Company: TCRG
Filing Date: 2025-03-21
Form Type: 10-K
Source: 0001185185-25-000206
Chunk: 370

Company: Cannaisseur Group Inc.
Filing Date: 2025-03-21
Form: 10-K
Item: Item 3
Chunk 370
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 are combined.
Pursuant to ASC 805-50-45-2, the transaction should be presented as if it occurred on the first day of the period reported; accordingly,
we have reported the Atlanta CBD transaction as if it occurred on January 1, 2020.

Summary
of Significant Accounting Policies

Use
of Estimates

The
preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period.
Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable in relation to
the financial statements taken as a whole under the circumstances, the results of which form the basis for making judgments about the
carrying values of assets and liabilities that are not readily apparent from other sources. Management regularly evaluates the key factors
and assumptions used to develop the estimates utilizing currently available information, changes in facts and circumstances, historical
experience and reasonable assumptions. After such evaluations, if deemed appropriate, those estimates are adjusted accordingly. Actual
results could differ from those estimates. Significant estimates are 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