Company: LIFD
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001096906-25-000346
Chunk: 2831

Company: LFTD PARTNERS INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 2831
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 of the closing of the Merger, which was April 28, 2024. The second installment of the Oculus Merger Consideration was calculated and paid out as follows: 

(1)Lifted’s CEO NWarrender, in consultation with LIFD’s President and CFO WJacobs, analyzed and made a written determination (the “Determination”) of the incremental pre-tax cash flow that NWarrender estimated that the hemp flower products division had generated for Lifted above and beyond the annual profits that previously had been generated for Lifted due to Lifted’s former business relationship with Oculus (the “Incremental Pre-Tax Profits”), after taking into account all relevant financial factors including but not limited to the purchase price of the Purchased Assets, the Merger Consideration, and all items of income, expense and investment directly and indirectly associated with Lifted’s hemp flower products division, which Determination will be final and legally binding on all of the parties; and  (2)Within five days following delivery of the Determination, Lifted paid Chase and Hagan Sanchez a second installment of Merger Consideration equal to five times the Incremental Pre-Tax Profits, provided that (a) 20% of such second installment of Merger Consideration was to be paid in the form of cash, (b) 80% of such second installment of Merger Consideration was to be paid in the form of unregistered shares of common stock of LIFD, which unregistered shares of common stock of LIFD was to be valued at $5 per share regardless of whether LIFD’s common stock is then trading at a price that is lower or higher than $5 per share, and (c) such second installment of Merger Consideration was subject to a minimum value of $1 million dollars (“Minimum Earnout Consideration”) and a maximum value of $6 million dollars (with the stock portion of the second installment of Merger Consideration having been valued at $5 per share under all circumstances).

On May 8, 2024, NWarrender, in consultation with WJacobs, made the Determination that the Incremental Pre-Tax Profits were zero dollars ($0). Consequently, the second installment of Merger Consideration consists of:

 (1)Two Hundred Thousand Dollars ($200,000) in cash; and (2)One Hundred Sixty Thousand (160,000) newly issued shares of unregistered LIFD Common Stock.

On May