Company: TCRG
Filing Date: 2025-07-21
Form Type: 10-Q
Source: 0001185185-25-000810
Chunk: 41

Company: Cannaisseur Group Inc.
Filing Date: 2025-07-21
Form: 10-Q
Item: Item 2
Chunk 41
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%) interest in
Atlanta CBD Inc. (d/b/a as Inno Medicinals) (“Atlanta CBD”). Atlanta CBD was formed to engage in hemp cultivation, extraction,
manufacturing, distribution, and retail sales through CBD stores. The Company, however, has now transitioned into a health and wellness
company, with the aim of promoting and selling health and wellness products, including CBD-related products. Currently, the Company’s
only assets and operations consist of the 51% interest it owns in Atlanta CBD, Inc. TCRG manages and operates Atlanta CBD’s business
on a day-to-day basis. The Company intends to work in conjunction with Atlanta CBD to grow the business operations.

Atlanta CBD, at its inception, was a hemp products
supplier and retailer. It sold its retail hemp products through the trade name, Inno Medicinals, located in Atlanta Georgia. Currently,
Atlanta CBD, in order to better reflect the direction of TCRG, intends to sell health and wellness products, through its retail operations.
The products offered for sale will also reflect the shift in strategy of TCRG.

Results of Operations for the Three Months
Ended March 31, 2025 Compared with the Three Months Ended March 31, 2024

Revenue

Revenue was $0 for the three months ended March
31, 2025, compared to $415 for the three months ended March 31, 2024, a decrease of $415, or 100%. The decrease in revenue was due to
a decline in retail sales driven by the closing of the Company’s retail store. The Company is in the process of restructuring its
website and plans to conduct business online. The Company may reopen a physical store or stores in the future if it is advantageous to
its operations.

Costs of Revenue

Cost of revenue was $164 for the three months
ended March 31, 2025, compared to $2,009 during the three months ended March 31, 2024, a decrease of $1,845, or 91.8%. The decrease was
driven primarily by reduced sales in the current period.

The Company reported negative gross profit for
the three months ended March 31, 2025 and 2024. The negative profit margins were the result of reduced sales, due to the closing of the
Company’s retail store, and increases in write-offs of obsolete inventory. Continued growth of the consumer market for CBD products
and increases in competition are anticipated to continue to create pressure