Company: TCRG
Filing Date: 2025-03-21
Form Type: 10-K
Source: 0001185185-25-000206
Chunk: 614

Company: Cannaisseur Group Inc.
Filing Date: 2025-03-21
Form: 10-K
Item: Item 7
Chunk 614
---
 the Company. Note that as a result of the Company’s equity financings in recent years, the Company underwent changes in ownership
for purposes of the Tax Reform Act. Pursuant to Sections 382 and 383 of the Internal Revenue Code, annual use of any of the Company’s
net operating loss carry forwards may be limited if cumulative changes in ownership of more than 50% occur during any three-year period.

Impairment
of Long-Lived Assets

The
Company reviews the carrying value of its long-lived assets annually or whenever events or changes in circumstances indicate that the
historical cost-carrying value of an asset should no longer be appropriate. The Company assesses recoverability of the carrying value
of the asset by estimating the future net undiscounted cash flows expected to result from the asset, including eventual disposition.
If the future net undiscounted cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the
difference between the asset’s carrying value and estimated fair value.

F-8

Stock-Based
Compensation

The
Company issues common stock and intends to issue stock options to officers, directors and consultants for services rendered. Options
will vest and expire according to terms established at the issuance date of each grant. Stock grants, which are generally time vested,
will be measured at the grant date fair value and charged to operations ratably over the vesting period.

The
fair value of stock options granted as stock-based compensation will be determined utilizing the Black-Scholes option-pricing model,
and can be affected by several variables, the most significant of which are the life of the equity award, the exercise price of the stock
option as compared to the fair market value of the common stock on the grant date, and the estimated volatility of the common stock.
Estimated volatility will be based on the historical volatility of the Company’s common stock over an appropriate calculation period,
or, if not available, by reference to the volatility of a representative sample of comparable public companies. The risk-free interest
rate will be based on the U.S. Treasury yield curve in effect at the time of grant. The fair market value of the common stock will be
determined by reference to the quoted market price of the Company’s common stock on the grant date, or, if not available, by reference
to an appropriate alternative valuation methodology.

The
Company will recognize the fair value of stock-based compensation awards in general and administrative costs or in software development
costs, as appropriate,