Company: LIFD
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001096906-25-000346
Chunk: 2860

Company: LFTD PARTNERS INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 2860
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 of brokers or dealers to sell our common stock and may adversely affect the ability of investors to sell our common stock, and may materially adversely affect our business and the trading price of our common stock. 

A return on our securities is not guaranteed

There is no guarantee that our securities will earn any positive return in the short term or long term. A holding of our securities is speculative and involves a high degree of risk and should be undertaken only by holders whose financial resources are sufficient to enable them to assume such risks and who have no need for immediate liquidity in their investment. Holding of our securities is appropriate only for holders who have the capacity to absorb a loss of some or all of their holdings. This risk may materially adversely affect our Company and the trading price of our common stock.

Certain stock brokers will not handle our common stock 

Certain stock brokers will not handle our common stock due to the SEC’s “penny stock” rules and heightened internal compliance scrutiny. Additionally, we believe that many brokers will not allow stockholders to deposit or hold our stock in their brokerage accounts due to our involvement in the cannabis industry. This has made it difficult for some investors to purchase, deposit, or even maintain holdings of our common stock in brokerage accounts. Further, while hemp is no longer classified as an illegal substance under the Farm Bill, the U.S. Food and Drug Administration (“FDA”) continues to regulate cannabis-derived products under the Federal Food, Drug, and Cosmetic Act (“FD&C Act”) and Section 351 of the Public Health Service Act. The FDA has raised concerns about the potential health risks of hemp-derived cannabinoids, including delta-8-THC and CBD, particularly regarding possible liver toxicity. The agency has also suggested that certain cannabinoids may be classified as drugs, making their sale without FDA approval potentially unlawful. In deference to the FDA’s position, some states and municipalities have imposed restrictions or outright bans on the sale of certain hemp-derived cannabinoid products. If the FDA or other regulatory authorities impose stricter licensing requirements, compliance obligations, or prohibitions on the sale of hemp-derived products, this could further limit investor access to our stock and negatively impact our business operations. These factors, combined with existing brokerage restrictions may materially and adversely affect our Company and the trading price of our common stock. 

Options trading of our common stock is not currently possible 

At the present time, potential investors have no ability to purchase or sell options to trade in our common stock. This situation has made it difficult for some potential investors to accumulate positions in our common stock, or