The cannabis genomics company’s auditors flagged substantial going concern doubt as the accumulated deficit reached $86.3 million with just two full-time employees.

April 08, 2026

WEED, Inc., a Nevada-incorporated cannabis research and real estate holding company trading on the OTCQB under the ticker BUDZ, disclosed its fiscal year 2025 results in its annual report filed with the Securities and Exchange Commission on April 8, 2026. The company reported no revenue for the year, a net loss of approximately $1.37 million, and just $33,130 in cash on hand — down from $159,355 at the end of 2024. Its independent auditors issued a going concern opinion.

Financial Performance

The company’s comprehensive loss widened significantly, increasing from roughly $510,000 in fiscal 2024 to approximately $1.37 million in 2025. The jump was driven primarily by a sharp rise in general and administrative expenses, which climbed from $351,116 to $1,128,094 — an increase the company attributed largely to higher salary costs. Professional fees also rose modestly to $177,098 from $156,290. Interest expense nearly tripled to $43,857, reflecting growing related-party borrowings.

WEED, Inc. has never generated revenue since its inception. The company was originally incorporated in Arizona in 1999 as Plae, Inc., transitioned through mining exploration under the names King Mines and United Mines, and redomesticated to Nevada in 2015 under its current name to pursue cannabis-related research and development.

Cannabis Genomic Research

The company’s core research initiative is the Cannabis Genomic Study, conducted through its wholly owned subsidiary Sangre AT, LLC. Sangre completed a pilot study in 2017-2018 at the University of Texas-Galveston through Industrial Metagenomics, sequencing DNA from 30 landrace cannabis cultivars at a cost of nearly $1 million. The company has described the results as highly proprietary but has been unable to advance to the next phase due to insufficient funding. Management estimates the full five-year genomic study will cost approximately $15 million to complete.

In 2022, WEED acquired Hempirical Genetics, LLC, gaining access to a proprietary seedbank of over 250 cannabis and hemp strains, including rare landrace varieties such as Panama Red and Acapulco Gold. Throughout 2025, management focused on cataloging these genetic assets to support future pharmaceutical research and consumer product strategies.

The company also maintains an international research relationship through its subsidiary WEED Israel Cannabis Ltd., which has worked with Professor Elka Touitou of the Hebrew University of Jerusalem. A patent acquisition deal with Professor Touitou was terminated in 2019 after the company spent over $500,000, though the company indicated that as of 2025, Professor Touitou remains interested in resuming the collaboration pending proper funding.

Strategic Initiatives

In December 2025, WEED entered into a partnership with Remergify, Inc. to explore the development of a digital asset ecosystem, including the potential launch of two tokens called WEEDCoin and BUDZCoin. The initiative aims to address banking and supply chain challenges in the cannabis industry but remains in early development, subject to capital availability and regulatory uncertainties.

The company’s real estate portfolio includes a 44-acre property in Portland, New York, known as Four Winds of Lake Erie, acquired in 2021 for $477,000. The parcel features lake frontage and unlimited water extraction rights. WEED has described plans to use the property for entry into the hemp and infused beverage markets, though management estimates approximately $5 million is needed to execute those plans.

Through its subsidiary HEMP BioSciences Inc., the company maintained its suite of Arizona industrial hemp licenses in 2025. It also completed the deregistration of two dormant international subsidiaries — WEED Hong Kong Ltd. and WEED Australia Ltd. — to simplify its corporate structure.

Balance Sheet and Capital Structure

Total assets fell to $559,906 from $738,366 a year earlier, while total liabilities rose to $1,248,267 from $959,372. The company had negative working capital of approximately $1.2 million and total stockholders’ deficit of $688,361. Related-party notes payable grew to $502,985, with CEO Glenn Martin and Secretary Nicole Breen — who is Martin’s daughter — providing ongoing loans to fund operations.

As of March 30, 2026, the company had 148,312,685 shares of common stock outstanding. Martin and Breen together controlled approximately 63.5 percent of outstanding shares. The stock last traded at $0.03 per share as of June 30, 2025.

Leadership, Compensation, and Internal Controls

The company employed just two full-time employees as of year-end: Martin, who serves as President, CEO, and CFO, and Breen, who serves as Secretary and Treasurer. Both also serve as the company’s only directors. Martin’s annual compensation was set at $96,000, with $273,000 owed in unpaid cash compensation at year-end. Breen’s was $78,000, with $96,750 owed. Both received 5 million shares each as signing bonuses in January 2025, and the company issued 22 million shares total for services during the year at a fair value of $890,000.

Management identified four material weaknesses in internal controls: insufficient segregation of duties, lack of documented internal controls, absence of a formal code of ethics, and no formal process for identifying related-party transactions. The board has no independent directors, and no member qualifies as an audit committee financial expert.

The company’s auditor, M&K CPAS, PLLC of The Woodlands, Texas, issued a clean opinion but included an explanatory paragraph regarding substantial doubt about the company’s ability to continue as a going concern. The accumulated deficit stood at approximately $86.3 million as of December 31, 2025, with a monthly cash burn rate of roughly $10,500.