LFTD Partners Inc. Reports $1.86 Million Net Loss and Decrease in Net Sales for 2024

LFTD Partners Inc. (LIFD), parent company of Lifted Liquids Inc., reported a net loss of $1.86 million for the year ended December 31, 2024, compared to a net income of $2.16 million in 2023 and $7.20 million in 2022. Net sales decreased to $37.33 million in 2024 from $51.61 million in 2023, attributed to factors including increased competition, lower pricing pressures, and tighter regulations on intoxicating hemp-derived products in key markets. The company cited non-cash expenses, primarily related to spoiled inventory ($1.55 million), bad debt expense ($1.47 million), and a loss on the terminated Jeeter collaboration ($1.35 million), as significant contributors to the 2024 net loss.

Significant changes in financial performance compared to the previous year include a substantial decrease in net sales and a shift from profitability to a net loss. The company's cash flows from operating activities were negative at $960,067 in 2024, contrasting with positive cash flows of $638,925 in 2023 and $3.04 million in 2022. Investing activities also resulted in a net cash outflow of $479,574 in 2024, primarily due to capital expenditures and payments related to a merger. The company's cash and cash equivalents decreased from $5.36 million at the end of 2023 to $3.15 million at the end of 2024.

Strategic developments during the year included the launch of two new hemp-free product lines, Mielos (health and wellness) and Rebel Energy Gummy, and the termination of a manufacturing agreement with Jeeter. Lifted also acquired substantially all the assets of Oculus CRS, LLC, for $342,068, and merged with Oculus CHS Management Corp. The company also highlighted ongoing efforts to increase sales through enhanced SEO, online advertising, and direct-to-retailer sales initiatives. The company also noted that it had hired Zuanic & Associates to initiate coverage of its common stock.

Operational developments included the continued reliance on third-party distributors for the majority of sales, with a smaller portion of sales conducted directly to retailers and online. Lifted employed approximately 148 full-time and part-time employees and independent contractors as of December 31, 2024. The company also noted significant inventory write-offs due to changing consumer demands and regulatory uncertainty. The company's operations are subject to significant regulatory risks related to hemp-derived products, including potential actions by the DEA and FDA.

LFTD Partners acknowledged substantial doubt about its ability to continue as a going concern due to recurring losses and significant financial obligations. The company plans to address this by continuing to operate Lifted, acquiring profitable businesses, and potentially raising additional capital through equity or debt financing. However, the company cautioned that there is no assurance that these actions will be successful or that additional capital will be available on acceptable terms. The company also highlighted numerous risk factors, including regulatory uncertainty, competition, and the potential for litigation.