American Rebel Holdings Files Q1 2024 10-Q

TL;DR

ARBH Q1 24 10-Q filed. Financials updated. Check balance sheet.

AI Summary

American Rebel Holdings Inc. filed its 10-Q for the period ending March 31, 2024. The company reported its financial position and results of operations. Key financial data points include common stock, preferred stock (Series A and B), and related party information as of March 31, 2024, and December 31, 2023.

Why It Matters

This filing provides investors with an update on American Rebel Holdings' financial health and operational status for the first quarter of 2024, crucial for investment decisions.

Risk Assessment

Risk Level: medium — The filing is a standard quarterly report, but the company's financial details and operational performance could indicate inherent risks.

Key Numbers

• 2024-03-31 — Reporting Date (Key date for financial reporting)
• 2023-12-31 — Prior Reporting Date (Comparison date for financial reporting)
• 2023-01-01 to 2023-03-31 — Prior Year Q1 Period (For comparison with current year's Q1 results)

Key Players & Entities

• AMERICAN REBEL HOLDINGS INC (company) — Filer
• 20240331 (date) — Reporting Period End Date
• 20240614 (date) — Filing Date
• 001-41267 (dollar_amount) — SEC File Number
• NV (company) — State of Incorporation
• Brentwood, TN (company) — Business Address City, State

FAQ

Filing Documents

• form10-q.htm (10-Q) — 1056KB
• ex10-29.htm (EX-10.29) — 72KB
• ex10-30.htm (EX-10.30) — 74KB
• ex31-1.htm (EX-31.1) — 11KB
• ex31-2.htm (EX-31.2) — 11KB
• ex32-1.htm (EX-32.1) — 9KB
• ex99-2.htm (EX-99.2) — 15KB
• ex99-3.htm (EX-99.3) — 20KB
• ex99-4.htm (EX-99.4) — 19KB
• 0001493152-24-023852.txt ( ) — 6546KB
• areb-20240331.xsd (EX-101.SCH) — 61KB
• areb-20240331_cal.xml (EX-101.CAL) — 58KB
• areb-20240331_def.xml (EX-101.DEF) — 243KB
• areb-20240331_lab.xml (EX-101.LAB) — 420KB
• areb-20240331_pre.xml (EX-101.PRE) — 330KB
• form10-q_htm.xml (XML) — 877KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 3 Item 1. Interim Condensed Consolidated Financial Statements (unaudited) 3 Condensed Consolidated Balance Sheets of American Rebel Holdings, Inc. at March 31, 2024 (unaudited) and December 31, 2023 (audited) 3 Condensed Consolidated Statements of Operations of American Rebel Holdings, Inc. for the three months ended March 31, 2024 and 2023 (unaudited) 4 Condensed Consolidated Statements of Stockholders Equity (Deficit) of American Rebel Holdings, Inc. for the three months ended March 31, 2024 and 2023 (unaudited) 5 Condensed Consolidated Statements of Cash Flows of American Rebel Holdings, Inc. for the three months ended March 31, 2024 and 2023 (unaudited) 6 Notes to the Condensed Financial Statements (unaudited) 7 Item 2.

Management's Discussion and Analysis

Management's Discussion and Analysis 28 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk. 39 Item 4.

Controls and Procedures

Controls and Procedures 39

OTHER INFORMATION

PART II. OTHER INFORMATION 39 Item 1.

Legal Proceedings

Legal Proceedings 39 Item 1A.

Risk Factors

Risk Factors 40 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 40 Item 3. Defaults upon Senior Securities 41 Item 4. Mine Safety Disclosure 41 Item 5. Other Information 41 Item 6. Exhibits 41

Signatures

Signatures 44 2 Part I. Financial Information Item 1.- Interim Condensed Consolidated Financial Statements (unaudited) AMERICAN REBEL HOLDINGS, INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS March 31, 2024 December 31, 2023 (audited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 674,893 $ 1,147,696 Accounts receivable 2,967,435 2,816,541 Prepaid expense 208,405 190,933 Inventory 6,510,731 5,787,993 Inventory deposits 315,084 315,083 Total Current Assets 10,676,548 10,258,246 Property and Equipment, net 335,108 360,495 OTHER ASSETS: Lease deposits and other 82,832 83,400 Right-of-use lease assets 1,618,449 1,946,567 Goodwill 2,000,000 2,000,000 Total Other Assets 3,701,281 4,029,967 TOTAL ASSETS $ 14,712,937 $ 14,648,708 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) CURRENT LIABILITIES: Accounts payable and other payables $ 2,459,045 $ 1,978,768 Accrued expenses 316,201 271,076 Loan – Officer – related party 396,507 45,332 Loans – Working capital 2,675,750 1,954,214 Line of credit 1,818,441 1,456,929 Right-of-use lease liabilities, current 785,672 1,039,081 Total Current Liabilities 8,451,616 6,745,400 Right-of-use lease liabilities, long-term 832,777 907,486 TOTAL LIABILITIES 9,284,393 7,652,886 STOCKHOLDERS' EQUITY (DEFICIT): Preferred stock, $ 0.001 par value; 10,000,000 shares authorized; 200,000 , and 200,000 issued and outstanding, respectively at March 31, 2024 and December 31, 2023 - - Series A Preferred Shares 125 125 Series B Preferred Shares 75 75 Preferred stock value 75 75 Common Stock, $ 0.001 par value; 600,000,000 shares authorized; 22,129,920 and 9,004,920 issued and outstanding, respectively at March 31, 2024 and December 31, 2023 22,130 9,005 Additional paid in capital 53,321,086 52,200,211 Accumulated deficit ( 47,914,872 ) ( 45,213,594 ) TOTAL STOCKHOLDERS' EQUITY (DEFICIT) 5,428,544 6,995,822

