WEED, INC. Our Management's Discussion and Analysis or Plan of Operations contains not only
statements that are historical facts, but also statements that are
forward-looking. Forward-looking statements are, by their very nature, uncertain
and risky. These risks and uncertainties include international, national and
local general economic and market conditions; demographic changes; our ability
to sustain, manage, or forecast growth; our ability to successfully make and
integrate acquisitions; raw material costs and availability; new product
development and introduction; existing government regulations and changes in, or
the failure to comply with, government regulations; adverse publicity;
competition; the loss of significant customers or suppliers; fluctuations and
difficulty in forecasting operating results; changes in business strategy or
development plans; business disruptions; the ability to attract and retain
qualified personnel; the ability to protect technology; and other risks that
might be detailed from time to time in our filings with the
Although the forward-looking statements in this Quarterly Report reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by them. Consequently, and because forward-looking statements are inherently subject to risks and uncertainties, the actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. You are urged to carefully review and consider the various disclosures made by us in this report and in our other reports as we attempt to advise interested parties of the risks and factors that may affect our business, financial condition, and results of operations and prospects.
Overview
We are an early stage holding company currently focused on the development and
application of cannabis-derived compounds for the treatment of human disease.
Our wholly-owned subsidiary,
Using annotated genomic data and newly generated phenotypic data, Sangre plans to identify and isolate regions of the plant genome which are related to growth, synthesis of desired molecules, and drought and pest resistance. This complex data set would then be utilized in a breeding program to generate and establish new hybrid cultivars which exemplify the traits that are desired by the medical and patient community. This breeding program would produce new seed stocks and clones, which we plan on patenting. If successful this intellectual property should generate immense value for the Company. After developing a comprehensive understanding of the annotated genome of a variety of cannabis strains, and obtaining intellectual property protection over the most promising strains, we plan move forward either independently or with strategic partners to develop medicinal products for the treatment of a multitude of human diseases.
Our current, short-term goals relate to the Cannabis Genomic Study and the resulting development of a variety of new cannabis strains, and, over the next 5 years, we plan to process those results in order to become an international cannabis research and product development company, with a globally-recognized brand focusing on building and purchasing labs, land and building commercial grade "Cultivation Centers" to consult, assist, manage & lease to universities, state governments, licensed dispensary owners and organic grow operators on a contract basis with a concentration on the legal and medical cannabis sector..
Our long-term plan is to become a true "Seed-to-Sale" global holding company
providing infrastructure, financial solutions, product development, and real
estate options in this new emerging market. Our long term growth may also come
from the acquisition of synergistic businesses, such as distilleries, to make
anything from infused beverages to super oxygenated water with CBD and THC.
Currently, we have formed
In furtherance of our current, short terms goals, Sangre initiated the cannabis
genome project in
22
Under the genome project directives, additional strains are slated for sequencing and annotation as part of the overall expansion of this research project. An integral part of this expansion is the acquisition of additional DNA extraction, amplification, and sequencing technologies. The expansion also includes the installation of high-level IT networks for data acquisition, analysis, and storage.
On
A gene-based breeding program will allow us to root out inferior cultivars and replace them with fully-validated and patentable cultivars which produce consistent plant products for the medicinal markets. The gene-based breeding program will improve cultivars and introduce integrity, stability, and quality to the market in the following ways:
? accelerated and optimized growth rates; modern genomic resources will enhance
traditional breeding methods
? generate new cultivars, accelerating and perfecting the art of selective
breeding
? provide the ability to assay for specific genes within the crop, establish
strain tracking, and promote market quality assurance
? improved disease, pest, and drought resistance of the Cannabis plant
We believe the gene-based breeding program will facilitate and accelerate:
? improved therapeutic properties, i.e., increased THC/CBD concentration and the
production of specific classes of oils and terpenses
? enhanced opportunities for new drug discovery
? accelerated breeding of super-cultivars: drought, pest, and mold resistant,
increased %THC
? revenue generation through our unique ability to breed and genetically
fingerprint new, super-cultivars: establish strong patent protection; and
provide these cultivars to the market on a favorable cost and royalty basis.
