Company: LIFD
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001096906-25-001332
Chunk: 109

Company: LFTD PARTNERS INC.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 109
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 expenses in the first quarter of 2025. 

Payroll expenses include sales commissions paid to independent contractors. Lifted entered into an agreement with its Chief Strategy Officer (the “CSO”), effective as of April 1, 2025, pursuant to which, in addition to his base compensation of $10,000 every two weeks plus health insurance coverage, the CSO receives (1) a royalty on certain gummies manufactured by Lifted of between $0.005 and $0.01, and (2) certain quarterly and annual bonuses based upon Lifted’s quarterly and annual collected revenues on certain sales exceeding targets of $9,000,000 and $58,000,000, respectively.

Lifted’s former Chief Strategy Officer (the “CSO”), who worked for Lifted from July 1, 2021 through April 30, 2024, had been hired to develop and implement certain important strategies to assist Lifted’s efforts to increase its production, fulfillment and sales capabilities. The CSO’s two-year agreement with Lifted entitled the CSO to be paid an annual salary of $180,000 plus a bonus equal to 5% of total net sales for Lifted in excess of $6,000,000 per quarter. The CSO’s final bonus, for April 2024, was $27,941. For the three and six months ended June 30, 2024, the bonus earned by the CSO was $27,941 and $191,273, respectively. 

Advertising and Marketing Expenses

Advertising and marketing costs are expensed as incurred. During the three and six months ended June 30, 2025, the Company incurred $531,873 and $947,445, respectively, in advertising and marketing expenses. Advertising and marketing expenses primarily relate to marketing campaigns, trade shows, digital marketing, and promotional products. Lifted has been engaging with third party specialists to increase its presence in the direct-to-consumer space.  In comparison, during the three and six months ended June 30, 2024, the Company incurred $190,126 and $366,786, respectively, in advertising and marketing expenses.

Bad Debt Expense

Bad debt expense for the three and six months ended June 30, 2025, totaled $649,637 and $245,768, respectively; bad debt expense for the six months ended June 30, 2025 is less than bad debt expense for the three months ended June 30,