Company: TCRG
Filing Date: 2025-03-21
Form Type: 10-K
Source: 0001185185-25-000206
Chunk: 94

Company: Cannaisseur Group Inc.
Filing Date: 2025-03-21
Form: 10-K
Item: Item 1A
Chunk 94
---
. For example, unanticipated expenses, problems, and technical difficulties may occur and
they may result in material delays in the operation of our business, in particular with respect to our new products. We may not successfully
address these risks and uncertainties or successfully implement our operating strategies. If we fail to do so, it could materially harm
our business to the point of having to cease operations and could impair the value of our common stock to the point investors may lose
their entire investment.

As
we expand our operations, we may be unable to successfully manage our future growth.

Since
inception, our business has grown. This growth has placed substantial strain on our management, operational, financial and other
resources. If we are able to continue expanding our operations in the United States and in other countries where we believe our products
will be successful, as planned, we may experience periods of rapid growth, which will require additional resources. Any such growth could
place increased strain on our management, operational, financial and other resources, and we will need to train, motivate, and manage
employees, as well as attract management, sales, finance and accounting, international, technical, and other professionals. In addition,
we will need to expand the scope of our infrastructure and our physical resources. Any failure to expand these areas and implement appropriate
procedures and controls in an efficient manner and at a pace consistent with our business objectives could have a material adverse
effect on our business and results of operations.

Any
future litigation could have a material adverse impact on our results of operations, financial condition and liquidity,
particularly since we do not currently have director and officer (“D&O”)
insurance. Our lack of insurance may also make it difficult for us to retain and attract talented and skilled directors
and officers. While we intend to apply for D&O insurance, we cannot guarantee that such application will be accepted.

Despite
our significant efforts in product quality control, we face risks of litigation from customers and others in the ordinary course
of business, which may divert our financial and management resources. Any adverse litigation or publicity may negatively impact
our financial condition and results of operations.

Claims
of illness or injury relating to product quality or handling are common in the consumer products industry. While we believe our processes
and high standards of quality control will minimize these instances, there is always a risk of occurrence, and so despite our best efforts
to regulate quality control, litigation may occur. In that event, our financial condition, operating results and cash flows