Our goal with this program is to develop a translational breeding program to
establish a new collection of Cannabis cultivars for the
Corporate Overview
We were originally incorporated under the name
23
On
These changes were affected in order to make our corporate name and ticker symbol better align with our short-term and long-term business focus. Our current, short-term goals relate to the Cannabis Genomic Study and the resulting development of a variety of new cannabis strains, and, over the next 5 years, we plan to process those results in order to become an international cannabis research and product development company, with a globally-recognized brand focusing on building and purchasing labs, land and building commercial grade "Cultivation Centers" to consult, assist, manage & lease to universities, state governments, licensed dispensary owners and organic grow operators on a contract basis with a concentration on the legal and medical cannabis sector.
Our long-term plan is to become a true "Seed-to-Sale" global holding company
providing infrastructure, financial solutions, product development, and real
estate options in this new emerging market. Our long term growth may also come
from the acquisition of synergistic businesses, such as distilleries, to make
anything from infused beverages to super oxygenated water with CBD and THC.
Currently, we have formed
On
This discussion and analysis should be read in conjunction with our financial statements included as part of this Quarterly Report.
Three Months Ended
Results of Operations
Three Months Ended
June 30,
2020 2019
Revenue $ - $ -
Operating expenses:
General and administrative 73,087 124,928
Professional fees 442,163 7,004,377
Depreciation and amortization 41,224 40,756
Total operating expenses 556,474 7,170,061
Net operating loss (556,474 ) (7,170,061 )
Other Expense
Interest expense (18,039 ) (2,140 )
Other income - 17
Other expense - (476 )
Net loss $ (574,513 ) $ (7,172,660 )
Other Comprehensive Loss 98 (521 )
Comprehensive Loss (574,415 ) (7,173,181 )
24
Operating Loss; Net Loss
Our comprehensive loss decreased by
Revenue
We have not had any revenues since our inception. We are a company focused on the medical cannabis sector. In the short-term we plan to conduct Sangre's Cannabis Genomic Study over the next 5 years and process those result, and in the long-term is 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 decreased by
Professional Fees
Our professional fees decreased by
Depreciation and Amortization
During the three months ended
Interest Expense
Interest expense increased from
Other Income
Other income during the three months ended
Other Expense
Other expense decreased from
25
Six Months Ended
Results of Operations
Six Months Ended
June 30,
2020 2019
Revenue $ - $ -
Operating expenses:
General and administrative 148,683 310,688
Professional fees 3,420,812 17,913,703
Depreciation and amortization 76,723 81,416
Total operating expenses 3,656,218 18,305,807
Net operating loss (3,656,218 ) (18,305,807 )
Other Expense
Interest expense (22,630 ) (2,389 )
Other income - 1,017
Other expense - (1,956 )
Net loss $ (3,678,848 ) $ (18,309,135 )
Other Comprehensive Loss (625 ) (521 )
Comprehensive Loss (3,679,473 ) (18,309,656 )
Operating Loss; Net Loss
Our comprehensive loss decreased by
Revenue
We have not had any revenues since our inception. We are company focused on the medical cannabis sector. In the short-term we plan to conduct Sangre's Cannabis Genomic Study over the next 5 years and process those result, and in the long-term is 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 decreased by
26
Professional Fees
Our professional fees decreased by
Depreciation and Amortization
During the six months ended
Interest Expense
Interest expense increased from
Other Income
Other income during the six months ended
Other Expense
Other expense decreased from
Liquidity and Capital Resources
Introduction
During the six months ended
Our cash, current assets, total assets, current liabilities, and total liabilities as ofJune 30, 2020 andDecember 31, 2019 , respectively, are as follows: June 30, 2020 December 31, 2019 Change Cash $ 8,018 $ 2,509$ (5,509 ) Total Current Assets 174,156 126,310 47,846 Total Assets 1,923,735 1,952,612 (28,877 ) Total Current Liabilities 932,148 752,970 179,178 Total Liabilities$ 932,148 $ 752,970$ 179,178
Our total assets decreased by
Our current liabilities and total liabilities increased by
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.
27
Cash Requirements
We had cash available of
Sources and Uses of Cash Operations
We had net cash used in operating activities of
Investments
For the six months ended
Financing
Our net cash provided by financing activities for the six months ended
Off Balance Sheet Arrangements
We have no off balance sheet arrangements.
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