LFTD Partners Inc. (LIFD) research, news, and more from GeoInvesting

Company description

Tue, 26 Jul 2022 11:43:57 GMT

Publicly traded LFTD Partners Inc., Jacksonville, FL (OTCQB ticker symbol LIFD) is the parent corporation of Lifted Made, Kenosha, WI (www.LiftedMade.com), which manufactures and sells psychedelic products under its Silly Shruum brand, and hemp-derived cannabinoid products under its Urb Finest Flowers brand. LFTD Partners Inc. also owns 4.99% of CBD-infused beverage and products maker Ablis Holding Company (www.AblisBev.com), and of craft distillers Bendistillery Inc. d/b/a Crater Lake Spirits (www.CraterLakeSpirits.com) and Bend Spirits, Inc. (www.Bendistillery.com) all located in Bend, OR. Please read LIFD's filings with the U.S. Securities and Exchange Commission which fully describe our business and the Risk Factors associated therewith. Stay updated with our company news and product launches by subscribing to our newsletters at www.LFTDPartners.com and www.LiftedMade.com.

Research

Wed, 19 Jul 2023 17:41:02 GMT

Lftd Partners Inc (OTC:LIFD) ($2.00; $29.0M Market Cap), the maker of the award-winning Urb brand of hemp and psychoactive products, announced a new manufacturing, sales and marketing agreement with DreamFields Brands d/b/a (Jeeter).

We are looking into the details of the agreement, which are only available via an 8-K thus far.

Terms of the agreement: (from 8-K)

“...

Jeeter has appointed LIFD as its exclusive manufacturer, seller and distributor within the U.S. of vape, gummies and pre-rolled products containing hemp derived cannabinoids.
Jeeter and Lifted will agree upon the devices, formulation, design, packaging, run costs, and marketing of each of the Products;
Jeeter and Lifted will share equally the costs of manufacturing, marketing, distributing and insuring the Products
The revenue from all Product sales, minus applicable Product offsets and sales commissions, will be allocated 60% to Jeeter and 40% to Lifted.

“The Jeeter Agreement is for an Initial Term of two years, provided that if the completed Product sales during the first year of the Initial Term are a minimum of $48 million (the “Minimum Sales”), then the Initial Term will automatically continue until the end of the second year of the Initial Term. Jeeter and Lifted may mutually agree in writing to extend the Jeeter Agreement for Renewal Terms of at least one year each, but if not so extended then the Jeeter Agreement will automatically terminate.”

In March 2023 we removed LIFD from our model portfolios afterweak Q4 results. This partnership could add significant revenues based on target for the initial term. Assuming the target is met, the relationship would add nearly $20 million in annual sales for LIFD. We would need to know what the margin profiles would be to understand this development more.

Research

Tue, 02 May 2023 19:23:47 GMT

Lftd Partners Inc (OTC:LIFD) ($1.91; $55.7M Market Cap), the maker of the award-winning Urb brand of hemp and psychoactive products, has entered into an acquisition and merger with Oculus CRS and Oculus CHS Management.

Based on the information provided, there are a lot of unknowns with this agreement. However, it is encouraging to see that Oculus Management is willing to accept shares of LIFD valued at $5 per share. The transaction will be valued at 5x pre tax profits (20% to be paid in cash and 80% paid in stock valued at $5 per share).

Our assumption is that the acquisition is not too material on sales or earnings, or LIFD would've likely commented on it. However, we will await the pro forma 8K to assess the event more closely.

Research

Wed, 22 Mar 2023 19:16:43 GMT

Removing LIFD from Model Portfolios due to weak Q4 results and ongoing regulatory and margin pressures; Management conference call commentary does not jive at all with their commentary during our Fireside Chat with them, just a few weeks ago.

Lftd Partners Inc (OTC:LIFD) ($3.95; $55.7M Market Cap), a company that manufactures and sells psychedelic products under its Silly Shruum brand, and hemp-derived cannabidiol products under its Urb Finest Flowers brand. LFTD Partners Inc., announced its Q4 2022 results:

Sales of $11.3 million vs $12.7 million in the prior year
EPS of $0.04 vs $0.08 in the prior year
Full year sales of $57.4 million vs $31.6 million in the prior year
Full year EPS of $0.45 vs $0.43 in the prior year

The company offered limited clarity on the weak fourth quarter in its press release.

Conference call summary:

Regulatory environment is becoming more challenging.
Legal fees associated with vendors and suppliers not delivering as promised.
Margin pressures from copycat or low quality competitors.

We are extremely disappointed in management’s transparency on some of the issues that negatively impacted the quarter.

We specifically asked management about these potential regulatory risks in our Fireside Chat in mid-February, where they strongly suggested that these potential issues were contained.

Furthermore, the company announced it is looking to raise money for working capital purposes and to expand manufacturing facilities

Research

Fri, 13 Jan 2023 20:29:31 GMT

Lftd Partners Inc (OTC:LIFD) ($2.80; $39.4M Market Cap), a company that manufactures and sells psychedelic products under its Silly Shruum brand, and hemp-derived cannabidiol products under its Urb Finest Flowers brand, entered into a five year agreement to serve as the exclusive worldwide manufacturer and distributor of disposable vape products and gummy products for Cali Sweets, LLC, North Hollywood, California, under the brand names Koko Puffz and Koko Gummiez.

