Company: TCRG
Filing Date: 2025-07-21
Form Type: 10-Q
Source: 0001185185-25-000810
Chunk: 6

Company: Cannaisseur Group Inc.
Filing Date: 2025-07-21
Form: 10-Q
Item: Item 1
Chunk 6
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 and profitability. The accompanying financial
statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

If cash resources are insufficient to satisfy
the Company’s ongoing cash requirements, the Company would be required to obtain funds, if available, although there can be no certainty,
from its shareholders or officers.

7

2. Basis of Presentation and Summary of Significant
Accounting Policies

Basis of Presentation 

The Financial Statements have been prepared in
conformity with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations
of the U.S. Securities and Exchange Commission (“SEC”) and include the accounts of The Cannaisseur Group, Inc. and Atlanta
CBD.

The consolidated financial statements include
the accounts of the Company and its majority owned subsidiary Atlanta CBD. At the time of the Atlanta CBD Acquisition, Floretta Gogo and
Xavier Carter owned the majority of Atlanta CBD and controlled the voting rights. Ms. Gogo and Mr. Carter also controlled 38% of The Cannaisseur
Group’s voting rights and were the CEO and COO, respectively, of both Companies both before and after the transaction. Pursuant
to the guidance of ASC 250 Accounting Changes and Error Corrections (“ASC 250”) the acquisition of Atlanta CBD by The
Cannaisseur Group resulted in a change in the reporting entity of the combined companies. The Company relied upon the guidance of ASC
805 Business Combinations (“ASC 805”) in the presentation of the combined entities. Pursuant to ASC 805-50-05-5, the
pooling-of-interests method of accounting provides relevant guidance when an exchange of shares between entities under common control
results in a change in the reporting entity. Under the pooling-of-interests method, the transferred assets and liabilities are recorded
at their historical carrying amounts, and the equity accounts of the separate entities are combined. Pursuant to ASC 805-50-45-2, the
transaction should be presented as if it occurred on the first day of the period reported; accordingly, we have reported the Atlanta CBD
transaction as if it occurred on January 1, 2020.

Summary of Significant Accounting Policies

Use of Estimates

The preparation of financial statements in conformity
with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date
of the financial statements and the reported amounts of expenses during the reporting period. Management bases