NOTE 6 – ASSETS HELD FOR SALE

On June 16, 2026, the Board of Directors authorized management, as part of the Company’s downsizing and cash-conservation plan, to proceed with a plan to sell Lifted’s real property located at 5511 95th Avenue, Kenosha, Wisconsin. As of that date, the property was available for immediate sale in its present condition and was being actively marketed at a price management considered reasonable in relation to its fair value. Based on the Board’s authorization, the active marketing efforts, management’s intent to accept a reasonable offer, and the absence of any known circumstances indicating that a sale could not be completed within one year, management concluded that the sale was probable and that all criteria in ASC 360-10-45-9 were met on June 16, 2026. This conclusion was subsequently corroborated by the binding purchase agreement executed on July 22, 2026, for a sale price of $1,500,000, with closing expected on September 16, 2026, subject to customary closing conditions. Accordingly, the property was classified as held for sale effective June 16, 2026 and measured at the lower of its carrying amount or fair value less cost to sell.

Assets held for sale consisted of the following as of June 30, 2026:

The property’s estimated fair value less cost to sell was approximately $1,445,000, based on the $1,500,000 contract price less estimated broker commissions and other closing costs. Because fair value less cost to sell exceeded the property’s carrying amount, no impairment loss was recognized.