Company: TCRG
Filing Date: 2025-03-21
Form Type: 10-K
Source: 0001185185-25-000206
Chunk: 12

Company: Cannaisseur Group Inc.
Filing Date: 2025-03-21
Form: 10-K
Item: Item 1
Chunk 12
---
do not have any outside Board of Directors which could create a conflict of interests and pose a risk from a corporate
governance perspective.

Our
Board of Directors consists of five directors, which means that we have no outside or independent directors. The lack of independent
directors may prevent the Board from being independent from management in its judgments and decisions and its ability to pursue the Board
responsibilities without undue influence. For example, an independent Board can serve as a check on management, which can limit management
taking unnecessary risks. Furthermore, the lack of independent directors creates the potential for conflicts between management and the
diligent independent decision-making process of the Board. Furthermore, our lack of outside directors deprives our company of the benefits
of various viewpoints and experience when confronting the challenges we face. With no independent director sitting on the Board of Directors,
it will be difficult for the Board to fulfill its traditional role as overseeing management.

10

Cyber
security risks and the failure to maintain the integrity of internal, partner, and consumer data could result in damages to our reputation,
the disruption of operations and/or subject us to costs, fines or lawsuits.

We
have and will continue to collect and retain large volumes of internal, partner and consumer data, including credit card numbers and
other personally identifiable information, for business purposes, including for transactional or target marketing and promotional purposes,
and our various information technology systems enter, process, summarize and report such data. We also maintain personally identifiable
information about our employees. The integrity and protection of our customer, employee, and company data is critical to our business
and our customers and employees are likely to have a high expectation that we will adequately protect their personal information. The
regulatory environment, as well as the requirements imposed on us by the credit card industry, governing information, security and privacy
laws is increasingly demanding and continues to evolve. Maintaining compliance with applicable security and privacy regulations may increase
our operating costs and/or adversely impact our ability to market our products and services.

We
also rely on accounting, financial and operational management information technology systems to conduct our operations. If these information
technology systems suffer severe damage, disruption or shutdown and our business continuity plans do not effectively resolve the issues
in a timely manner, our business, financial condition and results of operations could be materially adversely affected.

We
may face various security threats, including cyber security attacks on our data (including our vendors’ and customers’ data)
and/or information technology infrastructure. Although we utilize various procedures and