Company: BUDZ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001096906-25-000350
Chunk: 394

Company: WEED, INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 394
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3,661 

    $-  
    $3,661 

The Company recognized interest expense of $0 and
$0 related to the note payables for the years ended December 31, 2024 and 2023, respectively.

Note 9 – Commitments and Contingencies

Operating Leases

We account for our lease under ASC 842. Under this
guidance, arrangements meeting the definition of a lease are classified as operating and are recorded on the consolidated balance sheet
as both a right of use asset and lease liability, calculated by discounting fixed lease payments over the lease term at the rate implicit
in the lease. Lease liabilities are increased by interest and reduced by payments each period, and the right of use asset is amortized
over the lease term.

The rate implicit in lease is not readily determinable,
and we therefore use incremental borrowing rate to determine the present value of the lease payments. The incremental borrowing rate used
to determine the initial value of right-of-use (“ROU”) assets and lease liabilities during the period ended December 31, 2024,
was 5.0%.

In May, 2022, we entered into a lease agreement of
a hemp drying facility in Huachuca City, Arizona for $1,200 per month. The lease term began May 2, 2022 and ends May 2, 2026. As of December
31, 2024, we had lease liability of $18,538, and ROU assets of $18,538.

    F-14

Note 9 – Commitments and Contingencies (continued)

Legal Proceedings

The Company may be subject to legal proceedings and
claims arising from contracts or other matters from time to time in the ordinary course of business. Management is not aware of any pending
or threatened litigation where the ultimate disposition or resolution could have a material adverse effect on its financial position,
results of operations or liquidity.

Note 10 – Stockholders’ Equity

Preferred Stock

On December 5, 2014, the Company amended the Articles
of Incorporation, pursuant to which 20,000,000 shares of “blank check” preferred stock with a par value of $0.001 were authorized.
No series of preferred stock has been designated to date.

Common Stock

On December 5, 2014, the Company amended the Articles
of Incorporation, and increased the authorized shares to 200,000,000 shares of $0.001 par