10-Q: WEED, Inc. Reports Third Quarter 2024 Results with Ongoing Losses and Focus on Future Growth

WEED, Inc. reported a net loss for the third quarter of 2024, continuing its trend of operating without revenue while focusing on future opportunities in the cannabis and hemp industries.

Summary

• WEED, Inc. reported its financial results for the third quarter of 2024, showing no revenue and a net loss of $95,887.
• The company's operating loss for the quarter was $92,649, with total operating expenses of $92,649.
• General and administrative expenses were $64,833, while professional fees totaled $22,195.
• Depreciation and amortization expenses amounted to $5,621 for the quarter.
• The company's cash balance at the end of the quarter was $5,311, a significant decrease from $290,409 at the end of 2023.
• WEED, Inc. has an accumulated deficit of $84,770,055 and negative working capital of $645,663 as of September 30, 2024.
• The company is actively pursuing new products and services to generate revenue and is seeking additional capital to fund operations.
• WEED, Inc. is focused on opportunities in the cannabis and hemp sectors, including cultivation, research, and product development.
• The company's long-term goals include becoming a seed-to-sale company with a global presence.

Sentiment

Score: 2

Explanation: The document presents a very negative financial picture with no revenue, significant losses, and a very low cash balance. The company's future is highly dependent on its ability to raise capital and generate revenue, which is uncertain.

Positives

• The company is actively pursuing new products and services to generate revenue.
• WEED, Inc. is focused on the growing cannabis and hemp markets.
• The company has a long-term plan to become a seed-to-sale global holding company.
• WEED, Inc. has acquired a property in New York with potential for hemp and infused beverage markets.
• The company has a subsidiary in Australia for research and development in the Oceania and Asia markets.
• WEED, Inc. has acquired Hempirical Genetics, LLC, adding a large inventory of cannabis strains.

Negatives

• The company has not generated any revenue since its inception.
• WEED, Inc. reported a net loss of $95,887 for the third quarter of 2024.
• The company has a significant accumulated deficit of $84,770,055.
• The cash balance is very low at $5,311.
• The company has negative working capital of $645,663.
• The company's monthly cash burn rate is approximately $32,000.
• The company's disclosure controls and procedures were not effective as of September 30, 2024.
• The company does not have an audit committee.

Risks

• The company's ability to continue as a going concern is dependent on securing additional financing.
• There is no assurance that the company will be successful in raising capital.
• The company has not generated any revenue and is incurring significant losses.
• The company's disclosure controls and procedures are not effective.
• The company is dependent on related party loans.
• The company is subject to legal proceedings and claims.
• The company's success depends on the development and commercialization of new products and services.
• The company faces competition in the cannabis and hemp industries.
• The company's operations are subject to changes in government regulations.

Future Outlook

The company plans to research and possibly enter the hemp and infused beverage industry, conduct its Cannabis Genomic Study, and become a global seed-to-sale company. They will need 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.
• Management believes it is more likely than not that the net deferred tax assets will not be fully realizable.

Industry Context

The company is operating in the rapidly evolving cannabis and hemp industries, which are subject to changing regulations and increasing competition. The company's focus on research and product development aligns with the industry's trend towards innovation and differentiation.

Comparison to Industry Standards

• Many cannabis companies are experiencing losses in the early stages of development, but WEED, Inc.'s lack of revenue is a significant concern.
• Compared to other companies in the sector, WEED, Inc.'s cash position is very weak, indicating a high risk of financial distress.
• Companies like Canopy Growth and Aurora Cannabis have reported significant revenues, although they have also experienced losses, highlighting the challenges in the industry.
• The company's focus on genomic research is similar to companies like Cronos Group, which are investing in research and development to create unique products.
• The company's lack of an audit committee is not in line with best practices for public companies.

Related Party Transactions

• The company has received short-term loans from officers and directors.
• The company has a total of $135,764 of notes payable to related parties as of September 30, 2024.
• The company owes Jeffrey Miller $130,000 as of September 30, 2024, related to the acquisition of Hempirical Genetics, LLC.
• Nicole M. Breen receives $1,500 a week in cash compensation for her services.
• Glenn E. Martin receives $8,000 a month in cash compensation for his services.

Stakeholder Impact

• Shareholders are at high risk due to the company's poor financial performance and dependence on future capital raises.
• Employees may be impacted by the company's financial instability.
• Customers and suppliers are not currently impacted as the company has no revenue or operations.
• Creditors are at risk due to the company's low cash balance and high liabilities.

Next Steps

• The company plans to continue pursuing new products and services to generate revenue.
• The company will continue seeking additional sources of capital to fund operations.
• The company plans to research and possibly enter the hemp and infused beverage industry.
• The company plans to conduct its Cannabis Genomic Study and process the results.
• The company will look for opportunities to conduct future research, marketing, import and exporting, and manufacturing of proprietary products on an international level.

Key Dates

Keywords

cannabis, hemp, genomics, cultivation, research, product development, seed-to-sale, financial results, operating loss, net loss, capital raise, related party, disclosure controls