Company: LIFD
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001096906-25-001862
Chunk: 59

Company: LFTD PARTNERS INC.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 59
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 those sections will be replaced, impacted or amended by subsequent acts of Congress. However, the Act in all likelihood will have a devastating impact on the Company and the price of its common stock. The material adverse effects of the Act cannot be overstated; these material adverse effects include, but are not limited to, the following:

 a)The elimination of half or more of Lifted’s sales. Sales of hemp-derived products made up approximately 47% of Lifted’s sales during the three months ended September 30, 2025; thus, the Act could eliminate approximately half or more of the Company’s revenue; b)Goodwill impairment charges. As a result of LFTD Partners' acquisition of Lifted, LFTD Partners recognized goodwill of $22,292,767 ("Lifted Goodwill"). As a result of Lifted’s purchase of assets of hemp-derived products maker Oculus CRS, LLC, and merger with Oculus CHS Management Corp., LFTD Partners recognized goodwill of $800,027 ("Oculus Goodwill"). Total goodwill reported at September 30, 2025 is $23,092,794. The Act will necessitate the calculation and recording of an impairment charge over the Lifted Goodwill and Oculus Goodwill. The impairment charge could be half or more of the Lifted Goodwill and Oculus Goodwill; c)An investment impairment charge. The Act will necessitate the calculation and recording of an impairment of LFTD Partners’ investment in hemp-derived beverage and products maker Ablis. LFTD Partners’ investment in Ablis was reported as $399,200 as of September 30, 2025. The impairment charge could be half or more of LFTD Partners’ investment in Ablis; and d)Significant inventory write offs. The Act will most likely negatively impact the pricing of hemp-derived products, the availability and price of raw goods and production forecasting, which will lead to increased write-offs each quarter end. Moreover, any hemp-derived products in inventory on November 12, 2026 will have to be written off.

 (2)On May 21, 2025, the Governor of Tennessee signed House Bill 1376, which significantly restricts the production and sale of hemp-derived products beginning in 2026, and which could materially adversely affect our sales of hemp-derived products in Tennessee and the trading price of our common stock;    (3)In Alabama, new regulations took effect on July 1,