Company: TCRG
Filing Date: 2025-07-21
Form Type: 10-Q
Source: 0001185185-25-000810
Chunk: 7

Company: Cannaisseur Group Inc.
Filing Date: 2025-07-21
Form: 10-Q
Item: Item 1
Chunk 7
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 its estimates on historical
experience and on various assumptions that are believed to be reasonable in relation to the financial statements taken as a whole under
the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are
not readily apparent from other sources. Management regularly evaluates the key factors and assumptions used to develop the estimates
utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After
such evaluations, if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates. Significant
estimates are expected to include those related to assumptions used in calculating accruals for potential liabilities, valuing equity
instruments issued for services, and the realization of deferred tax assets.

Cash

Cash and cash equivalents include short-term investments
with original maturities of 90 days or less. The recorded value of our cash and cash equivalents approximates their fair value.

Inventory

Inventories are stated at the lower of cost or
market. The Company periodically reviews the value of items in inventory and provides write-downs or write-offs of inventory based on
its assessment of market conditions. Write-downs and write-offs are charged to cost of goods sold. Inventory is based upon the average
cost method of accounting.

Property and Equipment

Property and equipment are stated at cost, less
accumulated depreciation. The Company calculates depreciation expense using the straight-line method over the estimated useful lives of
the assets. Leasehold improvements are amortized over the shorter of their useful lives or the initial lease term. Expenditures for major
renewals and improvements that extend the useful life of property and equipment are capitalized. Expenditures for maintenance and repairs
are charged to expense as incurred. The estimated useful lives of property and equipment are as follows:

  Classification  Estimated Useful Lives  Equipment  3 to 5 years  Leasehold improvements  3 to 5 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