Company: TCRG
Filing Date: 2025-03-21
Form Type: 10-K
Source: 0001185185-25-000206
Chunk: 477

Company: Cannaisseur Group Inc.
Filing Date: 2025-03-21
Form: 10-K
Item: Item 5
Chunk 477
---
 of TCRG.

Results
of Operations for the Year Ended December 31, 2024 as Compared to the Year Ended December 31, 2023 

Revenue

Revenue
was $700 for the twelve months ended December 31, 2024, compared to $53,130 for the twelve months ended December 31, 2023, a decrease
of $52,430, or 98.7%. The decrease in revenue was due to a decline in retail sales caused by the closing of the Company’s retail
store. The Company is in the process of restructuring its website and plans to conduct business online. The Company may reopen a physical
store or stores in the future if it is advantageous to its operations.

Costs
of Revenue

Cost
of revenue was $4,275 for the twelve months ended December 31, 2024, compared to $26,976 during the twelve months ended December 31,
2023, a decrease of $22,701, or 84.2%. The decrease was driven primarily by reduced sales in the current year.

Our
gross profit margins were (510.7%) and 49.2% during the twelve months ended December 31, 2024 and 2023, respectively. Continued growth
of the consumer market for CBD products and increases in competition are anticipated to continue to create pressure on gross profit margins.

22

Table of Contents

Selling,
General and Administrative Expenses

Selling,
general and administrative expenses were $1,263,004 for the twelve months ended December 31, 2024, an increase of $1,046,950, or 484.6%,
compared to $216,054 during the twelve months ended December 31, 2023. The increase was driven primarily by an increase in costs associated
with the registration of shares for sale, an increase in stock-based compensation, and salaries.

Other
Income (Expense), Net

Other
expense, net was $6,427 during the twelve months ended December 31, 2024, compared to other income, net of $17,314 during the twelve
months ended December 31, 2023, a change of $23,741, or 137.1%. The change was the result of a gain on settlement for accrued rent payable,
as well as a decrease in interest expense during the twelve months ended December 31, 2023. During the year ended December 31, 2024,