Company: TCRG
Filing Date: 2025-03-21
Form Type: 10-K
Source: 0001185185-25-000206
Chunk: 297

Company: Cannaisseur Group Inc.
Filing Date: 2025-03-21
Form: 10-K
Item: Item 2
Chunk 297
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 generate profitable operations
in the future. Management plans to provide for the Company’s capital requirements by continuing to issue additional equity and
debt securities. The outcome of these matters cannot be predicted at this time and there are no assurances that, if achieved, the Company
will have sufficient funds to execute its business plan or generate positive operating results. The financial statements do not include
any adjustments that might result from the outcome of this uncertainty.

Off-Balance
Sheet Arrangements

There
are no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition,
changes in financial condition, revenues, expenses, results of operations, liquidity, capital expenditures or capital resources.

Critical
Accounting Policies and Estimates

This
discussion and analysis of our financial condition and results of operations are based on our financial statements that have been prepared
under accounting principle generally accepted in the United States of America. The preparation of financial statements in conformity
with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at 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