Company: TCRG
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001185185-25-001785
Chunk: 8

Company: Cannaisseur Group Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 1
Chunk 8
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 “Atlanta CBD Acquisition”). Atlanta CBD, Inc. was
incorporated in the State of Georgia on October 17, 2018.

Principles of Consolidation

The consolidated financial statements include
the accounts of the Company and its majority owned subsidiary Atlanta CBD. At the time of the Atlanta CBD Acquisition, Floretta Gogo and
Xavier Carter owned the majority of Atlanta CBD and controlled the voting rights. Ms. Gogo and Mr. Carter also controlled 38% of The Cannaisseur
Group’s voting rights and were the CEO and COO, respectively, of both Companies both before and after the transaction. Pursuant
to the guidance of ASC 250 Accounting Changes and Error Corrections (“ASC 250”) the acquisition of Atlanta CBD by The
Cannaisseur Group resulted in a change in the reporting entity of the combined companies. The Company relied upon the guidance of ASC
805 Business Combinations (“ASC 805”) in the presentation of the combined entities. Pursuant to ASC 805-50-05-5, the
pooling-of-interests method of accounting provides relevant guidance when an exchange of shares between entities under common control
results in a change in the reporting entity. Under the pooling-of-interests method, the transferred assets and liabilities are recorded
at their historical carrying amounts, and the equity accounts of the separate entities 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.

Business Operations

Currently, the Company has an online presence
only and no longer operates a physical retail store. The Company may reopen a physical store or stores in the future if it is advantageous
to its operations.

Going Concern

The accompanying financial statements have been
prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course
of business. As of September 30, 2025, the Company has a cumulative net loss since inception of $3,387,458, a working capital deficit
of $128,441, and has required additional capital raises to support its operations. These factors raise substantial doubt about the ability
of the Company to continue as a going concern for a reasonable period of time. The Company’s continuation as a going concern is
dependent upon its ability to create positive cash flows from operations