Company: LIFD
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001096906-25-000346
Chunk: 1822

Company: LFTD PARTNERS INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 5
Chunk 1822
---
 royalties payable of $572,838, the current portion of the notes payable to Surety Bank of $506,061, and deferred revenue of $235,891. 

On May 8, 2024, NWarrender, in consultation with WJacobs, made the Determination that the Incremental Pre-Tax Profits were zero dollars ($0). Consequently, the second installment of Merger Consideration consists of: 

 (1)Two Hundred Thousand Dollars ($200,000) in cash; and (2)One Hundred Sixty Thousand (160,000) newly issued shares of unregistered LIFD Common Stock.

 99Table of Contents

On May 13, 2024, the cash component of the second installment of Merger Consideration was paid, and the stock component of the second installment of Merger Consideration was issued.

In prior years, the Company’s payables have been greater than its cash on hand. Prior to the Company’s acquisition of Lifted, the Company had inconsistent income-generating ability and was therefore reliant on raising money from loans or stock sales.

The Company had an accumulated deficit of $3,967,708 and $2,096,780 as of December 31, 2024 and December 31, 2023, respectively.

Comparison of Operations During the Years Ended December 31, 2024, 2023, and 2022

During the year ended December 31, 2024, the Company recognized net sales of $37,325,228. During the year ended December 31, 2023, the Company recognized net sales of $51,610,562. During the year ended December 31, 2022, the Company recognized net sales of $57,416,535. Reasons for the decrease in net sales from 2023 to 2024 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 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, for