Company: TCRG
Filing Date: 2025-03-21
Form Type: 10-K
Source: 0001185185-25-000206
Chunk: 372

Company: Cannaisseur Group Inc.
Filing Date: 2025-03-21
Form: 10-K
Item: Item 3
Chunk 372
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 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 December 31, 2024 and 2023 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 recognized only if it is “more-likely-than-not” to be sustained by the taxing authority as
of the reporting date. If the tax position is not considered “more-likely-than-not” to be sustained, then no benefits of
the position are recognized. As of December 31, 2024 and 2023, the Company had not recorded any liability for uncertain tax positions.
In subsequent periods, any interest and penalties related to uncertain tax positions will be recognized as a component of income tax
expense.

The
Tax Reform Act of 1986 limits the annual utilization of net operating loss and tax credit carry forwards, following an ownership change
of the Company. Note that as a result of the Company’s equity financings in recent years, the Company underwent changes in ownership
for purposes of the Tax Reform Act. Pursuant to Sections 382 and 383 of the Internal Revenue Code, annual use of any of the Company’s
net operating loss carry forwards may be limited if cumulative changes in ownership of more than 50% occur during any three-year period.

Impairment
of Long-Lived Assets

The
Company reviews the carrying value of its long-lived assets annually or whenever events or changes in circumstances indicate that the
historical cost-carrying value of an asset should no longer be appropriate. The Company assesses recoverability of the carrying value
of the asset by estimating