Company: TCRG
Filing Date: 2025-09-09
Form Type: 10-Q
Source: 0001185185-25-001156
Chunk: 53

Company: Cannaisseur Group Inc.
Filing Date: 2025-09-09
Form: 10-Q
Item: Item 2
Chunk 53
---
 $1,042,000 and a net increase of $30,037 in the components of working capital. The change in the components
of working capital was due primarily to an increase in accounts payable, a decrease in inventory, and a decrease in settlement payable,
with the remaining change attributable to normal operational fluctuations in current assets and current liabilities. 

Cash
Flows Provided by Financing Activities

Our
financing activities consisted primarily of the sale of common stock, borrowings and repayments of debt, and contributed capital from
related parties.

For
the six months ended June 30, 2025, cash provided by financing activities was $88,500 consisting of $90,000 in proceeds from the sale
of common stock, off set by repayments of a short-term loan - related party in the amount of $1,500.

For
the six months ended June 30, 2024, cash provided by financing activities was $50,000 consisting of $40,000 in proceeds from convertible
notes payable, $5,000 in proceeds from the sale of common stock, and contributed capital by related parties of $5,500.

Non-cash
Financing Activities

During
the six months ended June 30, 2025, the Company issued 76,365 shares of common stock, with a fair value of $10,691, for the conversion
of principal and accrued interest on notes payable in the amount of $11,454.

General

Historically,
we have financed the Company through a combination of debt and equity transactions. To meet future capital requirements, we plan to raise
additional capital through the sale of equity securities or through equity-linked or debt-financing arrangements, to the extent our operating
cash flow is insufficient to fund our operations in future periods.

The
sale of additional equity or debt securities may result in additional dilution to our shareholders. If we raise additional funds through
the issuance of debt securities or preferred stock, these securities could have rights senior to those of our common stock and could
contain covenants that would restrict our operations. Any such required additional capital may not be available on reasonable terms,
if at all. If we were unable to obtain additional financing, we may be required to reduce the scope of, delay or eliminate some or all
of our planned activities and limit our operations which could have a material adverse effect on our business, financial condition and
results of operations.

TCRG
expects to raise funds through private investors and investment firms and is looking