Company: TCRG
Filing Date: 2025-03-21
Form Type: 10-K
Source: 0001185185-25-000206
Chunk: 360

Company: Cannaisseur Group Inc.
Filing Date: 2025-03-21
Form: 10-K
Item: Item 3
Chunk 360
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 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 purchase.

2.
The performance obligations are to provide the product for the customer at the counter or ship the product to the customer. The product
is shipped on the day of sale.

3.
The price of the product is located on the label or presented on the web site and therefore is known at the time of purchase.

4.
The price of the product is properly allocated to the sole performance of providing the product.

5.
Revenue is recognized in the retail location at the point of sale where money is collected and the product is in control of customer
and from the web site upon settlement of the credit card transaction, which is effectively at the time of purchase.

Use
of Estimates

Management
uses estimates and assumptions in preparing these financial statements in accordance with U.S. generally accepted accounting principles.
Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities,
and the reported revenues and expenses.

Most
Recent accounting pronouncements

Refer
to Note 2 in the accompanying consolidated financial statements.

Impact
of Most Recent Accounting Pronouncements

There
were no recent accounting pronouncements that have had a material effect on the Company’s financial position or results of operations.

Item
7A. Quantitative and Qualitative Disclosures About Market Risk

Not
applicable.

25

Item
8. Financial Statements and Supplementary Data

REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To
the Board of Directors and

Shareholders
of The Cannaisseur Group, Inc.

Opinion
on