Company: BUDZ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001096906-25-000350
Chunk: 21

Company: WEED, INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 21
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 phases of our research plan and significantly impact our business.

Current economic conditions
and capital markets are in a period of disruption and instability which could adversely affect our ability to access the capital markets,
and thus adversely affect our business and liquidity.  

The current economic conditions
largely caused by the coronavirus pandemic have had, and likely will continue to have for the foreseeable future, a negative impact on
our ability to access the capital markets, and thus have a negative impact on our business and liquidity. Based on a variety of factors,
there may be an extended worldwide recession. We may face significant challenges if conditions in the capital markets do not improve.
Our ability to access the capital markets has been and continues to be severely restricted at a time when we need to access such markets,
which could have a negative impact on our business plans. Even if we are able to raise capital, it may not be at a price or on terms that
are favorable to us. We cannot predict the occurrence of future disruptions or how long the current conditions may continue.

Our proposed business
is dependent on laws pertaining to the cannabis industry.

Continued development of
the cannabis industry is dependent upon continued legislative authorization of marijuana at the state level. Any number of factors could
slow or halt progress in this area. Further, progress for the industry, while encouraging, is not assured. While there may be ample public
support for legislative action, numerous factors impact the legislative process. Any one of these factors could slow or halt use of marijuana,
which would negatively impact our business.

As of February 2024, 39
states and the District of Columbia allow its citizens to use medical marijuana, and 21 states have legalized cannabis for adult recreational
use. The state laws are in conflict with the Federal Controlled Substances Act, which makes cannabis use and possession illegal on a national
level. Prior administrations (namely, President Obama) effectively stated that it is not an efficient use of resources to direct law federal
law enforcement agencies to prosecute those lawfully abiding by state-designated laws allowing the use and distribution of medical marijuana.
The current administration (Biden administration) has not yet indicated how it might regulate the marijuana industry at the federal level,
but to date there has been very little in terms of action. There is no guarantee that the Biden administration or future administrations
will maintain the low-priority enforcement of federal laws in the marijuana industry that was adopted by the Obama administration. Any
new administration that follows could change this policy and decide to enforce the federal