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

Company: LFTD PARTNERS INC.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 10
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 charge over the Lifted Goodwill and Oculus Goodwill. The impairment charge could be half or more of the Lifted Goodwill and Oculus Goodwill; 3)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 4)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.  Additional factors that could materially adversely affect the Company’s future operating results include, but are not limited to: other changes to federal laws and regulations; any new rule proposed by the federal Drug Enforcement Administration that might attempt to classify certain hemp-derived products as controlled substances; and any other federal or state laws and regulations prohibiting or restricting hemp-derived, nicotine or tobacco products, kratom or kratom extracts or byproducts (such as 7-hydroxymitragynine, which the U.S. Food and Drug Administration has recommended to be scheduled as a controlled substance), psychoactive products and/or vaping.   There is also a risk that the Company potentially might be accused of selling products containing ingredients that might be considered an analog of a controlled substance. The Company is also subject to vendor concentration risk, customer concentration risk, customer credit risk, and counterparty risk. A limited number of customers have historically made up a significant portion of the Company’s sales. Also, historically, the Company has purchased raw goods and finished goods from a limited number of suppliers. The loss of Lifted’s relationships with these customers and vendors could have a material adverse effect on Lifted’s business. The Company maintains levels of cash bank accounts that typically exceed federally insured limits. The Company has not experienced any losses in such accounts and it believes that it is not exposed to any significant credit risk on cash. No assurance or guarantee whatsoever can be given that the net income of the Company’s wholly owned subsidiary Lifted will be sufficient to allow the Company to pay all of its operating expenses, its financial obligations under its loan agreements with Surety Bank