Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Jun. 20, 2014 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | '1847 Holdings LLC | ' |
Entity Central Index Key | '0001599407 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 1,028,000 |
Document Fiscal Period Focus | 'Q1 | ' |
Document Fiscal Year Focus | '2014 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Current Assets: | ' | ' |
Accounts receivable | $25,000 | $12,500 |
Prepaid financing costs | 15,000 | 15,000 |
Other assets | 369 | 369 |
TOTAL CURRENT ASSETS | 40,369 | 27,869 |
INVESTMENTS | 6 | 6 |
TOTAL ASSETS | 40,375 | 27,875 |
CURRENT LIABILITIES | ' | ' |
Accounts payable and accrued expenses | 37,993 | 23,468 |
Advances, related party | 15,444 | 15,075 |
TOTAL LIABILITIES | 53,437 | 38,543 |
SHAREHOLDERS' DEFICIT | ' | ' |
Allocation shares, 1,000 shares issued and outstanding | 1,000 | 1,000 |
Common Shares: 50,000,000 shares authorized, 1,025,000 shares issued and outstanding as of March 31, 2014 and December 31, 2013, respectively | 15,006 | 15,006 |
Deficit accumulated during development stage | -29,068 | -26,674 |
TOTAL SHAREHOLDERS' DEFICIT | -13,062 | -10,668 |
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT | $40,375 | $27,875 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) | Mar. 31, 2014 | Dec. 31, 2013 |
SHAREHOLDERS' DEFICIT | ' | ' |
Allocation shares, issued | 1,000 | 1,000 |
Allocation shares, outstanding | 1,000 | 1,000 |
Common shares, authorized | 50,000,000 | 50,000,000 |
Common shares, issued | 1,025,000 | 1,025,000 |
Common shares, outstanding | 1,025,000 | 1,025,000 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) (USD $) | 2 Months Ended | 3 Months Ended | 15 Months Ended |
Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | |
Condensed Consolidated Statement Of Operations | ' | ' | ' |
REVENUES | ' | $43,750 | $87,500 |
OPERATING EXPENSES | ' | ' | ' |
General and administrative | 246 | 44,119 | 89,075 |
Professional fees | 7,000 | 2,025 | 27,493 |
TOTAL OPERATING EXPENSES | 7,246 | 46,144 | 116,568 |
NET LOSS FROM OPERATIONS | -7,246 | -2,394 | -29,068 |
PROVISION FOR INCOME TAXES | ' | ' | ' |
NET LOSS | ($7,246) | ($2,394) | ($29,068) |
Net Loss Per Share: Basic and diluted | $0 | $0 | ' |
Weighted-average number of common shares outstanding: Basic and diluted | ' | 1,025,000 | ' |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) (USD $) | 2 Months Ended | 3 Months Ended | 15 Months Ended |
Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | |
OPERATING ACTIVITIES | ' | ' | ' |
Net loss | ($7,246) | ($2,394) | ($29,068) |
Changes in operating assets and liabilities: | ' | ' | ' |
Increase accounts receivable | ' | -12,500 | -25,000 |
Increase in other assets | -369 | ' | -369 |
Increase (decrease) in accrued expenses | 6,000 | 14,525 | 37,993 |
Net cash used in operating activities | -1,615 | -369 | -16,444 |
INVESTING ACTIVITIES | ' | ' | ' |
Investments | ' | ' | ' |
Net cash (used) by investing activities | ' | ' | ' |
FINANCING ACTIVITIES | ' | ' | ' |
Proceeds from allocation shares | 1,000 | ' | 1,000 |
Loans from director | 615 | 369 | 15,444 |
Net cash (used) by financing activities | 1,615 | 369 | 16,444 |
NET INCREASE (DECREASE) IN CASH | ' | ' | ' |
CASH | ' | ' | ' |
Beginning of period | ' | ' | ' |
End of period | ' | ' | ' |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ' | ' | ' |
Interest paid | ' | ' | ' |
Income taxes paid | ' | ' | ' |
Non-cash investing activity: | ' | ' | ' |
Acquisition of investments in exchange for common shares | ' | ' | 6 |
Share based compensation - prepaid financing costs | ' | ' | $15,000 |
ORGANIZATION_AND_NATURE_OF_BUS
ORGANIZATION AND NATURE OF BUSINESS | 3 Months Ended |
Mar. 31, 2014 | |
Organization And Nature Of Business | ' |
NOTE 1 - ORGANIZATION AND NATURE OF BUSINESS | ' |
1847 Holdings LLC was formed under the laws of the State of Delaware on January 22, 2013. We are a development stage company in a business to acquire small to medium size businesses in a variety of different industries. | |
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, 1847 Management Services, Inc. All significant intercompany balances and transactions have been eliminated in consolidation. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2014 | |
Summary Of Significant Accounting Policies | ' |
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
Development Stage Company | |
The accompanying financial statements have been prepared in accordance with generally accepted accounting principles related to development stage companies. A development-stage company is one in which planned principal operations have not commenced or if its operations have commenced, there has been no significant revenues there from. | |
Basis of Presentation | |
The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars. | |
Accounting Basis | |
The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP” accounting). The Company has adopted a calendar year end. | |
Cash and Cash Equivalents | |
The Company considers all highly liquid investments with the original maturities of three months or less to be cash equivalents. The Company had no cash as of March 31, 2014. | |
Fair Value of Financial Instruments | |
The Company’s financial instruments consist of cash and cash equivalents and amounts due to shareholder. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements. | |
Income Taxes | |
Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. | |
Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | |
Revenue Recognition | |
Revenue will be recognized when it is realized or realizable and earned. Specifically, revenue will be recognized when all of the following criteria are met: (1) Persuasive evidence of an arrangement exists; (2) Service has occurred, customer acceptance has been achieved; (3) Our selling price to the buyer is fixed and determinable; and (4) Collection is reasonably assured. The Company recognizes revenue when services have been provided and collection is reasonably assured. | |
Share-Based Compensation | |
Share-based compensation is accounted for at fair value in accordance with ASC Topic 718. To date, the Company has not adopted a share option plan and has not granted any share options. | |
Basic Income (Loss) Per Share | |
Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of March 31, 2014. | |
Comprehensive Income | |
The Company has established standards for reporting and display of comprehensive income, its components and accumulated balances. When applicable, the Company would disclose this information on its Statement of Stockholders’ Equity. Comprehensive income comprises equity except those resulting from investments by owners and distributions to owners. The Company has not had any significant transactions that are required to be reported in other comprehensive income. | |
Recent Accounting Pronouncements | |
1847 Holdings LLC does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flow. | |
GOING_CONCERN
GOING CONCERN | 3 Months Ended |
Mar. 31, 2014 | |
Going Concern | ' |
NOTE 3 - GOING CONCERN | ' |
The accompanying consolidated financial statements have been prepared in conformity with generally accepted accounting principle, which contemplate continuation of the Company as a going concern. The Company currently has limited working capital, and has not completed its efforts to establish a stabilized source of revenues sufficient to cover operating costs over an extended period of time. | |
Management anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses. The Company intends to position itself so that it may be able to raise additional funds through the capital markets. In light of management’s efforts, there are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going concern. | |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Mar. 31, 2014 | |
Investments | ' |
NOTE 4 - INVESTMENTS | ' |
On September 15, 2013, 1847 Management Services, Inc., the Company's wholly owned subsidiary, acquired a 50% interest in each of PPI Management Group, LLC and Christals Management LLC from our Chief Executive Officer and controlling shareholder, Ellery W. Roberts. In connection with the acquisition of such equity interests from Mr. Roberts, we issued to Mr. Roberts 875,000 of our common shares pursuant to a securities purchase agreement. | |
RELATED_PARTIES
RELATED PARTIES | 3 Months Ended |
Mar. 31, 2014 | |
Related Parties | ' |
NOTE 5 - RELATED PARTIES | ' |
Management Services Agreement | |
The company and our manager have entered into a management services agreement on April 15, 2013, pursuant to which we are required to pay our manager a quarterly management fee equal to 0.5% (2.0% annualized) of our company’s adjusted net assets for services performed. On September 15, 2013, we entered into an amendment to our management services agreement that provides that in lieu of paying a quarterly management fee under the management services agreement based upon the adjusted net assets of our management consulting business, we will pay our manager a flat quarterly fee equal to $43,750. This amendment only applies to our management consulting business and will not apply to any businesses that we acquire in the future. | |
Advances | |
From time to time, the Company has received advances from certain of its officers and related parties to meet short term working capital needs. For the period ended March 31, 2014 and December 31, 2013, a total of $15,444 and $15,075 advances from related parties is outstanding. These advances are unsecured, bear no interest, and do not have formal repayment terms or arrangements. | |
EQUITY
EQUITY | 3 Months Ended | |
Mar. 31, 2014 | ||
Equity | ' | |
NOTE 6 - EQUITY | ' | |
Allocation shares | ||
As of March 31, 2014 and December 31, 2013, the Company has designated 1,000 shares of Allocation Shares, these shares have all the voting rights, of which 1,000 shares of Allocation Shares are issued and outstanding. | ||
Our manager owns 100% of the allocation shares of our company, which are a separate class of limited liability company interests that, together with the common shares, will comprise all of the classes of equity interests of our company. Our manager received the allocation shares with its initial capitalization of our company. The allocation shares generally will entitle our manager to receive a 20% profit allocation as a form of incentive designed to align the interests of our manager with those of our shareholders. Profit allocation has two components: an equity-based component and a distribution-based component. The equity-based component will be paid when the market for our shares appreciates, subject to certain conditions and adjustments. The distribution-based component will be paid when the distributions we pay to our shareholders exceed an annual hurdle rate of 8.0%, subject to certain conditions and adjustments. While the equity-based component and distribution-based component are interrelated in certain respects, each component may independently result in a payment of profit allocation if the relevant conditions to payment are satisfied. | ||
