Company: TCRG
Filing Date: 2025-03-21
Form Type: 10-K
Source: 0001185185-25-000206
Chunk: 493

Company: Cannaisseur Group Inc.
Filing Date: 2025-03-21
Form: 10-K
Item: Item 5
Chunk 493
---
 for those goods or services. In addition, the standard requires
disclosures of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company
sells CBD related products in a retail location in Atlanta, Georgia and through e-commerce. Revenue is recognized based on the following
model:

F-7

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 effective 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 December 31, 2024 or 2023.

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.