Company: LIFD
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001096906-25-000346
Chunk: 2807

Company: LFTD PARTNERS INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 2807
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Significant Financial Obligations and Acute Regulatory Risks

LFTD Partners Inc. has a history of recurring losses, which has resulted in an accumulated deficit of $3,967,708 as of December 31, 2024. The Company currently is making significant payments of interest and principal on its loans from Surety Bank, and is accruing and paying dividends on outstanding Series A Preferred Stock and Series B Preferred Stock at the rate of 3% per year, among other ongoing financial obligations. As extensively discussed in this document, the Company is subject to a wide variety of Risk Factors including substantial legal and regulatory risks. These matters cumulatively raise substantial doubt about our ability to continue as a going concern.

The legal and regulatory risks facing Lifted's business are particularly acute at this point in time, in at least three respects: 

(1) An official of the federal Drug Enforcement Administration (the "DEA") made a presentation at a conference in Houston in April 2023, in which that official reportedly stated that the DEA plans to issue a new rule that would have the effect of classifying certain hemp-derived cannabinoids as controlled substances. If such a new rule were to be issued and become legally binding upon Lifted, it could have a material adverse effect upon over 90% of Lifted's business and upon the trading price of the Company's common stock. As of the date of this Annual Report on Form 10-K, we are not aware of any draft DEA rule that would materially affect Lifted’s business; 

(2) A new or amended federal "Farm Bill" is expected to be passed by Congress and signed by the President sometime during 2025. If such a new or amended federal "Farm Bill" were to eliminate or limit the legality of hemp and hemp-derivatives, it could have a material adverse effect upon over 90% of Lifted's business and upon the trading price of the Company's common stock; and 

(3) Numerous states have enacted, or are considering enacting, laws that would prohibit or seriously regulate sales of the Company’s products in those states. In particular, on December 6, 2023, Wisconsin’s Governor signed a new law that requires that an electronic vaping device be listed on the state’s electronic vaping device directory or it is illegal to sell or offer such device for sale in Wisconsin. In order for an electronic vaping device to become listed on such electronic vaping device directory, its manufacturer must certify that such electronic vaping device meets