Company: LIFD
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001096906-25-000819
Chunk: 64

Company: LFTD PARTNERS INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 64
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 Three Months Ended   March 31, Geographic Market 2025    2024   United States $9,123,850   100% $10,666,649   100%International  0   0%  0   0%Net Sales $9,123,850   100% $10,666,649   100% Deferred Revenue Amounts received from a customer before the purchased product is shipped to the customer are treated as deferred revenue. If cash is not received, an accounts receivable is recognized for the invoiced order, but revenue is not recognized until the order is fully shipped. Accounts receivable include amounts associated with partially shipped orders, for which the unshipped portion is a contract asset. Contract assets represent invoiced but unfulfilled performance obligations.  At March 31, 2025, total deferred revenue was $766,215, all of which is expected to be recognized as revenue in 2025. At December 31, 2024, total deferred revenue was $674,676, the majority of which was recognized as revenue in 2025.  The table shown below represents the composition of deferred revenue between contract assets (invoiced but unfulfilled performance obligations) and deposits from customers from unfulfilled orders as of March 31, 2025 and December 31, 2024.   March 31, 2025  December 31, 2024 Contract Assets (invoiced but unfulfilled performance obligations) $477,834  $340,585          Deposits from customers for unfulfilled orders  288,381   334,091          Total Deferred Revenue $766,215  $674,676 

 F-42Table of Contents

 Cost of Goods Sold – Cost of goods sold primarily consist of the costs of raw goods utilized in the manufacture of products, direct labor, co-packing fees, freight and shipping charges, and certain quality control costs, such as lab testing costs.  Cost of goods sold amounted to $6,906,457 and $7,282,609 during the quarters ended March 31, 2025 and 2024, respectively. $464,521 and $398,815 of cost of goods sold relates to spoiled and obsolete inventory written off during the quarters ended March 31, 2025 and 202