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

Company: Cannaisseur Group Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 1
Chunk 11
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 years  Furniture and fixtures   3 to 5 years 

8

Revenue Recognition

The Company recognizes revenue in accordance with
ASC Topic 606, Revenue From Contracts With Customers. ASC Topic 606 requires companies to recognize revenue in a manner that depicts
the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be
entitled in exchange for those goods or services. In addition, the standard requires disclosures of the nature, amount, timing and uncertainty
of revenue and cash flows arising from contracts with customers. The Company sells CBD related products in a retail location in Atlanta,
Georgia and through e-commerce. Revenue is recognized based on the following model:

    1.
    The Company sells products via web site sales. A sale agreement exists when the customer purchases the product at the counter or via an online purchase. The price for and product to be received are known at time of purchase.

    2.
    The performance obligations are to provide the product for the customer at the counter or ship the product to the customer. Product is shipped on the day of sale.

    3.
    The price of the product is located on the label or presented on the web site and therefore is known at the time of purchase.

    4.
    The price of the product is properly allocated to the sole performance of providing the product.

    5.
    Revenue is recognized in the retail location at the point of sale where money is collected and product is in control of customer and from the web site upon settlement of the credit card transaction, which is effectively at the time of purchase.

Concentration of Risk

The Company may periodically contract with consultants
and vendors to provide services related to the Company’s business development activities. Agreements for these services may be for
a specific time period or for a specific project or task. The Company did not have any agreements at September 30, 2025 or December 31,
2024.

Income Taxes

The Company accounts for income taxes under an
asset and liability approach for financial accounting and reporting for income taxes. Accordingly, the Company recognizes deferred tax
assets and liabilities for the expected impact of differences between the financial statements and the tax basis of assets and liabilities.

The Company records a valuation allowance to reduce
its deferred tax assets to the amount that is more likely than not to be realized. In the event the Company was to determine that it would
be able to realize its deferred tax assets in the future in excess of its recorded amount, an