Company: LIFD
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001096906-25-000819
Chunk: 151

Company: LFTD PARTNERS INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 151
---
 products division had generated for Lifted above and beyond the annual profits that previously had been generated for Lifted due to Lifted’s former business relationship with Oculus (the “Incremental Pre-Tax Profits”), after taking into account all relevant financial factors including but not limited to the purchase price of the Purchased Assets, the Merger Consideration, and all items of income, expense and investment directly and indirectly associated with Lifted’s hemp flower products division, which Determination will be final and legally binding on all of the parties; and  (2)Within five days following delivery of the Determination, Lifted paid Chase and Hagan Sanchez a second installment of Merger Consideration equal to five times the Incremental Pre-Tax Profits, provided that (a) 20% of such second installment of Merger Consideration was to be paid in the form of cash, (b) 80% of such second installment of Merger Consideration was to be paid in the form of unregistered shares of common stock of LIFD, which unregistered shares of common stock of LIFD was to be valued at $5 per share regardless of whether LIFD’s common stock is then trading at a price that is lower or higher than $5 per share, and (c) such second installment of Merger Consideration was subject to a minimum value of $1 million dollars (“Minimum Earnout Consideration”) and a maximum value of $6 million dollars (with the stock portion of the second installment of Merger Consideration having been valued at $5 per share under all circumstances). 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. 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. 

 F-17Table of Contents

 Accounting for Lifted’s Purchase of Assets of Oculus CRS, LLC, and Merger With Oculus CHS Management Corp. Consideration Paid Pursuant to the Asset Purchase Agreement