Company: LIFD
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001096906-25-000346
Chunk: 163

Company: LFTD PARTNERS INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 163
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 as:

not, among other things:

 ·Become subject to other liens or encumbrances; ·Change ownership of Lifted; ·Enter into a merger, acquisition or divestiture; ·Conduct stock buybacks; ·Serve as a guarantor; ·Wind up, liquidate or dissolve; ·Enter into the purchase, sale, exchange or transfer of property; ·Permit the outstanding principal balance of the Working Capital Loan to exceed 40% of the fair market value of the collateral securing the Working Capital Loan; or ·Directly or indirectly issue, assume or create any additional indebtedness on the collateral.

If we were to violate any of these negative covenants, Surety Bank would be entitled to declare a default under the loan agreements. Such a default could have a material adverse effect on our Company and the trading price of our common stock.

 31Table of Contents

We may need to raise substantial amounts of additional capital to pay our ongoing obligations and to pay for our operations

There is no guarantee that Lifted’s operations will generate sufficient free cash flow to allow us to pay our ongoing obligations described in the preceding risk factor. We may need to raise millions of dollars of additional capital just to pay our ongoing obligations. There is no guarantee that we can obtain the funding needed to pay these ongoing obligations on acceptable terms, if at all, and neither our directors, officers, nor any third party is obligated to provide any financing. Failure to raise substantial amounts of additional capital may materially adversely affect our Company. The foregoing risks may have a material adverse effect on our Company and the trading price of our common stock.

We may not be profitable in the future

We currently have one revenue-generating subsidiary, Lifted. Prior to the acquisition of Lifted on February 24, 2020, we had no sources of revenue, and had a history of recurring losses. We face many risks that could prevent us from achieving profits in future years. We cannot assure you that we will be profitable. Failure to achieve profitability will materially adversely affect our Company and the trading price of our common stock.

Also, our efforts to grow our business may be more costly than we expect and we may not be able to increase our revenue enough to offset higher operating expenses. We may incur significant losses in the future for a number of reasons, including as a result of unforeseen laws, regulations, restrictions, taxes, expenses, difficulties, complications and delays, the other risks described herein and other unknown