Company: BUDZ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001096906-25-000350
Chunk: 22

Company: WEED, INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 22
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 laws strongly. Any such change in the federal
government’s enforcement of current federal laws could cause significant financial damage to our business and our shareholders.

Further, and while we do
not intend to harvest, distribute or sell cannabis, if we conduct research with the cannabis plant or lease buildings to growers of cannabis,
etc., we could be deemed to be participating in cannabis cultivation, which remains illegal under federal law, and exposes us to potential
criminal liability, with the additional risk that our properties could be subject to civil forfeiture proceedings.

15

The cannabis industry
faces strong opposition.

It is believed by many that
large well-funded businesses may have a strong economic opposition to the cannabis industry. We believe that the pharmaceutical industry
clearly does not want to cede control of any product that could generate significant revenue. For example, medical cannabis will likely
adversely impact the existing market for the current “marijuana pill” sold by mainstream pharmaceutical companies. Further,
the medical cannabis industry could face a material threat from the pharmaceutical industry, should cannabis displace other drugs or encroach
upon the pharmaceutical industry’s products. The pharmaceutical industry is well funded with a strong and experienced lobby that
eclipses the funding of the medical cannabis movement. Any inroads the pharmaceutical industry could make in halting or impeding the cannabis
industry could have a detrimental impact on our proposed business.

Cannabis remains illegal
under Federal law.

Cannabis is a schedule-I
controlled substance and is illegal under federal law. Even in those states in which the use of cannabis has been legalized, its production
and use remains a violation of federal law. Since federal law criminalizing the use of cannabis preempts state laws that legalize its
use, strict enforcement of federal law regarding cannabis would likely result in our inability to proceed with our business plan.

Laws and regulations
affecting the medical cannabis industry are constantly changing, which could detrimentally affect our proposed operations.

Local, state and federal
medical cannabis laws and regulations are broad in scope and subject to evolving interpretations, which could require us to incur substantial
costs associated with compliance or alter our business plan. In addition, violations of these laws, or allegations of such violations,
could disrupt our business and result in a material adverse effect on our operations. In addition, it is possible that regulations may
be enacted in the future that will be directly applicable to our proposed business. We cannot predict the nature of any future laws, regulations,
interpretations or applications, nor can we