Company: LIFD
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001096906-25-000346
Chunk: 185

Company: LFTD PARTNERS INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 185
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 receipt of payments from certain customers have increasingly become an issue for Lifted

The delay in Lifted’s receipt of payments from certain customers – primarily distributors – have increasingly become an issue for Lifted. Certain customers have become slower to pay Lifted for purchased product (“Slow Paying Customers”), and the Slow Paying Customers disregard payment terms. Management speculates that some Slow Paying Customers may be slow-paying Lifted because of their own sales collection issues, which may in part be caused by the regulatory uncertainty over our industry. As described below in the Accounts Receivable section under NOTE 2 – 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