Item 7.01 Regulation
FD Disclosure
Sugarmade Inc., a Delaware corporation
(the “Company”) makes the following disclosures pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934,
generally referred to as Regulation FD Disclosure.
The Company continues the audit
and reporting process relative to its fiscal year end filing on Form 10-K and its quarterly reporting of Form 10-Q. Due to the
recently announced pending Master Marketing Agreement (the “Agreement”) with BizRight, LLC, management has brought
on additional accounting and financial staff to modify and enhance existing transactional and business reporting mechanisms. These
team enhancements have interrupted the normal course of its audit and year-end report preparation.
These staff enhancements are a
requirement toward the signing and closing of the pending Master Marketing Agreement, which is expected to significantly boost
the number of business transaction that will need to be completed by our staff. With the closing of this Agreement, the Company
is expecting the number of business transactions to greatly exceed our current financial and accounting reporting capabilities.
Over the past few weeks, management
has brought on accounting and financial staff and we will be increasing our financial and accounting software system’s capabilities
in order to meet the anticipated demand.
The Company believes it has now
completed the vast majority it’s audit and reporting and plans to file on Form 10-K over the next few days or as soon as
possible.
Please reference our previous filings
for additional information on the pending Master Marketing Agreement and for important disclosures.
FORWARD-LOOKING STATEMENTS: The
below information contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S.
Private Securities Litigation Reform Act of 1995. Forward-looking statements also may be included in other publicly available documents
issued by the Company and in oral statements made by our officers and representatives from time to time. These forward-looking
statements are intended to provide management's current expectations or plans for our future operating and financial performance,
based on assumptions currently believed to be valid. They can be identified by the use of words such as "anticipate,"
"intend," "plan," "goal," "seek," "believe," "project," "estimate,"
"expect," "strategy," "future," "likely," "may," "should," "would,"
"could," "will" and other words of similar meaning in connection with a discussion of future operating or financial
performance. Examples of forward looking statements include, among others, statements relating to future sales, earnings,
cash flows, results of operations, uses of cash and other measures of financial performance.
Because forward-looking statements
relate to the future, they are subject to inherent risks, uncertainties and other factors that may cause the Company's actual results
and financial condition to differ materially from those expressed or implied in the forward-looking statements. Such risks, uncertainties
and other factors include, among others such as, but not limited to economic conditions, changes in the laws or regulations,
demand for products and services of the company, the effects of competition and other factors that could cause actual results to
differ materially from those projected or represented in the forward looking statements.
Any forward-looking information
provided in this release should be considered with these factors in mind. We assume no obligation to update any forward-looking
statements contain below.