American Rebel Holdings Reports 30% Revenue Decline in Q3 2024

American Rebel Holdings, Inc. reported a significant decline in financial performance for the third quarter of 2024, with revenues of $2.34 million, down 30% from $3.35 million in the same period last year. For the nine months ending September 30, 2024, total revenues were $9.64 million, a decrease of 16% compared to $11.42 million in the prior year. The company also experienced a gross margin loss of $498,000 for the quarter, contrasting sharply with a gross profit of $250,000 in Q3 2023. The net loss for the quarter was $1.75 million, or $0.67 per share, an improvement from a net loss of $2.79 million, or $0.95 per share, in the previous year.

The company's financial position has deteriorated, with total assets decreasing to $8.85 million from $11.55 million at the end of 2023. Current liabilities surged to $12.21 million, up from $6.87 million, resulting in a working capital deficit of $4.78 million as of September 30, 2024. This decline is attributed to increased operational costs and a slowdown in sales, particularly in the firearms-related market, which has faced challenges over the past year.

Strategically, American Rebel has made efforts to expand its product offerings, including the launch of American Rebel Light Beer, which is expected to contribute to revenue growth. The company has also focused on enhancing its marketing initiatives, particularly for its new beverage line. However, the operational expenses for the nine months ended September 30, 2024, rose to $7.64 million, compared to $7.25 million in the same period last year, driven by increased product development and marketing costs.

Operationally, American Rebel has faced challenges in managing its debt obligations, with significant interest expenses totaling $2.13 million for the nine months ended September 30, 2024, compared to $251,000 in the previous year. The company is currently negotiating with lenders to address defaults on several loans, including a $2 million line of credit with Bank of America. The company’s accumulated deficit has now reached $57.18 million, raising concerns about its ability to continue as a going concern without securing additional funding.

Looking ahead, American Rebel Holdings anticipates continued challenges in achieving profitability, with management indicating that additional capital will be necessary to support ongoing operations and product development. The company is exploring various financing options, including equity offerings and loans, but acknowledges the potential for significant dilution to existing shareholders. The outlook remains uncertain as the company navigates a competitive market landscape and seeks to stabilize its financial position.