Item 1.01.Entry into a Material Definitive Agreement.
On November 28, 2022, Lifted Liquids, Inc. doing business as Lifted Made, a
wholly owned subsidiary of LFTD Partners Inc. (the "Company"), entered into a
Lease Agreement (the "Lease") with LADI Investments LLC, (the "Landlord") for
commercial space (the "Leased Premises") located at 5732 95th Avenue, Suite 200
and 300, Kenosha, WI 53144 (the "Property"). The Leased Premises are expected to
be used to expand the Company's gummy manufacturing operations.
The term of the Lease will commence on February 1, 2023 (the "Commencement
Date"). The initial term of the Lease will extend approximately five years
(sixty-one months) from the Commencement Date and end February 29, 2028, unless
extended or earlier terminated in accordance with the Lease. While extensions
are not prohibited, Lifted Made does not have the right to unilaterally elect to
extend the term of the Lease for an additional term.
Under the terms of the Lease, Lifted Made will lease approximately 4,657 square
feet. Lifted Made will not pay any base square foot charge during February 2023.
During the next twelve months, Lifted Made will pay a base square foot charge of
$0.73 per square foot per annum, with a 4% increase in rent each twelve months
thereafter during the term as set out in the table titled "Rent Schedule" below.
Rent Schedule
Date Base Monthly RentFebruary 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
The Lease requires that Lifted Made pay $5,188.67 as a security deposit which
has not yet been paid. Lifted Made will also be responsible for paying its
proportionate share of real estate taxes and other operating costs which are
estimated to be at least $21,515 per year, or $1,792.95 per month.
The foregoing description of the terms of the Lease does not purport to be
complete and is qualified in its entirety by reference to the full text of the
Lease, a copy of which is attached hereto as Exhibit 10.72.
Item 2.03.Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
The discussion contained in "Item 1.01 Entry into a Material Definitive
Agreement" of this Current Report on Form 8-K is incorporated into this Item
2.03 by reference.
Item 9.01 Financial Statements and Exhibits.
Exhibit 10.72 Lease Agreement
Exhibit 99.1 Press Release Dated November 29, 2022
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