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DESCRIPTION OF THE BUSINESS OF LFTD PARTNERS INC
 6 Months Ended
Jun. 30, 2026
DESCRIPTION OF THE BUSINESS OF LFTD PARTNERS INC  
DESCRIPTION OF THE BUSINESS OF LFTD PARTNERS INC

NOTE 1 – DESCRIPTION OF THE BUSINESS OF LFTD PARTNERS INC.

 

LFTD Partners Inc., Jacksonville, Florida, was organized under the laws of the State of Nevada on January 2, 1986. We were a former shell company, primarily engaged in identifying, structuring, and seeking to execute acquisitions of all or a portion of one or more operating businesses. Between 2011 and 2013, we acquired and operated several businesses linked to the defense industry. In 2018, we shifted focus to the cannabis industry where we have operated since. Shares of the Company’s common stock are listed for trading on the OTCQB Venture Market under the symbol “LIFD”.

 

LFTD Partners is the parent corporation of Lifted Liquids, Inc. d/b/a Lifted Made, d/b/a Urb Finest Flowers, d/b/a Highlandia and d/b/a LM Nutra, Kenosha, Wisconsin (“Lifted Made” or “Lifted”), which manufactures and sells hemp-derived and other psychoactive products under its award-winning Urb Finest Flowers (“Urb”) brand (www.urb.shop) and other brands, hemp-derived beverages under the Highlandia brand (www.Highlandia.com), and hemp-free health and wellness gummies under its Mielos brand (www.mielos.com). Lifted also has plans to manufacture and sell hemp-free gummies in multiple flavors under a new brand. Lifted also manufactures and sells hemp-derived and hemp-free products to private label clients, and licenses the Urb brand name to Extrax NM LLC in New Mexico for use on marijuana products. LFTD Partners also owns a 4.99% non-controlling equity interest in hemp-derived beverage and products maker Ablis (www.Ablis.shop), and in craft distiller Bendistillery, Inc. (www.Bendistillery.com), both located in Bend, Oregon.

 

LFTD Partners is completely dependent upon revenue from Lifted to stay in business and to remain solvent. If Lifted’s revenue were to be seriously disrupted, LFTD Partners would face severe financial difficulties including a potential bankruptcy.

 

At this point in time, both of Lifted’s two major lines of business – intoxicating hemp-derived products and kratom-derived 7-OH and other products (collectively “7-OH”) – are at severe risk of serious disruption and potential elimination.

 

Pursuant to a federal law enacted in November 2025, intoxicating hemp-derived products are scheduled to become federally illegal as of November 12, 2026, unless that law is repealed, amended or delayed. And even if that federal law is repealed, amended or delayed, numerous states have enacted laws restricting or prohibiting sales of intoxicating hemp-derived products.

 

Pursuant to federal regulations that are in the process of being enacted by the U.S. Drug Enforcement Administration, products that include 7-OH above a defined threshold either will temporarily become federally illegal as a controlled substance or will be otherwise restricted.

 

These federal legislative and regulatory attacks on intoxicating hemp-derived products and 7-OH products threaten to eliminate Lifted’s two major lines of business during the second half of 2026. Lifted has already experienced slowing sales activity and slower collection of accounts receivable in response to regulatory uncertainty and changing market conditions and has taken steps to reduce its remaining inventory of certain affected products. If Lifted’s two major lines of business are eliminated, then Lifted’s operating results, liquidity, and cash flows would be materially adversely affected.

 

Under those circumstances, Lifted could experience significant liquidity constraints that could impair its ability to satisfy payroll, debt service, accounts payable, rent, insurance, taxes, professional fees, and other operating obligations as they become due. If the Company is unable to offset these revenue declines through cost reductions, asset sales, financing transactions, or diversification initiatives, management believes that the Company could become insolvent and may be required to seek protection under applicable bankruptcy laws.

