Company: LIFD
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001096906-25-001332
Chunk: 105

Company: LFTD PARTNERS INC.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 105
---
 of our products. However, the Company has been able to re-sell the returned products to other distributors, retailers and consumers. Nonetheless, in anticipation of the need to honor exchanges of these certain products, management records a credit note reserve and corresponding sales allowance for these types of products. 

Inventory is valued at the lower of average cost or market value (net realizable value). Inventory consisted of the following at June 30, 2025 and December 31, 2024: 

  June 30, 2025  December 31, 2024 Raw Goods $6,029,208  $5,867,526 Finished Goods  3,630,187   3,448,765 Total Inventory $9,659,396  $9,316,291 

Overhead expenses related to leases, utilities, insurance, and indirect labor are allocated to finished goods based on the estimated percentage cost toward the finished goods. Depreciation expense related to certain machinery and equipment is also allocated to finished goods. At June 30, 2025, $374,007 of overhead expenses were allocated to finished goods. In comparison, at December 31, 2024, $383,646 of overhead expenses were allocated to finished goods.

As of June 30, 2025 and December 31, 2024, our other assets primarily included goodwill of $23,092,794, which was comprised of $22,292,767 of goodwill from the acquisition of Lifted on February 24, 2020, and $800,027 of goodwill from Lifted’s purchase of nearly all of the assets of Oculus CRS, LLC, and Lifted’s merger with Oculus CHS Management Corp. in April 2023.

Also, as of both June 30, 2025 and December 31, 2024, our other assets included our investments in Ablis and Bendistillery, which total $1,896,200. Net fixed assets as of June 30, 2025 and December 31, 2024 were $2,510,442 and $2,704,615, respectively.

In addition, as of both June 30, 2025 and December 31, 2024, our other assets also included restricted cash of $1,000,000. We are required by our Business Loan Agreement with Surety Bank to maintain a minimum depository balance of $1,000,