Company: TCRG
Filing Date: 2025-03-21
Form Type: 10-K
Source: 0001185185-25-000206
Chunk: 95

Company: Cannaisseur Group Inc.
Filing Date: 2025-03-21
Form: 10-K
Item: Item 1A
Chunk 95
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could be harmed.

From
time to time we may be subject to litigation, including potential stockholder derivative actions. Risks associated with legal liability
are difficult to assess and quantify, and their existence and magnitude can remain unknown for significant periods of time. To date we
have no directors and officers liability (“D&O”) insurance to cover such risk exposure for our directors and officers.
Such insurance generally pays the expenses (including amounts paid to plaintiffs, fines, and expenses including attorneys’ fees)
of officers and directors who are the subject of a lawsuit as a result of their service to the Company. While we intend to attempt to
obtain such insurance, there can be no assurance that we will be able to do so at reasonable rates or at all, or in amounts adequate
to cover such expenses should such a lawsuit occur. While neither Delaware law nor our articles of incorporation or bylaws require us
to indemnify or advance expenses to our officers and directors involved in such a legal action, we expect that we would do so to the
extent permitted by Delaware law. Without D&O insurance, the amounts we would pay to indemnify our officers and directors should
they be subject to legal action based on their service to the Company could have a material adverse effect on our financial condition,
results of operations and liquidity. Further, our lack of D&O insurance may make it difficult for us to retain and attract talented
and skilled directors and officers, which could adversely affect our business.

The
Company may be unable to manage growth, which may impact its potential profitability.

Successful
implementation of the Company’s business strategy requires it to manage its growth. Growth could place an increasing strain on
the Company’s management and financial resources. To manage growth effectively, the Company will need to:

    ●
    Establish
    definitive business strategies, goals and objectives;

    ●
    Maintain
    a system of management controls; and

    ●
    Attract
    and retain qualified personnel, as well as develop, train, and manage management-level and other employees.

If
the Company fails to manage its growth effectively, its business, financial condition, or operating results could be materially harmed,
and the Company’s stock price may decline.

13

The
Company operates in a highly competitive environment, and if it is unable to compete with its competitors, its business, financial condition,
results of operations, cash flows and prospects could be materially adversely affected.

The
Company operates in a highly competitive environment. The Company’s competition includes all