Company: LIFD
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001096906-25-000819
Chunk: 225

Company: LFTD PARTNERS INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 225
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, insurance and certain maintenance costs of the Aztec Lease. The Aztec Lease was accounted for as an operating lease. The Aztec Lease was terminated on May 7, 2024. Lease of Space Located at 789 Tech Center Drive, Unit C, Durango, Colorado 81301 On February 27, 2024, Lifted entered into a lease agreement with CR Properties, LLC, (“CR”) for office, manufacturing and warehouse space located at 789 Tech Center Drive, Unit C, Durango, Colorado 81301 (the “789 Tech Lease”).  The initial term of the 789 Tech Lease commenced on March 1, 2024, and will end on February 28, 2025 (“Initial Term”). After the Initial Term, Lifted and CR may renegotiate the lease.  Under the terms of the 789 Tech Lease, Lifted leases a total of approximately 2,205 square feet of space. During the Initial Term, Lifted shall pay CR base annual rent of $30,000, payable in equal monthly installments of $2,500. In addition, as part of the 789 Tech Lease, Lifted paid CR a $5,000 security deposit.  In addition to the base monthly rent, Lifted is also responsible for paying its proportionate share of real estate taxes and other operating costs. Since the Initial Term is twelve months, this lease is not recorded on the Consolidated Balance Sheet, and lease expense is recognized on a straight-line basis over the lease term. 

 F-59Table of Contents

 The Initial Term of the 789 Tech Lease ended on February 28, 2025. On February 28, 2025, Lifted signed an agreement to lease the space located at 789 Tech Center Drive, Unit C, Durango, Colorado 81301 on a month-to-month basis from March 1, 2025 until May 31, 2025.  As described in NOTE 14 – SUBSEQUENT EVENTS, Lifted has terminated the lease and will be vacating the space on or before May 1, 2025.  Third Party Facilities From time to time, the Company maintains inventory at third party facilities around the USA. Balance Sheet Classification of Operating Lease Assets and Liabilities Asset Balance Sheet Line March 31, 2025 Operating Lease Right-of-Use Asset, net of Right-of-Use Asset