Company: LIFD
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001096906-25-001862
Chunk: 148

Company: LFTD PARTNERS INC.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 2
Chunk 148
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106,739, respectively. In comparison, during the three and nine months ended September 30, 2024, the Company reported collaboration commission and royalty expense of $180,571 and $589,871, respectively. The change in collaboration commission and royalty expense primarily stems from decreased sales of the products covered by respective collaborations. Lifted has been de-emphasizing its collaboration efforts with outside brands due to the collaborations’ lack of traction in sales. Also, on or about April 28, 2025, Lifted and Cali Sweets, LLC (“Cali”) terminated the Manufacturing, Sales and Marketing Agreement (“Cali Agreement”). Under the Termination Agreement, Lifted and Cali mutually agreed to terminate the Cali Agreement and all agreements, obligations and responsibilities of the parties thereunder, as of January 1, 2025.

Other Operating Expenses

Other operating expenses include, for example, software expenses, travel, insurance expense, rent expense, repairs and maintenance, state license and filing fees, excise and sales tax expense, health benefits, warehouse and lab expenses below the Company’s capitalization threshold, and other expenses. Other operating expenses decreased to $442,570 during the quarter ended September 30, 2025, from $677,659 during the quarter ended September 30, 2024. In comparison, during the nine months ended September 30, 2025, other operating expenses decreased to $1,738,729 from $2,006,623 during the nine months ended September 30, 2024. The premiums of certain insurance policies that the Company has had in place have typically been based on the Company’s revenue; as such, these policies are costly for the Company. 

Other Income or Expenses

During the quarter ended September 30, 2025, total net non-operating Other Expenses of $441,977 primarily consisted of $358,072 of Loss From Inventory Theft. In July 2025, $335,460 worth of finished goods were stolen off of Lifted’s third-party shipper's truck just after leaving Lifted's co-packer's facility in Orange County, California. The thieves were apprehended by authorities, and Lifted filed an insurance claim with the shipping company's insurance company. Lifted’s co-packer credited Lifted $40,000. On November 6, 2025, Lifted executed a Property Damage-Liability Release with the insurance carrier of the shipping company, in exchange for the insurance company paying $