10-Q - TCRG - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

COMMISSION FILE NO. 000-56664

The Cannaisseur Group, Inc.

(Exact name of registrant as specified in its charter)

Delaware<br> <br>(State or other jurisdiction of incorporation)	86-1907561<br> <br>(IRS Employer Identification No.)

650 Ponce De Leon Ave

Suite 300 #2334

Atlanta, GA 30308

(Address of principal executive offices) (Zip Code)

(404) 254-2100

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
None	N/A	N/A

Indicate by checkmark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer☐	Smaller reporting company ☒
	Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the most practicable date:

Class:	Outstanding as of August 12, 2024:
Common Stock, par value $0.0001	44,219,224

The Cannaisseur Group, Inc.

Table of Contents

		Page
PART I	Financial Information
Item 1	Financial Statements (Unaudited)	3
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3	Quantitative and Qualitative Disclosures About Market Risk	20
Item 4	Controls And Procedures	20
PART II	Other Information
Item 1	Legal Proceedings	21
Item 1A	Risk Factors	21
Item 2	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	21
Item 3	Defaults Upon Senior Securities	21
Item 4	Mine Safety Disclosures	21
Item 5	Other Information	21
Item 6	Exhibits	21
	Signatures	22

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

The Cannaisseur Group, Inc.

Condensed Consolidated Balance Sheets

			December 31,
			2023
ASSETS			****	****	****
Current Assets:	****	****	****	****	****
Cash	1,471		$	38,390
Inventory	2,809			5,303
Total current assets	4,280			43,693
TOTAL ASSETS	4,280		$	43,693
LIABILITIES AND STOCKHOLDERS' DEFICIT	****	****	****	****	****
Current Liabilities:
Accounts payable and accrued expenses	80,961			47,918
Settlement payable	9,501			15,001
Notes payable, current portion	6,374			6,377
Dividends payable	1,608			1,608
Total current liabilities	98,444			70,904
Long term notes payable, less current portion	25,786			25,783
Convertible notes payable	80,000			40,000
Total long term liabilities	105,786			65,783
TOTAL LIABILITIES	204,230			136,687
Mezzanine Equity	37,875			37,875
Stockholders' Equity (Deficit)	****	****	****	****	****
Common stock, 0.0001 par value, 100,000,000 shares authorized, 44,219,224 and 42,547,484 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively	4,421			4,254
Additional paid in capital	1,466,616			414,783
Accumulated deficit	(1,602,210	)		(445,538	)
Minority interest	(106,652	)		(104,368	)
Total Stockholders' Deficit	(237,825	)		(130,869	)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	4,280		$	43,693

All values are in US Dollars.

The accompanying notes are an integral part of these financial statements.

Table of Contents

The Cannaisseur Group, Inc.

Condensed Consolidated Statements of Operations

(unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2024			2023			2024			2023
Revenue, net of discounts		-			19,050			415			35,513
Cost of revenue		485			4,774			2,494			14,609
Gross profit		(485	)		14,276			(2,079	)		20,904
Operating Expenses
Selling, general and administrative expenses		1,069,581			57,865			1,153,777			96,040
Total operating expenses		1,069,581			57,865			1,153,777			96,040
Operating loss		(1,070,066	)		(43,589	)		(1,155,856	)		(75,136	)
Other expense
Interest expense		(1,560	)		(255	)		(3,100	)		(1,102	)
Total other expense		(1,560	)		(255	)		(3,100	)		(1,102	)
Net loss before taxes		(1,071,626	)		(43,844	)		(1,158,956	)		(76,238	)
Income tax benefit		-			-			-			-
Net loss	$	(1,071,626	)	$	(43,844	)	$	(1,158,956	)	$	(76,238	)
Net loss attributable minority interest		(362	)		(5,735	)		(2,284	)		(21,608	)
Net loss attributable to TCGI	$	(1,071,264	)	$	(38,109	)	$	(1,156,672	)	$	(54,630	)
Weighted average of common shares outstanding
Basic		44,947,246			39,368,619			43,747,365			38,367,833
Diluted		44,947,246			39,368,619			43,747,365			38,367,833
Net loss per common share
Basic	$	(0.02	)	$	(0.00	)	$	(0.03	)	$	(0.00	)
Diluted	$	(0.02	)	$	(0.00	)	$	(0.03	)	$	(0.00	)

The accompanying notes are an integral part of these financial statements.

Table of Contents

The Cannaisseur Group, Inc.

Condensed Consolidated Statements of Stockholders’ Deficit

For the Three and Six Months Ended June 30, 2024 and 2023

(unaudited)

