Lftd Partners Inc 10-Q for FY2024 Q3

Lftd Partners Inc. (LIFD)

10-Q 2024-11-14 For: 2024-09-30

Added on April 06, 2026

About this 10-Q

Lftd Partners Inc filed this 10-Q on November 14, 2024, covering the quarter ended September 30, 2024 (FY2024 Q3).

Headline figures

Quarter ended September 30, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $8.69M; down 33.7% from $13.11M a year earlier
Net loss: $194.4K; compared with net income of $617.65K a year earlier
Diluted EPS: -$0.01; compared with $0.04 a year earlier

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Common Stock, $0.001 par value		LIFD		None
Title of each class		Trading symbol(s)		Name of exchange on which registered

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated Filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

	PART I — FINANCIAL INFORMATION
Item 1.	Financial Statements	F-1
	Consolidated Balance Sheets, September 30, 2024 (Unaudited) and December 31, 2023 (Audited)	F-1
	Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2024 and 2023 (Unaudited)	F-2
	Consolidated Statements of Shareholders’ Equity (Deficit) for the Three and Nine Months Ended September 30, 2024 and 2023 (Unaudited)	F-3
	Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023 (Unaudited)	F-4
	Notes to the Consolidated Financial Statements (Unaudited)	F-5
Item 2.	Management’s Discussion And Analysis Of Financial Condition And Results Of Operations	4
Item 3.	Quantitative And Qualitative Disclosures About Market Risk	12
Item 4.	Controls And Procedures	12
	PART II — OTHER INFORMATION
Item 1.	Legal Proceedings	15
Item 1A.	Risk Factors	15
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	15
Item 3.	Defaults Upon Senior Securities	16
Item 4.	Mine Safety Disclosures	16
Item 5.	Other Information	16
Item 6.	Exhibits	17
	Signatures	18

LFTD PARTNERS INC. AND SUBSIDIARY LIFTED LIQUIDS, INC.
CONSOLIDATED BALANCE SHEETS

	September 30, 2024 (Unaudited)			December 31, 2023 (Audited)
ASSETS
Current Assets
Cash and Cash Equivalents	$	3,174,805		$	4,357,539
Prepaid Expenses		1,053,846			2,509,961
Accounts Receivable, net of allowance of $2,619,076 in 2024 and $375,417 in 2023		2,265,047			3,586,176
Inventory		9,748,937			10,174,667
Income Tax Receivable		667,611			659,376
Current Portion of Settlement Asset and Receivables		232,707			378,597
Other Current Assets		303,207			2,664
Total Current Assets		17,446,160			21,668,980
Restricted Cash		1,000,000			1,000,000
Goodwill		23,092,794			23,092,794
Investment in Ablis		399,200			399,200
Investment in Bendistillery and Bend Spirits		1,497,000			1,497,000
Net Deferred Tax Asset		520,771			-
Fixed Assets, less accumulated depreciation of $920,928 in 2024 and $593,531 in 2023		2,844,428			2,996,387
Security and State Licensing Deposits and Bonds		59,630			43,421
Operating Lease Right-of-Use Asset, net of Right-of-Use Asset Amortization of $172,061 in 2024 and $266,837 in 2023		1,174,019			626,869
Non-Current Portion of Settlement Asset and Receivables		2,000			22,000
Total Assets	$	48,036,002		$	51,346,651
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Operating Lease Liability	$	216,697		$	169,437
Deferred Revenue		1,022,241			235,891
Minimum Earnout Consideration pursuant to the Oculus Merger Agreement ($200,000 in cash, and $800,000 in the form of 160,000 shares of common stock valued at $5.00 per share)		-			1,000,000
Collab Commissions and Royalties Payable		51,400			572,838
Accounts Payable and Accrued Expenses		4,739,663			6,172,655
Accounts Payable - Related Party		1,000			3,938
Preferred Stock Dividends Payable		5,225			7,124
Notes Payable to Surety Bank		545,897			506,061
Interest Payable to Surety Bank		16,034			18,800
Total Current Liabilities		6,598,157			8,686,744
Non-Current Liabilities
Operating Lease Liability		996,620			463,623
Net Deferred Tax Liability		-			29,482
Notes Payable to Surety Bank		2,934,570			3,348,790
Total Non-Current Liabilities		3,931,190			3,841,896
Total Liabilities		10,529,347			12,528,640
Commitments and Contingencies		-			-
Shareholders' Equity
Preferred Stock, $0.001 par value; 10,000,000 total shares authorized; out of which two Series of Preferred Stock are authorized and outstanding, as follows:
Series A Convertible Preferred Stock: 400,000 shares authorized, and:		3			3
2,500 shares issued and outstanding at September 30, 2024
2,500 shares issued and outstanding at December 31, 2023
Series B Convertible Preferred Stock: 5,000,000 shares authorized, and:		40			40
40,000 shares issued and outstanding at September 30, 2024
40,000 shares issued and outstanding at December 31, 2023
Common Stock, $0.001 par value; 100,000,000 shares authorized, and:		14,823			14,806
14,822,678 shares issued and outstanding at September 30, 2024
14,805,678 shares issued and outstanding at December 31, 2023
Additional Paid-in Capital		40,986,553			40,429,213
142,000 shares of Deferred Contingent Stock issuable upon instruction by the respective Deferred Contingent Stock Recipients at September 30, 2024 and December 31, 2023		470,730			470,730
Accumulated Deficit		(3,965,493	)		(2,096,780	)
Total Shareholders' Equity		37,506,655			38,818,011
Total Liabilities and Shareholders' Equity	$	48,036,002		$	51,346,651

