UPDATE TWO: The Goshen Police Department reports officers responded to the Kohl's parking lot for a teen, later found to be an adult, who had displayed and pulled a gun from his waistband.

Police were also informed the suspect, later identified as Brett Smith, was possibly on drugs or intoxicated.

Upon arrival, officers located Smith and his passenger, Mikayla Lane, in a vehicle in the lot.

Police then conducted a search of the vehicle resulting in the discovery of one handgun in the small black purse in the front passenger seat.

The handgun was identified as a Bersa Thunder 380 Cal .380 and was later found to be reported stolen out of Arkansas.

The caller in this incident told police he had dropped his wife off to shop and parked away from other vehicles to eat his previously purchased food.

The caller stated he then witnessed Smith walking up to several vehicles before walking from behind his vehicle to the front of his vehicle 10 to 15 feet away.

The caller said Smith then pulled his hoodie up exposing a handgun. The caller said Smith then pulled the gun out but did not point it at him.

The caller then drove away from Smith.

When asked about the handgun, Lane said it was hers and she had no idea it had been stolen.

When confronted with the witness statement, Lane insisted Smith didn't have the gun and at one point stated, "He never pulled his gun out." She also denied there being any other gun.

The report also states Lane told police she had smoked marijuana earlier and when asked about the white substance located inside the purse, she said it was Xanax, which she didn't have a prescription for.

Police say Smith appeared to be intoxicated and that he had the odor of alcoholic beverage coming from him.

When searched, police located a brass .380 cal. bullet in his rear pants pocket.

Police then asked Smith if he did not know about the gun, why would he have a bullet in his pocket.

According to documents, Smith told police the marijuana found in the car was Lane's and his. He also informed police he had taken Xanax but also didn't have prescription.

Smith informed police he was so messed up that day, he didn’t remember getting the gun, according to the report.

Smith made it known to police he wasn't trying to use the gun against anyone.

When asked where he normally carries his handgun, he stated in his front waistband.

Smith added he didn't remember showing the gun to anyone but did say he got into an argument with someone walking out of a nearby store.

Smith said he didn't want to hurt anyone but feared his life.

Police later learned Smith had a felony conviction for resisting law enforcement and should not be carrying firearm.

UPDATE: GPD said both Smith and the 20-year-old woman, now identified as Mikayla Lane, were in the same vehicle when officers arrived on scene.

Police say Smith had drawn his gun in the Kohl's parking lot.

ORIGINAL STORY: GOSHEN, Ind. - The Goshen Police Department confirmed to ABC57 that 21-year-old Brett Smith was arrested Tuesday night after displaying a firearm at the Kohl's located at 3802 Midway Rd. around 7:37 p.m.

Smith was charged with Unlawful Carrying of a Firearm and drug charges.

Police say a 20-year-old woman was also arrested on drug-related charges.

We will update this story as more information becomes available.