Company: LIFD
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001096906-25-000346
Chunk: 1812

Company: LFTD PARTNERS INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 1812
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 or a decision not to proceed with the acquisitions. Additionally, any undisclosed financial obligations or liabilities uncovered during due diligence could materially impact LIFD’s financial condition. Integration of the Acquired Companies May Be Challenging and Costly Successfully integrating multiple acquisitions across cannabis, hemp, retail, and real estate will require significant resources and management focus. Risks associated with integration include:  ·Aligning corporate cultures and business practices; ·Consolidating financial and operational systems; ·Managing regulatory compliance across multiple industries; ·Retaining key executives and employees from acquired entities. If integration efforts are unsuccessful, LIFD may fail to realize anticipated synergies, resulting in lower-than-expected revenue, increased expenses, and potential impairments to acquired assets. LIFD’s Expansion into Regulated Cannabis Markets Involves Additional Risks The cannabis industry is extremely competitive, with many companies being unprofitable or going bankrupt due to low prices, costly regulations 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