Company: BUDZ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001096906-25-000350
Chunk: 387

Company: WEED, INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 387
---

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 cost of $41,400. We are required to record a liability for the present value of our asset retirement obligation (“ARO”)
to plug and abandon inactive-non-producing wells, facilities, and equipment, and to restore the land at the end of oil production operations.
As a result, we accrued the full value of the cost amounting to $35,800 for plug and abandon non-operating well on the consolidated balance
sheet as of December 31, 2024 and 2023.

Foreign Currency Transactions 

Expenses are translated at the exchange rates in effect
at the date of the transaction. Foreign currency denominated payables are translated at the rates of exchange at the balance sheet date.
The resulting transaction gains and losses are recorded in the statement of income in the period incurred.

Assets and liabilities of those operations are translated
at exchange rates in effect at the balance sheet date. Income and expenses are translated using the exchange rates on the transaction
date for the reporting period. Translation adjustments, if any, are reported as a separate component of accumulated other comprehensive
income. Transaction gain (loss) on foreign currency exchange rate was $799 and $5,576 for the years ended December 31, 2024 and 2023.
For all significant foreign operations, the functional currency is the local currency.

Recently Adopted Accounting Standards

In November 2023, the FASB issued ASU No. 2023-07,
Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments improve reportable segment disclosure requirements,
primarily through enhanced disclosures about significant segments expenses. The amendments require that a public entity disclose, on an
annual and interim basis, an amount for other segment items by reportable segment and a description of its composition. The other segment
items category is the difference between segment revenue less the segment expenses disclosed under the significant expense principle and
each reported measure of segment profit or loss. The amendments improve financial