Company: BUDZ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001096906-25-000350
Chunk: 446

Company: WEED, INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 446
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-based payments
to employees, including grants of employee stock options, to be recognized in the income statement based on their fair values.

Revenue Recognition

The Company is using the revenue recognition standard
ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”, and using the cumulative effect (modified retrospective)
approach. Modified retrospective adoption requires entities to apply the standard retrospectively to the most current period presented
in the financial statements, requiring the cumulative effect of the retrospective application as an adjustment to the opening balance
of retained earnings at the date of initial application. No cumulative-effect adjustment in retained earnings was recorded as the Company’s
has no historical revenue. The impact of the adoption of the new standard was not material to the Company’s consolidated financial
statements. The Company did not earn revenue during the periods ended December 31, 2024 and 2023.  When the Company earns revenue,
it will be recognized in accordance with FASB ASC 606 – Revenue from Contracts with Customers. 

The primary change under the new guidance is the requirement
to report the allowance for uncollectible accounts as a reduction in net revenue as opposed to bad debt expense, a component of operating
expenses. The adoption of this guidance did not have an impact on our condensed consolidated financial statements, other than additional
financial statement disclosures. The guidance requires increased disclosures, including qualitative and quantitative disclosures about
the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers.

The Company operates as one reportable segment.

    F-9

Note 1 – Nature of Business and Significant
Accounting Policies (continued)

Revenue Recognition (continued)

Sales on fixed price contracts are recorded when services
are earned, the earnings process is complete or substantially complete, and the revenue is measurable and collectability is reasonably
assured. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in
the same period the related sales are recorded. The Company will defer any revenue from sales in which payment has been received, but
the earnings process has not occurred. Sales have not yet commenced.

Advertising and Promotion

All costs associated with advertising and promoting
products are expensed as incurred. The Company recognized $212 and $2,911 of advertising and promotion costs for years ended December
31, 2024 and 2023.

Asset Retirement Obligations

The Company acquired a gas well on February 23, 2023,
with a