Company: LIFD
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001096906-25-000346
Chunk: 2961

Company: LFTD PARTNERS INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 2961
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 Organizations Act (“RICO”) criminalizes the use of any profits from certain defined “racketeering” activities in interstate commerce. While intended to provide an additional cause of action against organized crime, due to the fact that cannabis is illegal under U.S. federal law, the production and sale of cannabis qualifies cannabis-related businesses as “racketeering” as defined by RICO. As such, all officers, directors and shareholders in a cannabis-related business could be subject to criminal prosecution under RICO, which carries substantial criminal penalties.

RICO can create civil liability as well: persons harmed in their business or property by actions which would constitute racketeering under RICO often have a civil cause of action against such “racketeers,” and can claim triple their amount of estimated damages in attendant court proceedings. The Company, as well as its officers, directors and shareholders could all be subject to civil claims under RICO. The foregoing risks may have a material adverse effect on our Company and the trading price of our common stock.

We could be subject to litigation regarding the potency of our marijuana products

Cannabis testing labs frequently employ different testing machines, protocols and methodologies, and in addition, testing machines, protocols and methodologies are constantly evolving. Consequently, cannabis testing labs sometimes disagree on the potency and other characteristics of tested marijuana product samples, such as in regard to delta-9-THC potency, and the presence of molds, pesticides, heavy metals, and other contaminants. As a result, even though our Company plans to use independent third party cannabis testing labs, our products may be subject to litigation questioning the accuracy of our certificates of analysis and/or our product labeling. The foregoing risks may have a material adverse effect on our Company and the trading price of our common stock.

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Publicly traded marijuana companies are generally unprofitable and have lost hundreds of millions, if not billions, of dollars of investor money

Since publicly traded marijuana companies emerged during the past decade, most of those companies have been unprofitable and have lost hundreds of millions, if not billions, of dollars of investor money. No assurance or guarantee whatsoever can be given that our marijuana business will be profitable, and our investment in the marijuana industry may result in our stockholders losing a significant portion or all of the value of their investments in our Company. The foregoing risk may have a material adverse effect on our Company and the trading price of our common stock.

Federal legalization of marijuana could have significant negative impacts

We believe it is possible that federal legalization