Company: LIFD
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001096906-25-001862
Chunk: 32

Company: LFTD PARTNERS INC.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 32
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,780,165 Sales Allowances  90,862   80,371 Accrued Related Party Expenses  544   315 Interest Carryforward  90,680   54,790 Allowance for Doubtful Accounts  398,991   225,588 Lease Liabilities  15,834   14,676 Other  1,447   - Less: Valuation allowance for stock-based compensation  (2,607,940)  (2,655,721)Total Deferred Tax Assets  729,913   935,105          Deferred Tax Liabilities:        Depreciation & Amortization  (162,240)  (419,971)Other  -   - Total Deferred Tax Liabilities  (162,240)  (419,971)         Net Deferred Tax Assets/(Liabilities) $567,673  $515,134 

NOTE 15 – DEBT On December 14, 2023, the Company entered into two loan arrangements with a single lender: the $3,000,000 Working Capital Loan and the $910,000 Building Loan. The Working Capital Loan bears interest at a fixed annual rate of 9.5% and is evidenced by a credit agreement, promissory note, security agreement, collateral assignment agreement, and pledge agreement. The Working Capital Loan matures on December 14, 2028, and is subject to prepayment penalties declining from 3% to 1% over three years and includes restrictive covenants prohibiting, without lender consent, additional liens, changes in Lifted’s ownership, mergers, stock buybacks, and other actions. The Working Capital Loan is secured by all of the Company’s business personal property and intellectual property and includes a cross-default with the Building Loan. The Building Loan bears interest at a fixed annual rate of 10% and requires a minimum 1.50x debt service coverage ratio (waived for 2024), as well as maintaining a $1,000,000 minimum deposit balance with the lender for the life of the Building Loan, which matures on December 14, 2028. The Building Loan is secured by a mortgage on the 5511 Building, an assignment of rents and leases, and a security interest in related furniture, equipment, inventory and intangibles. Both loans contain late payment penalties and extensive cross