Company: TCRG
Filing Date: 2025-03-21
Form Type: 10-K
Source: 0001185185-25-000206
Chunk: 191

Company: Cannaisseur Group Inc.
Filing Date: 2025-03-21
Form: 10-K
Item: Item 1B
Chunk 191
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11—Segment Information.”

Accounting
Standards Issued, Not Adopted

In
November 2024, the FASB issued Accounting Standard Update No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense
Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”). This standard
requires additional disclosures over certain expenses, including purchases of inventory, employee compensation, depreciation, intangible
asset amortization, and other specific expense categories. This standard also requires disclosure of the total amount of selling expenses
and the Company’s definition of selling expenses. This update is effective for fiscal years beginning after December 15, 2026,
and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company is evaluating the
impact this update will have on our annual disclosures; however, we do not anticipate a material impact to our financial statements.

3.
Short-term Loan Payable - Related Party

On
October 28, 2024, the Company entered into an agreement with Xavier Carter, its Chief Financial Officer, for a short-term loan in the
amount of $1,500. If repaid within 90 days, the loan has an interest rate of 0%. If the loan is not repaid on the due date of January
28, 2025, interest will accrue at a rate of 6.5%. As of December 31, 2024, the amount due under the short-term loan was $1,500.

F-10

4.
Convertible Notes Payable - Related Party

      December 31, 
2024     December 31, 2023    Convertible Note Payable in the amount of $5,000, dated November 18, 2024, payable to Ridolfo R. Brown, a related party (the “Brown Note 3”). The note bears interest at 6.5% and has a maturity date of November 18, 2026. The Brown Note 3 will automatically convert into common stock upon the Company’s sale of any equity securities with a value of not less than $1,000,000 at a conversion price equal to the lesser of 80% of (i) the lowest price per share paid by the investors purchasing equity securities with an aggregate sales price of not less than $1,000,000 or (ii) the number equal to