Company: TCRG
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001185185-25-001785
Chunk: 16

Company: Cannaisseur Group Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 1
Chunk 16
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Disaggregation of Income Statement Expenses (“ASU 2024-03”). This standard requires additional disclosures over certain expenses,
including purchases of inventory, employee compensation, depreciation, intangible asset amortization, and other specific expense categories.
This standard also requires disclosure of the total amount of selling expenses and the Company’s definition of selling expenses.
This update is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December
15, 2027. Early adoption is permitted. The Company is evaluating the impact this update will have on our annual disclosures; however,
we do not anticipate a material impact to our financial statements.

3. Short-term Loan Payable - Related Party

On October 28, 2024, the Company entered into
an agreement with Xavier Carter, its Chief Financial Officer, for a short-term loan in the amount of $1,500. If repaid within 90 days,
the loan has an interest rate of 0%. If the loan is not repaid on the due date of January 28, 2025, interest will accrue at a rate of
6.5%. The loan was paid in full on January 23, 2025. As of September 30, 2025 and December 31, 2024, the amount due under the short-term
loan was $0 and $1,500, respectively.

11

4. Convertible Notes Payable - Related Party

     September 30, 2025    December 31, 2024    Convertible Note Payable in the amount of $5,000, dated November 18, 2024, payable to Ridolfo R. Brown, a related party (the “Brown Note 3”). The note bears interest at 6.5% and has a maturity date of November 18, 2026. The Brown Note 3 will automatically convert into common stock upon the Company’s sale of any equity securities with a value of not less than $1,000,000 at a conversion price equal to the lesser of 80% of (i) the lowest price per share paid by the investors purchasing equity securities with an aggregate sales price of not less than $1,000,000 or (ii) the number equal to $3,500,000 divided by the number of shares of the Company outstanding (calculated on a fully diluted basis). Should the note not convert to common stock at the maturity date, then