Company: LIFD
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001096906-25-001332
Chunk: 46

Company: LFTD PARTNERS INC.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 46
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 collection issues, which may in part be caused by the regulatory uncertainty over our industry. The Company has an accounting protocol which effectively causes the Company to recognize an allowance for doubtful accounts for all invoices older than 90 days. Consequently, the delay in Lifted’s receipt of payments from certain customers has a direct impact on the Company’s net receivables, net income, and earnings per share.

Collaboration Commission and Royalty Expense

During the three and six months ended June 30, 2025, the Company reported collaboration commission and royalty expense of $5,742 and $72,840, respectively. In comparison, during the three and six months ended June 30, 2024, the Company reported collaboration commission and royalty expense of $238,385 and $409,300, respectively. The change in collaboration commission and royalty expense primarily stems from decreased sales of the products covered by respective collaborations. Lifted has been de-emphasizing its collaboration efforts with outside brands due to the collaborations’ lack of traction in sales. Also, on or about April 28, 2025, Lifted and Cali terminated the Cali Agreement. Under the Termination Agreement, Lifted and Cali mutually agreed to terminate the Cali Agreement and all agreements, obligations and responsibilities of the parties thereunder, as of January 1, 2025.

Other Operating Expenses

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. Other operating expenses increased to $644,828 during the quarter ended June 30, 2025, from $644,795 during the quarter ended June 30, 2024. In comparison, during the six months ended June 30, 2025, other operating expenses decreased to $1,296,159 from $1,328,964 during the six months ended June 30, 2024. 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

During the quarter ended June 30, 2025, total net non-operating Other Expenses of $214,138 primarily consisted of theft expense of $350,000 and interest expense of $77,474 offset by settlement income of $177,500 and interest income