Company: BUDZ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001096906-25-000350
Chunk: 326

Company: WEED, INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 326
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counted 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)”, and using the cumulative effect (modified retrospective)
approach. Modified retrospective adoption requires entities to apply the standard retrospectively to the most current period presented
in the financial statements, requiring the cumulative effect of the retrospective application as an adjustment to the opening balance
of retained earnings at the date of initial application. No cumulative-effect adjustment in retained earnings was recorded as the Company’s
has no historical revenue. The impact of the adoption of the new standard was not material to the Company’s consolidated financial
statements. The Company did not earn revenue during the periods ended December 31, 2024 and 2023.  When the Company earns revenue,
it will be recognized in accordance with FASB ASC 606 – Revenue from Contracts with Customers. 

The primary change under the new guidance is the requirement
to report the allowance for uncollectible accounts as a reduction in net revenue as opposed to bad debt expense, a component of operating
expenses. The adoption of this guidance did not have an impact on our condensed consolidated financial statements, other than additional
financial statement disclosures. The guidance requires increased disclosures, including qualitative and quantitative disclosures about
the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers.

The Company operates as one reportable segment