Company: LIFD
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001096906-25-000819
Chunk: 110

Company: LFTD PARTNERS INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 110
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 in decreased sales or returns/exchanges of our products. However, the Company has been able to re-sell the returned products to other distributors, retailers and consumers. Nonetheless, in anticipation of the need to honor exchanges of these certain products, management records a credit note reserve and corresponding sales allowance for these types of products. 

As of March 31, 2025, we had inventory of $9,788,311; in comparison, as of December 31, 2024, we had inventory of $9,316,291. Total current assets as of March 31, 2025 of $17,415,176 were adequate for us to fund current operations.

As of March 31, 2025 and December 31, 2024, our other assets primarily included goodwill of $23,092,794, which was comprised of $22,292,767 of goodwill from the acquisition of Lifted on February 24, 2020, and $800,027 of goodwill from Lifted’s purchase of nearly all of the assets of Oculus CRS, LLC, and Lifted’s merger with Oculus CHS Management Corp. in April 2023.

Also, as of both March 31, 2025 and December 31, 2024, our other assets included our investments in Ablis, Bendistillery and Bend Spirits, which total $1,896,200. Net fixed assets as of March 31, 2025 and December 31, 2024 were $2,642,129 and $2,704,615, respectively.

In addition, as of both March 31, 2025 and December 31, 2024, our other assets also included restricted cash of $1,000,000. We are required by our Business Loan Agreement with Surety Bank to maintain a minimum depository balance of $1,000,000 with Surety Bank for the duration of our Business Loan. The Business Loan matures on December 14, 2028. 

As of March 31, 2025, current liabilities of $7,042,466 primarily consisted of accounts payable and accrued expenses of $5,426,907, deferred revenue of $766,215 and the current portion of the notes payable to Surety Bank of $573,114. In comparison, as of December 31, 2024, current liabilities of $6,084,011 primarily consisted of accounts payable and accrued expenses of $4,563,464, deferred