LFTD Partners Inc. Reports Q1 2023 Earnings, 31% Revenue Decrease YoY, How About Net Loss?

Author: Joana Scopel | May 15, 2023 04:04pm

The corporate parent of Lifted Made, LFTD Partners Inc. (OTCQB:LIFD) reported its Q1 2023 financial results, revealing a 31% revenue decrease and net loss driven by one-time stock compensation expense.

Income Statement Highlights: Q1 2023 Compared To Q1 2022

Revenue decreased 31% to $12,461,793, down from $18,088,877
One-time, non-cash employee stock compensation expense of $2,138,175, up from $0 Net loss of $141,742, down from net income of $2,944,793
Basic net loss per common share of $0.01 per share, down from $0.21 basic net income per common share
Diluted net loss per common share of $0.01 per share, down from $0.18 diluted net income per common share
Basic and diluted weighted average shares outstanding for the three months ended March 31, 2023, were 14,246,745 and 14,246,745, respectively.

Balance Sheet Highlights: March 31, 2023, Compared to December 31, 2022

Cash on hand decreased 2% to $3,470,125, down from $3,530,623
Inventory increased 26% to $7,563,500, up from $6,023,967
Current assets increased 8% to $14,923,190, up from $13,853,949
The current ratio increased 17% to 2.61, from 2.23 Working capital increased 20% to $9,210,158, up from $7,643,816
No debt as of March 31, 2023

"We've made tremendous progress this year to position ourselves for long-term growth and we generated over $12 million in top line and generated over $2 million in EBITDA in Q," said Nicholas S. Warrender, vice chairman and COO of LFTD Partners and founder and CEO of Lifted Made.

"During the first quarter of 2023, LFTD Partners recognized a net loss after ten straight quarters of profitability, solely because of the impact of a one-time, non-cash employee stock compensation expense of $2.1 million,” said Gerard M. Jacobs, chairman and CEO of LFTD Partners.

Jacobs pointed out that the allocation of deferred stock as compensation to retain employees during the Lifted Made acquisition resulted in a one-time charge that caused the company to shift from a positive net income of $1.4 million to a net loss of $141,000, impacting the reported earnings per share for Q1 2023.

Photo: Courtesy Of Markus Spiske On Unsplash

Posted In: LIFD