Company: LIFD
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001096906-25-000819
Chunk: 216

Company: LFTD PARTNERS INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 216
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 to benefit through his ownership of Landlord by Landlord’s receiving rent and eventually selling the 5511 Building to Lifted. Lifted constructed improvements to the 5511 Building including a clean room, and gradually moved into the 5511 Building over the course of the first quarter of 2021.  Under the terms of the “triple-net” Lease, starting on January 1, 2021, Lifted leased approximately 11,238 square feet at the 5511 Building at $6.13 per square foot per year in base rent ($68,888.94 in 2021), which was subject to a 2% increase in base rent each year, plus certain operating expenses and taxes. The Lease was to continue until midnight on the fifth anniversary date of the commencement date of the Lease. Lifted was to have the right to extend the original five year term of the Lease for one extension period of two years, commencing upon the expiration of the original term. Lifted and Landlord were required to execute an “Amendment of Extension” prior to six months before the expiration of the original term. Prior to Lifted’s purchase of the 5511 Building, the rent schedule was as follows: Rent Schedule Date Base Monthly Rent January 1, 2021 – December 31, 2021 $5,740.75 January 1, 2022 – December 31, 2022 $5,855.57 January 1, 2023 – December 31, 2023 $5,972.68 January 1, 2024 – December 31, 2024 $6,092.13 January 1, 2025 – December 31, 2025 $6,213.97  Under the terms of the Omnibus Agreement, Lifted was obligated to purchase the 5511 Building from Landlord on or before December 31, 2022 for a fixed purchase price of $1,375,000. As a result, as of December 31, 2021, the Company modified its methodology for accounting of this finance lease (the “Modification Date”), such that the only liability recognized as of December 31, 2021 was a current (within one year) liability, and there was no long-term liability recognized. An immaterial loss on lease modification of $1,446 was also recognized as of the Modification Date