Company: LIFD
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001096906-25-000346
Chunk: 1547

Company: LFTD PARTNERS INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 1547
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 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, and was paid in May 2024. For the year ended December 31, 2024, the bonus earned by the CSO was $191,273.

During the second half of 2024, Lifted has, and is continuing to, selectively pare its personnel costs in order to increase its profit margins.

During the year ended December 31, 2023, the Company reported payroll expenses of $7,476,955. The Company recognized bonus expense related to the bonus earned by the CSO of $526,535 in the fourth quarter of 2023, and at December 31, 2023 and 2022, the bonus payable to the CSO was $688,068 and $265,694, respectively. This bonus payable is consolidated into the Accounts Payable and Accrued Expenses line item in the Consolidated Balance Sheets. 

During the year ended December 31, 2022, the Company reported payroll expenses of $6,423,584. In August 2022, with the assistance of a third party firm, Lifted applied for Employee Retention Tax Credits (“ERC”) for certain quarters of 2020 and 2021. In the fourth quarter of 2022, gross credits of $233,534 were recovered, and Lifted paid the third party firm a commission of $58,384. The $233,534 ERC is accounted for as a reduction in payroll expenses in the fourth quarter of 2022, and the commission of $58,384 was categorized as Professional Fees. 

Company-Wide Management Bonus Pool

During the year ended December 31, 2024, there was no reported Company-Wide Management Bonus Pool expense. During the year ended December 31, 2023, the Company expensed and paid $233,332 to certain members of the management team of Lifted; however, none of this $233,332 went to GJacobs, WJacobs or NWarrender, and it is accounted for as Company-Wide Management Bonus Pool expense on the Consolidated Statements of Operations. This $233,332, along with