Company: TCRG
Filing Date: 2025-03-21
Form Type: 10-K
Source: 0001185185-25-000206
Chunk: 312

Company: Cannaisseur Group Inc.
Filing Date: 2025-03-21
Form: 10-K
Item: Item 2
Chunk 312
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 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 December 31, 2024 and 2023, the following shares were issuable and excluded from the calculation of diluted loss:

    December 31, 
2024

    December 31, 
2023

    Convertible Notes Payable

    3,284,436

    2,666,667

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, and activity in Level 3 fair
value measurements, is also required.

Level
1. Observable inputs such as quoted prices in active markets for an identical asset or liability that the Company has the ability to
access as of the measurement date. Financial assets and liabilities utilizing Level 1 inputs include active-exchange traded securities
and exchange-based derivatives.

Level
2. Inputs, other than quoted prices included within Level 1, which are directly observable for the asset or liability or indirectly observable
through corroboration with observable market data. Financial assets and liabilities utilizing Level 2 inputs include fixed income securities,
non-exchange-based derivatives, mutual funds, and fair-value hedges.

Level
3. Unobservable inputs in which there is little or no market data for the asset or liability which requires the reporting entity to develop
its own assumptions. Financial assets and liabilities utilizing Level 3 inputs include infrequently-traded non-exchange-based derivatives
and commingled investment funds and are measured using present value pricing models.

The
Company will determine the level in the fair value hierarchy within which each fair value measurement falls in its entirety, based on
the lowest level input that is significant to the fair value measurement in its entirety. In determining the appropriate levels, the
Company will perform an analysis of the assets and liabilities