Company: TCRG
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001185185-25-001785
Chunk: 21

Company: Cannaisseur Group Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 1
Chunk 21
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forfeited all deposits, totaling $9,084, and settled the outstanding balance of $47,511, of past due rent and other charges, for $18,000,
to be paid in monthly installments of $1,500 for 12 months. The Company derecognized a right of use asset of $4,185 and lease liability
of $2,726 and recorded a gain on the settlement in the amount of $18,968.

During the three and nine months ended September
30, 2025, the Company made payments of $0 on the rental settlement. As of September 30, 2025 and December 31, 2024, the amount due under
the settlement payable was $9,501.

7. Related Party Transactions

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, the amount due under the short-term loan was $0.

Convertible
Note Payable in the amount of $5,000, dated November 18, 2024, payable to Ridolfo R. Brown, a related party. The note bears interest
at 6.5% and has a maturity date of November 18, 2026. The Brown Note 3 is convertible into common stock at a conversion price equal to
the lesser of (i) 80% of the lowest price per share paid by the investors purchasing equity securities with an aggregate sales price
of not less than One Million Dollars, or (ii) the number equal to $3,500,000 divided by the numbers of shares of the Company outstanding
(calculated on a fully diluted basis), at the option of the holder any time prior to repayment. During the three and nine months ended
September 30, 2025, the Company accrued interest in the amount of $0 and $124, respectively, on this note.

13

On June 2, 2025, the Company and Mr. Brown agreed
to convert principal and accrued interest in the amount of