Company: LIFD
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001096906-25-000346
Chunk: 1048

Company: LFTD PARTNERS INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 16
Chunk 1048
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, total deferred revenue was $594,086, all of which was recognized as revenue in 2023. 

F-14Table of Contents

The table shown below represents the composition of deferred revenue between contract assets (invoiced but unfulfilled performance obligations) and deposits from customers from unfulfilled orders as of December 31, 2024 and December 31, 2023.   December 31, 2024  December 31, 2023 Contract Assets (invoiced but unfulfilled performance obligations) $340,585  $131,304          Deposits from customers for unfulfilled orders  334,091   104,586          Total Deferred Revenue $674,676  $235,891    Cost of Goods Sold – Cost of goods sold primarily consist of the costs of raw goods utilized in the manufacture of products, direct labor, co-packing fees, freight and shipping charges, and certain quality control costs, such as lab testing costs. Cost of goods sold amounted to $24,570,399, $31,906,278 and $36,423,246 during the years ended December 31, 2024, 2023, and 2022, respectively. $1,550,599, $2,056,603 and $4,418,922 of cost of goods sold relates to spoiled and obsolete inventory written off during the years ended December 31, 2024, 2023 and 2022, respectively.  Operating Expenses – Operating expenses include accounts such as payroll expenses, deferred stock compensation expense, the company-wide management bonus pool, management bonuses, professional fees, bank charges and merchant fees, advertising and marketing, bad debt expense, depreciation and amortization, collaboration commissions and royalties expense, and other operating expenses.  Total operating expenses increased to $13,528,293 for the year ended December 31, 2024, up from $17,294,095 for the year ended December 31, 2023, and up from $11,180,562 for the year ended December 31, 2022.  The primary driver for this increase in operating expenses from 2023 to 2024 was $1,469,078 of bad debt expense, which stems from the Company’s CECL Model analysis, which is described above, in the Accounts Receivable section.  As described in ITEM 1A. R