WEED, INC. Cash Dries Up Amid Widening Losses, Zero Revenue

TL;DR

**BUDZ is burning cash with no revenue, making it a highly speculative bet on a turnaround that shows no signs of materializing.**

AI Summary

WEED, INC. (BUDZ) reported no revenue for the three and nine months ended September 30, 2025, continuing its pre-revenue status. The company experienced a net loss of $73,946 for the three months ended September 30, 2025, an improvement from a net loss of $95,887 in the same period of 2024. However, the nine-month net loss significantly widened to $622,018 in 2025 from $377,492 in 2024, primarily due to a substantial increase in general and administrative expenses to $505,836 from $286,694. Cash balances plummeted from $159,355 at December 31, 2024, to just $400 by September 30, 2025. Total assets decreased from $738,366 to $532,267, while total liabilities increased from $959,372 to $1,051,346, leading to a deeper stockholders' deficit of $(519,079) from $(221,006). The company issued 10,500,000 shares of common stock for services, valued at $315,000, during the nine months ended September 30, 2025.

Why It Matters

For investors, BUDZ's continued lack of revenue and rapidly dwindling cash balance to $400 signals severe operational challenges and raises significant going concern doubts. The increasing net loss and growing liabilities, particularly accrued officer compensation reaching $324,750, suggest a company struggling to fund basic operations and compensate its leadership. In a competitive cannabis market, a 'seed-to-sale' company without sales is a major red flag. Employees face uncertainty regarding future compensation and job security, while customers have no products or services to engage with. The broader market impact is minimal given BUDZ's size, but it highlights the speculative nature and high failure rate within the emerging cannabis sector.

Risk Assessment

Risk Level: high — The company reported a cash balance of only $400 as of September 30, 2025, down from $159,355 at December 31, 2024, indicating severe liquidity issues. It has generated no revenue for the three and nine months ended September 30, 2025, while incurring a net loss of $622,018 for the nine-month period, demonstrating an unsustainable business model.

Analyst Insight

Investors should avoid BUDZ given its critical lack of revenue, minimal cash reserves, and widening losses. The company's financial state suggests a high probability of further dilution or potential bankruptcy. Monitor for any significant revenue-generating activities or substantial capital injections before considering any investment.

Financial Highlights

debt To Equity

N/A

revenue

$0

operating Margin

N/A

total Assets

$532,267

total Debt

$1,051,346

net Income

$(73,946)

eps

N/A

gross Margin

N/A

cash Position

$400

revenue Growth

N/A

Revenue Breakdown

Key Numbers

• $400 — Cash (Represents a 99.7% decrease from $159,355 at December 31, 2024, indicating severe liquidity issues.)
• $0 — Revenue (No revenue generated for the three and nine months ended September 30, 2025, highlighting a pre-revenue stage.)
• $(622,018) — Net Loss (9 months) (A significant increase from $(377,492) in the prior year, driven by rising operating expenses.)
• $505,836 — General and Administrative Expenses (9 months) (Increased by 76.4% from $286,694 in the prior year, contributing to the widening net loss.)
• $(519,079) — Total Stockholders' Equity (Deficit) (Deepened from $(221,006) at December 31, 2024, reflecting accumulated losses.)
• $1,051,346 — Total Liabilities (Increased from $959,372 at December 31, 2024, further straining the company's financial position.)
• 135,932,685 — Common Shares Outstanding (Increased from 125,432,685 at December 31, 2024, due to shares issued for services.)
• $324,750 — Accrued Officer Compensation (Increased from $202,750 at December 31, 2024, indicating growing obligations to officers.)

Key Players & Entities

• WEED, INC. (company) — Registrant and parent company
• Sangre AT, LLC (company) — Wholly-owned subsidiary acquired April 20, 2017
• Hempirical Genetics, LLC (company) — Wholly-owned subsidiary acquired May 2, 2022
• $400 (dollar_amount) — Cash balance as of September 30, 2025
• $159,355 (dollar_amount) — Cash balance as of December 31, 2024
• $622,018 (dollar_amount) — Net loss for the nine months ended September 30, 2025
• $377,492 (dollar_amount) — Net loss for the nine months ended September 30, 2024
• $505,836 (dollar_amount) — General and administrative expenses for the nine months ended September 30, 2025
• $324,750 (dollar_amount) — Accrued officer compensation as of September 30, 2025
• 10,500,000 (dollar_amount) — Shares of common stock issued for services during the nine months ended September 30, 2025

