Company: TCRG
Filing Date: 2025-09-09
Form Type: 10-Q
Source: 0001185185-25-001156
Chunk: 8

Company: Cannaisseur Group Inc.
Filing Date: 2025-09-09
Form: 10-Q
Item: Item 1
Chunk 8
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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 June 30, 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 open to examination by the taxing authorities in which the Company currently operates. The Company had no unrecognized tax
benefits as of June 30, 2025 and December 31, 2024 and does not anticipate any material amount of unrecognized tax benefits within the
next 12 months.

The
Company accounts for uncertainties in income tax law under a comprehensive model for the financial statement recognition, measurement,
presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax returns as prescribed by GAAP. The
tax effects of a position are