined on a specific item basis.
The Company periodically evaluates the value of items in inventory and provides write-downs to inventory based on its estimate of market
conditions. The Company estimated an obsolescence allowance of $ 425,848 and $ 387,848 at December 31, 2022 and 2021, respectively. Property
and Equipment Property
and equipment is stated at historical cost less accumulated depreciation. Depreciation of furniture, vehicles and equipment is calculated
using the straight-line method over the estimated useful lives as follows: Useful Life (Years) Building and Improvements 2 - 5 Machinery and Equipment 3 - 7 Trucks and Vehicles 3 - 5 F- 12 1847
HOLDINGS LLC NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS DECEMBER
31, 2022 AND 2021 Goodwill Goodwill represents the excess of purchase price
over the fair value of the net assets acquired. The Company evaluates goodwill for impairment annually, on December 31, or more frequently
if an event occurs or circumstances that indicate the goodwill is not recoverable. When impairment indicators are identified, the Company

deposits ‒ The Company records customer deposits when payments are received in advance of the delivery of the merchandise. The

Company expects that substantially all of the customer deposits will be recognized within six months as the performance obligations

are satisfied. Construction

Segment The

Company’s construction segment revenues are derived primarily through contracts with customers whereby the Company specializes

in all aspects of products and services relating to finished carpentry, custom cabinetry, and countertops. The Company recognizes revenue

when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Company

expects to be entitled to in exchange for those goods or services. The Company accounts for a contract when it has approval and commitment

from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and

collectability of consideration is probable. F- 10 1847

HOLDINGS LLC NOTES

TO THE CONSOLIDATED FINANCIAL STATEMENTS DECEMBER

31, 2022 AND 2021 A

contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance

obligation is satisfied. Since most contracts are bundled to include both material and installation services, the Company combines these

items into one performance obligation as the overall promise to transfer the individual goods or services is not separately identifiable

from other promises in the contract and, therefore, is not distinct. The Company does offer assurance-type warranties on certain of its

installed products and services that do not represent a separate performance obligation and, as such, do not impact the timing or extent

of revenue recognition. For

any contracts that are not complete at the reporting date, the Company recognizes revenue over time, because of the continuous transfer

of control to the customer as work is performed at the customer’s site and, therefore, the customer controls the asset as it is

being installed. The Company utilizes the output method to measure progress toward completion for the value of the goods and services

transferred to the customer as it believes this best depicts the transfer of control of assets to the customer. Additionally, external

factors such as weather, and customer delays may affect the progress of a project’s completion, and thus the timing and amount

of revenue recognition, cash flow, and profitability from a particular contract may be adversely affected. An

insignificant portion of sales, primarily retail sales, is accounted for on a point-in-time basis when the sale occurs. Sales taxes,

when incurred, are recorded as a liability and excluded from revenue on a net basis. Contracts

can be subject to modification to account for changes in contract specifications and requirements. The Company considers contract modifications

to exist when the modification either creates new, or changes the existing, enforceable rights and obligations. Most contract modifications

are for goods or services that are not distinct from the existing contract due to the significant integration service provided in the

context of the contract and are accounted for as if they were part of that existing contract. The effect of a contract modification on

the transaction price and the Company’s measure of progress for the performance obligation to which it relates, is recognized as

an adjustment to revenue on a cumulative catch-up basis. All

contracts are billed either contractually or as work is performed. Billing on long-term contracts occurs primarily on a monthly basis

throughout the contract period whereby the Company submits progress invoices for customer payment as work is performed. On some contracts,

the customer may withhold payment on an invoice equal to a percentage of the invoice amount, which will be subsequently paid after satisfactory

completion of each project. This amount is referred to as retainage and is common practice in the construction industry, as it allows

for customers to ensure the quality of the service performed prior to full payment. The retention provisions are not considered a significant

financing component. Cost

of revenues earned include all direct material and labor costs and those indirect costs related to contract performance. Contract

Assets and Contract Liabilities The

Company records a contract asset when it has satisfied its performance obligation prior to billing and a contract liability when a customer

payment is received prior to the satisfaction of the Company’s performance obligation. The difference between the beginning and

ending balances of contract assets and liabilities primarily results from the timing of the Company’s performance and the customer’s

payment. At times, the Company has a right to payment from previous performance that is conditional on something other than passage of

time, such as retainage, which is included in contract assets or contract liabilities, as determined on a contract-by-contract basis. Automotive

Supplies Segment The

Company’s automotive supplies segment 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.

