Company: LIFD
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001096906-25-000346
Chunk: 1408

Company: LFTD PARTNERS INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 1408
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, promotional products and other marketing expenses. During the year ended December 31, 2024, the Company incurred $1,155,067 of advertising and marketing expenses. In comparison, during the years ended December 31, 2023, and 2022, the Company reported advertising and marketing expenses of $951,266 and $662,494, respectively.

Bad Debt Expense

Bad debt expense of $1,469,078 was recognized during the year ended December 31, 2024, compared to bad debt expense of $353,162 and $78,457 during the years ended December 31, 2023 and 2022, respectively. 

 102Table of Contents

As described in ITEM 1A. RISK FACTORS, the delay in Lifted’s receipt of payments from certain customers—primarily distributors—have increasingly become an issue for Lifted. Certain customers have become slower to pay Lifted for purchased product (“Slow Paying Customers”), and the Slow Paying Customers disregard payment terms. Management speculates that some Slow Paying Customers may be slow-paying Lifted because of their own sales collection issues, which may in part be caused by the regulatory uncertainty over our industry. As described in the Accounts Receivable section under NOTE 2 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES, the Company has an accounting protocol which effectively causes the Company to recognize an allowance for doubtful accounts for all invoices older than 90 days. Consequently, the delay in Lifted’s receipt of payments from certain customers has a direct impact on the Company’s net receivables, net income, and earnings per share.

Collaboration Commission and Royalty Expense

For the year ended December 31, 2024, the Company reported collaboration commission and royalty expense of $692,971. For the year ended December 31, 2023, the Company reported collaboration commission and royalty expense of $1,733,800. No collaboration commission and royalty expense was recognized in 2022.

Other Operating Expenses

Other operating expenses increased to $2,607,704 during the year ended December 31, 2024, up from $2,541,263 during the year ended December 31, 2023, and up from $1,884,209 during the year ended December 31, 2022. Other operating expenses include, for example, insurance expense, rent expense, repairs and maintenance, state license and filing fees, excise and sales tax expense,