Company: TCRG
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001185185-25-001785
Chunk: 14

Company: Cannaisseur Group Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 1
Chunk 14
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 warrants and stock
options) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares
that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation
of diluted EPS.

As of September 30, 2025 and December 31, 2024,
the following shares were issuable and excluded from the calculation of diluted loss:

    September 30,  2025  
    December 31, 2024 
  
    Convertible Notes Payable 
     —  
     3,284,436 

Fair Value of Financial Instruments

The authoritative guidance with respect to fair
value established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels
and requires that assets and liabilities carried at fair value be classified and disclosed in one of three categories, as presented below.
Disclosure as to transfers in and out of Levels 1 and 2, and activity in Level 3 fair value measurements, is also required.

Level 1. Observable inputs such as quoted prices
in active markets for an identical asset or liability that the Company has the ability to access as of the measurement date. Financial
assets and liabilities utilizing Level 1 inputs include active-exchange traded securities and exchange-based derivatives. 

Level 2. Inputs, other than quoted prices included
within Level 1, which are directly observable for the asset or liability or indirectly observable through corroboration with observable
market data. Financial assets and liabilities utilizing Level 2 inputs include fixed income securities, non-exchange-based derivatives,
mutual funds, and fair-value hedges.

Level 3. Unobservable inputs in which there is
little or no market data for the asset or liability which requires the reporting entity to develop its own assumptions. Financial assets
and liabilities utilizing Level 3 inputs include infrequently-traded non-exchange-based derivatives and commingled investment funds and
are measured using present value pricing models.

The Company will determine the level in the fair
value hierarchy within which each fair value measurement falls in its entirety, based on the lowest level input that is significant to
the fair value measurement in its entirety. In determining the appropriate levels, the Company will perform an analysis of the assets
and liabilities at each reporting period end.

10

The carrying value of financial instruments (consisting
of cash and accounts payable and accrued expenses)