Company: TCRG
Filing Date: 2025-03-21
Form Type: 10-K
Source: 0001185185-25-000206
Chunk: 616

Company: Cannaisseur Group Inc.
Filing Date: 2025-03-21
Form: 10-K
Item: Item 7
Chunk 616
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 data for the asset or liability which requires the reporting entity to develop
its own assumptions. Financial assets and liabilities utilizing Level 3 inputs include infrequently-traded non-exchange-based derivatives
and commingled investment funds and are measured using present value pricing models.

The
Company will determine the level in the fair value hierarchy within which each fair value measurement falls in its entirety, based on
the lowest level input that is significant to the fair value measurement in its entirety. In determining the appropriate levels, the
Company will perform an analysis of the assets and liabilities at each reporting period end.

F-9

The
carrying value of financial instruments (consisting of cash and accounts payable and accrued expenses) is considered to be representative
of their respective fair values due to the short-term nature of those instruments.

Leases

Effective
January 1, 2019, the Company adopted Accounting Standards Update 2016-02, Leases (Topic 842) (“ASU 2016-02”), which requires
a lessee to record a right-of-use asset and a corresponding lease liability at the inception of the lease initially measured at the present
value of the lease payments. ASU 2016-02 requires recognition in the statement of operations of a single lease cost that is calculated
as a total cost of the lease allocated over the lease term, generally on a straight-line basis.

Convertible
Debt

The
Company has adopted Accounting Standards Update (“ASU”) 2020-06, Debt—Debt with Conversion and Other Options (Subtopic
470-20), which removed certain separation models in Subtopic 470-20. Under the amendments in ASU 2020-06, the embedded conversion features
no longer are separated from the host contract for convertible instruments with conversion features that are not required to be accounted
for as derivatives under Topic 815, Derivatives and Hedging, or that do not result in substantial premiums accounted for as paid-in capital.
Consequently, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost.

Recent
Accounting Pronouncements

In
June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13,
Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”).
ASU 2016-13 significantly changes how entities measure credit losses for most financial