WeedHire International, Inc.

In January 2015, in connection with the assignment of $25,000 of the Company’s 12% convertible notes to a third party, the original 12 % note was cancelled in exchange for an issuance of a 10% convertible promissory note for $25,000 with a conversion price equal to 50% of the lowest trading prices of the Company’s common stock during the 35 trading day period prior to the date of conversion. The Company accounted for the reduction of the conversion price from $0.30 to a lower price per share and such conversion under ASC 470-20-40 “Debt with Conversion and Other Options” and accordingly recorded loss from extinguishment of debt of $124,850 which is equal to the fair value of shares issued in excess of the fair value issuable pursuant to the original conversion terms. During third quarter of fiscal 2015, the principal balance of this note was fully converted into shares of common stock.

Effective July 13, 2014, the Company amended its Articles of Incorporation to increase the total number of authorized capital stock from 200,000,000 shares to 3,000,000,000 shares consisting of 3,000,000,000 shares of common stock, par value $0.000001 per share. On January 27, 2015, the Company’s Board of Directors and holders of the required majority of the voting power of its voting stock approved an amendment to the Company’s Articles of Incorporation effectuating an increase in the total number of authorized stock of the Company from 3,020,000,000 to 30,020,000,000 shares, of which 30,000,000,000 shares will be common stock and 20,000,000 shares will be preferred stock.

Management recognizes that the legal marijuana industry is still in its very early stages, and that we face many unique and challenging obstacles starting and running a business in this industry. We are sensitive to the challenges both employers and job seekers face in trying to build an industry that is not recognized at the federal level. Despite these challenges, we have achieved a considerable number of milestones as listed below and expect that our expansion will continue:

Our business is driven by either businesses or the government entities updating older equipment or partnering with our company to dispose of old or unused equipment. As such, the timing of equipment inflow is not consistent or predictable. Sales for the three and nine months ended March 31, 2015 increased 13% and 0.4% as compared to the three and nine months ended March 31, 2014, respectively. Our sales increased for both periods as a result of the increase in equipment volume sales to three significant retail customers during the nine months ended March 31, 2015 as compared to only one customer during the nine months ended March 31, 2014. Our sales represented approximately 100% from our IT asset management and disposition services business.

Our gross profit margin depends on various factors, including product mix, pricing strategies, market conditions, personnel levels and other factors, any of which could result in changes in gross margins from period to period. Gross profit margin increased 19% for the nine months ended March 31, 2015 as compared to the nine months ended March 31, 2014. As a percentage of sales, the gross profit margin was 61% and 57% during the three and nine months ended March 31, 2015, respectively and 52% and 38% for the three and nine months ended March 31, 2014 respectively. The increase in gross profit margin was primarily due to the decrease in cost of acquired used equipment and the termination and discontinuance of our Tampa, Florida operations which significantly reduced our warehouse salaries which is a component of our cost of sales. We expect margins to remain in constant levels during the remainder of the fiscal year.