Company: TCRG
Filing Date: 2025-09-09
Form Type: 10-Q
Source: 0001185185-25-001156
Chunk: 28

Company: Cannaisseur Group Inc.
Filing Date: 2025-09-09
Form: 10-Q
Item: Item 1
Chunk 28
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77,207 for the three months ended June 30, 2025, compared to $1,069,581 during the three months
ended June 30, 2024, an decrease of $992,374, or 92.8%. The decrease was driven primarily by a decreases in share-based compensation
expense.

Other
Expense, Net

Other
expense, net was $1,640 during the three months ended June 30, 2025, compared to $1,560 during the three months ended June 30, 2024,
an increase of $80, or 5.1%. The increase was the result of an increase in interest expense during the three months ended June 30, 2025.

Results
of Operations for the Six Months Ended June 30, 2025 Compared with the Six Months Ended June 30, 2024

Revenue

Revenue
was $0 for the six months ended June 30, 2025, compared to $415 for the six months ended June 30, 2024, a decrease of $415, or 100%.
The decrease in revenue was due to a decline in retail sales driven by the closing of the Company’s retail store. The Company is
in the process of restructuring its website and plans to conduct business online. The Company may reopen a physical store or stores in
the future if it is advantageous to its operations.

Costs
of Revenue

Cost
of revenue was $446 for the six months ended June 30, 2025, compared to $2,494 during the six months ended June 30, 2024, a decrease
of $1,633, or 78.5%. The decrease was driven primarily by reduced sales in the current period.

The
Company reported negative gross profit for the six months ended June 30, 2025 and 2024. The negative profit margins were the result of
reduced sales, due to the closing of the Company’s retail store, and increases in write-offs of obsolete inventory. Continued growth
of the consumer market for CBD products and increases in competition are anticipated to continue to create pressure on gross profit margins.

Selling,
General and Administrative Expenses

Selling,
general and administrative expenses were $924,115 for the six months ended June 30, 2025, compared to $1,153,777 during the three months
ended June 30, 2024, an increase of $229,662, or