Executive Summary / Key Takeaways

• Ambitious Pre-Revenue Venture: WEED, Inc. ($BUDZ) is a highly speculative, pre-revenue company with a grand "Seed-to-Sale" vision in the global cannabis and hemp market, aiming to develop cultivation centers, conduct genomic research, and create specialized cannabis-derived compounds.
• Differentiated Technology, Dormant Potential: BUDZ possesses "highly proprietary" plant genomic research (Sangre AT) and a diverse inventory of specialized strains (Hempirical Genetics), positioning it for precise medical outcomes. However, these core technological differentiators are largely on hold, awaiting substantial funding.
• Severe Liquidity Crisis & Going Concern: The company reported zero revenue, an accumulated deficit of $85.45 million, cash on hand of only $5,350, and a monthly burn rate of approximately $52,000 as of June 30, 2025. Management explicitly states "substantial doubt about the Company's ability to continue as a going concern" without successful equity or debt financing.
• Niche Player in a Competitive Landscape: While BUDZ's focus on medical innovation offers a potential niche, it is significantly outmatched in scale, financial health, and market diversification by larger competitors like Tilray Brands (TLRY), Canopy Growth Corporation (CGC), Cronos Group Inc. (CRON), and Aurora Cannabis Inc. (ACB).
• Investment Hinges on Capital Infusion: The entire investment thesis for BUDZ rests on its ability to secure substantial external financing to reactivate its R&D, develop its properties, and transition from a conceptual stage to revenue generation.

Setting the Scene: BUDZ's Ambitious Vision in a Nascent Market

WEED, Inc. ($BUDZ) represents a fascinating, albeit highly speculative, play in the rapidly evolving global cannabis and hemp industry. Having shed its past as a mineral exploration company (United Mines, Inc.) in 2015, BUDZ pivoted to embrace a bold "Seed-to-Sale" vision. This strategy encompasses developing commercial-grade cultivation centers, pioneering plant genomic research, and exploring diverse market opportunities from infused beverages to specialized medical compounds. The company's transformation aligns with a broader industry trend of increasing legalization, with 37 U.S. states having approved medical cannabis programs and 17 states embracing adult-use by the end of 2021, signaling a burgeoning, albeit highly regulated, market.

The Technological Core: Unlocking Cannabis Potential

At the heart of BUDZ's long-term strategy lies its commitment to technological differentiation, primarily through its subsidiaries Sangre AT, LLC (Sangre AgroTech) and Hempirical Genetics, LLC. Sangre is a plant genomic research and breeding company that completed a 1-2 year Pilot Study in 2017-2018 at the University of Texas-Galveston, costing nearly $1 million. This foundational research aimed to create a genetic blueprint of the Cannabis plant genus, involving 30 cultivars from worldwide strains, yielding "highly proprietary" results intended as the basis for future studies.

The acquisition of Hempirical Genetics in May 2022 further bolstered BUDZ's technological arsenal. This brought an extensive inventory of "over 200 High THC strains plus 15 PURE Landrace strains including Panama Red, Acapulco Gold, Red Bud Colombian, Santa Marta Gold, and ThaiSticks," alongside "30 CBD & CBG strains." BUDZ explicitly "believes that multiple combinations of precise cannabinoid strains will achieve the precise medical outcome desired." This strategic focus on genetic understanding and diverse strain development is intended to create a competitive moat, enabling the company to develop highly differentiated products with superior efficacy and targeted delivery for specific human and animal ailments. For investors, this technological foundation represents the primary long-term value proposition, promising higher average selling prices, lower development costs through optimized breeding, and stronger market positioning in specialized medical segments. However, the critical "so what" for investors today is that the next steps for Sangre's Cannabis Genomic Study are currently paused, with "no work being conducted now until further funds are available."

A Grand Strategy on Hold: Global Ambitions and Diversification

BUDZ's strategic initiatives extend beyond core genomic research, painting a picture of a globally ambitious enterprise. In 2021, the company acquired the 43-acre Sugar Hill Golf course property in Portland, New York, with plans to enter the hemp and infused beverage markets. Conceptually, this property also holds the vision for "The Four Winds Luxury condos resort to be Cannabis Friendly," a potential "FIRST in the nation" ESG-compliant development. Internationally, WEED Australia Ltd. and its Cannabis Institute of Australia (C.I.A.) were established in 2017 for research and product development, serving as a "gateway to the Oceania & Asia emerging legal cannabis marketplace." Similarly, WEED Israel Cannabis Ltd. was formed in 2018 to conduct clinical trials with Hebrew University scientists, aiming for FDA-acceptable product development. A prior attempt to acquire patents from Professor Elka Touitou for over $500,000 was terminated in 2019 due to market downturns and the pandemic, though interest remains contingent on proper funding.

These diverse ventures highlight management's expansive vision for BUDZ as a global holding company. However, a recurring theme across all these initiatives is their dependence on external capital. The New York property project is "only in its conceptual stage, no funding or plans have been developed," and the Israeli clinical trials await "proper funding." This underscores that while the strategic blueprint is comprehensive, its execution remains entirely contingent on successful capital raises.

Competitive Landscape: A Niche Player Among Giants

In the dynamic cannabis sector, BUDZ occupies a niche position, primarily focused on medical applications and genomic research. This specialization offers a potential competitive advantage in developing precise, efficacious treatments. However, BUDZ operates as a significantly smaller player compared to industry giants like Tilray Brands, Canopy Growth Corporation, Cronos Group Inc. , and Aurora Cannabis Inc. .

