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

Company: Cannaisseur Group Inc.
Filing Date: 2025-09-09
Form: 10-Q
Item: Item 1
Chunk 10
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 be based on the historical volatility of the Company’s common stock over an appropriate calculation period,
or, if not available, by reference to the volatility of a representative sample of comparable public companies. The risk-free interest
rate will be based on the U.S. Treasury yield curve in effect at the time of grant. The fair market value of the common stock will be
determined by reference to the quoted market price of the Company’s common stock on the grant date, or, if not available, by reference
to an appropriate alternative valuation methodology.

The
Company will recognize the fair value of stock-based compensation awards in general and administrative costs or in software development
costs, as appropriate, in the Company’s consolidated statements of operations. The Company will issue new shares of common stock
to satisfy stock option exercises.

As
of June 30, 2025 and December 31, 2024, the Company did not have any outstanding stock options.

Earnings
(Loss) Per Share

The
Company’s computation of earnings (loss) per share (“EPS”) includes basic and diluted EPS. Basic EPS is measured as
the income (loss) attributable to common stockholders divided by the weighted average common shares outstanding for the period. Diluted
EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible notes
payable, convertible preferred stock, warrants and stock options) as if they had been converted at the beginning of the periods presented,
or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or
decrease loss per share) are excluded from the calculation of diluted EPS.

As
of June 30, 2025 and December 31, 2024, the following shares were issuable and excluded from the calculation of diluted loss:

    June 30,  2025  
    December 31, 2024 
  
    Convertible Notes Payable 
     3,265,792  
     3,284,436 

Fair
Value of Financial Instruments

The
authoritative guidance with respect to fair value established a fair value hierarchy that prioritizes the inputs to valuation techniques
used to measure fair value into three levels and requires that assets and liabilities carried at fair value be classified and disclosed
in one of three categories, as presented below. Disclosure as to transfers in and out of Levels 1 and 2,