The 1,000 allocation shares are issued and outstanding and held by our manager, which is controlled by Mr. Roberts, our chief executive officer and controlling shareholder. | ||
Common shares | ||
The Company has authorized 50,000,000 Common Shares, these shares have no voting rights. As of March 31, 2014 and December 31, 2013, the Company had 1,025,000 of Common Shares issued and outstanding. | ||
There were no common shares issued during the period ended March 31, 2014. | ||
During the period ended December 31, 2013, the Company issued the following equity securities: | ||
· | In September 2013, the Company entered into securities purchase agreements, pursuant to which the Company issued 875,000 shares of the Company’s Common Shares in exchange for a 50% interest in each of PPI Management Group, LLC and Christals Management LLC from our Chief Executive Officer and controlling shareholder, Ellery W. Roberts. | |
· | In September 2013, the Company issued 150,000 Common Shares for professional services. The Company recognized the fair market value of $15,000 as a deferred financing cost. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2014 | |
Commitments And Contingencies | ' |
NOTE 7 - COMMITMENTS AND CONTINGENCIES | ' |
The Company neither owns nor leases any real or personal property. An office space has been leased on a month by month basis. | |
The officers and directors are involved in other business activities and most likely will become involved in other business activities in the future. | |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Events | ' |
NOTE 8 - SUBSEQUENT EVENTS | ' |
In accordance with SFAS 165 (ASC 855-10) the Company has analyzed its operations subsequent to March 31, 2014 to the date these financial statements were issued, and has determined that it does not have any material subsequent events to disclose in these financial statements. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Summary Of Significant Accounting Policies Policies | ' |
Development Stage Company | ' |
The accompanying financial statements have been prepared in accordance with generally accepted accounting principles related to development stage companies. A development-stage company is one in which planned principal operations have not commenced or if its operations have commenced, there has been no significant revenues there from. | |
Basis of Presentation | ' |
The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars. | |
Accounting Basis | ' |
The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP” accounting). The Company has adopted a calendar year end. | |
Cash and cash equivalents | ' |
The Company considers all highly liquid investments with the original maturities of three months or less to be cash equivalents. The Company had no cash as of March 31, 2014. | |
Fair Value of Financial Instruments | ' |
The Company’s financial instruments consist of cash and cash equivalents and amounts due to shareholder. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements. | |
Income Taxes | ' |
Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. | |
Use of Estimates | ' |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | |
Revenue Recognition | ' |
Revenue will be recognized when it is realized or realizable and earned. Specifically, revenue will be recognized when all of the following criteria are met: (1) Persuasive evidence of an arrangement exists; (2) Service has occurred, customer acceptance has been achieved; (3) Our selling price to the buyer is fixed and determinable; and (4) Collection is reasonably assured. The Company recognizes revenue when services have been provided and collection is reasonably assured. | |
Share-Based Compensation | ' |
Share-based compensation is accounted for at fair value in accordance with ASC Topic 718. To date, the Company has not adopted a share option plan and has not granted any share options. | |
Basic Income (Loss) Per Share | ' |
Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of March 31, 2014. | |
Comprehensive Income | ' |
The Company has established standards for reporting and display of comprehensive income, its components and accumulated balances. When applicable, the Company would disclose this information on its Statement of Stockholders’ Equity. Comprehensive income comprises equity except those resulting from investments by owners and distributions to owners. The Company has not had any significant transactions that are required to be reported in other comprehensive income. | |
Recent Accounting Pronouncements | ' |
1847 Holdings LLC does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flow. |
RELATED_PARTIES_Details_Narrat
RELATED PARTIES (Details Narrative) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Related Parties Details Narrative | ' | ' |
Advances, related party | $15,444 | $15,075 |
EQUITY_Details_Narrative
EQUITY (Details Narrative) | Mar. 31, 2014 | Dec. 31, 2013 |
Equity Details Narrative | ' | ' |
Allocation shares, issued | 1,000 | 1,000 |
Allocation shares, outstanding | 1,000 | 1,000 |
Common shares, authorized | 50,000,000 | 50,000,000 |
Common shares, issued | 1,025,000 | 1,025,000 |
Common shares, outstanding | 1,025,000 | 1,025,000 |