Company: TCRG
Filing Date: 2025-03-21
Form Type: 10-K
Source: 0001185185-25-000206
Chunk: 16

Company: Cannaisseur Group Inc.
Filing Date: 2025-03-21
Form: 10-K
Item: Item 1
Chunk 16
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 controls in an efficient manner and at a pace consistent with our business objectives could have a material adverse
effect on our business and results of operations.

Any
future litigation could have a material adverse impact on our results of operations, financial condition and liquidity,
particularly since we do not currently have director and officer (“D&O”)
insurance. Our lack of insurance may also make it difficult for us to retain and attract talented and skilled directors
and officers. While we intend to apply for D&O insurance, we cannot guarantee that such application will be accepted.

Despite
our significant efforts in product quality control, we face risks of litigation from customers and others in the ordinary course
of business, which may divert our financial and management resources. Any adverse litigation or publicity may negatively impact
our financial condition and results of operations.

Claims
of illness or injury relating to product quality or handling are common in the consumer products industry. While we believe our processes
and high standards of quality control will minimize these instances, there is always a risk of occurrence, and so despite our best efforts
to regulate quality control, litigation may occur. In that event, our financial condition, operating results and cash flows
could be harmed.

From
time to time we may be subject to litigation, including potential stockholder derivative actions. Risks associated with legal liability
are difficult to assess and quantify, and their existence and magnitude can remain unknown for significant periods of time. To date we
have no directors and officers liability (“D&O”) insurance to cover such risk exposure for our directors and officers.
Such insurance generally pays the expenses (including amounts paid to plaintiffs, fines, and expenses including attorneys’ fees)
of officers and directors who are the subject of a lawsuit as a result of their service to the Company. While we intend to attempt to
obtain such insurance, there can be no assurance that we will be able to do so at reasonable rates or at all, or in amounts adequate
to cover such expenses should such a lawsuit occur. While neither Delaware law nor our articles of incorporation or bylaws require us
to indemnify or advance expenses to our officers and directors involved in such a legal action, we expect that we would do so to the
extent permitted by Delaware law. Without D&O insurance, the amounts we would pay to indemnify our officers and directors should
they be subject to legal action based on their service to the Company could have a material adverse effect on our financial condition,
results of operations and liquidity. Further, our lack of