Company: TCRG
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001185185-25-001785
Chunk: 15

Company: Cannaisseur Group Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 1
Chunk 15
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 is considered to be representative of their respective fair values due to the short-term
nature of those instruments.

Leases

Effective January 1, 2019, the Company adopted
Accounting Standards Update 2016-02, Leases (Topic 842) (“ASU 2016-02”), which requires a lessee to record a right-of-use
asset and a corresponding lease liability at the inception of the lease initially measured at the present value of the lease payments.
ASU 2016-02 requires recognition in the statement of operations of a single lease cost that is calculated as a total cost of the lease
allocated over the lease term, generally on a straight-line basis.

Convertible Debt

The Company has adopted Accounting Standards Update
(“ASU”) 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20), which removed certain separation models
in Subtopic 470-20. Under the amendments in ASU 2020-06, the embedded conversion features no longer are separated from the host contract
for convertible instruments with conversion features that are not required to be accounted for as derivatives under Topic 815, Derivatives
and Hedging, or that do not result in substantial premiums accounted for as paid-in capital. Consequently, a convertible debt instrument
will be accounted for as a single liability measured at its amortized cost.

Recent Accounting Pronouncements

In November 2023, the FASB issued ASU 2023-07, Segment
Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amended guidance requires incremental
reportable segment disclosures, primarily about significant segment expenses. The amendments also require entities with a single reportable
segment to provide all disclosures required by these amendments, and all existing segment disclosures. The amendments will be applied
retrospectively to all prior periods presented in the financial statements and is effective for fiscal years beginning after December
15, 2023, and interim periods in fiscal years beginning after December 15, 2024, with early adoption permitted. The Company adopted this
guidance in the fourth quarter of 2024. For additional information, see “Note 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):