Company: LIFD
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001096906-25-000346
Chunk: 1966

Company: LFTD PARTNERS INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 1966
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,068 and $265,694, respectively. This bonus payable is consolidated into the Accounts Payable and Accrued Expenses line item in the Consolidated Balance Sheets. 

During the year ended December 31, 2022, the Company reported payroll expenses of $6,423,584. In August 2022, with the assistance of a third party firm, Lifted applied for Employee Retention Tax Credits (“ERC”) for certain quarters of 2020 and 2021. In the fourth quarter of 2022, gross credits of $233,534 were recovered, and Lifted paid the third party firm a commission of $58,384. The $233,534 ERC is accounted for as a reduction in payroll expenses in the fourth quarter of 2022, and the commission of $58,384 was categorized as Professional Fees. 

Company-Wide Management Bonus Pool

During the year ended December 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

Advertising and marketing costs are expensed as incurred. Advertising and marketing expenses primarily consist of trade show expenses, advertising, digital marketing, promotional products and other marketing expenses. During the year ended December 31, 2024, the Company incurred $1,155,067 of advertising and marketing expenses. In comparison, during the years ended December 31, 2023, and 2022, the Company reported advertising and marketing expenses of $951,266 and $662,494, respectively.

Bad Debt Expense

Bad debt expense of $1,469,078 was recognized during the year ended December 31, 2024, compared to bad debt expense of $353,162 and $78,457 during the years ended December 31, 2023