Company: LIFD
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001096906-25-000346
Chunk: 1213

Company: LFTD PARTNERS INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 1213
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 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 

F-26Table of Contents

 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. The Finance Lease Right-of-Use Asset value was reduced to reflect the fixed purchase price agreed to under the Omnibus Agreement.  Pursuant to the Acceleration Agreement, Lifted