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2024			2023			2024			2023
Net Sales	$	8,691,675		$	13,106,280		$	28,845,623		$	38,090,615
Cost of Goods Sold		4,933,780			8,684,277			18,149,447			22,383,810
Gross Profit		3,757,895			4,422,003			10,696,176			15,706,805
Operating Expenses
Payroll Expenses		1,360,035			1,710,806			4,432,534			5,363,633
Deferred Contingent Stock Expense		-			-			-			2,138,175
Company-Wide Management Bonus Pool		-			-			-			233,332
Professional Fees		156,357			264,898			778,082			870,042
Bank Charges and Merchant Fees		130,831			148,411			436,131			425,961
Advertising and Marketing		470,676			184,432			837,462			663,181
Bad Debt Expense/(Income)		864,345			(82,935	)		2,304,898			138,565
Depreciation and Amortization		58,124			48,332			156,357			131,454
Collab Commission and Royalty Expense		180,571			846,714			589,871			846,714
Other Operating Expenses		677,659			641,806			2,006,623			1,968,419
Total Operating Expenses		3,898,598			3,762,464			11,541,958			12,779,476
Income/(Loss) From Operations		(140,703	)		659,539			(845,782	)		2,927,329
Other Income/(Expenses)
Gain on Lease Modification		-			-			9,622			-
Interest Income		39,213			2,221			121,580			27,697
Interest Expense		(88,293	)		(23,986	)		(271,630	)		(72,537	)
Dividend Income		-			1,193			3,579			2,386
Settlement Income		-			-			10,000			-
Debt Financing Expenses		(2,803	)		(60,000	)		(8,349	)		(60,000	)
Penalties		(139	)		105			(919	)		(11,587	)
Gain/(Loss) on Disposal of Fixed Assets		3,641			-			(48,291	)		-
Loss on Jeeter Collab		-			-			(1,349,467	)		-
Loss on Deposits		-			-			(6,121	)		-
Total Other Expenses		(48,381	)		(80,467	)		(1,539,996	)		(114,041	)
Income/(Loss) Before Provision for Income Taxes		(189,084	)		579,072			(2,385,778	)		2,813,288
Provision for Income Taxes		(5,315	)		38,576			527,163			(677,921	)
Net Income/(Loss) Attributable to LFTD Partners Inc. common stockholders	$	(194,399	)	$	617,648		$	(1,858,615	)	$	2,135,367

Basic Net Income/(Loss) per Common Share	$	(0.01	)	$	0.04		$	(0.13	)	$	0.15
Diluted Net Income/(Loss) per Common Share	$	(0.01	)	$	0.04		$	(0.13	)	$	0.14

