LFTD Partners Inc. (LIFD)

A. Company Overview

LFTD Partners Inc. is a holding company headquartered in Jacksonville, Florida, organized under the laws of the State of Nevada since January 2, 1986. The company's common stock is traded on the OTCQB Venture Market under the ticker symbol “LIFD.” As a parent corporation, LFTD Partners oversees several subsidiaries, most notably Lifted Liquids, Inc., which operates under multiple brands, including Lifted Made, Urb Finest Flowers, Highlandia, and LM Nutra. The company specializes in the manufacturing and sale of hemp-derived psychoactive products, beverages, and various health and wellness items.

B. Subsidiary Operations

Lifted Liquids, Inc.

Lifted was incorporated on September 19, 2014, in Wisconsin with the intent of promoting a culture-focused organization committed to quality products and a healthier lifestyle. The product offerings include psychoactive items containing hemp-derived cannabinoids such as delta-8-THC and delta-9-THC, along with non-intoxicating energy and wellness products.

Product Brands

Lifted's activities encompass multiple award-winning brands:

• Urb Finest Flowers ("Urb"): Offers a variety of hemp-derived products, including vapes, cartridges, edibles, joints, and blunts.
• Highlandia: Focuses on hemp-derived beverages; the brand was launched in early 2026.
• Mielos: Introduced in 2024, offers hemp-free health and wellness gummies.
• Rebel Energy Gummy: A brand of hemp-free energy gummies launched in 2024.
• Diamond Supply Co.: Lifted is the exclusive worldwide manufacturer and distributor of this brand's hemp-derived products.

In addition, Lifted has previously manufactured and sold products incorporating kratom and has a historical portfolio of nicotine offerings.

Corporate Structure

LFTD Partners Inc. has established itself as a strategic holding company. In a shift towards diversifying its interests, management is keen on acquiring businesses outside the hemp and marijuana sectors due to the myriad of regulatory risks involved in those industries.

Investments

LFTD Partners Inc. holds a 4.99% stake in Ablis, a producer of hemp-derived beverages, and shares in Bendistillery, a craft distiller known for Crater Lake Spirits, located in Bend, Oregon. Notably, due to market volatility and regulatory changes, LFTD Partners recorded impairments on its investments in these companies in recent years.

C. Regulatory Environment

The manufacture and sale of hemp-derived products are subject to a complex and constantly evolving legal landscape, significantly affecting the operations and viability of Lifted. While the Agricultural Improvement Act of 2018 declassified hemp from being a Schedule I controlled substance, compliance with federal, state, and local regulations remains critical. The variability of laws surrounding kratom and nicotine further complicates the operational framework and poses risks of regulatory action that could adversely impact Lifted's business and LFTD Partners' financial performance.

D. Competition Analysis

In a highly competitive market, Lifted faces challenges from both established companies and new entrants emerging within the hemp-derived products space. Competitors are increasingly launching private-label products, vying for market share through innovative offerings at various price points, making it crucial for Lifted to maintain its competitive edge through effective marketing, product quality, and customer engagement.

E. Operational Footprint

Lifted operates primarily out of Kenosha, Wisconsin, with multiple leased facilities for manufacturing, distribution, and storage. A real estate asset in Kenosha, known as the 5511 Building, serves as a base for operations and is set to undergo strategic consolidation into additional facilities, should the property be sold. A significant portion of Lifted’s products is distributed through a network of third-party distributors to various retail outlets, including convenience stores and wellness shops.

F. Supply Chain and Manufacturing

Lifted's products are sourced from a diverse array of suppliers who provide raw materials subject to third-party laboratory tests to ensure quality and safety. While Lifted utilizes limited in-house manufacturing for some of its goods, the company often engages third-party vendors for specific product lines. Supply chain challenges, particularly regarding components sourced from overseas, have emerged as potential risks due to geopolitical and economic factors.

G. Intellectual Property

Intellectual property held by Lifted includes proprietary formulations and trademarks, notably for the brand “Urbar.” However, the company does not possess any registered patents, which may limit competitive barriers to market entry for similar products.

H. Financial Operations

Financial management within LFTD Partners Inc. primarily targets maintaining a stable liquidity position through careful cash flow management and potential capital raises for acquisitions or operational growth. Distribution-related financial dynamics can fluctuate considerably based on the company's ability to collect receivables and manage payment terms effectively.

I. Marketing Strategies

Lifted employs a multifaceted marketing approach involving trade shows, online marketing, and word-of-mouth referrals to establish a market presence. Additionally, it collaborates with external firms for public relations and optimization efforts, although the effectiveness of these strategies remains under evaluation.

J. Acquisition Strategy

Potential acquisition opportunities are assessed through an Investment Committee, with a bias towards structures that favor stock-for-stock exchanges or asset purchases. Given current market conditions, LFTD Partners has adopted a conservative approach to its financial maneuvers, reflecting the high level of uncertainty in the hemp and cannabis industries.