Company: TCRG
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001185185-25-001785
Chunk: 13

Company: Cannaisseur Group Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 1
Chunk 13
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 the asset by estimating the future net undiscounted
cash flows expected to result from the asset, including eventual disposition. If the future net undiscounted cash flows are less than
the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset’s carrying value and estimated
fair value.

9

Stock-Based Compensation

The Company issues common stock and intends to
issue stock options to officers, directors and consultants for services rendered. Options will vest and expire according to terms established
at the issuance date of each grant. Stock grants, which are generally time vested, will be measured at the grant date fair value and charged
to operations ratably over the vesting period.

The fair value of stock options granted as stock-based
compensation will be determined utilizing the Black-Scholes option-pricing model, and can be affected by several variables, the most significant
of which are the life of the equity award, the exercise price of the stock option as compared to the fair market value of the common stock
on the grant date, and the estimated volatility of the common stock. Estimated volatility will be based on the historical volatility of
the Company’s common stock over an appropriate calculation period, or, if not available, by reference to the volatility of a representative
sample of comparable public companies. The risk-free interest rate will be based on the U.S. Treasury yield curve in effect at the time
of grant. The fair market value of the common stock will be determined by reference to the quoted market price of the Company’s
common stock on the grant date, or, if not available, by reference to an appropriate alternative valuation methodology.

The Company will recognize the fair value of stock-based
compensation awards in general and administrative costs or in software development costs, as appropriate, in the Company’s consolidated
statements of operations. The Company will issue new shares of common stock to satisfy stock option exercises.

As of September 30, 2025 and December 31, 2024,
the Company did not have any outstanding stock options.

Earnings (Loss) Per Share

The Company’s computation of earnings (loss)
per share (“EPS”) includes basic and diluted EPS. Basic EPS is measured as the income (loss) attributable to common stockholders
divided by the weighted average common shares outstanding for the period. Diluted EPS is 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,