Company: LIFD
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001096906-25-000346
Chunk: 615

Company: LFTD PARTNERS INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 11
Chunk 615
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 Lease Liabilities Current Liabilities $224,460   Non-Current Liabilities  937,988  Lease Costs The table below summarizes the components of lease costs for the following periods:    For the Twelve Months Ended December 31, Lease Cost: 2024  2023  2022 Finance lease expense:         Amortization of Right-of-Use Assets $-  $41,226  $46,273 Interest on lease liabilities  -   85,873   70,507 Operating lease expense  305,587   210,626   115,239 Total $305,587  $337,725  $232,019  Weighted Average Discount Rate In calculating the right-of-use assets and liabilities, the Company uses a discount rate based on a published range of conventional commercial mortgage interest rates corresponding to the life of each lease. The Company uses the higher end of the range due to the Company’s limited credit history. The Company’s weighted average discount rate for all its right-of-use liabilities as of the end of the reported period is 9.65%. Maturity Analysis The following table is the maturity analysis of the Company’s operating and finance leases as of the reported period end. Maturity Analysis as of December 31, 2024: Finance  Operating 2025 $-  $327,062 2026  -   337,567 2027  -   348,411 2028  -   294,626 2029  -   119,967 Thereafter  -   - Total  -   1,427,634 Less: Present value discount  -   (265,186)Lease liability $-  $1,162,449  Allocation of a Portion of Lease Expense to Finished Goods   As described in NOTE 2 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES, a portion of monthly overhead costs such as lease expense are allocated to finished goods. For example, monthly overhead costs such as payments for rent, 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.  Potential Issuance