Company: BUDZ
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001096906-25-001331
Chunk: 17

Company: WEED, INC.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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 15Table of Contents

Note 7 – Notes Payable, Related Parties (continued)

   June 30,2025  December 31,2024        Notes payable, related parties $354,000  $437,000          Less: Loan fee, net of amortization $8,545  $13,672          Notes payable, related parties $345,455  $423,328  The Company recorded interest expense in the amount of $19,289 and $1,198 for the six months ended June 30, 2025 and 2024, respectively, including imputed interest expense in the amount of $7,337 and $600 during such periods related to notes payable, related parties.

Note 8 – 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 June 30, 2025, 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 June 30, 2025, we had lease liability of $11,730, and ROU assets of 11,730.

 16Table of Contents

Note 8 – 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 9