Company: TCRG
Filing Date: 2025-03-21
Form Type: 10-K
Source: 0001185185-25-000206
Chunk: 293

Company: Cannaisseur Group Inc.
Filing Date: 2025-03-21
Form: 10-K
Item: Item 2
Chunk 293
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 operates Atlanta CBD’s business on a day-to-day basis. The Company intends to develop its own hemp cultivation,
extraction, and manufacturing business and work in conjunction with Atlanta CBD to grow the Company’s business operations.

Atlanta
CBD, at its inception, was a hemp products supplier and retailer. It sold its retail hemp products through trade name, Inno Medicinals,
located in Atlanta Georgia. Currently, Atlanta CBD, in order to better reflect the direction of TCRG, intends to sell health and wellness
products through its retail operations. The products offered for sale will also reflect the shift in strategy of TCRG.

Results
of Operations for the Year Ended December 31, 2024 as Compared to the Year Ended December 31, 2023 

Revenue

Revenue
was $700 for the twelve months ended December 31, 2024, compared to $53,130 for the twelve months ended December 31, 2023, a decrease
of $52,430, or 98.7%. The decrease in revenue was due to a decline in retail sales caused by the closing of the Company’s retail
store. The Company is in the process of restructuring its website and plans to conduct business online. The Company may reopen a physical
store or stores in the future if it is advantageous to its operations.

Costs
of Revenue

Cost
of revenue was $4,275 for the twelve months ended December 31, 2024, compared to $26,976 during the twelve months ended December 31,
2023, a decrease of $22,701, or 84.2%. The decrease was driven primarily by reduced sales in the current year.

Our
gross profit margins were (510.7%) and 49.2% during the twelve months ended December 31, 2024 and 2023, respectively. Continued growth
of the consumer market for CBD products and increases in competition are anticipated to continue to create pressure on gross profit margins.

22

Selling,
General and Administrative Expenses

Selling,
general and administrative expenses were $1,263,004 for the twelve months ended December 31, 2024, an increase of $1,046,950, or 484.6%,
compared to $216,054 during the twelve months ended December 31, 2023. The increase was driven primarily by an increase in costs associated
with the registration of shares for sale, an increase in stock-based compensation, and salaries.

Other