Company: LIFD
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001096906-25-001332
Chunk: 106

Company: LFTD PARTNERS INC.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 106
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000 with Surety Bank for the duration of our Business Loan. The Business Loan matures on December 14, 2028.

As of June 30, 2025, current liabilities of $7,600,570 primarily consisted of accounts payable and accrued expenses of $5,083,339, deferred revenue of $1,666,672 and the current portion of the notes payable to Surety Bank of $587,454. In comparison, as of December 31, 2024, current liabilities of $6,084,011 primarily consisted of accounts payable and accrued expenses of $4,563,464, deferred revenue of $674,676 and the current portion of the notes payable to Surety Bank of $559,418. Deferred revenue was significantly higher at June 30, 2025 than at December 31, 2024 primarily due to shipment delays. Accounts payable and accrued expenses increased from December 31, 2024 to June 30, 2025 primarily due to increased payables to certain suppliers.

The second installment of the Oculus CHS Management Corp. merger consideration was paid by Lifted to Chase and Hagan Sanchez following the first anniversary of the closing of the merger, which was April 28, 2024. 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.

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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.

On April 1, 2025, the Company converted $350,000 of its cash into USD Coin (USDC), a digital stablecoin pegged to the U.S. dollar. Shortly thereafter, the digital wallet containing the USDC was compromised by an unauthorized and unknown third party, resulting in the theft of the full amount. The Company promptly reported the incident to the U.S. Federal Bureau of Investigation and continues to cooperate fully in the ongoing investigation. The Company's outside law firm is also advising the Company regarding the matter. At this time, the Company is doubtful whether any of the stolen funds will be recovered. On April 22, 2025, the Company borrowed $350,000 from Beachin Company, an affiliate of the Company’s CEO and CFO (the “Related Party Note