Company: TCRG
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001185185-25-001785
Chunk: 12

Company: Cannaisseur Group Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 1
Chunk 12
---
 adjustment to the deferred tax assets would
be credited to operations in the period such determination was made. Alternatively, should the Company determine that it would not be
able to realize all or part of its deferred tax assets in the future, an adjustment to the deferred tax assets would be charged to operations
in the period such determination was made.

The Company is subject to U.S. federal income
taxes and income taxes of the State of Georgia.

As the Company’s net operating losses in
the respective jurisdictions in which it operates have yet to be utilized, all previous tax years remain open to examination by the taxing
authorities in which the Company currently operates. The Company had no unrecognized tax benefits as of September 30, 2025 and December
31, 2024 and does not anticipate any material amount of unrecognized tax benefits within the next 12 months.

The Company accounts for uncertainties in income
tax law under a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax
positions taken or expected to be taken in income tax returns as prescribed by GAAP. The tax effects of a position are recognized only
if it is “more-likely-than-not” to be sustained by the taxing authority as of the reporting date. If the tax position
is not considered “more-likely-than-not” to be sustained, then no benefits of the position are recognized. As of September
30, 2025 and December 31, 2024, the Company had not recorded any liability for uncertain tax positions. In subsequent periods, any interest
and penalties related to uncertain tax positions will be recognized as a component of income tax expense.

The Tax Reform Act of 1986 limits the annual utilization
of net operating loss and tax credit carry forwards, following an ownership change of the Company. Note that as a result of the Company’s
equity financings in recent years, the Company underwent changes in ownership for purposes of the Tax Reform Act. Pursuant to Sections
382 and 383 of the Internal Revenue Code, annual use of any of the Company’s net operating loss carry forwards may be limited if
cumulative changes in ownership of more than 50% occur during any three-year period.

Impairment of Long-Lived Assets

The Company reviews the carrying value of its
long-lived assets annually or whenever events or changes in circumstances indicate that the historical cost-carrying value of an asset
should no longer be appropriate. The Company assesses recoverability of the carrying value of