Weighted average number of common shares outstanding:
Basic		14,822,678			14,648,874			14,795,977			14,470,895
Diluted		14,822,678			15,356,374			14,795,977			15,178,395

													Additional			Deferred Contingent Stock						Total
	Preferred Stock						Common Stock						Paid-in			to be			Accumulated			Shareholders'
	Shares			Amount			Shares			Amount			Capital			Issued			Deficit			Equity
Balance, December 31, 2022		44,500		$	45			14,102,578		$	14,103		$	38,762,260		$	-		$	(4,238,735	)	$	34,537,671
Issuance of 410,000 of the total 645,000 shares of Deferred Contingent Stock related to the acquisition of Lifted, of which shares began being issued on February 24, 2023 upon direction by the Deferred Contingent Stock Recipients								410,000			410			1,358,740			779,025						2,138,175
Series A Preferred Stock dividend payable																				(3,329	)		(3,329	)
Series B Preferred Stock dividend payable																				(1,480	)		(1,480	)
Net Loss																				(141,742	)		(141,742	)
Balance, March 31, 2023		44,500		$	45			14,512,578		$	14,513		$	40,121,000		$	779,025		$	(4,385,286	)	$	36,529,296

Series A Preferred Stock dividend payable																				(3,366	)		(3,366	)
Series B Preferred Stock dividend payable																				(1,497	)		(1,497	)
Payment of the first installment of Merger Consideration (the issuance of 100 shares of common stock) pursuant to the Oculus Merger Agreement, on April 28, 2023								100			0.10			208.90									209
Net Income																				1,659,461			1,659,461
Balance, June 30, 2023		44,500		$	45			14,512,678		$	14,513		$	40,121,209		$	779,025		$	(2,730,688	)	$	38,184,103
Series A Preferred Stock dividend payable																				(2,466	)		(2,466	)
Series B Preferred Stock dividend payable																				(1,512	)		(1,512	)
Conversion of 2,000 shares of Series A Preferred Stock held by a non-affiliate into 200,000 shares of common stock, on August 4, 2023		(2,000	)		(2	)		200,000			200			(198	)								-
Issuance of 93,000 shares of Deferred Contingent Stock related to the acquisition of Lifted, of which shares began being issued on February 24, 2023 upon direction by the Deferred Contingent Stock Recipient								93,000			93			308,202			(308,295	)					-
Net Income																				617,648			617,648
Balance, September 30, 2023		42,500		$	43			14,805,678		$	14,806		$	40,429,213		$	470,730		$	(2,117,018	)	$	38,797,773

Balance, December 31, 2023		42,500		$	43			14,805,678		$	14,806		$	40,429,213		$	470,730		$	(2,096,780	)	$	38,818,011
Series A Preferred Stock dividend payable																				(1,862	)		(1,862	)
Series B Preferred Stock dividend payable																				(1,496	)		(1,496	)
Net Loss																				(1,141,004	)		(1,141,004	)
Balance, March 31, 2024		42,500		$	43			14,805,678		$	14,806		$	40,429,213		$	470,730		$	(3,241,142	)	$	37,673,649
Series A Preferred Stock dividend payable																				(1,858	)		(1,858	)
Series B Preferred Stock dividend payable																				(1,495	)		(1,495	)
Common stock buybacks and immediate cancellations between April 2, 2024 and April 9, 2024								(143,000	)		(143	)		(240,097	)								(240,240	)
Payment of the stock component of the second installment of Merger Consideration (the issuance of 160,000 shares of common stock) pursuant to the Oculus Merger Agreement, on May 13, 2024								160,000			160			799,840									800,000
Net Loss																				(523,212	)		(523,212	)
Balance, June 30, 2024		42,500		$	43			14,822,678		$	14,823		$	40,988,956		$	470,730		$	(3,767,706	)	$	37,706,844
Series A Preferred Stock dividend payable																				(1,889	)		(1,889	)
Series B Preferred Stock dividend payable																				(1,499	)		(1,499	)
Excise taxes payable on common stock buybacks														(2,402	)								(2,402	)
Net Loss																				(194,399	)		(194,399	)
Balance, September 30, 2024		42,500		$	43			14,822,678		$	14,823		$	40,986,553		$	470,730		$	(3,965,493	)		37,506,655