FAQ

Risk Factors

• Severe Liquidity Crisis [high — financial]: Cash reserves have dwindled to $400 as of September 30, 2025, a stark 99.7% decrease from $159,355 at December 31, 2024. This critical shortage of cash raises significant concerns about the company's ability to meet its short-term obligations and fund ongoing operations.
• Widening Net Loss and Increasing Expenses [high — financial]: The nine-month net loss significantly increased to $622,018 in 2025 from $377,492 in 2024. This widening loss is primarily driven by a substantial 76.4% surge in general and administrative expenses to $505,836 from $286,694, indicating a lack of cost control.
• Deteriorating Equity Position [high — financial]: The stockholders' deficit has deepened to $(519,079) from $(221,006) at December 31, 2024. This negative equity position, coupled with increasing liabilities, suggests a precarious financial standing.
• Increasing Liabilities [medium — financial]: Total liabilities have grown to $1,051,346 from $959,372 at December 31, 2024. This increase, particularly in current liabilities like accounts payable and accrued officer compensation, puts further pressure on the company's already strained financial resources.
• Pre-Revenue Business Model [high — operational]: The company continues to report zero revenue, indicating that its business model has not yet generated any income. This prolonged pre-revenue status poses a significant risk to the company's long-term viability and ability to achieve profitability.
• Growing Accrued Officer Compensation [medium — financial]: Accrued officer compensation has risen to $324,750 from $202,750 at December 31, 2024. This increase in compensation obligations to management, while the company is pre-revenue and facing liquidity issues, could be a concern for external stakeholders.

Industry Context

The legal and medical marijuana sector is a rapidly evolving and competitive market. Companies are focusing on 'seed-to-sale' operations, requiring significant infrastructure, financial solutions, and real estate. WEED, INC. aims to provide these services, but faces challenges in a space with increasing regulatory scrutiny and a need for substantial capital investment.

Regulatory Implications

As a company operating in the cannabis sector, WEED, INC. is subject to complex and evolving state and federal regulations. Changes in legislation or enforcement could materially impact its business model and ability to operate. Compliance with these regulations requires significant attention and resources.

What Investors Should Do

1. Monitor cash burn rate closely.
2. Scrutinize any new financing or equity issuance.
3. Evaluate the strategy for revenue generation.
4. Assess the sustainability of increasing G&A expenses.

Key Dates

• 2025-09-30: Quarterly Financials Filed — Reveals a critical cash shortage, widening net loss, and increasing liabilities, highlighting severe financial distress.
• 2025-09-30: Shares Issued for Services — 10,500,000 shares issued for services valued at $315,000, increasing share count but not addressing operational revenue generation.
• 2024-12-31: Previous Fiscal Year End — Provided a baseline showing $159,355 in cash and a stockholders' deficit of $(221,006), which have significantly worsened.

Glossary

Stockholders' Equity (Deficit)

Represents the net worth of the company, calculated as total assets minus total liabilities. A deficit means liabilities exceed assets. (The company has a significant and growing deficit, indicating its liabilities far outweigh its assets.)

Accumulated Deficit

The total net losses of a company since its inception that have not been offset by net income. (Shows the cumulative losses the company has incurred over its history, which is substantial at $(85,525,296).)

ROU asset

Right-of-Use asset, representing the right to use an asset for a specified period, typically under a lease agreement. (The decrease in ROU asset from $18,538 to $8,262 suggests a reduction in lease obligations or the expiration of lease terms.)

Prepaid expenses

Expenses that have been paid in advance of the period in which they are used or consumed. (A decrease in prepaid expenses from $26,480 to $6,000 may indicate reduced operational activity or the consumption of previously paid services.)

Year-Over-Year Comparison

Compared to the fiscal year ended December 31, 2024, WEED, INC. has experienced a dramatic deterioration in its financial health. Cash has plummeted by 99.7% from $159,355 to $400. The company's net loss for the nine-month period has widened significantly, and total liabilities have increased, leading to a substantially deeper stockholders' deficit. While common shares outstanding have increased due to stock issued for services, this has not translated into revenue generation, which remains at zero.

Key Financial Figures

• $0.001 — ection 12(g) of the Act: Common Stock, $0.001 par value (Title of class) Indicate
• $0.00001 — ere 135,932,685 shares of common stock, $0.00001 par value, issued and outstanding . W
• $94 — sed as incurred. The Company recognized $94 and $136 of advertising and promotion c
• $136 — ncurred. The Company recognized $94 and $136 of advertising and promotion costs for
• $41,400 — ll on February 23, 2023, with a cost of $41,400. We are required to record a liability
• $35,800 — the full value of the cost amounting to $35,800 for plug and abandon non-operating well
• $1,187 — ) on foreign currency exchange rate was $1,187 and ($944) for the nine months ended Se
• $944 — currency exchange rate was $1,187 and ($944) for the nine months ended September 30
• $85,525,296 — resulting in an accumulated deficit of $85,525,296 working capital $1,040,413 at September
• $1,040,413 — deficit of $85,525,296 working capital $1,040,413 at September 30, 2025. These factors ra
• $348,018 — ote 7 below. The Company has a total of $348,018 and $423,328 of note payable on the con
• $423,328 — The Company has a total of $348,018 and $423,328 of note payable on the consolidated bal
• $4,000 — to March 31, 2022, the Company received $4,000 and $500,000 loans from Nicole Breen an
• $500,000 — , 2022, the Company received $4,000 and $500,000 loans from Nicole Breen and Glenn Marti
• $300,000 — n from Glenn Martin was replaced by the $300,000 loan. From January 2023 to March 31, 20

