1847 has substantial Federal NOLs that were predominately amassed from the legacy business of Fremont General and do not begin to expire until 2027. These NOLs may provide benefits to the Company as well as the businesses that are acquired. Management is focused to ensure the NOLs are preserved and available in future periods.

General Characteristics

  • 1847 has no Section 382 limitation on annual usage of its Federal NOLs
  • There are no restrictions with regard to line of business
  • 1847 has bylaws in place that prohibit stockholders from accumulating more than a 5% interest, without Company approval
  • 1847 has the ability to issue a substantial number of additional shares without jeopardizing NOLs
  • The Company may use rights offerings to raise capital from existing stockholders to minimize any potential ownership shift issues