Company: TCRG
Filing Date: 2025-07-21
Form Type: 10-Q
Source: 0001185185-25-000810
Chunk: 5

Company: Cannaisseur Group Inc.
Filing Date: 2025-07-21
Form: 10-Q
Item: Item 1
Chunk 5
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 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. As of March 31, 2025, the Company has a cumulative net loss since inception of $2,563,559, a working capital deficit of $326,184,
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 continue as a going concern within one year of the date that the accompanying financial
statements are issued. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to raise additional
funds and implement its business plan, and to ultimately achieve sustainable operating revenues