	·	Become subject to other liens or encumbrances;
	·	Change ownership of Lifted without the consent of the Lender;
	·	Enter into a merger, acquisition or divestiture;
	·	Conduct stock buybacks;
	·	Serve as a guarantor;
	·	Wind up, liquidate or dissolve;
	·	Enter into the purchase, sale, exchange or transfer of property;
	·	Permit the outstanding principal balance of the Working Capital Loan to exceed 40% of the fair market value of the collateral securing the Working Capital Loan; or
	·	Directly or indirectly issue, assume or create any additional indebtedness on the collateral.

	September 30, 2024			December 31, 2023

Working Capital Loan	$	2,637,175		$	3,000,000
Real Estate Loan		890,093			910,000
Total principal amount		3,527,268			3,910,000
Less: Unamortized debt financing costs		(46,801	)		(55,149	)
Less: Current portion of Surety Bank notes		(545,897	)		(506,061	)
Non-Current portion of Surety Bank notes	$	2,934,570		$	3,348,790

Maturity Analysis as of September 30, 2024

2024	$	219,235
2025		876,939
2026		876,939
2027		876,939
2028		1,618,429
Thereafter		-
Total		4,468,481
Less: Interest portion		(941,213	)
Total principal amount	$	3,527,268

	·	Lifted is the exclusive worldwide manufacturer and distributor of the Cali Products. To fulfill its obligations pursuant to the Cali Agreement, Lifted sources raw goods, labor, and other resources to manufacture the Cali Products at Lifted’s facilities and holds these raw goods and Cali Products in its facilities until the Cali Products are sold and shipped to customers.
	·	Customers’ orders of Cali Products are received through Lifted’s website www.urb.shop. Lifted processes these orders, prepares the Cali Products for shipment from Lifted’s inventories, and ships the Cali Products directly to the customers. Lifted is responsible for collecting payments from customers but does not guarantee collection.
	·	Lifted has the right, in its discretion, to add new Cali brands and Cali Products as they are developed.
	·	Lifted can set prices for Cali Products it supplies or unilaterally discontinue the supply of any Cali product if it no longer makes business sense to Lifted.

	·	Lifted is the exclusive worldwide manufacturer and distributor of the Diamond Products. To fulfill its obligations pursuant to the agreement, Lifted sources raw goods, labor, and other resources to manufacture the Diamond Products at its own facilities and holds these raw goods and Diamond Products in its facilities until the Diamond Products are sold and shipped to customers.
	·	Customers’ orders of Diamond Products are received through Lifted’s website www.urb.shop. Customers that attempt to purchase the Diamond Products from www.diamondsupplyco.com are redirected to www.urb.shop. Lifted processes these orders, prepares the Diamond Products for shipment from Lifted’s inventories, and ships the Diamond Products directly to customers.
	·	Lifted and Diamond agree upon the retail sales prices for the Diamond Products, and both Lifted and Diamond are to make good faith efforts to collect all payments in connection with each party’s sales of Diamond Products to all of its customers.

	·	Lifted was the exclusive manufacturer, seller, and distributor of the applicable Jeeter branded products in the USA. To fulfill its obligations pursuant to the agreement, Lifted sourced raw goods, labor, and other resources to manufacture the Jeeter Products at its own facilities and held these raw goods and Jeeter Products in its facilities until the Jeeter Products were sold and shipped to customers. Initially, Lifted was manufacturing all of the Jeeter Products, but in the middle of Q3 2023 Jeeter also began manufacturing joints at its facility after being authorized by Lifted to do so. Nonetheless, Jeeter produced joints during Monday through Friday, and then shipped the finished joints to Lifted’s headquarters in Kenosha on Saturday. Lifted controlled the Jeeter Products until they were then sold and shipped to the customers.

	·	Customers’ orders of Jeeter Products were received through Lifted’s website www.urb.shop. Lifted processed these orders, prepared the Jeeter Products for shipment from Lifted’s inventories, and shipped the Jeeter Products directly to the customers. Lifted was responsible for collecting payments from customers but did not guarantee collection, nor the timetable of such collection.

(1)	Lifted’s CEO NWarrender, in consultation with LIFD’s President and CFO WJacobs, analyzed and made a written determination (the “Determination”) of the incremental pre-tax cash flow that NWarrender estimated that the hemp flower products division had generated for Lifted above and beyond the annual profits that previously had been generated for Lifted due to Lifted’s former business relationship with Oculus (the “Incremental Pre-Tax Profits”), after taking into account all relevant financial factors including but not limited to the purchase price of the Purchased Assets, the Merger Consideration, and all items of income, expense and investment directly and indirectly associated with Lifted’s hemp flower products division, which Determination will be final and legally binding on all of the parties; and

(2)	Within five days following delivery of the Determination, Lifted paid Chase and Hagan Sanchez a second installment of Merger Consideration equal to five times the Incremental Pre-Tax Profits, provided that (a) 20% of such second installment of Merger Consideration was to be paid in the form of cash, (b) 80% of such second installment of Merger Consideration was to be paid in the form of unregistered shares of common stock of LIFD, which unregistered shares of common stock of LIFD was to be valued at $5 per share regardless of whether LIFD’s common stock is then trading at a price that is lower or higher than $5 per share, and (c) such second installment of Merger Consideration was subject to a minimum value of $1 million dollars (“Minimum Earnout Consideration”) and a maximum value of $6 million dollars (with the stock portion of the second installment of Merger Consideration having been valued at $5 per share under all circumstances).

	(1)	Two Hundred Thousand Dollars ($200,000) in cash; and
	(2)	One Hundred Sixty Thousand (160,000) newly issued shares of unregistered LIFD Common Stock.

Consideration Paid Pursuant to the Asset Purchase Agreement

Cash used to pay off Oculus' liabilities at the closing	$	368,488

Consideration Paid Pursuant to the Oculus Merger Agreement

First Installment of Merger Consideration
100 shares of common stock of LIFD issued at the closing of the Merger to Chase and Hagan Sanchez	$	209

Second Installment of Merger Consideration
Value of Minimum Earnout Consideration to be paid in cash	$	200,000
Value of Minimum Earnout Consideration to be paid in shares of common stock of LIFD (160,000 shares of common stock valued at $5.00 per share)	$	800,000
Total Consideration	$	1,368,697

Assets Acquired:

Cash	$	26,420
Accounts receivable	$	60,528
Inventory	$	147,431
Fixed Assets	$	329,559
Security and Utility Deposits	$	4,732
Goodwill	$	800,027
Total Assets Acquired	$	1,368,697

Total Liabilities Assumed	$	-

Net Assets Acquired	$	1,368,697

	·	ENM has the right to use the Urb brand name on marijuana products sold within New Mexico in accordance with ENM’s license to manufacture marijuana products that can be sold to marijuana dispensaries in New Mexico. ENM sources raw goods, labor, and other resources to manufacture the Urb-branded products at its own facilities and holds these raw goods and Urb-branded products in its facilities until the Urb-branded products are sold and shipped to customers. ENM controls the Urb-branded products until they are then sold and shipped to the customers.
	·	Customers’ orders of Urb-branded products are received by ENM. ENM processes these orders, prepares the Urb-branded products for shipment from ENM’s inventories, and ships the Urb-branded products directly to the customers. ENM is responsible for collecting payments from the customers, referred to in the ENM Agreement as the “Unit Sale Proceeds”.
	·	ENM will source some of the raw goods, fixed assets and supplies from Lifted for manufacture of the Urb-branded products. The raw goods sourced from Lifted are referred to in the ENM Agreement as “Unit Components”. These Unit Components are maintained in Lifted’s inventories and shipped to ENM based on agreement between the CEOs of both Lifted and ENM. Lifted receives an agreed upon price, referred to in the ENM Agreement as the “Unit Component Price”, for each Unit Component shipped to ENM.
	·	ENM shall pay over to Lifted one-half of the Unit Sale Proceeds, which payments shall be allocated and applied as follows: firstly, to repay Lifted for its loans to ENM; secondly, to pay to Lifted mutually agreed upon amounts for the Unit Components; and thirdly, to pay to Lifted a License Fee.

