I have a lofting issue

I have a lofting issue. I am trying to loft a face to another face around a curve. What am I doing wrong?

I am not sure if Solidworks cannot complete the command due to a limitation of the program or is it just me (more likely).

I attached a screenshot and the part file. I think between the two it is easy to understand what I am trying to accomplish.

SolidworksDrawings And Detailing