AMERICAN REBEL HOLDINGS INC Leases Disclosure

NOTE 15 – LEASES AND LEASED PREMISES

 

Rental Payments under Non-cancellable Operating Leases and Equipment Leases

 

The Company, through its purchase of Champion, acquired several long-term leases for two manufacturing facilities, three office spaces, five distribution centers, and five retail spaces. Four of its distribution centers also have retail operations for which it leases its facilities. Lease terms on the various spaces’ range from a month-to-month lease (30 days) to a long-term lease expiring in September of 2028. Of the acquired long-term leases the Company is no longer leasing four of the distribution centers and four of the retail spaces.

 

Rent expense for operating leases totaled approximately $180,000 and $469,000 for the years ended December 31, 2025 and 2024, respectively. These amounts are included in our consolidated statement of operations in Rental expense, warehousing, outlet expense and Administrative and other. Rental expense, warehousing, outlet expense is specific to warehousing and final manufacturing of our products.

 

The Company does not have any equipment leases whereby we finance this equipment needed for operations at competitive finance rates. New equipment to be financed in the near term, if necessary, may not be obtainable at competitive pricing with increasing interest rates.

 

Right of Use Assets and Lease Liabilities

 

Lease expense for operating leases consists of the lease payments plus any initial direct costs, net of lease incentives, and is recognized on a straight-line basis over the lease term.

 

The Company’s operating leases are comprised primarily of facility leases. and as such we have no finance leases for our vehicles or equipment currently at this time.

 

 

Balance sheet information related to our leases is presented below:

 SCHEDULE OF BALANCE SHEET INFORMATION RELATED TO LEASES   

		Balance Sheet location		December 31, 2025				December 31, 2024
Operating leases:
Right-of-use lease assets		Right-of-use operating lease assets		$	2,248,784			$	2,909,213
Right-of-use lease liability, current		Other current liabilities		$	797,447			$	661,857
Right-of-use lease liability, long-term		Right-of-use operating lease liability		$	1,475,523			$	2,372,190

 

As of December 31, 2025, weighted-average remaining lease term and discount rate were as follows:

 SCHEDULE OF WEIGHTED-AVERAGE REMAINING LEASE TERM AND DISCOUNT RATE   

		December 31, 2025
Weighted Average Remaining Lease Term:
Operating leases			2.90 years
Weighted Average Discount Rate:
Operating leases			12.00	%

 

The minimum future annual payments under non-cancellable leases during the next five years and thereafter, at rates now in force, are as follows:

 SCHEDULE OF FUTURE MINIMUM RENTAL PAYMENTS FOR OPERATING LEASE   

		-
		Operating leases
2026		$	1,016,618
2027			870,185
2028			520,241
2029			278,328
Total future minimum lease payments, undiscounted			2,685,372
Less: Imputed interest			(412,402	)
Present value of future minimum lease payments		$	2,272,970