Company: TCRG
Filing Date: 2025-03-21
Form Type: 10-K
Source: 0001185185-25-000206
Chunk: 429

Company: Cannaisseur Group Inc.
Filing Date: 2025-03-21
Form: 10-K
Item: Item 4
Chunk 429
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 owned subsidiary Atlanta CBD. At the time of the
Atlanta CBD Acquisition, Floretta Gogo and Xavier Carter owned the majority of Atlanta CBD and controlled the voting rights. Ms. Gogo
and Mr. Carter also controlled 38% of The Cannaisseur Group’s voting rights and were the CEO and COO, respectively, of both Companies
both before and after the transaction. Pursuant to the guidance of ASC 250 Accounting Changes and Error Corrections (“ASC
250”) the acquisition of Atlanta CBD by The Cannaisseur Group resulted in a change in the reporting entity of the combined companies.
The Company relied upon the guidance of ASC 805 Business Combinations (“ASC 805”) in the presentation of the combined
entities. Pursuant to ASC 805-50-05-5, the pooling-of-interests method of accounting provides relevant guidance when an exchange of shares
between entities under common control results in a change in the reporting entity. Under the pooling-of-interests method, the transferred
assets and liabilities are recorded at their historical carrying amounts, and the equity accounts of the separate entities are combined.
Pursuant to ASC 805-50-45-2, the transaction should be presented as if it occurred on the first day of the period reported; accordingly,
we have reported the Atlanta CBD transaction as if it occurred on January 1, 2020.

Business
Operations

Currently,
the Company sells its products online only, and no longer operates a physical retail store. The Company may reopen a physical store or
stores in the future if it is advantageous to its operations.  

Going
Concern

The
accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction
of liabilities in the normal course of business. The Company has a cumulative net loss since inception of $1,714,976, a working capital
deficit of $227,237, and has required additional capital raises to support its operations. These factors raise substantial doubt about
the ability of the Company to continue as a going concern for a reasonable period of time. The Company’s continuation as a going
concern is dependent upon its ability to create positive cash flows from operations and its ability to continue receiving capital from
shareholders and other related parties and obtain financing from third parties. No assurance can be given that the Company will be successful
in these efforts.

As
a result, management has concluded that there is substantial doubt about the Company’s ability to