Company: LIFD
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001096906-25-000346
Chunk: 2975

Company: LFTD PARTNERS INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 2975
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, as of both December 31, 2024 and December 31, 2023, our other assets also included restricted cash of $1,000,000. We are required by our Business Loan Agreement with Surety Bank to maintain a minimum depository balance of $1,000,000 with Surety Bank for the duration of our Business Loan. The Business Loan matures on December 14, 2028. 

As of December 31, 2024, current liabilities of $6,084,011 primarily consisted of accounts payable and accrued expenses of $4,563,464, the current portion of the notes payable to Surety Bank of $559,418, and deferred revenue of $674,676.

As of December 31, 2023, current liabilities of $8,686,744 primarily consisted of accounts payable and accrued expenses of $6,172,655, Minimum Earnout Consideration of $1,000,000 to be paid pursuant to the Oculus Merger Agreement ($200,000 in cash, and $800,000 in the form of 160,000 shares of common stock valued at $5.00 per share), collab commissions and royalties payable of $572,838, the current portion of the notes payable to Surety Bank of $506,061, and deferred revenue of $235,891. 

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.

 99Table of Contents

On May 13, 2024, the cash component of the second installment of Merger Consideration was paid, and the stock component of the second installment of Merger Consideration was issued.

In prior years, the Company’s payables have been greater than its cash on hand. Prior to the Company’s acquisition of Lifted, the Company had inconsistent income-generating ability and was therefore reliant on raising money from loans or stock sales.

The Company had an accumulated deficit of $3,967,708 and $2,096,780 as of December 31, 2024 and December 31, 2023, respectively.

Comparison of Operations During