Company: TCRG
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001185185-25-001785
Chunk: 65

Company: Cannaisseur Group Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 2
Chunk 65
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 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.

Inventory

Inventories are stated at the lower of cost or
market. Atlanta CBD 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.

Revenue Recognition

TCRG 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. Atlanta CBD sells CBD related products in a retail location in Atlanta,
Georgia and through e-commerce. Revenue is recognized based on the following model:

    1.
    Atlanta CBD sells products at their one retail location and via web site sales. A sale agreement exists when the customer purchases the product at the counter or via an online purchase. The price for and product to be received are known at time of purchase.

    2.
    The performance obligations are to provide the product for the customer at the counter or ship the product to the customer. The product is shipped on the day of sale.

    3.
    The price of the product is located on the label or presented on the web site and therefore is known at the time of purchase.

    4.
    The price of the product is properly allocated to the sole performance of providing the product.

    5.
    Revenue is recognized in the retail location at the point of sale where money is collected and the product is in control of customer and from the web site upon settlement of the credit card transaction, which is effectively at the time of purchase.

Use of Estimates

Management uses estimates and assumptions in preparing
these financial statements in accordance with U.S. generally accepted accounting principles. Those estimates and assumptions affect the
reported amounts of assets and liabilities, the disclosure of contingent