Company: BUDZ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001096906-25-000350
Chunk: 19

Company: WEED, INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 19
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 for the treatment of human disease. Although (i) on November 22, 2021, we completed
our acquisition of the Sugar Hill Golf course property for possible use in a planned entry into the hemp and infused beverage market,
and (ii) our subsidiary, Sangre, has begun its planned five-year Cannabis Genomic Study to complete a global genomic classification of
the Cannabis plant genus, we need substantial funding to enter the hemp and infused beverage industry and for the completion of the Cannabis
Genomic Study both of which are likely years away. Unanticipated problems, expenses and delays are frequently encountered in establishing
a new business, conducting research, and developing new products. These include, but are not limited to, inadequate funding, unforeseen
research issues, lack of consumer acceptance, competition, product development, and inadequate sales and marketing. The failure by us
to meet any of these conditions would have a materially adverse effect upon us and may force us to reduce or curtail operations. No assurance
can be given that we can or will ever operate profitably.

We may not be able
to meet our future capital needs.

To date, 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