Company: TCRG
Filing Date: 2025-07-21
Form Type: 10-Q
Source: 0001185185-25-000810
Chunk: 12

Company: Cannaisseur Group Inc.
Filing Date: 2025-07-21
Form: 10-Q
Item: Item 1
Chunk 12
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 is calculated as a total cost of the lease
allocated over the lease term, generally on a straight-line basis.

Convertible Debt

The Company has adopted Accounting Standards Update
(“ASU”) 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20), which removed certain separation models
in Subtopic 470-20. Under the amendments in ASU 2020-06, the embedded conversion features no longer are separated from the host contract
for convertible instruments with conversion features that are not required to be accounted for as derivatives under Topic 815, Derivatives
and Hedging, or that do not result in substantial premiums accounted for as paid-in capital. Consequently, a convertible debt instrument
will be accounted for as a single liability measured at its amortized cost.

Recent Accounting Pronouncements

In November 2023, the FASB issued ASU 2023-07, Segment
Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amended guidance requires incremental
reportable segment disclosures, primarily about significant segment expenses. The amendments also require entities with a single reportable
segment to provide all disclosures required by these amendments, and all existing segment disclosures. The amendments will be applied
retrospectively to all prior periods presented in the financial statements and is effective for fiscal years beginning after December
15, 2023, and interim periods in fiscal years beginning after December 15, 2024, with early adoption permitted. The Company adopted this
guidance in the fourth quarter of 2024. For additional information, see “Note 11—Segment Information.”

Accounting Standards Issued, Not Adopted

In November 2024, the FASB issued Accounting Standard
Update No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40):
Disaggregation of Income Statement Expenses (“ASU 2024-03”). This standard requires additional disclosures over certain expenses,
including purchases of inventory, employee compensation, depreciation, intangible asset amortization, and other specific expense categories.
This standard also requires disclosure of the total amount of selling expenses and the Company’s definition of selling expenses.
This update is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December
15, 2027. Early adoption is permitted. The Company is evaluating the impact this update will have on our