Company: LIFD
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001096906-25-001332
Chunk: 103

Company: LFTD PARTNERS INC.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 103
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, 2025 and December 31, 2024

The following table summarizes our Company’s current assets, current liabilities and working capital as of June 30, 2025 and December 31, 2024.

  June 30, 2025  December 31, 2024 Current Assets $17,875,184  $16,928,005 Current Liabilities  7,600,570   6,084,011 Working Capital  10,274,615   10,843,994 

As of June 30, 2025, we had cash and restricted cash of $3,116,052; in comparison, as of December 31, 2024, we had cash and restricted cash of $3,146,947.

As of June 30, 2025, we reported prepaid expenses of $867,046, primarily consisting of prepaid inventory of $789,819. In comparison, as of December 31, 2024, we reported prepaid expenses of $1,598,654, primarily consisting of prepaid inventory of $1,470,957. 

Accounts receivable of $4,007,602, net of $1,138,498 allowance for doubtful accounts, were outstanding as of June 30, 2025. In comparison, accounts receivable of $2,358,823, net of $853,329 allowance for doubtful accounts, were outstanding as of December 31, 2024.

The Company evaluates the collectability of its trade accounts receivable based on a number of factors. Management of the Company reviews and discusses all outstanding customer trade balances as of reporting period end. In circumstances where the Company becomes aware of a specific customer’s inability to meet its financial obligations to the Company, a specific reserve for bad debts is estimated and recorded (the “Allowance for Doubtful Accounts”), which reduces the recognized receivable to the estimated amount the Company believes will ultimately be collected. Management also considers industry-specific factors which may impact customers’ ability to meet their financial obligations to the Company.

In addition to specific customer identification of potential bad debts, management takes into consideration Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments – Credit Losses, which is codified as Accounting Standards Codification Topic 326, adds to US GAAP the current expected credit loss model (“CECL Model”), which is a measurement model based on expected losses rather than incurred losses.