Company: TCRG
Filing Date: 2025-09-09
Form Type: 10-Q
Source: 0001185185-25-001156
Chunk: 52

Company: Cannaisseur Group Inc.
Filing Date: 2025-09-09
Form: 10-Q
Item: Item 2
Chunk 52
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4, an increase of $229,662, or 19.9%. The decrease was driven primarily by a decreases in share-based compensation
expense.

Other
Expense, Net

Other
expense, net was $3,351 during the six months ended June 30, 2025, compared to $3,100 during the six months ended June 30, 2024, an increase
of $251, or 8.1%. The increase was the result of an increase in interest expense during the six months ended June 30, 2025.

Liquidity
and Capital Resources

As
of June 30, 2025, the Company had $3,140 in total assets, including cash of $2,558, as compared to $1,876 in total assets, including
cash of $563, as of December 31, 2024. The increase in assets is attributable to an increase in cash from the sale of common stock.

As
of June 30, 2025, the Company had total liabilities of $433,298 consisting of accounts payable and accrued expenses of $310,029, rent
settlement payable of $9,501, notes payable - current of $87,026, dividends payable of $1,608, and long-term notes payable of $25,134.
As of December 31, 2024, we had total liabilities of $305,576, consisting of accounts payable and accrued expenses of $169,807, settlement
payable of $9,501, notes payable - current of $46,697, dividends payable of $1,608, and long-term notes payable of $76,463. The increase
in liabilities is mainly due to an increase in accounts payable and accrued expenses.

19

Table of Contents

Cash
Flows from Operating Activities

For
the six months ended June 30, 2025, cash used in operating activities of $86,505 resulted from a net loss of $927,912, adjustments for
share-based compensation of $700,000, and a net increase of $141,407 in the components of working capital. The change in the components
of working capital was primarily due to an increase in accounts payable and accrued expenses and a decrease in inventory.

For
the six months ended June 30, 2024, cash used in operating activities of $86,919 resulted from a net loss of $1,158,956, adjustments
for share-based compensation of