Company: BUDZ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001096906-25-000350
Chunk: 204

Company: WEED, INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 204
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 management are necessary for fair presentation of the information contained therein.

Use of Estimates

The preparation of financial statements in conformity
with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the financial statements,
and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Fair Value of Financial Instruments

Under FASB ASC 820-10-05, the Financial Accounting
Standards Board establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about
fair value measurements. This Statement reaffirms that fair value is the relevant measurement attribute. The adoption of this standard
did not have a material effect on the Company’s financial statements as reflected herein. The carrying amounts of cash, prepaid
expenses and accrued expenses reported on the balance sheet are estimated by management to approximate fair value primarily due to the
short term nature of the instruments.

Impairment of Long-Lived Assets

Long-lived assets held and used by the Company are
reviewed for possible impairment whenever events or circumstances indicate the carrying amount of an asset may not be recoverable or is
impaired. Recoverability is assessed using undiscounted cash flows based upon historical results and current projections of earnings before
interest and taxes. Impairment is measured using discounted cash flows of future operating results based upon a rate that corresponds
to the cost of capital. Impairments are recognized in operating results to the extent that carrying value exceeds discounted cash flows
of future operations.

Basic and Diluted Loss Per Share

The basic net loss per common share is computed by
dividing the net loss by the weighted average number of common shares outstanding. Diluted net loss per common share is computed by dividing
the net loss adjusted on an “as if converted” basis, by the weighted average number of common shares outstanding plus potential
dilutive securities. For the periods presented, potential dilutive securities had an anti-dilutive effect and were not included in the
calculation of diluted net loss per common share.

Stock-Based Compensation

Under FASB ASC 718-10-30-2, all share-based payments
to employees, including grants of employee stock options, to be recognized in the income statement based on their fair values.

Revenue Recognition

The Company is using the revenue recognition standard
ASU 2014-09, “Revenue from Contracts with Customers (Topic 606