Company: BUDZ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001096906-25-000350
Chunk: 529

Company: WEED, INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 6
Chunk 529
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 material effect on the financial statements.

A material weakness is a
deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility
that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. Our management
assessed the effectiveness of our internal control over financial reporting as of December 31, 2024. In making this assessment, our management
used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated
Framework. Based on this assessment, Management has identified the following three material weaknesses that have caused management to
conclude that, as of December 31, 2024, our disclosure controls and procedures, and our internal control over financial reporting, were
not effective at the reasonable assurance level:

1. We do not have sufficient
segregation of duties within accounting functions, which is a basic internal control. Due to our size and nature, segregation of all conflicting
duties may not always be possible and may not be economically feasible. However, to the extent possible, the initiation of transactions,
the custody of assets and the recording of transactions should be performed by separate individuals. Management evaluated the impact of
our failure to have segregation of duties on our assessment of our disclosure controls and procedures and has concluded that the control
deficiency that resulted represented a material weakness.

2. We have not documented
our internal controls. We have limited policies and procedures that cover the recording and reporting of financial transactions and accounting
provisions. As a result we may be delayed in our ability to calculate certain accounting provisions. While we believe these provisions
are accounted for correctly in the attached audited financial statements our lack of internal controls could lead to a delay in our reporting
obligations. We are required to provide written documentation of key internal controls over financial reporting. Management evaluated
the impact of our failure to have written documentation of our internal controls and procedures on our assessment of our disclosure controls
and procedures and has concluded that the control deficiency that resulted represented a material weakness.

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3. Effective controls over
the control environment were not maintained. Specifically, a formally adopted written code of business conduct and ethics that governs
our employees, officers, and directors was not in place. Additionally, management has not developed and effectively communicated to our
employees its accounting policies and procedures. This has resulted in inconsistent practices. Further, our Board of Directors