LFTD Partners Inc. reported a significant decline in financial performance for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Net sales for the third quarter were $8.7 million, down from $13.1 million in 2023, while year-to-date sales fell to $28.8 million from $38.1 million. The decrease in revenue is attributed to tighter regulations on hemp-derived products, increased competition, and distributors favoring their own brands. Gross profit for the quarter was $3.8 million, down from $4.4 million, resulting in a gross margin of 43%, compared to 34% in the prior year.

The company reported a net loss of $194,399 for Q3 2024, a stark contrast to a net income of $617,648 in Q3 2023. For the nine-month period, the net loss was $1.9 million, compared to a net income of $2.1 million in the previous year. The basic and diluted loss per share for Q3 2024 was $(0.01), compared to earnings of $0.04 in Q3 2023. The increase in operating expenses to $3.9 million from $3.8 million was primarily due to a bad debt expense of $864,345, while total operating expenses for the nine months decreased to $11.5 million from $12.8 million, largely due to a one-time stock compensation expense in 2023.

LFTD Partners continues to pursue strategic growth through acquisitions, having acquired nearly all assets of Oculus CRS, LLC in April 2023, which included a merger with Oculus CHS Management Corp. The company also launched new product lines, including Mielos and Rebel Energy Gummy, in 2024. However, the termination of the Jeeter Agreement in January 2024, which had previously contributed to revenue, has raised concerns about future sales.

As of September 30, 2024, the company had total current assets of $17.4 million and current liabilities of $6.6 million, resulting in working capital of $10.8 million. The accumulated deficit increased to $3.97 million, reflecting ongoing financial challenges. The company is also facing regulatory risks that could impact its operations, including potential changes in federal and state laws regarding hemp-derived products.

In terms of cash flow, LFTD Partners reported a net cash decrease of $1.2 million for the nine months ended September 30, 2024, with cash and cash equivalents totaling $3.2 million at the end of the period. The company is actively seeking to raise additional capital to support its operations and growth initiatives.