Company: TCRG
Filing Date: 2025-03-21
Form Type: 10-K
Source: 0001185185-25-000206
Chunk: 246

Company: Cannaisseur Group Inc.
Filing Date: 2025-03-21
Form: 10-K
Item: Item 1C
Chunk 246
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 Policies

Basis
of Presentation 

The
Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”)
and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) and include the accounts of The Cannaisseur
Group, Inc. and Atlanta CBD.

F-6

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.

Summary
of Significant Accounting Policies

Use
of Estimates

The
preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period.
Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable in relation to
the financial statements taken as a whole under the circumstances, the results of which form the basis for making judgments about the
carrying values of assets and liabilities that are not readily apparent from other sources. Management regularly evaluates the key factors
and assumptions used to develop the estimates utilizing currently available information, changes