Company: TCRG
Filing Date: 2025-07-21
Form Type: 10-Q
Source: 0001185185-25-000810
Chunk: 43

Company: Cannaisseur Group Inc.
Filing Date: 2025-07-21
Form: 10-Q
Item: Item 2
Chunk 43
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 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 of common stock, borrowings and repayments of debt, and contributed capital from related parties.

For the three months ended March 31, 2025, cash
provided by financing activities was $88,500 consisting of $90,000 in proceeds from the sale of common stock, off set by repayments of
a short-term loan - related party in the amount of $1,500.

For the three months ended March 31, 2024, cash
provided by financing activities was $41,000 consisting of $40,000 in proceeds from convertible notes payable and contributed capital
by related parties of $1,000.

General

Historically, we have financed the Company through
a combination of debt and equity transactions. To meet future capital requirements, we plan to raise additional capital through the sale
of equity securities or through equity-linked or debt-financing arrangements, to the extent our operating cash flow is insufficient to
fund our operations in future periods.

The sale of additional equity or debt securities
may result in additional dilution to our shareholders. If we raise additional funds through the issuance of debt securities or preferred
stock, these securities could have rights senior to those of our common stock and could contain covenants that would restrict our operations.
Any such required additional capital may not be available on reasonable terms, if at all. If we were unable to obtain additional financing,
we may be required to reduce the scope of, delay or eliminate some or all of our planned activities and limit our operations which could
have a material adverse effect on our business, financial condition and results of operations.

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TCRG expects to raise funds through private investors
and investment firms and is looking to secure a non-recourse loan for work capital and operating expenses. We intend to continue offering
smaller investment opportunities. Long term, we plan to seek larger amounts of investment to expand our operations