 

The management and board of directors of Lifted and LFTD Partners are acutely aware of these very serious risks, and have responded in several ways:

 

These conditions raise substantial doubt about the Company’s ability to continue as a going concern for the twelve months following the issuance of these financial statements. Management has implemented, and continues to evaluate, several initiatives intended to preserve liquidity, reduce operating costs, monetize assets, and diversify the Company’s operations; however, there can be no assurance that these initiatives will be completed successfully or will be sufficient to alleviate the substantial doubt regarding the Company’s ability to continue as a going concern:

 

 

(1)

During 2026, Lifted has streamlined its operations by laying off a large number of employees and independent contractors. Lifted’s total workforce, including both employees and independent contractors, at one time was close to 200 people, but has been streamlined via layoffs down to approximately 77 people. Significant additional layoffs are highly likely if either or both of Lifted’ two major lines of business are seriously disrupted or eliminated. Such layoffs are highly likely to include people with valuable skills, experience and relationships without which Lifted’s future operations and revenues would be materially adversely affected.

 

 

 

 

(2)

On July 22, 2026, Lifted entered into a binding agreement to sell its real property located at 5511 95th Avenue, Kenosha, Wisconsin for a purchase price of $1,500,000. The transaction is subject to customary closing conditions and is expected to close on September 16, 2026. If the transaction is completed, Lifted expects to use the net sale proceeds to repay the outstanding mortgage loan with Surety Bank, including the $836,358 principal balance as of June 30, 2026, accrued interest, and any applicable prepayment penalty. The remaining proceeds are expected to be added to Lifted’s working capital.

 

 

 

 

(3)

Faced with these very serious risks to Lifted’s two major lines of business, LFTD Partners perceives an urgent need to diversify Lifted’s and LFTD Partners’ business away from intoxicating hemp-derived products and 7-OH products.

 

 

a.

In the case of Lifted, the management of Lifted plans to manufacture and sell hemp-free gummies in multiple flavors under a new brand, and is exploring the possibility of manufacturing and selling, or purchasing and re-selling, other hemp-free and kratom-free products that may appeal to consumers whose access to intoxicating hemp-derived products and to 7-OH products have been reduced or eliminated as described above.

 

 

 

 

b.

In the case of LFTD Partners, in June 2026, the Board of Directors of the Company voted unanimously to authorize the CEO of the Company to identify, negotiate and sign contracts to acquire multifamily housing properties and/or laundromats, and in that connection to hire investment bankers and raise capital to support those acquisitions. Pursuant to that resolution, the CEO of the Company, working in conjunction with our President and CFO, have been conducting due diligence investigations of many apartment buildings and laundromats, and have made written and oral offers pursuant to which newly formed subsidiaries of the Company would acquire multiple apartment buildings along the East Coast of Florida. To date, none of these offers have resulted in any legally binding agreements, but these efforts are continuing. No guarantee or assurance can be given that any apartment buildings or laundromats will be acquired by the Company, nor on any particular pricing, terms and conditions.

 

 

 

 

 

It is unclear at this point in time how much debt and/or equity can be dedicated or raised by the Company for acquisitions of apartment buildings or laundromats. The Company has engaged, and is continuing to engage, in discussions with certain banks, investment banks and other potential sources of capital for this purpose. No guarantee or assurance can be given that the Company’s capital raising efforts to purchase apartment buildings and/or laundromats will be successful. The Company’s challenges in raising capital relate to several factors, including: potential investors’ and lenders’ skepticism regarding the future of Lifted’s intoxicating hemp-derived and 7-OH products; the fact that the Company’s common stock is not currently traded on NASDAQ or on another national exchange; and the low trading volume of the Company’s stock on the OTCQB Venture Market. Also, the Company’s limited cash on hand and Lifted’s need to devote its limited cash on hand to its expansion opportunities in the hemp-derived THC beverages industry, the hemp-free gummies industry, and other new consumer products have made acquisitions of apartment buildings that require significant equity components of the purchase price difficult. Consequently, the Company is focusing a significant portion of its due diligence efforts on properties that include seller financing or assumable debt.

If and when the Company is successful in acquiring one or more apartment buildings and/or laundromats, the CEO of the Company has been authorized by our Board of Directors to implement a change in the Company’s name and trading ticker symbol, in order to highlight the Company’s diversification away from intoxicating hemp-derived and 7-OH products. Again, no guarantee or assurance can be given that this diversification can or will be accomplished, nor on any particular timetable.

 

Our principal headquarters are located at 14155 Pine Island Drive, Jacksonville, Florida 32224. Our telephone number is (847) 915-2446. Our corporate website address is www.LFTDPartners.com.