Company: TCRG
Filing Date: 2025-03-21
Form Type: 10-K
Source: 0001185185-25-000206
Chunk: 597

Company: Cannaisseur Group Inc.
Filing Date: 2025-03-21
Form: 10-K
Item: Item 7
Chunk 597
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Table of Contents

Selling,
General and Administrative Expenses

Selling,
general and administrative expenses were $1,263,004 for the twelve months ended December 31, 2024, an increase of $1,046,950, or 484.6%,
compared to $216,054 during the twelve months ended December 31, 2023. The increase was driven primarily by an increase in costs associated
with the registration of shares for sale, an increase in stock-based compensation, and salaries.

Other
Income (Expense), Net

Other
expense, net was $6,427 during the twelve months ended December 31, 2024, compared to other income, net of $17,314 during the twelve
months ended December 31, 2023, a change of $23,741, or 137.1%. The change was the result of a gain on settlement for accrued rent payable,
as well as a decrease in interest expense during the twelve months ended December 31, 2023. During the year ended December 31, 2024,
other expense, net consisted entirely of interest expense.

Liquidity
and Capital Resources

As
of December 31, 2024, we had $1,876 in total assets, including cash and cash equivalents of $563, compared to $43,693 in total assets,
including cash and cash equivalents of $38,390, as of December 31, 2023. The decrease in assets is primarily attributable to a decrease
in cash, and the write-off of obsolete inventory.

As
of December 31, 2024, we had total liabilities of $305,576, consisting of accounts payable and accrued expenses of $169,807, settlement
payable of $9,501, notes payable - current of $46,697, dividends payable of $1,608, and long-term notes payable of $76,463. As of December
31, 2023, we had total liabilities of $136,687, including accounts payable and accrued expenses of $47,918, settlement payable of $15,001,
dividends payable of $1,608, notes payable current of $6,377, and long-term notes payable of $65,783. The increase in liabilities is
mainly due to an increase in accounts payable and accrued expenses and additional convertible notes payable.

Cash
Flows from Operating Activities 

For
the twelve months ended December 31,