NASHVILLE, TN - American Rebel Holdings, Inc. (NASDAQ: AREB), a company known for its safes, self-defense products, and recently introduced American Rebel Beer, disclosed that it received a delinquency notice from Nasdaq due to a delay in filing its quarterly financial report. The report for the quarter ending September 30, 2024, was not filed on time, which is a breach of Nasdaq's Listing Rules that require timely submission of periodic financial reports.
The notice, received on November 22, 2024, does not immediately affect the listing of American Rebel's securities on the Nasdaq exchange. The company has been provided until January 21, 2025, to present a plan to regain compliance. If the plan is accepted, Nasdaq may allow the company up to 180 days from the original filing due date, or until May 19, 2025, to file the overdue report and return to compliance.
The delay in filing was attributed to the dismissal of its former independent auditor, BF Borgers CPA PC, which is no longer permitted to practice before the Commission. American Rebel has since engaged a new auditor, GBQ Partners LLC, to complete reaudits of the financial statements for the years ended December 31, 2023, and 2022, as well as the review for the third quarter of 2024.
American Rebel stated that it is working diligently with its new auditors and advisors to file the Form 10-Q as soon as possible and intends to regain compliance by the deadline set by Nasdaq.
The company's transition into the beverage industry with the launch of American Rebel Beer marks a diversification of its business, which traditionally focused on manufacturing and marketing security-related products and apparel. American Rebel assures stakeholders of its commitment to meet the Nasdaq listing requirements and to fulfill its reporting obligations to the SEC.
This information is based on a press release statement from American Rebel Holdings, Inc.
In other recent news, American Rebel Holdings, Inc. has regained compliance with Nasdaq's minimum bid price requirement, following a successful 1-for-9 reverse stock split that reduced the number of outstanding shares from around 9.5 million to approximately 1.06 million. The company also secured a loan of $122,960 from 1800 Diagonal Lending, LLC, and issued 53,334 shares of preferred stock to a lender while selling 31,500 shares to two accredited investors, raising a total of $236,250.
Todd Porter has been appointed as the President of American Rebel Beverages, LLC, and Thomas Mihalek has taken over as the CEO of its subsidiary, Champion Safe Co., with GBQ Partners LLC serving as its independent auditors.
The company expects beer sales to reach around $1 million for 2024, with a significant increase anticipated in 2025. These are recent developments in American Rebel Holdings, Inc., which is also inviting investors to participate in its growth through a Reg A+ offering.
InvestingPro Insights
American Rebel Holdings' recent Nasdaq delinquency notice comes amid a challenging financial landscape for the company. According to InvestingPro data, AREB's market capitalization stands at a modest $2.57 million, reflecting its small-cap status. The company's revenue for the last twelve months as of Q2 2024 was $15.45 million, with a concerning revenue growth decline of 3.59% over the same period.
InvestingPro Tips highlight several areas of concern that align with the company's current filing difficulties. One tip notes that AREB "operates with a significant debt burden," which could be contributing to its financial reporting challenges. Additionally, the company is "quickly burning through cash," a factor that may be exacerbating its operational and compliance issues.
On a more positive note, analysts anticipate sales growth in the current year, which could provide some relief if realized. However, this optimism is tempered by the fact that AREB has "not been profitable over the last twelve months," with a negative operating income margin of 80.2% for the last twelve months as of Q2 2024.
The stock's performance has been notably weak, with InvestingPro data showing a 19.4% price decline over the past month and a substantial 52% drop over the last three months. This poor stock performance is consistent with the InvestingPro Tip indicating that the "stock has fared poorly over the last month."
For investors seeking a more comprehensive analysis, InvestingPro offers 16 additional tips for AREB, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.