Company: LIFD
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001096906-25-000819
Chunk: 114

Company: LFTD PARTNERS INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 114
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 the Company’s net receivables, net income, and earnings per share.

Collaboration Commission and Royalty Expense

For the quarter ended March 31, 2025, the Company reported collaboration commission and royalty expense of $67,098. In comparison, for the quarter ended March 31, 2024, the Company reported collaboration commission and royalty expense of $170,915.  

Other Operating Expenses

Other Operating Expenses decreased to $651,331 during the quarter ended March 31, 2025, from $684,169 during the quarter ended March 31, 2024. Other operating expenses include, for example, insurance expense, rent expense, repairs and maintenance, state license and filing fees, excise and sales tax expense, health and dental expenses, warehouse and lab expenses below the Company’s capitalization threshold, and other expenses. The premiums of certain insurance policies that the Company has had in place have typically been based on the Company’s revenue; as such, these policies are costly for the Company. 

Other Income or Expenses

Net Other Expenses decreased to $54,364 during the quarter ended March 31, 2025, from $1,416,622 during the quarter ended March 31, 2024. The decrease in Other Expenses was primarily driven by the $1,349,467 loss related to the termination of the Jeeter collaboration reported during the quarter ended March 31, 2024. 

Net Loss

Net Loss for the quarter ended March 31, 2025 was $303,042, compared to Net Loss for the quarter ended March 31, 2024 of $1,141,004.

The Business Loan requires that Borrower shall maintain a minimum 1.50x DSCR based on Borrower's annual corporate tax return. The DSCR shall be tested annually, beginning with the 2023 return. The DSCR shall be calculated as EBIDA (earnings before interest, depreciation, and amortization) divided by contractual annual debt service payments. Borrower met the DSCR requirement contained in the Business Loan for the year ended December 31, 2023. Surety Bank waived any claim of default based on Borrower’s 2024 DSCR.

 8Table of Contents

Off-Balance Sheet Arrangements 

As of reported period end, the Company does not have any off-balance-sheet arrangements that have, or are reasonably likely to have, a current or future effect on the results of operations or financial