Company: LIFD
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001096906-25-001332
Chunk: 94

Company: LFTD PARTNERS INC.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 94
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 annual rate of 9.5% and is evidenced by a credit agreement, promissory note, security agreement, collateral assignment agreement, and pledge agreement. The Working Capital Loan matures on December 14, 2028, and is subject to prepayment penalties declining from 3% to 1% over three years and includes restrictive covenants prohibiting, without lender consent, additional liens, changes in Lifted’s ownership, mergers, stock buybacks, and other actions. The Working Capital Loan is secured by all of the Company’s business personal property and intellectual property and includes a cross-default with the Building Loan. The Building Loan bears interest at a fixed annual rate of 10% and requires a minimum 1.50x debt service coverage ratio (waived for 2024), as well as maintaining a $1,000,000 minimum deposit balance with the lender for the life of the Building Loan, which matures on December 14, 2028. The Building Loan is secured by a mortgage on the 5511 Building, an assignment of rents and leases, and a security interest in related furniture, equipment, inventory and intangibles. Both loans contain late payment penalties and extensive cross-collateralization. As of June 30, 2025, the combined outstanding principal was approximately $3.08 million, and any default under these agreements could result in the lender seizing the pledged collateral, including equity in key subsidiaries, intellectual property, and real estate, which could have a catastrophic impact on the Company. The following presents the Working Capital Loan and Building Loan in the Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024:   June 30, 2025  December 31, 2024        Working Capital Loan $2,245,842  $2,509,838 Real Estate Loan  868,113   882,950 Total principal amount  3,113,955   3,392,788 Less: Unamortized debt financing costs  (38,482)  (43,997)Less: Current portion of Surety Bank notes  (587,454)  (559,418)Non-Current portion of Surety Bank notes $2,488,019  $2,789,372  The following represents aggregate payments due on the Working Capital and Building Loans as of June 30, 2025: