Item 8.01 Other Events.
On December 30, 2022, Lifted Liquids, Inc. doing business as Lifted Made, a
wholly owned subsidiary of LFTD Partners Inc. (the "Company"), was able to reach
an agreement for the forgiveness of $630,000 of payables owed to its third-party
disposable vape device manufacturer. The agreement also includes credits to
Lifted Liquids, Inc. against future purchases from the device manufacturer
totaling $370,047. The credit is to be provided by the manufacturer at the rate
of $46,255.87 per quarter beginning with the first quarter of 2023 and
continuing for the next six consecutive quarters, with a final quarterly credit
of $46,255.91 for the fourth quarter of 2024. The agreement is a result of the
vape manufacturer agreeing to share a portion of the Company's prior $2,313,902
write-off of certain 2 mL disposable vapes that were written off due to clogging
issues.
The payable forgiveness is expected to result in a net $485,496 improvement to
the cost of goods sold and accrued liabilities sections of the Company's
consolidated statements of operations as of December 30, 2022. The $370,047 in
credits are expected to be booked as an asset as of December 30, 2022 and
recognized as other income amortized quarterly at the rate of $46,255.87 per
quarter beginning with the first quarter of 2023 and continuing for the next six
consecutive quarters, with a final quarterly credit of $46,255.91 for the fourth
quarter of 2024.
Item 9.01 Financial Statements and Exhibits.
Exhibit 99.1 Press Release Dated January 3, 2023
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