10-Q: WEED, Inc. Reports Q3 2025 Losses, Cash Dwindles

WEED, Inc. reported continued net losses and a significant decrease in cash for Q3 2025, raising substantial doubt about its ability to continue as a going concern.

Summary

• WEED, Inc. reported no revenues for the three and nine months ended September 30, 2025, consistent with prior periods.
• The company incurred a net loss of $73,946 for the three months ended September 30, 2025, a decrease from $95,887 in the same period of 2024.
• For the nine months ended September 30, 2025, the net loss increased to $622,018, up from $377,492 in the prior year period.
• Cash on hand plummeted to $400 as of September 30, 2025, from $159,355 at December 31, 2024.
• Total current assets decreased significantly to $10,933 from $189,891 over the same period.
• Total current liabilities increased to $1,051,346 from $959,372, primarily due to increases in accounts payable and accrued officer compensation.
• The accumulated deficit grew to $85,525,296 as of September 30, 2025.
• The company's monthly cash burn rate is approximately $53,000.
• WEED Australia Ltd., a subsidiary, was formally deregistered effective November 19, 2025, with no material impact on financial statements.

Sentiment

Score: 1

Explanation: The company faces severe financial distress with virtually no cash, no revenue, increasing losses over the nine-month period, and a 'going concern' warning. Operational plans are stalled due to lack of funding, and internal controls are ineffective. The overall outlook is highly negative.

Positives

• Net loss for the three months ended September 30, 2025, decreased to $73,946 from $95,887 in the prior year, primarily due to reduced general and administrative expenses and professional fees.
• Notes payable to related parties decreased to $348,018 as of September 30, 2025, from $423,328 at December 31, 2024.

Negatives

• The company has not generated any revenue since its inception.
• Cash on hand decreased dramatically from $159,355 at December 31, 2024, to $400 at September 30, 2025.
• Total current assets decreased by $178,958, while total current liabilities increased by $91,974, leading to a negative working capital of $1,040,413.
• The net loss for the nine months ended September 30, 2025, significantly increased to $622,018 from $377,492 in the comparable prior year period.
• General and administrative expenses for the nine months increased by $219,142 to $505,836.
• Accrued officer compensation increased to $324,750 as of September 30, 2025, from $202,750 at December 31, 2024.
• The company's monthly cash burn rate is approximately $53,000, indicating a very short runway with current cash levels.

Risks

• Substantial doubt exists about the company's ability to continue as a going concern due to no revenues, incurred net losses, and a significant accumulated deficit.
• The company is dependent upon its ability to secure equity and/or debt financing, with no assurances of success.
• Disclosure controls and procedures were not effective as of September 30, 2025, partly due to the absence of an audit committee and one individual serving as both CEO and CFO.
• There are no formal processes related to the identification and approval of related party transactions, posing a governance risk.
• Future results and shareholder values may differ materially from forward-looking statements due to inherent risks, uncertainties, and assumptions.
• The Cannabis Genomic Study is currently on hold and no work is being conducted until further funds are available.

Future Outlook

The company plans to research and potentially enter the hemp and infused beverage industry, continue Sangre's Cannabis Genomic Study (once funded), and ultimately become a global seed-to-sale company providing infrastructure, financial solutions, product development, and real estate options in the legal and medical cannabis sector. Long-term goals include developing cures for diseases using the Cannabaceae plant and acquiring synergistic businesses like distilleries. The company acknowledges it needs additional financing to accomplish these goals.

Management Comments

• "Management is actively pursuing new products and services to begin generating revenues."
• "The Company is currently seeking additional sources of capital to fund short term operations."
• "The Company, however, is dependent upon its ability to secure equity and/or debt financing and there are no assurances that the Company will be successful; therefore, without sufficient financing it would be unlikely for the Company to continue as a going concern."
• "We currently do not believe we will be able to satisfy our cash needs from our revenues for many years to come."
• "Based on our lack of revenues, our cash on hand and current monthly burn rate of approximately $53,000, we will need to continue borrowing from our shareholders and other related parties, and/or raise money from the sales of our securities, to fund operations."
• "As funds become available to us, we expect to implement additional measures to improve disclosure controls and procedures."

