Company: TCRG
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001185185-25-001785
Chunk: 61

Company: Cannaisseur Group Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 2
Chunk 61
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 were
$1,614,324 for the nine months ended September 30, 2025, compared to $1,174,730 during the nine months ended September 30, 2024, an increase
of $439,594, or 37.4%. The increase was driven primarily by increases in share-based compensation expense and salaries.

Other Expense, Net

Other expense, net was $91,694 during the nine
months ended September 30, 2025, compared to $4,726 during the nine months ended September 30, 2024, an increase of $86,968, or 1,840.2%.
The increase was the result of losses on the conversions of debt and mezzanine equity to common stock during the nine months ended September
30, 2025.

Liquidity and Capital Resources

As of September 30, 2025, the Company had $453
in total assets, including cash of $143, as compared to $1,876 in total assets, including cash of $563, as of December 31, 2024. The decrease
in assets is attributable to a decrease in cash, decreased inventory, and the write-off of accounts receivable.

As of September 30, 2025, the Company had total
liabilities of $153,861 consisting of accounts payable and accrued expenses of $110,592, rent settlement payable of $9,501, notes payable
- current of $7,193, dividends payable of $1,608, and long-term notes payable of $24,967. As of December 31, 2024, we had total liabilities
of $305,576, consisting of accounts payable and accrued expenses of $169,807, settlement payable of $9,501, notes payable - current of
$46,697, dividends payable of $1,608, and long-term notes payable of $76,463. The increase in liabilities is mainly due to an increase
in accounts payable and accrued expenses.

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Table of Contents

Cash Flows from Operating Activities

For the nine months ended September 30, 2025,
cash used in operating activities of $107,570 resulted from a net loss of $1,706,736, adjustments for share-based compensation of $1,292,962,
gain on settlement of accounts payable of $3,800, loss on conversion of related party debt of $23,282, loss on conversion of mezzanine