Company: TCRG
Filing Date: 2025-07-21
Form Type: 10-Q
Source: 0001185185-25-000810
Chunk: 8

Company: Cannaisseur Group Inc.
Filing Date: 2025-07-21
Form: 10-Q
Item: Item 1
Chunk 8
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 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.

3. The price of the product is located on the
label or presented on the web site and therefore is known at the time of purchase.

4. The price of the product is properly allocated
to the sole performance of providing the product.

5. Revenue is recognized in the retail location
at the point of sale where money is collected and product is in control of customer and from the web site upon settlement of the credit
card transaction, which is effectively at the time of purchase.

Concentration of Risk

The Company may periodically contract with consultants
and vendors to provide services related to the Company’s business development activities. Agreements for these services may be for a specific
time period or for a specific project or task. The Company did not have any agreements at March 31, 2025 or December 31, 2024.

Income Taxes

The Company accounts for income taxes under an
asset and liability approach for financial accounting and reporting for income taxes. Accordingly, the Company recognizes deferred tax
assets and liabilities for the expected impact of differences between the financial statements and the tax basis of assets and liabilities.

The Company records a valuation allowance to reduce
its deferred tax assets to the amount that is more likely than not to be realized. In the event the Company was to determine that it would
be able to realize its deferred tax assets in the future in excess of its recorded amount, an adjustment to the deferred tax assets would
be credited to operations in the period such determination was made. Alternatively, should the Company determine that it would not be
able to realize all or part of its deferred tax assets in the future, an adjustment to the deferred tax assets would be charged to operations
in the period such determination was made.

The Company is subject to U.S. federal income
taxes and income taxes of the State of Georgia.

As the Company’s net operating losses in the respective
jurisdictions in which it operates have yet to be utilized, all previous tax years remain