Industry Context

WEED, Inc. operates in the rapidly evolving global cannabis and hemp industry, which is characterized by increasing legalization and market expansion. The company's strategy to focus on cultivation centers, genomic research, and product development aligns with key industry trends. However, its current lack of revenue and significant financial challenges contrast sharply with the growth seen by established players in the legal cannabis market. The company's international aspirations (Australia, Israel) reflect the global nature of the industry, but its inability to fund core research (Cannabis Genomic Study) or acquire key intellectual property (Professor Touitou's patents) due to financial constraints indicates it is struggling to capitalize on these trends.

Comparison to Industry Standards

• The company's complete lack of revenue stands in stark contrast to established cannabis and hemp companies that are generating significant sales in legal markets.
• Its negative working capital of over $1 million and cash balance of $400 are far below industry norms for operational companies, even those in early growth stages.
• The reliance on related-party loans and stock-based compensation for services, coupled with a 'going concern' warning, indicates a financial position significantly weaker than most publicly traded companies in the sector.
• The inability to fund ongoing research, such as the Cannabis Genomic Study, or complete patent acquisitions, places it behind competitors actively investing in R&D and intellectual property in the plant genetics space.

Corporate Governance

Legal Proceedings

• 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, other than as set forth in the report.

Related Party Transactions

• The company has received short-term loans from officers and directors, totaling $348,018 as of September 30, 2025.
• Glenn Martin provided advances totaling $305,000 and $45,000 at 5% and 12% interest, respectively, with $130,000 repaid in January 2025.
• Jeffrey Miller, an executive officer, is owed $120,000 as of September 30, 2025, related to the acquisition of Hempirical Genetics, LLC, with no interest.
• Nicole M. Breen receives $8,000 a month in cash compensation for services.
• Glenn E. Martin receives $7,000 a month in cash compensation for services.
• Accrued officer compensation, including for related parties, totaled $324,750 as of September 30, 2025.

Stakeholder Impact

• **Shareholders**: Significant dilution risk from potential future equity raises and continued losses eroding shareholder equity. The 'going concern' warning indicates a high risk of investment loss.
• **Employees/Officers**: Accrued officer compensation is substantial ($324,750), indicating potential payment delays or financial strain on key personnel.
• **Creditors**: Increased total liabilities and a severe cash shortage suggest a heightened risk for creditors, particularly related parties who have provided loans.
• **Customers/Partners**: The inability to fund core research and product development (e.g., Cannabis Genomic Study, Professor Touitou's patents) could hinder future product offerings and partnerships.

Next Steps

• Actively pursue new products and services to begin generating revenues.
• Seek additional sources of capital to fund short-term operations, including equity and/or debt financing and sales of securities.
• Implement additional measures to improve disclosure controls and procedures as funds become available.
• Continue efforts to resume the Cannabis Genomic Study once funding is secured.
• Explore opportunities to complete the purchase of Professor Touitou's patents and begin clinical trials upon proper funding.
• Potentially develop the Sugar Hill Golf course property for hemp and infused beverage markets, and conceptually for luxury condos & resort development.

Key Dates

Recommendation

The company presents an extremely high-risk profile with a 'going concern' warning, virtually no cash ($400), zero revenue, and a substantial accumulated deficit. Operational plans are stalled due to lack of funding, and internal controls are deemed ineffective. The reliance on related-party financing and the need for significant future capital raises, coupled with a history of increasing losses over the nine-month period, indicate severe financial distress. An investment in BUDZ at this stage carries an exceptionally high risk of total capital loss, making a 'strong sell' recommendation appropriate for any existing holdings and advising against new positions.

Keywords

Cannabis, Hemp, Genomic Study, Cultivation Centers, Seed-to-Sale, Medical Marijuana, Infused Beverages, Biotechnology, Plant Genetics, SEC Filing, 10-Q, BUDZ