Company: LIFD
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001096906-25-000346
Chunk: 237

Company: LFTD PARTNERS INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 237
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 quality that meets its requirements. The price and availability of these materials are subject to market conditions. Increases in the price of Lifted’s products due to the increase in the cost of raw materials may have a negative effect on its business.

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If Lifted is unable to obtain sufficient quantities of raw and packaging materials, delays or reductions in product shipments may occur which would have a material adverse effect on Lifted’s business, financial conditions and results of operations. If Lifted's packaging suppliers replicate and sell Lifted’s proprietary or custom packaging designs to competitors, or disclose to competitors Lifted’s future products, there may be material adverse effects on Lifted’s business, financial conditions and results of operations. The supply and price of raw materials used to produce Lifted’s products can be affected by a number of factors beyond Lifted’s control, such as political tensions between the US and China, tariffs, freight- and port-related backups and other logistical problems, wildfires, frosts, droughts, other weather conditions, economic factors affecting growing decisions, and various plant diseases and pests. If any of the foregoing were to occur, no assurance can be given that such condition would not have a material adverse effect on Lifted’s business, financial condition and results of operations. In addition, Lifted’s results of operations are dependent upon its ability to accurately forecast its requirements of raw materials. Any failure by Lifted to accurately forecast its demand for raw materials may result in an inability to meet higher than anticipated demand for products or producing excess inventory, either of which may adversely affect its results of operations. The foregoing risks may have a material adverse effect on our Company and the trading price of our common stock.

Lifted depends on a small number of customers for a significant portion of its sales

Distributors’ and wholesalers’ buying power has increased, as competition in the hemp and consumer goods industries has increased, and as distributors and wholesalers have increased their own private brand offerings, leading to increasing margin demands of Lifted. Distributors and wholesalers are increasingly in a better position to resist Lifted’s price increases and demand lower prices, and to demand Lifted to provide larger and more tailored promotional programs. If Lifted does not successfully provide appropriate marketing, product, packaging, pricing and service to these distributors and wholesalers, Lifted’s product availability, sales and margins may suffer. Certain distributors and wholesalers make up a significant percentage of Lifted’s sales. The loss of sales of any of Lifted’s products by a major retailer may have a