WEED INC

Operating Loss; Net Income

Our net income increased by $26,492, from $(197,127) to $(170,635), from the three months ended March 31, 2023 compared to the three months ended March 31, 2024. Our net operating loss decreased by $13,855, from $(183,908) to $(170,053) for the same period.

Revenue

We have not had any revenues since our inception. Once we have sufficient funding, we plan to research and possibly enter the hemp and infused beverage industry through our newly acquired property in New York, and conduct Sangre’s Cannabis Genomic Study and process those result. In the long-term we plan 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. Our long-term plan is to become a True “Seed-to-Sale” company providing infrastructure, financial solutions and real estate options in this new emerging market, worldwide. We plan to make our brand global and therefore we will look for opportunities to conduct future research, marketing, import and exporting, and manufacturing of any proprietary products on an international level.

General and Administrative Expenses

General and administrative expenses increased by $2,783, from $133,782 for the three months ended March 31, 2023 to $136,565 for the three months ended March 31, 2024.

Professional Fees

Our professional fees decreased by $893 during the three months ended March 31, 2024 compared to the three months ended March 31, 2023. Our professional fees were $25,203 for the three months ended March 31, 2024 and $26,096 for the three months ended March 31, 2023. These fees are largely related to fees paid for legal and accounting services, along with compensation to independent contractors. We expect these fees to vary quarter-to-quarter as our business and stock price fluctuate if we continue to use stock-based compensation. In the event we undertake an unusual transaction, such as an acquisition, securities offering, or file a registration statement, we would expect these fees to substantially increase during that period.

Depreciation and Amortization

During the three months ended March 31, 2024, we had depreciation and amortization expense of $8,285, compared to $24,030 in the three months ended March 31, 2023. Our depreciation and amortization expense primarily relates to our property and trademark acquisitions.

Interest Expense

Interest expense decreased from $(13,106) for the three months ended March 31, 2023, to $(599) for the three months ended March 31, 2024. Our interest expense primarily relates to notes payable from attorneys and related parties.

Liquidity and Capital Resources

Introduction

During the three months ended March 31, 2024, because of our operating losses, we did not generate positive operating cash flows. Our cash on hand as of March 31, 2024, was $102,696 and our monthly cash flow burn rate was approximately $62,000. We currently do not believe we will be able to satisfy our cash needs from our revenues for many years to come.

Our cash, current assets, total assets, current liabilities, and total liabilities as of March 31, 2024 and December 31, 2023, respectively, are as follows:

Our total assets decreased by $200,255 as of March 31, 2024, as compared to December 31, 2023. The decrease in our total assets between the two periods was attributed to decreases in our property and equipment, intangible assets, ROU assets.

Our current liabilities and total liabilities decreased by $52,420, as of March 31, 2024, as compared to December 31, 2023. This decrease was primarily due to decreases in accrued officer compensation, notes payable- related parties, lease liability and partially offset by increase in accounts payable, accrued expense and accrued interest.

In order to pay our obligations in full or in part when due, we will be required to raise capital from other sources. There is no assurance, however, that we will be successful in these efforts.

Cash Requirements

We had cash available of $102,696 and $290,409 as of March 31, 2024 and December 31, 2023, respectively. Based on our lack of revenues, our cash on hand and current monthly burn rate of approximately $62,000, 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.

Sources and Uses of Cash

Operations

We had net cash used in operating activities of $(177,730) for the three months ended March 31, 2024, as compared to $(177,173) for the three months ended March 31, 2023. For the period in 2024, the net cash used in operating activities consisted primarily of our net income of $177,730, adjusted by depreciation and amortization of $5,721, debt discount amortization of $2,564, estimated fair value of shares issued for services of $22,500, and imputed interest on RP loans of $300, and further adjusted by decreases in assets related to prepaid expenses and deposits of $3,603, and increases in liabilities consisting of accounts payable of $5,233 and accrued expenses of $(46,999). For the period in 2023, the net cash used in operating activities consisted primarily of our net loss of ($197,017), adjusted by depreciation and amortization of $24,030, debt discount amortization of $0, estimated fair value of shares issued for services of $22,500, imputed interest on RP loans of $5,942, and further adjusted by decreases in prepaid expenses and deposits of $2,540 and accounts payable of $(25,900), and decreases in accrued expenses of $(9,271).

Investments

For the three months ended March 31, 2024, we had no cash flows provided from investing activities.

Financing

Our net cash used in financing activities for the three months ended March 31, 2024, was $(10,000), compared to cash used in financing activities of ($32,789) for the three months ended March 31, 2023.

Off Balance Sheet Arrangements

We have no off balance sheet arrangements.