Company: LIFD
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001096906-25-000346
Chunk: 2876

Company: LFTD PARTNERS INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 2876
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 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES, the Company has an accounting protocol which effectively causes the Company to recognize an allowance for doubtful accounts for all invoices older than 90 days. Consequently, the delay in Lifted’s receipt of payments from certain customers has a direct impact on the Company’s net receivables, net income, and earnings per share. The foregoing risk may have a material adverse effect on our Company and the trading price of our common stock.

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Write offs of inventory continue to be significant for Lifted

Write offs of inventory continue to be significant for Lifted. Because consumers’ demands change very quickly, Lifted may find it necessary to write off certain raw goods because they will no longer be used in production. Or, if consumers are no longer interested in certain products, and the finished goods are slow-moving, those finished goods are written off. The foregoing risk may have a material adverse effect on our Company and the trading price of our common stock.

Lifted’s collaborations with third-party companies may be unprofitable and fail

Collaborations with third-party companies may be unprofitable and fail. Factors that may contribute to failed, unprofitable collaborations include, but are not limited to:

 1)Leadership absent from planning/update calls; 2)Inequality in regard to each side’s contributions to the collaborations, financial or otherwise; 3)Lack of cooperation; 4)Disagreement on topics such as formulation, product presentation, production needs, pricing, packaging, and marketing; 5)Micro-management to the point of annoyance or resentment of the other party, and operational inefficiency; 6)Lack of communication; 7)Lack of fulfillment of monetary obligations; 8)Limited or no ability to publicly announce the collaboration or the results of the collaboration; 9)Forced recalls; 10)Disclosure of Lifted's suppliers and distributors; and 11)Self-imposed testing requirements that are too stringent and cause delays in the launching of products, or testing results that cause products not be launched

The above factors are some of the reasons why Lifted’s collaborations with third-party companies may be unprofitable and fail, or may be unworkable. The foregoing risks may have a material adverse effect on our Company and the trading price of our common stock.

The FDA has not approved any of Lifted’s products, and Lifted could face cease and desist letters, lawsuits or other enforcement actions by