	·	Lifted is the exclusive nationwide manufacturer and distributor of the Products. To fulfill its obligations pursuant to the Agreement, Lifted sources raw goods, labor, and other resources to manufacture the Products at Lifted’s facilities and holds the Products in its facilities until the Products are sold and shipped to customers.

	·	Customers’ orders of Products are received through Lifted’s website www.urb.shop. Lifted processes these orders, prepares the Products for shipment from Lifted’s warehouse, and ships the Products directly to the customers. Lifted is responsible for the collection of payments from customers, and is responsible for paying the other party 10% of any accounts receivable that are past due by more than 90 days.

	1.	The CECL Model applies to financing receivables measured at amortized cost, which includes trade accounts receivable.
	2.	An entity will recognize an allowance for credit losses that results in the financial statements reflecting the net amount expected to be collected from the financial asset.
	3.	The allowance represents the portion of the amortized cost basis that an entity does not expect to collect due to credit over the asset’s contractual life, considering past events, current conditions and reasonable and supportable forecasts of future economic conditions.

	September 30, 2024		December 31, 2023
Raw Goods	$	5,704,069	$	4,962,652
Finished Goods		4,044,868		5,212,015
Total Inventory	$	9,748,937	$	10,174,667

	1)	Identifying raw goods that will no longer be used in the manufacture of finished goods;
	2)	Identifying expired raw goods;
	3)	Identifying finished goods that will no longer be sold or that are slow moving;
	4)	Identifying finished goods that are expired; and
	5)	Valuing and expensing raw and finished goods that will no longer be sold.

	1)	The ordered item breaks, melts, or separates in transit to the customer. In this case, the Company will replace the broken, melted or separated item at no cost to the customer.
	2)	The Company sent the wrong item to the customer. In this case, the Company will allow the customer to keep, at no cost to the customer, the item that was mistakenly sent to the customer. The Company will also send the correct product to the customer, at no cost to the customer.
	3)	The customer ordered the wrong product. In this case, the customer, at his/her own expense, must mail the mistakenly ordered product back to the Company, and the Company will mail the correct product to the customer.
	4)	The ordered item is recalled. In a situation where product is recalled, the Company will offer a replacement, credit, or refund.

	September 30, 2024		December 31, 2023
Contract Assets (invoiced but unfulfilled performance obligations)	$	552,840	$	131,304

Deposits from customers for unfulfilled orders		469,400		104,586

Total Deferred Revenue	$	1,022,241	$	235,891

Asset Class	September 30, 2024			December 31, 2023
Building	$	805,545		$	805,545
Land	$	430,754		$	430,754
Machinery & Equipment	$	1,460,033		$	1,473,609
Furniture & Fixtures	$	138,184		$	107,509
Computer Equipment	$	18,979		$	18,979
Building & Leasehold Improvements	$	633,094		$	581,394
Vehicles	$	64,309		$	117,047
Trade Show Booths	$	214,457		$	55,081
Sub-total:	$	3,765,356		$	3,589,918

Less: accumulated depreciation	$	(920,928	)	$	(593,531	)
	$	2,844,428		$	2,996,387

Asset Class		Estimated Useful Life
Building		39 years
Land		Indefinite
Machinery & Equipment		60 months
Building Improvements		60 months
Leasehold Improvements		The shorter of the length of the lease or 60 months
Trade Show Booths		36 months
Vehicles		60 months
Computer Equipment		60 months
Furniture & Fixtures		60 months

					Weighted-Average Remaining		Aggregate
			Weighted-Average		Contractual		Intrinsic
	Shares		Exercise Price		Term (Years)		Value
Exercisable Options, Warrants and Rights to Purchase Warrants to Purchase Common Stock Outstanding, July 1, 2024		3,456,698	$	3.97		0.60	$	-

