Company: LIFD
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001096906-25-000819
Chunk: 180

Company: LFTD PARTNERS INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 180
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 securities of the Company: (1) the Company is accruing and paying 3% annual dividends on its Series A and Series B Convertible Preferred Stock; and (2) the Company may in the future accrue for a company-wide bonus pool. Additional capital raised by the Company that is used to pay the aforedescribed company-wide bonus pool, or that is used to pay dividends on our outstanding Series A and Series B Convertible Preferred Stock, is collectively referred to as the “Allocated Capital”. If, notwithstanding these impediments, the Company and/or Lifted is able to raise debt or equity capital that is in addition to the Allocated Capital (the “Growth Capital”), then the Growth Capital would likely be used in connection with one or more of the following: (1) stock buybacks if permitted by the Lender; (2) an expansion of the 5511 Building; or (3) for potential acquisitions.  While the Company would prefer to engage in 100% stock-for-stock acquisitions, potential acquisition candidates frequently prefer that a significant portion of the acquisition consideration be in cash. Also, the process of conducting a due diligence investigation and audit of potential acquisition candidates can be very expensive and requires cash. Also, some potential acquisitions may only make sense if the Company is in a position to inject cash into the potential acquisition candidates simultaneously with the closing of the acquisitions, in order to pay off accrued liabilities or to provide needed growth capital. There is no assurance that the Company and Lifted will be able to obtain the additional Growth Capital needed to accelerate our growth beyond current levels. Our ability to obtain Growth Capital will depend on many factors, such as: whether profitable Cannabis Companies or other companies are interested in merging with us and the pricing and other terms of proposed mergers; interest rates; the level of economic stress on Lifted’s distributors and customers; governmental prohibitions, regulations and taxation of hemp-derived cannabinoids such as delta-8-THC and delta-9-THC and of marijuana; investor demand; our performance and reputation; the price of the Company’s common stock; and other factors beyond our control.  Our inability to raise additional Growth Capital could result in the delay or indefinite postponement of our growth objectives. There can be no assurance or guarantee that any additional Growth Capital will be available on acceptable terms and conditions, if at all. The lack of availability of additional Growth Capital could have a material adverse effect on our Company and the trading price of our common stock. Acquisition