Wed, Aug 14, 8:35 PM (153 days ago)
LFTD Partners Inc. reported a challenging second quarter for 2024, with net sales declining to $9,487 from $12,523 in Q2 2023, reflecting a drop in revenue across multiple product lines. Gross profit also fell to $3,554, down from $5,636, resulting in a gross margin of 37.5%. Operating expenses increased significantly to $4,137, primarily driven by a substantial bad debt expense of $1,165, attributed to slow-paying customers amid regulatory uncertainties in the cannabis sector. The company reported a net loss of $523 in Q2 2024, a stark contrast to a profit of $1,659 in the prior year. Cash flow from operations was positive at $245, though total cash and equivalents decreased to $3,614, down from $4,358 at year-end 2023. LFTD's balance sheet showed a reduction in total assets to $47,099 from $51,347, while total liabilities decreased to $9,393 from $12,529. The company faces risks related to customer concentration and regulatory changes, which may impact future performance. Management is exploring capital raises and operational efficiencies to stabilize financial health.