Company: LIFD
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001096906-25-000346
Chunk: 2976

Company: LFTD PARTNERS INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 2976
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 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 valuable shelf space.

Lifted has launched several initiatives in order to attempt to increase net sales, including: the launch of hemp-free brands Rebel Energy Gummy and Mielos (wellness gummies); increasing spending on SEO; online advertising and marketing; and sending sales teams to certain cities to attempt to increase direct-to-retailer sales. In 2024, the Company had also hired Zuanic & Associates to initiate coverage of the Company’s common stock; however, any opinions, estimates, valuation projections or forecasts regarding the Company’s performance made by analysts, including Zuanic & Associates, are theirs alone and do not represent opinions, forecasts or predictions of the Company or its management. The Company does not by its reference or distribution imply its endorsement of or concurrence with analyst information, conclusions or recommendations.

Write-offs of Inventory

Lifted's industry, and customer preferences, are constantly and quickly evolving. Consequently, Lifted finds it extremely difficult to predict future sales of its products and to anticipate raw goods needs for future production. This exposes Lifted to the risk that it will need to write off obsolete raw goods and slow-moving finished goods, causing an increase in cost of goods sold. 

During the year ended December 31, 2024, $1,550,599 of obsolete and spoiled inventory was written off.