Company: LIFD
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001096906-25-000819
Chunk: 109

Company: LFTD PARTNERS INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 109
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31, 2024

The following table summarizes our Company’s current assets, current liabilities and working capital as of March 31, 2025 and December 31, 2024.

  March 31, 2025  December 31, 2024 Current Assets $17,415,176  $16,928,005 Current Liabilities  7,042,466   6,084,011 Working Capital  10,372,710   10,843,994 

As of March 31, 2025, we had cash and restricted cash of $3,279,962; in comparison, as of December 31, 2024, we had cash and restricted cash of $3,146,947.

As of March 31, 2025, we reported prepaid expenses of $901,411, primarily consisting of prepaid inventory of $807,746. In comparison, as of December 31, 2024, we reported prepaid expenses of $1,598,654, primarily consisting of prepaid inventory of $1,470,957. 

Accounts receivable of $2,987,841, net of $483,861 allowance for doubtful accounts, were outstanding as of March 31, 2025. In comparison, accounts receivable of $2,358,823, net of $853,329 allowance for doubtful accounts, were outstanding as of December 31, 2024.

 5Table of Contents

An allowance for sales is recorded for estimated future discounts/refunds related to returns of products sold prior to the reporting period end. An allowance for sales reduces net sales on the Consolidated Statements of Operations, and also reduces accounts receivable on the Consolidated Balance Sheets. Sales allowances of $304,018 and $304,018 were reported as of March 31, 2025 and December 31, 2024, respectively. A primary impetus for the need of a sales allowance and a reduction in accounts receivable as of March 31, 2025 and December 31, 2024 was that, sometimes, when employees of federal, state and local regulatory agencies and/or law enforcement make statements and/or issue correspondence that claim or imply that certain hemp-derived products are unsafe or illegal, these statements and correspondence, and industry publications and/or news media coverage of such statements and correspondence, may trigger confusion, uncertainty or alarm among the distributors, retailers and consumers who purchase our products, and consequently result