American Rebel Holdings Reports 29% Revenue Decline and Increased Liabilities for Fiscal Year 2024

American Rebel Holdings, Inc. reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with revenues of $11.4 million, down 29% from $16 million in 2023. The company also experienced a gross margin loss of $119,637, contrasting sharply with a gross profit of $1.8 million the previous year. This downturn is attributed to slower sales driven by challenging market conditions. Operating expenses rose to $12.1 million, a 15% increase from $10.6 million in 2023, primarily due to higher marketing and administrative costs, as well as increased legal and professional fees related to ongoing audits and compliance issues.

In terms of strategic developments, American Rebel launched its American Rebel Light Beer in early 2024, following a Master Brewing Agreement with Associated Brewing. This new product line aims to diversify the company's offerings beyond its traditional safes and personal security products. Additionally, the company established American Rebel Beverages, LLC, a wholly-owned subsidiary to manage its alcohol-related operations. The company is also actively pursuing various financing options, including loans and equity offerings, to support its growth and operational needs.

Operationally, American Rebel's total liabilities surged to $17.6 million by the end of 2024, compared to $7.5 million in 2023, largely due to increased working capital loans and a line of credit with Bank of America. The company reported a working capital deficit of $8.9 million, a stark contrast to a surplus of $2.5 million the previous year. The increase in liabilities is indicative of the company's reliance on debt financing to sustain operations amid declining revenues. The company’s accumulated deficit reached $65.1 million, reflecting ongoing financial challenges.

Looking ahead, American Rebel Holdings faces substantial uncertainty regarding its ability to continue as a going concern, as indicated by its management. The company is actively working on a compliance plan to address its Nasdaq listing requirements, which have been jeopardized by its financial performance and failure to timely file certain reports. Management is optimistic about securing additional funding through various means, including potential capital raises and loans, but acknowledges the risks associated with its current financial situation and market conditions.

In summary, American Rebel Holdings, Inc. is navigating a challenging financial landscape marked by declining revenues, increased operational costs, and significant debt obligations. The company's strategic initiatives, including the launch of a new beverage line and efforts to secure additional financing, are critical to its future viability and growth prospects.