Filing Documents

• budz_10q.htm (10-Q) — 700KB
• budz_ex311.htm (EX-31.1) — 10KB
• budz_ex312.htm (EX-31.2) — 10KB
• budz_ex321.htm (EX-32.1) — 4KB
• budz_ex322.htm (EX-32.2) — 4KB
• 0001096906-25-002153.txt ( ) — 730KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION 3 ITEM 1 Consolidated Financial Statements 3 ITEM 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 20 ITEM 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 27 ITEM 4

Controls and Procedures

Controls and Procedures 27

- OTHER INFORMATION

PART II - OTHER INFORMATION 28 ITEM 1

Legal Proceedings

Legal Proceedings 28 ITEM 1A

Risk Factors

Risk Factors 28 ITEM 2 Unregistered Sales of Equity Securities and Use of Proceeds 28 ITEM 3 Defaults Upon Senior Securities 28 ITEM 4 Mine Safety Disclosures 28 ITEM 5 Other Information 28 ITEM 6 Exhibits 29 2 Table of Contents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION This Quarterly Report includes forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These statements are based on management's beliefs and assumptions, and on information currently available to management. Forward-looking statements include the information concerning our possible or assumed future results of operations set forth under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations." Forward-looking statements also include statements in which words such as "expect," "anticipate," "intend," "plan," "believe," "estimate," "consider," or similar expressions are used. Forward-looking statements are not guarantees of future performance. They involve risks, uncertainties, and assumptions. Our future results and shareholder values may differ materially from those expressed in these forward-looking statements. Readers are cautioned not to put undue reliance on any forward-looking statements.

Consolidated Financial Statements

ITEM 1 Consolidated Financial Statements The consolidated balance sheets as of September 30, 2025, (unaudited) and December 31, 2024, the consolidated statements of operations and comprehensive loss for the three and nine months ended September 30, 2025 and 2024, the consolidated statement of changes in stockholders' equity (deficit) for the three and nine months ended September 30, 2025 and 2024, and the consolidated statements of cash flows for the three and nine months ending September 30, 2025 and 2024, follow. The unaudited interim financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. All such adjustments are of a normal and recurring nature. 3 Table of Contents WEED, INC. AND SUBSIDIARY CONSOLIDATED FINANCIAL STATEMENTS September 30, 2025 TABLE OF CONTENTS Page No. CONSOLIDATED FINANCIAL STATEMENTS Unaudited Consolidated Balance Sheets 5 Unaudited Consolidated Statements of Operations and Comprehensive Loss 6 Unaudited Consolidated Statements of Changes in Stockholders' Equity (Deficit) 7 Unaudited Consolidated Statements of Cash Flows 8 4 Table of Contents WEED, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) (Unaudited) September 30, December 31, 2025 2024 ASSETS CURRENT ASSETS: Cash $ 400 $ 159,355 Prepaid expenses 6,000 26,480 Other current asset 4,533 4,056 TOTAL CURRENT ASSETS 10,933 189,891 Land 258,319 258,319 Building 218,681 218,681 Computers & Equipment 147,771 147,771 Property and equipment, gross 624,771 624,771 Less: Accumulated depreciation (143,332 ) (128,417 ) Property and equipment, net 481,439 496,354 Grower License 667 667 Trademark 50,000 50,000 Intangible assets, gross 50,667 50,667 Less: Accumulated amortization (19,034 ) (17,084 ) Intangible assets, net 31,633 33,583 ROU asset 8,262 18,538 TOTAL AS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 2025 (Unaudited) Note 1 – Nature of Business and Significant Accounting Policies Nature of Business WEED, Inc. (the "Company"), (formerly United Mines, Inc.) was incorporated under the laws of the State of Arizona on August 20, 1999 ("Inception Date") as Plae, Inc. to engage in the exploration of gold and silver mining properties. On November 26, 2014, the Company was renamed from United Mines, Inc. to WEED, Inc. and was repurposed to pursue a business involving the purchase of land, and building Commercial Grade "Cultivation Centers" to consult, assist, manage & lease to Licensed Dispensary owners and organic grow operators on a contract basis, with a concentration on the legal and medical marijuana sector. The Company's plan is to become a True "Seed-to-Sale" company providing infrastructure, financial solutions and real estate options in this new emerging market. The Company, under United Mines, was formerly in the process of acquiring mineral properties or claims located in the State of Arizona, USA. The name was previously changed on February 18, 2005 to King Mines, Inc. and then subsequently changed to United Mines, Inc. on March 30, 2005. The Company trades on the OTC Pink Sheets under the stock symbol: BUDZ. On April 20, 2017, the Company acquired Sangre AT, LLC, a Wyoming company doing business as Sangre AgroTech. ("Sangre"). Sangre is a plant genomic research and breeding company comprised of top-echelon scientists with extensive expertise in genomic sequencing, genetics-based breeding, plant tissue culture, and plant biochemistry, utilizing the most advanced sequencing and analytical technologies and proprietary bioinformatics data systems available. On May 2, 2022, the Company acquired Hempirical Genetics, LLC, a Arizona company. The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. These

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