Details of the agreement, among other things, includes the following :

Lifted Made will manufacture, market and distribute such Cali Sweets products and brands, with Lifted Made and Cali Sweets sharing equally in certain production and marketing costs on a dollar-for-dollar basis;
Cali Sweets will provide social media marketing services for such Cali Sweets products and brands, and for Lifted Made's products under its Urb Finest Flowers brand; and
Revenue will be divided 60% to Lifted Made, and 40% to Cali Sweets

CEO Gerald Jacobs commented on the collaboration:

“This collaboration with Cali Sweets allows Lifted Made to launch what we hope will become a significant new line of business, without any dilution of our common stock, and without the need for any borrowing or audits."

With trailing 12 month EPS of $0.49, the stock is currently trading at Trailing P/E of 5.8.

Recall that the company's third quarter was negatively affected by supply chain issues and an inventory write-down that negatively impacted the company‘s sales and earnings performance. We’re closely monitoring the situation to determine if LIFD can resume its revenue and EPS growth moving forward.

Research

Mon, 14 Nov 2022 16:17:54 GMT

Lftd Partners Inc (OTC:LIFD) ($2.82; $39.7M Market Cap) manufactures and sells psychedelic products under its Silly Shruum brand, and hemp-derived cannabidiol products under its Urb Finest Flowers brand. LFTD Partners Inc. The company announced its Q3 2022 results:

Sales of $11.1 million vs $8.8million in the prior year
EPS of $0.03 vs $0.14 in the prior year

“We grew our Q3 2022 sales 27% to $11.2 million, up from $8.8 million in Q3 2021. During the first nine months of 2022, we grew our sales 144% to $46.1 million, up from $18.9 million during the first nine months of 2021. We took some inventory write-offs ( $2 million) during the third quarter of 2022, but we expect to break $60 million in annual sales during 2022, and to have another profitable quarter this quarter. Throughout our aggressive growth, we've stayed true to our philosophy of being nimble, innovative and hungry. I credit our operating and sales force for continuing to push our mission forward by fusing the vision of our brand with a team that's able to execute on a dime. As great of a year this has been thus far, I believe the best is still yet to come from the Lifted team.

In addition to our hemp-derived cannabinoid and psychedelic products business, we are intensively working on an acquisition agreement with the owners of a growing US company outside of our industry that is pursuing expansion into Asia and the Middle East. If consummated, this exciting potential acquisition would significantly diversify our company's revenues, and very likely would cause us to pursue the listing of LFTD Partners' common stock on multiple stock exchanges."

Research

Fri, 12 Aug 2022 04:00:00 GMT

Lftd Partners Inc (OTC:LIFD) ($7.80; $109.8M Market Cap) manufactures and sells psychedelic products under its Silly Shruum brand, and hemp-derived cannabinoid products under its Urb Finest Flowers brand. LFTD Partners Inc. The company announced its Q2 2022 results:

Sales of $16.7 million vs $6.7 million in the prior year
EPS of $0.20 vs $0.11 in the prior year

"Q2 2022 was a record quarter for us in terms of net income, earnings per share, and free cash flow."

Some takeaways from conference call:

Currently in talks for an acquisition
Have a signed a confidentiality agreement
Its significant in size and is growing and profitable
No guarantee it will close, audit and capital raise will be required
Looking to uplist on a Canadian exchange
Furloughed some workers in August as it deals with seasonality and inventory

Reasons For Tracking

Thu, 28 Jul 2022 18:30:56 GMT

Call To Action - Adding LIFD To Select Long Model Portfolio

Lftd Partners Inc (OTC:LIFD) ($6.80; $95.7M Market Cap) manufactures and sells psychedelic products under its Silly Shruum brand, and hemp-derived cannabinoid products under its Urb Finest Flowers brand. LFTD Partners Inc.

We are in the process of scheduling a live Fireside Chat event with management. For now, here is a quick synopsis of the reasons for our action.

(Reasons For Tracking (RFT):

Impressed with a recent preliminary interview we conducted with management
Strong management team with past success building publicly traded companies
Clean capital structure - 20 million fully diluted shares
- This is extremely unique in the cannabis industry
Strong financial results
- Q1 sales of $18.0 million vs $3.3 million in prior year
- EPS of $0.18 vs EPS of $0.04 in the prior year
- 9 consecutive quarters of sequential and yoy revenue growth
- 5 Straight quarters of EPS yoy growth
Has prepaid all remaining debt of the last several months
Room for margin improvements
Has a strong distributor network that can allow the company to achieve success in launching new brands and expanding reach of acquired brands
Strong relationship with distributors and room for expansion, state by state
Currently looking at significant acquisition opportunities
Potential buyback to be implemented
Insiders own 60%
Has expanded its operation 6 times in last two years for more production and fulfillment space

Valuation:

Trailing P/E of 11.9
Forward P/E of 9.4, annualizing Q1 EPS of $0.18 (which could be conservative given the sequential growth the company has been reporting)
P/S of 2

We could envision the stock eventually carrying a P/E of over 20x. At the current EPS run rate, that translates to $14.4.

Caveats:

Highly illiquid stock - average 3 month volume is 1400 shares a day
Uplist to major exchange a challenge due to rule of not listing companies with direct cultivation or sales of marijuna