Company: LIFD
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001096906-25-000346
Chunk: 1728

Company: LFTD PARTNERS INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 1728
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. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Goodwill – Refer to Note 2 to the financial statements.

Description of the Critical Audit Matter

The Company has goodwill resulting from the acquisition of Lifted Made which requires the Company to periodically evaluate for potential impairment by assessing whether the carrying value of the goodwill exceeds the fair value. Auditing management’s analysis includes tests that are complex and highly judgmental due to the estimation required to determine the fair value of the reporting unit. In particular, fair value estimates are sensitive to significant assumptions and factors such as expectations about future market and economic conditions, revenue growth rates, strategic plans, and historical operating results, among others.

How the Critical Account Matter Was Addressed in the Audit

Our principal audit procedures to evaluate management’s valuation of goodwill consistent of the following, among others:

 1.Obtain management’s quantitative analysis and assess the key indicators and analysis regarding discounted cash flows. 2.Assessed the reasonableness of the significant inputs, estimates, and assumptions utilized by management in its quantitative analysis.

Fruci & Associates II, PLLC – PCAOB ID #05525We have served as the Company’s auditor since 2018. Spokane, WashingtonMarch 31, 2025  

F-3Table of Contents

LFTD PARTNERS INC. AND SUBSIDIARY LIFTED LIQUIDS, INC.CONSOLIDATED BALANCE SHEETS(AUDITED)  December 31, 2024  December 31, 2023 ASSETS      Current Assets      Cash and Cash Equivalents $2,146,947  $4,357,539 Prepaid Expenses  1,598,654   2,509,961 Accounts Receivable, net of allowance of $853,329 in 2024 and $375,417 in 2023  2,358,823   3,586,176 Inventory  9,316,291   10,174,667 Income Tax Receivable  682,347   659,376 Current Portion of Settlement Asset and Receivables  460,500   378,597 Other Current Assets  364,443   2,