Company: TCRG
Filing Date: 2025-03-21
Form Type: 10-K
Source: 0001185185-25-000206
Chunk: 30

Company: Cannaisseur Group Inc.
Filing Date: 2025-03-21
Form: 10-K
Item: Item 1
Chunk 30
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 2024, compared to other income, net of $17,314 during the twelve
months ended December 31, 2023, a change of $23,741, or 137.1%. The change was the result of a gain on settlement for accrued rent payable,
as well as a decrease in interest expense during the twelve months ended December 31, 2023. During the year ended December 31, 2024,
other expense, net consisted entirely of interest expense.

Liquidity
and Capital Resources

As
of December 31, 2024, we had $1,876 in total assets, including cash and cash equivalents of $563, compared to $43,693 in total assets,
including cash and cash equivalents of $38,390, as of December 31, 2023. The decrease in assets is primarily attributable to a decrease
in cash, and the write-off of obsolete inventory.

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. As of December
31, 2023, we had total liabilities of $136,687, including accounts payable and accrued expenses of $47,918, settlement payable of $15,001,
dividends payable of $1,608, notes payable current of $6,377, and long-term notes payable of $65,783. The increase in liabilities is
mainly due to an increase in accounts payable and accrued expenses and additional convertible notes payable.

Cash
Flows from Operating Activities 

For
the twelve months ended December 31, 2024, cash used in operating activities of $110,627 resulted from a net loss of $1,273,006, adjustments
for non-cash items totaling $1,042,000 and a net increase of $120,379 in the components of working capital. The non-cash adjustments
to net income is attributable to charges of $1,042,000 for share-based compensation. The change in the components of working capital
was due primarily to an increase in accounts payable and accrued expenses of $121,889 and a decrease in the settlement payable liability
of $5,500, with the remaining change attributable to normal operational fluctuations in current assets