Company: LIFD
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001096906-25-001862
Chunk: 49

Company: LFTD PARTNERS INC.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 49
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 September 30, 2025 and December 31, 2024, respectively.

Comparison of Operations for the Three and Nine Months Ended September 30, 2025 to September 30, 2024

Net sales during the three and nine months ended September 30, 2025 were $9,056,742 and $28,505,928, respectively, compared to net sales during the three and nine months ended September 30, 2024 of $8,691,675 and $28,845,623, respectively. Lifted’s sales of non-hemp products were a primary driver of the increase in sales between the third quarter of 2024 and the third quarter of 2025. Reasons for the decrease in net sales between the nine months ended September 30, 2024 and the nine months ended September 30, 2025 include, but are not limited to: prohibition of, or tighter regulation of, intoxicating hemp-derived products has been adopted or proposed in many states that are significant markets for Lifted, such as in Florida, Texas, Illinois and California; greater competition in the marketplace for branded hemp-derived and psychoactive products that are similar to those that Lifted sells; more distributors creating their own brands and selling their own branded products at a lower price than Lifted’s products; increased competition for products containing more milligrams of cannabinoids or active ingredients per unit at a lower price point; and other competing brands paying distributors and wholesalers more than what Lifted is willing to pay (if anything), for valuable shelf space.

During the nine months ended September 30, 2025, Lifted has launched certain initiatives in order to attempt to increase net sales and decrease operating expenses, including: laying off certain employees and independent contractors in Kenosha and Durango; restructuring its sales team; consolidating operations; developing the marketing and distribution networks of hemp-free brands including Rebel Energy Gummy, Mielos, and other brands and products; and increasing spending on marketing and advertising, and digital marketing.

Cost of Goods Sold

Cost of Goods Sold amounted to $4,899,247 and $4,933,780 during the three months ended September 30, 2025 and 2024, respectively, and $18,884,646 and $18,149,447 during the nine months ended September 30, 2025 and 2024, respectively. 

Lifted's industry, and customer preferences, are constantly and quickly evolving. Consequently,