Company: TCRG
Filing Date: 2025-03-21
Form Type: 10-K
Source: 0001185185-25-000206
Chunk: 295

Company: Cannaisseur Group Inc.
Filing Date: 2025-03-21
Form: 10-K
Item: Item 2
Chunk 295
---
 a decrease in the settlement payable liability
of $5,500, with the remaining change attributable to normal operational fluctuations in current assets and current liabilities.

For
the twelve months ended December 31, 2023, cash used in operating activities of $126,074 resulted primarily from a net loss of $172,586
adjusted for non-cash items totaling $339 and a net increase of $46,173 in the components of working capital. The non-cash adjustments
to net income are attributable to charges of $15,485 for amortization of right of use asset, gain on settlement of $18,968, and $3,822
for depreciation. The change in the components of working capital was due primarily to an increase in accounts payable and accrued expenses
of $63,420 and a decrease in right of use lease liability of $17,124, 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 twelve months ended December 31, 2024, cash provided by financing activities of $72,800 consisted of $13,300 in proceeds from the
sale of common stock, contributed capital by related parties of $7,000, proceeds from convertible note payable of $51,000, and proceeds
from related party debt of $1,500.

For
the twelve months ended December 31, 2023, cash provided by financing activities of $145,930 consisted of $91,518 in proceeds from the
sale of common stock, $9,378 in proceeds from short term loans offset by repayments of $4,518, contributed capital by related parties
of $10,502, proceeds from convertible note payable of $40,000, and repayments of related party debt of $950.

General

Historically,
we have financed the Company through a combination of debt and equity transactions. To meet future capital requirements, we plan to raise
additional capital through the sale of equity securities or through equity-linked or debt-financing arrangements, to the extent our operating
cash flow is insufficient to fund our operations in future periods.

23

The
sale of additional equity or debt securities may result in additional dilution to our shareholders. If we raise additional funds through
the issuance of debt securities or preferred stock, these securities could have rights senior to