Notes to Financial Statements

Notes to Financial Statements. 3 AMERICAN REBEL HOLDINGS, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS For the three months ended March 31, 2024 For the three months ended March 31, 2023 Revenue $ 4,043,837 $ 4,402,099 Cost of goods sold 3,202,514 2,791,326 Gross margin 841,323 1,610,773 Expenses: Consulting/payroll and other costs 551,913 856,326 Compensation expense – officers – related party 212,500 88,273 Compensation expense – officers – deferred comp – related party 1,134,000 - Rental expense, warehousing, outlet expense 151,666 226,660 Product development costs 98,629 16,495 Marketing and brand development costs 265,055 252,725 Administrative and other 680,514 361,149 Depreciation and amortization expense 24,315 29,090 Total operating expenses 3,118,592 1,830,718 Operating income (loss) ( 2,277,269 ) ( 219,945 ) Other Income (Expense) Interest expense, net ( 423,859 ) ( 7,110 ) Interest income 512 - Gain/(loss) on sale of equipment ( 662 ) - Total Other Income (Expense) ( 424,009 ) ( 7,110 ) Net income (loss) before income tax provision ( 2,701,278 ) ( 227,055 ) Provision for income tax - - Net income (loss) $ ( 2,701,278 ) $ ( 227,055 ) Basic and diluted income (loss) per share $ ( 0.12 ) $ ( 0.34 ) Weighted average common shares outstanding - basic and diluted 22,129,200 677,200 See

Notes to Financial Statements

Notes to Financial Statements. 4 AMERICAN REBEL HOLDINGS, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY/(DEFICIT) Common Stock Common Stock Amount Preferred Stock Amount Additional Paid-in Capital Accumulated Deficit Total Balance – December 31, 2021 (audited) 677,221 $ 677 $ 175 $ 45,465,077 $ ( 34,112,810 ) $ ( 11,353,119 ) Net loss for the three months ending March 31, 2023 - - - - ( 227,055 ) ( 227,055 ) Balance – March 31, 2023 677,221 $ 677 $ 175 $ 45,465,077 $ ( 34,339,865 ) $ 11,126,064 Balance – December 31, 2023 (audited) 9,004,920 $ 9,005 $ 200 $ 52,200,211 $ ( 45,213,594 ) $ 6,995,822 Balance 9,004,920 $ 9,005 $ 200 $ 52,200,211 $ ( 45,213,594 ) $ 6,995,822 Vested shares reserved for through deferred compensation plan – one (1) related party 3,125,000 3,125 - ( 3,125 ) - - Vested shares reserved for through deferred compensation plan – two (2) related parties 10,000,000 10,000 - ( 10,000 ) - - Vested shares reserved for through deferred compensation plan 10,000,000 10,000 - ( 10,000 ) - - Compensation component of vested and non-vested common stock equivalents attributable to Series A preferred stock – three (3) related parties - - - 1,134,000 - 1,134,000 Net loss for the three months ending March 31, 2024 - - - - ( 2,701,278 ) ( 2,701,278 ) Balance – March 31, 2024 22,129,920 $ 22,130 $ 200 $ 53,321,086 $ ( 47,914,872 ) $ 5,428,544 Balance 22,129,920 $ 22,130 $ 200 $ 53,321,086 $ ( 47,914,872 ) $ 5,428,544 See

