Company: LIFD
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001096906-25-000819
Chunk: 243

Company: LFTD PARTNERS INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 243
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 Management Bonus Pool

There was no reported Company-Wide Management Bonus Pool expense during the quarter ended March 31, 2025. Similarly, during the quarter ended March 31, 2024, there was no reported Company-Wide Management Bonus Pool expense. During the year ended December 31, 2023, the Company expensed and paid $233,332 to certain members of the management team of Lifted; however, none of this $233,332 went to GJacobs, WJacobs or NWarrender, and it is accounted for as Company-Wide Management Bonus Pool expense on the Consolidated Statements of Operations. This $233,332, along with the $233,336 Company-Wide Management Bonus Pool expense paid to certain members of the management team of Lifted (again excluding GJacobs, WJacobs or NWarrender) in the fourth quarter of 2022 will be deducted from future company-wide management bonus pools on a dollar-for-dollar basis. 

Advertising and Marketing Expenses

During the quarter ended March 31, 2025, the Company incurred $415,572 in advertising and marketing expenses, which primarily related to marketing campaigns, trade shows, and promotional products. In comparison, during the quarter ended March 31, 2024, the Company incurred $176,660 in advertising and marketing expenses, which primarily related to marketing campaigns, trade shows, and promotional products. 

 7Table of Contents

Bad Debt Expense

The Company reported a benefit from bad debt expense of $403,869 during the quarter ended March 31, 2025, compared to $275,278 of bad debt expense reported during the quarter ended March 31, 2024.

As described in the Accounts Receivable section under NOTE 2 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES, bad debt expense stems from the change in the Company’s allowance for doubtful accounts, which stems from the Company’s CECL Model analysis. Although in the three months ended March 31, 2025 the Company reported a benefit from bad debt expense of $(403,869), the delay in Lifted’s receipt of payments from certain customers—primarily distributors—have increasingly become an issue for Lifted. Certain customers have become slower to pay Lifted for purchased product (“Slow Paying Customers”), and the Slow Paying Customers disregard payment terms. Management speculates that some Slow Paying Customers may be slow-paying Lifted because of their own sales collection issues, which may in part