Company: TCRG
Filing Date: 2025-03-21
Form Type: 10-K
Source: 0001185185-25-000206
Chunk: 236

Company: Cannaisseur Group Inc.
Filing Date: 2025-03-21
Form: 10-K
Item: Item 1C
Chunk 236
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 the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

A
summary of significant accounting policies is included in Note 2 to the consolidated financial statements included in this Registration
Statement. Of these policies, we believe that the following items are the most critical in preparing our financial statements.

24

Consolidation
Policy

TCRG
relied upon the guidance of ASC 250 Accounting Changes and Error Corrections (“ASC 250”) and ASC 805 Business Combinations
(“ASC 805”) in accounting for and presenting acquisition of Atlanta CBD. Pursuant to ASC 805-50-05-5, the pooling-of-interests
method of accounting provides relevant guidance when an exchange of shares between entities under common control results in a change
in the reporting entity. Under the pooling-of-interests method, the transferred assets and liabilities are recorded at their historical
carrying amounts, and the equity accounts of the separate entities are combined. 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.

Inventory

Inventories
are stated at the lower of cost or market. Atlanta CBD 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.

Revenue
Recognition

TCRG
recognizes revenue in accordance with ASC Topic 606, Revenue From Contracts With Customers. ASC Topic 606 requires companies to
recognize revenue in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration
to which the entity expects to be entitled in exchange for those goods or services. In addition, the standard requires disclosures of
the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Atlanta CBD sells CBD related
products in a retail location in Atlanta, Georgia and through e-commerce. Revenue is recognized based on the following model:

1.
Atlanta CBD sells products at their one retail location and via web site sales. A sale agreement exists when the customer purchases the
product at the counter or via an online purchase. The price for and product to be received are known at time of