Comparing BUDZ to these larger rivals reveals a stark contrast in scale and financial fortitude. While BUDZ's technological focus on specialized cannabis compounds for disease treatment could theoretically offer superior therapeutic efficacy in targeted applications, its market presence, revenue diversification, and overall financial health lag considerably. For instance, Tilray Brands' broader consumer-oriented portfolio and established international footprint allow for stronger revenue growth and market positioning. Canopy Growth Corporation, with its expansive R&D investments, likely boasts faster innovation cycles and greater brand recognition, overshadowing BUDZ's focused efforts. Cronos Group Inc.'s lean operations and cost controls enable better cash flow generation and a more stable financial profile, while Aurora Cannabis Inc. benefits from extensive production capabilities and broader distribution channels.

BUDZ's competitive moats, primarily its proprietary genomic research and diverse strain inventory, offer the promise of differentiation through improved efficacy and targeted delivery. This could translate into stronger customer loyalty and potentially superior margins in highly specialized medical segments. However, these advantages are currently theoretical, as the underlying R&D is stalled. The company's smaller scale translates into materially higher operating costs and lower margins compared to its larger, more diversified competitors, severely impacting its ability to compete on reach and efficiency. Barriers to entry in the cannabis sector, such as stringent regulations and high R&D costs, while protecting BUDZ's niche, also disproportionately favor scaled competitors who can better absorb these overheads.

Financial Reality: A Pre-Revenue Enterprise Facing Headwinds

The financial performance of WEED, Inc. paints a challenging picture, reflecting its pre-revenue and development-stage status. For the six months ended June 30, 2025, the company reported zero revenue, a consistent trend since its inception. This absence of top-line growth directly contributes to significant net losses. The comprehensive net loss for the six months ended June 30, 2025, increased dramatically to $546,884, nearly doubling from $282,392 in the same period of 2024.

Operating expenses for the first half of 2025 totaled $528,782, a substantial increase from $315,008 in the prior year. This surge was primarily driven by a 101.62% increase in general and administrative expenses, which rose from $221,861 to $447,320, attributed to higher consulting and services salaries. While professional fees saw a slight decrease to $70,219, interest expense surged from $1,198 to $19,289, predominantly due to related-party notes payable. These figures underscore a company incurring significant costs without any offsetting revenue, leading to an accumulated deficit of $85.45 million as of June 30, 2025.

Liquidity and the Going Concern Dilemma

The most pressing concern for BUDZ investors is the company's precarious liquidity position. As of June 30, 2025, cash on hand stood at a mere $5,350, a sharp decline from $159,355 at the end of 2024. With a reported monthly cash flow burn rate of approximately $52,000, the company's existing cash reserves are insufficient to cover even a single month of operations. This is further exacerbated by a negative working capital of $978,351.

Management explicitly acknowledges these challenges, stating, "These factors raise substantial doubt about the Company's ability to continue as a going concern." The company's ability to meet its obligations is entirely dependent on securing additional equity and/or debt financing, with management offering "no assurances that the Company will be successful." During the first half of 2025, net cash used in operating activities was $70,519, while financing activities, which included $47,000 in proceeds from notes payable offset by $130,000 in repayments, resulted in a net cash outflow of $82,300. This reliance on related-party loans and the inability to generate internal cash flow highlight the critical need for external capital to sustain operations and pursue its strategic objectives.

Outlook and Critical Path Forward

BUDZ's outlook is entirely predicated on its ability to transition from a conceptual, R&D-focused entity to a revenue-generating business. Management's stated plan is to "research and possibly enter the hemp and infused beverage industry" and "conduct Sangre's Cannabis Genomic Study" once sufficient funding is secured. The long-term vision remains to become a "True Seed-to-Sale global holding company." However, without concrete guidance figures or a clear timeline for achieving these milestones, the path forward remains highly uncertain. The company's strategy to achieve this funding is through "offerings of our securities," indicating a continued reliance on dilutive financing.

Key Risks for Investors

Investing in BUDZ carries substantial risks. The most significant is the going concern warning, directly tied to the company's inability to generate revenue and its critical dependence on external financing. There is no guarantee that BUDZ will successfully raise the necessary capital, which could lead to the cessation of operations. Furthermore, the company's internal controls over financial reporting were deemed "not effective" as of June 30, 2025, with a specific deficiency noted in the lack of formal processes for identifying and approving related-party transactions. This raises concerns about financial oversight and governance. Operating in a "highly regulated industry" also exposes BUDZ to significant regulatory risks, which can impact its ability to commercialize products and expand operations. The historical "downturn of the Cannabis marketplace" also serves as a reminder of market volatility.

Conclusion

WEED, Inc. ($BUDZ) presents a compelling narrative of ambition and potential, rooted in a strategic pivot towards the burgeoning cannabis and hemp sector. Its vision of becoming a "True Seed-to-Sale" global player, underpinned by proprietary genomic research and a diverse strain portfolio, offers a glimpse into a future of specialized medical cannabis compounds. This technological differentiation, particularly Sangre's "highly proprietary" genetic blueprint and Hempirical Genetics' extensive strain library, represents the core of its long-term investment thesis, promising precise medical outcomes and a competitive edge.

However, the current reality for BUDZ is one of profound financial distress. Operating entirely without revenue, accumulating significant losses, and facing a severe liquidity crisis with a "going concern" warning, the company's grand strategy remains largely on hold. Its ability to activate its technological advantages, develop its properties, and compete effectively against larger, more financially robust industry players hinges entirely on its success in securing substantial external capital. For discerning investors, BUDZ is a high-risk, high-reward proposition where the realization of its innovative potential is inextricably linked to its capacity to overcome its immediate and critical funding challenges.