Exercisable Options, Warrants and Rights to Purchase Warrants to Purchase Common Stock Outstanding, September 30, 2024		3,456,698	$	3.97		0.35	$	-
Outstanding Options, Warrants and Rights to Purchase Warrants to Purchase Common Stock, September 30, 2024		3,456,698	$	3.97		0.35	$	-

Date	Base Monthly Rent
January 1, 2021 – December 31, 2021	$	5,740.75
January 1, 2022 – December 31, 2022	$	5,855.57
January 1, 2023 – December 31, 2023	$	5,972.68
January 1, 2024 – December 31, 2024	$	6,092.13
January 1, 2025 – December 31, 2025	$	6,213.97

Date	Base Monthly Rent
10/01/2021 – 09/30/2022	$	2,395.84
10/01/2022 – 09/30/2023	$	2,467.72
10/01/2023 – 09/30/2024	$	2,541.75

Date	Base Monthly Rent
01/01/2022 – 12/31/2022	$	4,000.00
01/01/2023 – 12/31/2023	$	4,120.00
01/01/2024 – 12/31/2024	$	4,243.60
01/01/2025 – 12/31/2025	$	4,370.91
01/01/2026 – 12/31/2026	$	4,502.34

Suites 600 and 700
Date	Base Monthly Rent
February 1, 2027 – January 31, 2028	$	4,637.41
February 1, 2028 – January 31, 2029	$	4,776.53
February 1, 2029 – May 31, 2029	$	4,919.83

Suite 100
Date	Base Monthly Rent
April 1, 2024 – May 31, 2024	$	0.00
June 1, 2024 – March 31, 2025	$	16,770.83
April 1, 2025 – March 31, 2026	$	17,273.96
April 1, 2026 – March 31, 2027	$	17,792.18
April 1, 2027 – March 31, 2028	$	18,325.94
April 1, 2028 – March 31, 2029	$	18,875.72
April 1, 2029 – May 31, 2029	$	19,441.99

	(i)	the Lease Termination Agreement dated March 18, 2024, by and between Ladi and Lifted for Lifted’s leased space located at 8920 58th Place, Suite 850, Kenosha, Wisconsin 53144 (the “8920 Suite 850 Termination Agreement”),

	(ii)	the Lease Termination Agreement dated March 18, 2024, by and between Ladi and Lifted for Lifted’s leased space located at 9560 58th Place, Suite 360, Kenosha, Wisconsin 53144 (the “the 9560 Suite 360 Termination Agreement”), and

	(iii)	the Lease Termination Agreement dated March 18, 2024, by and between Ladi and a third party that currently leases the space located at 8910 58th Place, Suite 100, Kenosha, Wisconsin 53144 (the “8910 Suite 100 Termination Agreement”).

Date	Base Monthly Rent
07/01/2022 – 06/30/2023	$	5,493.25
07/01/2023 – 06/30/2024	$	5,630.58
07/01/2024 – 06/30/2025	$	5,771.35
07/01/2025 – 06/30/2026	$	5,915.63
07/01/2026 – 06/30/2027	$	6,063.52

Date	Base Monthly Rent
February 1, 2023 – February 28, 2023	$	0.00
March 1, 2023 – February 29, 2024	$	3,395.73
March 1, 2024 – February 28, 2025	$	3,531.56
March 1, 2025 – February 28, 2026	$	3,672.82
March 1, 2026 – February 28, 2027	$	3,819.73
March 1, 2027 – February 29, 2028	$	3,972.52

Date	Base Monthly Rent
April 1, 2023 – January 31, 2024	$	1,945.42
February 1, 2024 – January 31, 2025	$	2,023.23
February 1, 2025 – January 31, 2026	$	2,104.16
February 1, 2026 – January 31, 2027	$	2,188.33
February 1, 2027 – January 31, 2028	$	2,275.86
February 1, 2028 – February 29, 2028	$	2,366.90

Asset	Balance Sheet Line	September 30, 2024
Operating Lease Right-of-Use Asset, net of Right-of-Use Asset Amortization of $172,061	Non-Current Assets	$	1,174,019

Liability	Balance Sheet Line	September 30, 2024
Operating Lease Liabilities	Current Liabilities	$	216,697
	Non-Current Liabilities		996,620