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

Company: Cannaisseur Group Inc.
Filing Date: 2025-07-21
Form: 10-Q
Item: Item 1
Chunk 25
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,540 during the three months ended March 31, 2024, an increase of $171, or 11.1%. The increase
was the result of an increase in interest expense during the three months ended March 31, 2025.

Liquidity and Capital Resources

As of March 31, 2025, the Company had $21,549
in total assets including cash of $20,400, as compared to $1,876 in total assets including of cash of $563, as of December 31, 2024. The
increase in assets is attributable to an increase in cash from the sale of common stock.

As of March 31, 2025, the Company had total liabilities
of $384,032 consisting of accounts payable and accrued expenses of $249,763, rent settlement payable of $9,501, notes payable - current
of $86,861, dividends payable of $1,608, and long-term notes payable of $36,299. 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. The increase in liabilities is mainly due to an increase in accounts
payable and accrued expenses.

Cash Flows from Operating Activities

For the three months ended March 31, 2025, cash
used in operating activities of $68,663 resulted from a net loss of $848,783, adjustments for share-based compensation of $700,000 and
a net increase of $80,120 in the components of working capital. The change in the components of working capital was due to an increase
in accounts payable and accrued expenses and a decrease in inventory.

For the three months ended March 31, 2024, cash
used in operating activities of $57,481 resulted from a net loss of $87,330, adjustments for share-based compensation of $30,000 and a
net decrease of $151 in the components of working capital. The change in the components of working capital was due primarily to a decrease
in inventory and a decrease in settlement payable, with the remaining change attributable to normal operational fluctuations in current
assets and current liabilities.

Cash Flows Provided by Financing Activities

Our financing activities consisted primarily of
the sale