Company: TCRG
Filing Date: 2025-07-21
Form Type: 10-Q
Source: 0001185185-25-000810
Chunk: 27

Company: Cannaisseur Group Inc.
Filing Date: 2025-07-21
Form: 10-Q
Item: Item 1
Chunk 27
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Inflation

The amounts presented in our consolidated financial
statements do not provide for the effect of inflation on our operations or financial position. The net operating losses shown would be
greater than reported if the effects of inflation were reflected either by charging operations with amounts that represent replacement
costs or by using other inflation adjustments.

Going Concern

The accompanying financial statements have been
prepared on a going concern basis. For the three months ended March 31, 2025, the Company had a net loss of $848,783, net cash used in
operating activities of $68,663, negative working capital of $326,184, an accumulated deficit of $2,563,559 and stockholders’ deficit
of $400,358. These matters raise substantial doubt about the Company’s ability to continue as a going concern for a period of one
year from the date of this filing. The Company’s ability to continue as a going concern is dependent upon its ability to obtain
the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due,
to fund possible future acquisitions, and to 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