Company: TCRG
Filing Date: 2025-09-09
Form Type: 10-Q
Source: 0001185185-25-001156
Chunk: 7

Company: Cannaisseur Group Inc.
Filing Date: 2025-09-09
Form: 10-Q
Item: Item 1
Chunk 7
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 expected to include those related to assumptions used in calculating
accruals for potential liabilities, valuing equity instruments issued for services, and the realization of deferred tax assets.

Cash

Cash
and cash equivalents include short-term investments with original maturities of 90 days or less. The recorded value of our cash and cash
equivalents approximates their fair value.

Inventory

Inventories
are stated at the lower of cost or market. The Company periodically reviews the value of items in inventory and provides write-downs
or write-offs of inventory based on its assessment of market conditions. Write-downs and write-offs are charged to cost of goods sold.
Inventory is based upon the average cost method of accounting.

Property
and Equipment

Property
and equipment are stated at cost, less accumulated depreciation. The Company calculates depreciation expense using the straight-line
method over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of their useful lives or
the initial lease term. Expenditures for major renewals and improvements that extend the useful life of property and equipment are capitalized.
Expenditures for maintenance and repairs are charged to expense as incurred. The estimated useful lives of property and equipment are
as follows:

  Classification  Estimated Useful Lives  Equipment  3 to 5 years  Leasehold improvements  3 to 5 years  Furniture and fixtures  3 to 5 years 

8

Revenue
Recognition

The
Company 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. The Company
sells CBD related products in a retail location in Atlanta, Georgia and through e-commerce. Revenue is recognized based on the following
model:

1.The
Company 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. Product is shipped
on the day of sale.