Company: LIFD
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001096906-25-000346
Chunk: 156

Company: LFTD PARTNERS INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 156
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 (unless previously exercised) during November 2020 or during September 2021, respectively, have been extended so that all of such stock options may be exercised by GJacobs at any time on or before December 31, 2024;

(6) We granted to GJacobs and to WJacobs so-called “tag along” registration rights for all of our shares owned by GJacobs, by WJacobs, or by any of their respective affiliates, and for all of our shares issuable to GJacobs, to WJacobs, or to any of their respective affiliates upon the exercise of his or their options or warrants to purchase shares of common stock of the Company; and

(7) We issued to GJacobs and WJacobs five-year warrants containing a “cashless exercise” feature giving GJacobs and WJacobs (or his designee(s)) the right to purchase 250,000 and 225,000 shares, respectively, of common stock of the Company exercisable at $5.00 per share. 

Liquidity and Capital Resources

The Company’s only wholly owned subsidiary, Lifted, often generates enough free cash flow to allow the Company and Lifted to fund their operations at their current levels and to grow Lifted’s business in a conservative, capital-constrained fashion. However, no guarantee or assurance can be given that Lifted’s current level of free cash flow will continue in the future, especially in light of U.S. federal, state and local laws, regulations and executive orders that may negatively impact the Company’s sales of its products.

The Company and Lifted have aspirations to grow both organically and via acquisitions. But, to do so may require the Company to raise many millions of dollars of additional capital.  

Currently, management of the Company is reluctant to raise capital by selling equity securities of the Company (common stock and/or convertible preferred stock) at the current trading price per share of the Company’s common stock or any lower price per share.

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Even if the Company is able to raise additional capital via borrowing or the sale of equity 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