Company: BUDZ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001096906-25-000350
Chunk: 88

Company: WEED, INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 88
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, we have not generated
any revenue and we have limited cash liquidity and capital resources. Our future capital requirements will depend on many factors, including
the success of our planned entry into the hemp and infused beverage market, the progress and results of our Cannabis Genomic Study, our
ability to develop products, cash flow from operations, and competing market developments. We anticipate the Cannabis Genomic Study will
cost approximately $15,000,000 to complete, and that we will need approximately $5,000,000 to enter into the planned entry into the hemp
and infused beverage market. We will also need additional working capital in the near future. Any equity financings will result in dilution
to our then-existing stockholders. Although we currently do not have any debt financing, any sources of debt financing in the future may
result in a high interest expense. Any financing, if available, may be on unfavorable terms. If adequate funds are not obtained, we will
be required to reduce or curtail operations.

If we cannot obtain
additional funding, our research and development efforts may be reduced or discontinued and we may not be able to continue operations.

We have historically experienced
negative cash flows from operations since our inception and we expect the negative cash flows from operations to continue for the foreseeable
future. Unless and until we are able to generate revenues, we expect such losses to continue for the foreseeable future. As discussed
in our financial statements, there exists substantial doubt regarding our ability to continue as a going concern.

Research and development
efforts are highly dependent on the amount of cash and cash equivalents on hand combined with our ability to raise additional capital
to support our future operations through one or more methods, including but not limited to, issuing additional equity or debt.

In addition, we may also
raise additional capital through additional equity offerings and licensing our research and/or future products in development. While we
will continue to explore these potential opportunities, there can be no assurances that we will be successful in raising sufficient capital
on terms acceptable to us, or at all, or that we will be successful in licensing our future products. Based on our current projections,
we believe we have insufficient cash on hand to meet our obligations as they become due based on current assumptions. The uncertainties
surrounding our future cash inflows have raised substantial doubt regarding our ability to continue as a going concern.

14

One of our current
projects is our 5-year cannabis genomic study being conducted by Sangre. In the event that we are unable