10-Q: WEED, Inc. Reports Q1 2025 Results: Losses Widen Amid Ongoing Efforts to Secure Funding

WEED, Inc. reports increased net losses for the quarter ended March 31, 2025, as the company continues to seek additional funding for its various cannabis and hemp-related business ventures.

Summary

• WEED, Inc. reported a net loss of $440,455 for the quarter ended March 31, 2025, compared to a net loss of $170,652 for the same period in 2024.
• The company had no revenue for either period.
• Operating expenses increased significantly, primarily due to higher general and administrative expenses and professional fees.
• As of March 31, 2025, WEED, Inc. had a cash balance of $3,142 and an accumulated deficit of $85,343,734.
• The company's management expresses substantial doubt about its ability to continue as a going concern without securing additional financing.
• WEED, Inc. is pursuing various business opportunities in the cannabis and hemp sector, including indoor and outdoor grows, research, product development, and real estate options.
• The company is also exploring opportunities in the infused beverage market and potential luxury condo development.
• WEED, Inc. established WEED Australia Ltd. and its wholly owned Cannabis Institute of Australia (C.I.A.) in Australia in March of 2017, for the purpose of conducting cannabis and hemp research and potentially developing products and educational services in and for Australians.
• On May 2, 2022, the Company acquired Hempirical Genetics, LLC, an Arizona company.
• The company needs to raise additional funds to continue its Cannabis Genomic Study.
• WEED, Inc. is seeking additional sources of capital to fund short-term operations.
• The company issued 10,500,000 shares of common stock for services valued at $315,000 during the quarter.
• The company's disclosure controls and procedures were deemed not effective as of March 31, 2025.
• The company is working on or planning for several different business opportunities in the cannabis & hemp field, including, but not limited to: both indoor and outdoor grows, cultivations & harvest for research, product development, processing and manufacturing of both Pharma & non-Pharma products, services, therapeutics, and treatments on a global basis for both the Medical Cannabis & Hemp (<.03 thc) global market space.

Sentiment

Score: 3

Explanation: The document presents a negative outlook due to the company's increasing losses, lack of revenue, low cash balance, and concerns about its ability to continue as a going concern. While the company is pursuing various business opportunities, the financial challenges outweigh the potential positives.

Positives

• The company is actively pursuing new products and services to begin generating revenues.
• WEED, Inc. is seeking additional sources of capital to fund short-term operations.
• The company has acquired Hempirical Genetics, LLC, expanding its inventory of cannabis strains.
• WEED, Inc. established WEED Australia Ltd. and its wholly owned Cannabis Institute of Australia (C.I.A.) in Australia in March of 2017, for the purpose of conducting cannabis and hemp research and potentially developing products and educational services in and for Australians.

Negatives

• The company has no revenues.
• The company incurred a net loss of $440,455 for the quarter ended March 31, 2025.
• The company has an accumulated deficit of $85,343,734 as of March 31, 2025.
• The company's cash balance is very low at $3,142 as of March 31, 2025.
• The company's management expresses substantial doubt about its ability to continue as a going concern without securing additional financing.
• The company's disclosure controls and procedures were deemed not effective as of March 31, 2025.

Risks

• The company's ability to continue as a going concern is dependent on securing additional financing.
• The company's lack of revenues poses a significant risk to its financial stability.
• The company's disclosure controls and procedures are not effective, which could lead to inaccurate financial reporting.
• The litigation process is inherently uncertain and it is possible that the resolution of such matters might have a material adverse effect upon our financial condition and/or results of operations.

Future Outlook

The company plans to research and possibly enter the hemp and infused beverage industry through its newly acquired property in New York, and conduct Sangres Cannabis Genomic Study and process those result. In the long-term the company plans to be a company focused on purchasing 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 (Cannabis) sector.

Management Comments

• Management is actively pursuing new products and services to begin generating revenues.
• Management believes it is more likely than not that the net deferred tax assets will not be fully realizable.
• Management expresses substantial doubt about the company's ability to continue as a going concern without securing additional financing.

Industry Context

The company operates in the cannabis and hemp industry, which is a rapidly evolving market with increasing legalization and acceptance. The company is focused on various aspects of the industry, including cultivation, research, product development, and real estate. The company also plans to make its brand global and therefore it will look for opportunities to conduct future research, marketing, import and exporting, and manufacturing of any proprietary products on an international level.

Comparison to Industry Standards

• Without specific revenue or operational metrics, it's difficult to directly compare WEED, Inc.'s performance to industry standards.
• However, many cannabis companies are focusing on vertical integration, similar to WEED, Inc.'s seed-to-sale strategy.
• Companies like Canopy Growth Corporation and Aurora Cannabis have faced similar challenges in achieving profitability despite significant investments in infrastructure and acquisitions.
• WEED, Inc.'s focus on genomic research aligns with the industry's growing interest in developing proprietary strains and formulations.
• Compared to companies like GW Pharmaceuticals, which has successfully commercialized cannabis-derived pharmaceuticals, WEED, Inc. is still in the early stages of research and development.

Related Party Transactions

• The Company has a total of $340,891 and $423,328 of note payable on the consolidated balance sheet as of March 31, 2025 and December 31, 2024, respectively.
• Nicole M. Breen receives $8,000 a month in cash compensation for her services rendered to the Company.
• Glenn E. Martin receives $7,000 a month in cash compensation for his services rendered to the Company.
• A total of $91,500 and $84,900 of accrued expenses related to rent was unpaid and outstanding at March 31, 2025 and December 31, 2024, respectively.
• A total of $237,750 and $202,750 of officer compensation was unpaid and outstanding at March 31, 2025 and December 31, 2024, respectively.

Stakeholder Impact

• Shareholders face significant risk due to the company's financial instability and potential inability to continue as a going concern.
• Employees may be impacted by potential cost-cutting measures or the company's inability to continue operations.
• Customers and suppliers may be affected by the company's uncertain future and potential disruptions to its business activities.
• Creditors face increased risk of non-payment due to the company's financial difficulties.

Next Steps

• The company will continue to seek additional sources of capital to fund short-term operations.
• The company plans to research and possibly enter the hemp and infused beverage industry through its newly acquired property in New York.
• The company will continue to conduct Sangres Cannabis Genomic Study and process those result.
• The company will look for opportunities to conduct future research, marketing, import and exporting, and manufacturing of any proprietary products on an international level.

Key Dates

Keywords

cannabis, hemp, financial results, net loss, going concern, funding, WEED, Inc., BUDZ, genomics, cultivation, research, real estate