Company: LIFD
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001096906-25-000346
Chunk: 835

Company: LFTD PARTNERS INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 13
Chunk 835
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 and high taxes on marijuana, an unregulated “black market”, and inability to deduct their costs of selling a federally illegal product under section 280E of the Internal Revenue Code. The cannabis industry is also subject to changing federal and state laws. Future regulatory changes could:  ·Increase the number of cannabis licenses ·Increase compliance costs ·Restrict business operations · Impact the ability to obtain or renew cannabis licenses  Additionally, if federal cannabis laws change, LIFD could face increased scrutiny from financial institutions, lenders, and regulatory agencies, which may affect its ability to conduct business The Acquisitions of Real Estate Assets Are Subject to Market and Financing Risks LIFD’s acquisition of Sustainable Properties, LLC and its associated real estate holdings in Rockford, Illinois involves risks related to property valuation, development, and tenant acquisition. The success of these properties depends on:  ·Securing and/or maintaining proper zoning and permits; ·Attracting qualified tenants or buyers; · Managing maintenance and operational costs.  Additionally, if LIFD’s lender does not approve the transaction, the Company may be required to sell the real estate assets, potentially at a loss. Failure to Maintain Social Equity Status Could Trigger a $625,000 Loan Repayment Obligation Sustainable Innovations Inc. received a $625,000 social equity forgivable loan from the Illinois Department of Commerce and Economic Opportunity relating to an Illinois cannabis infuser license. Under the loan’s terms, if SI or that infuser license is transferred before the end of the required “Standstill Period,” the loan must be repaid in full. If LIFD proceeds with the acquisition and is required to repay the loan, it could result in an unexpected financial obligation or liability. The Company May Be Required to Commit to Selling Certain Acquired Assets To obtain lender approval for the acquisition of Sustainable Properties, LLC, LIFD may be required to commit to selling the 1221 Property or other assets if financing terms are not favorable. This could impact LIFD’s ability to execute its long-term real estate strategy.

F-46Table of Contents

 Macroeconomic and Industry-Specific Risks Could Impact Business Operations The success of the acquired companies depends on broader economic conditions, industry competition, and consumer trends. Risks include:  ·Volatility in cannabis and hemp markets; ·Potential oversupply in cannabis cultivation; ·Fluctuations in commercial real estate values; ·Changes in