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

Company: Cannaisseur Group Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 1
Chunk 10
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 Pursuant to ASC 805-50-45-2, the
transaction should be presented as if it occurred on the first day of the period reported; accordingly, we have reported the Atlanta CBD
transaction as if it occurred on January 1, 2020.

Summary of Significant Accounting Policies

Use of Estimates

The preparation of financial statements in conformity
with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date
of the financial statements and the reported amounts of expenses during the reporting period. Management bases its estimates on historical
experience and on various assumptions that are believed to be reasonable in relation to the financial statements taken as a whole under
the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are
not readily apparent from other sources. Management regularly evaluates the key factors and assumptions used to develop the estimates
utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After
such evaluations, if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates. Significant
estimates are expected to include those related to assumptions used in calculating accruals for potential liabilities, valuing equity
instruments issued for services, and the realization of deferred tax assets.

Cash

Cash and cash equivalents include short-term investments
with original maturities of 90 days or less. The recorded value of our cash and cash equivalents approximates their fair value.

Inventory

Inventories are stated at the lower of cost or
market. The Company periodically reviews the value of items in inventory and provides write-downs or write-offs of inventory based on
its assessment of market conditions. Write-downs and write-offs are charged to cost of goods sold. Inventory is based upon the average
cost method of accounting.

Property and Equipment

Property and equipment are stated at cost, less
accumulated depreciation. The Company calculates depreciation expense using the straight-line method over the estimated useful lives of
the assets. Leasehold improvements are amortized over the shorter of their useful lives or the initial lease term. Expenditures for major
renewals and improvements that extend the useful life of property and equipment are capitalized. Expenditures for maintenance and repairs
are charged to expense as incurred. The estimated useful lives of property and equipment are as follows:

  Classification   Estimated
Useful Lives  Equipment   3 to 5 years  Leasehold improvements   3 to 5