Company: TCRG
Filing Date: 2025-09-09
Form Type: 10-Q
Source: 0001185185-25-001156
Chunk: 17

Company: Cannaisseur Group Inc.
Filing Date: 2025-09-09
Form: 10-Q
Item: Item 1
Chunk 17
---
     703 
  
    2029 
     730 
  
    2030 
     758 
  
    Thereafter 
     22,266 
  
    Total 
    $112,160 

6.
Settlement Payable 

The
Company leased its retail store in Atlanta, Georgia under a five-year lease executed on January 24, 2019. The monthly cash payment for
this operating lease was approximately $2,000 per month, with the lease term ending on December 24, 2023. The Company recorded right-of-use
assets and liabilities of $84,994 on January 24, 2019, based on the present value of payments and an incremental borrowing rate of 10.0%
per annum.

On
October 18, 2023, the Company entered into a Lease Termination and Settlement Agreement (the “Settlement Agreement”) with
the Landlord, under which the Company surrendered the leased premises, and settled all outstanding obligations and debts. According to
the terms of the Settlement Agreement, the Company 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 six months ended June 30, 2025, the Company made payments of $0 on the rental settlement. During the three and six months
ended June 30, 2024, the Company made payments of $2,500 and $5,500, respectively, on the rental settlement. As of June 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