Company: TCRG
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001185185-25-001785
Chunk: 36

Company: Cannaisseur Group Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 1
Chunk 36
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 in the components of working capital. The change in the components of working capital
was primarily due to an increase in accounts payable and accrued expenses and a decrease in inventory.

For the nine months ended September 30, 2024,
cash used in operating activities of $98,158 resulted from a net loss of $1,181,918, adjustments for share-based compensation of $1,042,000,
and a net increase of $41,760 in the components of working capital. The change in the components of working capital was due primarily
to an increase in accounts payable, a decrease in inventory, and a decrease in settlement payable, with the remaining change attributable
to normal operational fluctuations in current assets and current liabilities.

Cash Flows Provided by Financing Activities

Our financing activities consisted primarily of
the sale of common stock, borrowings and repayments of debt, and contributed capital from related parties.

For the nine months ended September 30, 2025,
cash provided by financing activities was $107,150 consisting of $90,000 in proceeds from the sale of common stock and contributed capital
of $18,650, off set by repayments of a short-term loan - related party in the amount of $1,500.

For the nine months ended September 30, 2024,
cash provided by financing activities was $60,300 consisting of $46,000 in proceeds from convertible notes payable, $7,300 in proceeds
from the sale of common stock, and contributed capital by related parties of $7,000.

Non-cash Financing Activities

Nine months ended September 30, 2025:

The Company issued 3,996,532 shares of common
stock, with a fair value of $559,514, for the conversion of principal and accrued interest on notes payable in the amount of $99,759.

The Company issued 1,410,000 shares of common
stock, with a fair value of $197,400, for the conversion of accrued salary in the amount of $211,000.

The Company issued 380,000 shares of common stock,
with a fair value of $53,200, for the conversion of accounts payable in the amount of $57,000.

The Company issued 757,500 shares of common stock,
with a fair value of $105,980, for the conversion of mezzanine equity in the amount of $37,875.

General

Historically, we have financed the Company through
a combination of debt and equity transactions.