Focused on the automotive and industrial after-market, the Company sells its products to big-box national retail chains, through specialty

and industrial distributors, as well as online/mail order retailers and original equipment manufacturers. The Company collects payment for internet and

phone orders, including tax, from the customer at the time the order is shipped. Customers placing orders with a purchase order through

the EDI (Electronic Data Interface) are allowed to purchase on credit and make payment after receipt of product on the agreed upon terms. F- 11 1847

HOLDINGS LLC NOTES

TO THE CONSOLIDATED FINANCIAL STATEMENTS DECEMBER

31, 2022 AND 2021 Performance

Obligations – The revenue that the Company recognizes arises from orders it receives from contracts with customers. The Company’s

performance obligations under the customer orders correspond to each sale of merchandise that it makes to customers and each order generally

contains only one performance obligation based on the merchandise sale to be completed. Control of the delivery transfers to customers

when the customer can direct the use of, and obtain substantially all the benefits from, the Company’s products, which generally

occurs when the customer assumes the risk of loss. The transfer of control generally occurs at the point of shipment of the order. Once

this occurs, the Company has satisfied its performance obligation and it recognizes revenue. Transaction

Price ‒ The Company agrees with customers on the selling price of each transaction. This transaction price is generally based on

the agreed upon sales price. In the Company’s contracts with customers, it allocates the entire transaction price to the sales

price, which is the basis for the determination of the relative standalone selling price allocated to each performance obligation. Any

sales tax that the Company collects concurrently with revenue-producing activities are excluded from revenue. Cost

of revenues includes the cost of purchased merchandise plus freight, warehouse salaries, tariffs, and any applicable delivery charges from

the vendor to the Company. The Company had two major customers who represent a significant portion of revenue in the automotive segment.

These two customers represented 39.4 % of total revenue in the automotive segment for the year ended December 31, 2022. Warranties

vary and are typically 90 days to consumers and manufacturing defect warranty to are available to resellers. At times, depending on the

product, the Company can also offer a warranty up to 12 months. Receivables Receivables

consist of trade accounts receivable from customer, credit card transactions in the process of settlement, and vendor rebates receivable.

Vendor rebates receivable represent amounts due from manufactures from whom the Company purchases products. Rebates receivables are stated

at the amount that management expects to collect from manufacturers, net of accounts payable amounts due the vendor. Rebates are calculated

on product and model sales programs from specific vendors. The rebates are paid at intermittent periods either in cash or through issuance

of vendor credit memos, which can be applied against vendor accounts payable. Based on the Company’s assessment of the credit history

with its manufacturers, it has concluded that there should be no allowance for uncollectible accounts. The Company historically collects

substantially all of its outstanding rebates receivable. Retainage receivables represent the amount retained by customers to ensure

the quality of the installation and is received after satisfactory completion of each installation project. Management regularly reviews

aging of retainage receivables and changes in payment trends and records an allowance when collection of amounts due are considered

at risk. The allowance for doubtful accounts amounted to $ 359,000 for the years ended December 31, 2022 and 2021, respectively. Uncollectible

balances are expensed in the periods they are determined to be uncollectible. Inventory For

Asien’s, inventory mainly consists of appliances that are acquired for resale and is valued at the average cost determined on a

specific item basis. Inventory also consists of parts that are used in service and repairs and may or may not be charged to the customer

depending on warranty and contractual relationship. Kyle’s typically orders inventory on a job-by-job basis and those jobs are

put into production within hours of being received. Inventories consisting of materials and supplies are stated at lower of costs or

market. High Mountain and Innovative Cabinets’ inventory mainly consists of doors, door frames, baseboards, crown molding, cabinetry,

countertops, custom cabinets, closet shelving, and other related products. The Company values inventory at each balance sheet date to

ensure that it is carried at the lower of cost or net realizable value with cost determined based on the average cost basis. Wolo’s

inventory consists of finished goods acquired for resale and is valued at the weighted-average cost determined on a specific item basis.

The Company periodically evaluates the value of items in inventory and provides write-downs to inventory based on its estimate of market

conditions. The Company estimated an obsolescence allowance of $ 425,848 and $ 387,848 at December 31, 2022 and 2021, respectively. Property

and Equipment Property

and equipment is stated at historical cost less accumulated depreciation. Depreciation of furniture, vehicles and equipment is calculated

using the straight-line method over the estimated useful lives as follows: Useful Life (Years) Building and Improvements 2 - 5 Machinery and Equipment 3 - 7 Trucks and Vehicles 3 - 5 F- 12 1847

HOLDINGS LLC NOTES

TO THE CONSOLIDATED FINANCIAL STATEMENTS DECEMBER

31, 2022 AND 2021 Goodwill Goodwill represents the excess of purchase price

over the fair value of the net assets acquired. The Company evaluates goodwill for impairment annually, on December 31, or more frequently

if an event occurs or circumstances that indicate the goodwill is not recoverable. When impairment indicators are identified, the Company