Notes to Financial Statements

Notes to Financial Statements. 5 AMERICAN REBEL HOLDINGS, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS For the three months ended March 31, 2024 For the three months ended March 31, 2023 CASH FLOW FROM OPERATING ACTIVITIES: Net income (loss) $ ( 2,701,278 ) $ ( 227,055 ) Depreciation and amortization 24,315 29,090 Loss on sale of equipment 662 - Recognition of deferred compensation attributable to convertibility of Series A preferred stock issued to three (3) related parties 1,134,000 - Adjustments to reconcile net loss to cash (used in) operating activities: Accounts receivable ( 150,894 ) ( 728,861 ) Prepaid expenses ( 17,304 ) 37,156 Inventory, deposits and other ( 722,738 ) ( 708,196 ) Accounts payable 480,276 ( 92,713 ) Accrued expenses 45,125 - Net Cash (Used in) Operating Activities ( 1,907,836 ) ( 1,690,579 ) CASH FLOW FROM INVESTING ACTIVITIES: Disposition/(purchase) of fixed assets, net 410 - Net Cash Provided by Investing Activities 410 - CASH FLOW FROM FINANCING ACTIVITIES: Proceeds from line of credit - 1,700,000 Proceeds from line of credit, net 361,512 - Proceeds from loans – officer - related party, net 351,575 101,000 Proceeds from working capital loans 1,600,000 - Principal payments on working capital loans ( 803,464 ) ( 1,197 ) Principal payment on loans – nonrelated parties ( 75,000 ) - Net Cash Provided by Financing Activities 1,434,623 1,799,803 CHANGE IN CASH ( 472,803 ) 109,224 CASH AT BEGINNING OF PERIOD 1,147,696 356,754 CASH AT END OF PERIOD $ 674,893 $ 465,978 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Cash paid for: Interest $ 134,573 $ 25,434 Income taxes $ - $ - Non-cash investing and financing activities: Notes payable principal increase from assessed interest obligations $ 165,000 $ - See

Notes to Financial Statements

Notes to Financial Statements. 6 AMERICAN REBEL HOLDINGS, INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2024 (unaudited) NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization The Company was incorporated on December 15, 2014 , under the laws of the State of Nevada, as CubeScape, Inc. Effective January 5, 2017, the Company amended its articles of incorporation and changed its name to American Rebel Holdings, Inc. On June 19, 2017, the Company completed a business combination with its majority stockholder, American Rebel, Inc. As a result, American Rebel, Inc. became a wholly-owned subsidiary of the Company. Nature of Operations The Company develops and sells branded products in the self-defense, safe storage and other patriotic product areas using a wholesale distribution network, utilizing personal appearances, musical venue performances, as well e-commerce and television. The Company's products are marketed under the American Rebel Brand and are proudly imprinted with such branding. Through its "Champion Entities" (which consists of Champion Safe Co., Inc., Superior Safe, LLC, Safe Guard Security Products, LLC, and Champion Safe De Mexico, S.A. de C.V.) the Company promotes and sells its safe and storage products through a growing network of dealers, in select regional retailers and local specialty safe, sporting goods, hunting and firearms retail outlets, as well as through online avenues, including website and e-commerce platforms. The Company sells its products under the Champion Safe Co., Superior Safe Company and Safe Guard Safe Co. brands as well as the American Rebel Brand. On August 9, 2023, the Company entered into a Master Brewing Agreement (the "Brewing Agreement") with Associated Brewing Company, a Minnesota limited liability company ("Associated Brewing"). Under the terms of the Brewing Agreement, Associated Brewing has been appointed as the exclusive producer and seller of Ameri

Financial Statements and Basis of Presentation

Financial Statements and Basis of Presentation The accompanying unaudited interim financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information, and with the rules and regulations of the SEC set forth in Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by the U.S. GAAP for complete financial statements. The unaudited interim financial statements furnished reflect all adjustments (consisting of normal recurring accruals) which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. Unaudited interim results are not necessarily indicative of the results for the full fiscal year. These financial statements should be read along with the Annual Report filed on Form 10-K of the Company for the period ended December 31, 2023, and notes thereto contained, filed on April 12, 2024. Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, American Rebel, Inc., American Rebel Beverages, LLC, and the Champion Entities. All significant intercompany accounts and transactions have been eliminated. Year-end The Company's year-end is December 31. 7 Cash and Cash Equivalents For the purpose of the statements of cash flows, all highly liquid investments with an original maturity of three months or less are considered to be cash equivalents. The carrying value of these investments approximates fair value. Inventory and Inventory Deposits Inventory consists of backpacks, jackets, safes, other storage products and accessories manufactured to our design and held for resale and are carried at the lower of cost (First-in, First-out Method) or net realizable value. The Company determines an estimate for the reserve of slow moving or ob

financial statements

financial statements. 10 Concentration Risks Prior to the closing of the Champion Entities in 2022, the Company purchased a substantial portion (over 20 %) of its inventory from two third-party vendors. With the closing of the Champion Entities, the Company no longer purchases a substantial portion (over 20 %) of its inventory from these third-party vendors. As of March 31, 2024 and December 3

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