	****	****	****	****	****	****	Common Stock						Additional		Accumulated			****	****	****	Total			****	****
	Common Stock						To Be Issued						Paid in		Minority			Accumulated			Stockholders'			Mezzanine
	Shares			Amount			Shares			Amount			Capital		Interest			Deficit			Equity			Equity
Balance, December 31, 2022		37,196,667		$	3,720			-		$	-		$	313,297	$	(59,807	)	$	(317,513	)	$	(60,303	)	$	37,875
Shares issued for cash		333,334			33			-			-			9,967		-			-			10,000			-
Capital contribution		-			-			-			-			10,482		-			-			10,482
Net loss		-			-			-			-			-		(15,873	)		(16,521	)		(32,394	)		-
Balance, March 31, 2023		37,530,001		$	3,753			-		$	-		$	333,746	$	(75,680	)	$	(334,034	)	$	(72,215	)	$	37,875
Shares issued for cash		3,047,618			304			-			-			51,696		-			-			52,000			-
Net loss		-			-			-			-			-		(5,735	)		(38,109	)		(43,844	)		-
Balance, June 30, 2023		40,577,619		$	4,057			-		$	-		$	385,442	$	(81,415	)	$	(372,143	)	$	(64,059	)	$	37,875
Balance, December 31, 2023		42,547,484		$	4,254			-		$	-		$	414,783	$	(104,368	)	$	(445,538	)	$	(130,869	)	$	37,875
Shares issued for compensation		-			-			2,000,000			200			29,800								30,000			-
Capital contribution		-			-			-			-			1,000		-			-			1,000			-
Net loss		-			-			-			-			-		(1,922	)		(85,408	)		(87,330	)		-
Balance, March 31, 2024		42,547,484		$	4,254			2,000,000		$	200		$	445,583	$	(106,290	)	$	(530,946	)	$	(187,199	)	$	37,875
Shares issued for compensation		3,500,000			350			(2,000,000	)		(200	)		344,850		-			-			345,000			-
Shares issued for services		2,900,000			290			-			-			666,710		-			-			667,000			-
Shares issued for cash		21,740			2			-			-			4,998		-			-			5,000			-
Cancellation of shares		(4,750,000	)		(475	)		-			-			475		-			-			-			-
Capital contribution		-			-			-			-			4,000		-			-			4,000			-
Net loss		-			-			-			-			-		(362	)		(1,071,264	)		(1,071,626	)		-
Balance, June 30, 2024		44,219,224		$	4,421			-		$	-		$	1,466,616	$	(106,652	)	$	(1,602,210	)	$	(237,825	)	$	37,875

The accompanying notes are an integral part of these financial statements.

Table of Contents

The Cannaisseur Group, Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)

	Six Months Ended
	June 30,
	2024			2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss	$	(1,158,956	)	$	(76,238	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		-			1,497
Amortization of right to use asset		-			10,181
Share-based compensation		1,042,000			-
Changes in operating assets and liabilities:
Accounts receivable		-			807
Inventory		2,494			17
Deposits		-			(6,084	)
Accounts payable and accrued expenses		33,043			(1,294	)
Settlement payable		(5,500	)		-
Right of use liability		-			(11,273	)
Net Cash Used in Operating Activities		(86,919	)		(82,387	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of common stock		5,000			62,000
Proceeds from short term loan		-			9,378
Payments on short term loan		-			(3,949	)
Contributed capital - related party		5,000			10,482
Proceeds from convertible note payable		40,000			-
Proceeds from (repayments of) note payable - related party		-			(950	)
Net Cash Provided by Financing Activities		50,000			76,961
Net increase (decrease) in cash and cash equivalents		(36,919	)		(5,426	)
Cash and cash equivalents, beginning of period		38,390			18,534
Cash and cash equivalents, end of period	$	1,471		$	13,108
Supplemental cash flow information
Cash paid for interest	$	200		$	1,270
Cash paid for taxes	$	-		$	-
Non-cash investing and financing activities:
Cancellation of shares of common stock	$	475		$	-

The accompanying notes are an integral part of these financial statements.

Table of Contents

The Cannaisseur Group, Inc.

Notes To the Condensed Consolidated Financial Statements

For The Three and Six Months Ended June 30, 2024

(Unaudited)

1. Organization and Nature of Operations

Organization and Combination

The Cannaisseur Group, Inc. (the Company) was incorporated in the State of Delaware on December 22, 2020.

On January 4, 2021, the Company acquired 51% of the common stock of Atlanta CBD, Inc. (“Atlanta CDB”), (the “Atlanta CBD Acquisition”). Atlanta CBD, Inc. was incorporated in the State of Georgia on October 17, 2018.

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its majority owned subsidiary Atlanta CBD. At the time of the Atlanta CBD Acquisition, Floretta Gogo and Xavier Carter owned the majority of Atlanta CBD and controlled the voting rights. Ms. Gogo and Mr. Carter also controlled 38% of The Cannaisseur Group’s voting rights and were the 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. The Company has a cumulative net loss since inception of $1,602,210, a working capital deficit of $94,164, 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 and profitability. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

If cash resources are insufficient to satisfy the Company's ongoing cash requirements, the Company would be required to obtain funds, if available, although there can be no certainty, from its shareholders or officers.

Table of Contents

2. Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

The Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) and include the accounts of The Cannaisseur Group, Inc. and Atlanta CBD.

Summary of Significant Accounting Policies

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable in relation to the financial statements taken as a whole under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Management regularly evaluates the key factors and assumptions used to develop the estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such evaluations, if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates. Significant estimates are expected to include those related to assumptions used in calculating accruals for potential liabilities, valuing equity instruments issued for services, and the realization of deferred tax assets.

Cash

Cash and cash equivalents include short-term investments with original maturities of 90 days or less. The recorded value of our cash and cash equivalents approximates their fair value.

Inventory

Inventories are stated at the lower of cost or market. The Company 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.

Property and Equipment

Property and equipment are stated at cost, less accumulated depreciation. The Company calculates depreciation expense using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of their useful lives or the initial lease term. Expenditures for major renewals and improvements that extend the useful life of property and equipment are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. The estimated useful lives of property and equipment are as follows:

Classification	Estimated Useful Lives
Equipment	3 to 5 years
Leasehold improvements	3 to 5 years
Furniture and fixtures	3 to 5 years

Table of Contents

Revenue Recognition

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

The Company 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.
The performance obligations are to provide the product for the customer at the counter or ship the product to the customer. Product is shipped on the day of sale.
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.
The price of the product is properly allocated to the sole performance of providing the product.
Revenue is recognized in the retail location at the point of sale where money is collected and 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.

Concentration of Risk

The Company may periodically contract with consultants and vendors to provide services related to the Company's business development activities. Agreements for these services may be for a specific time period or for a specific project or task. The Company did not have any agreements at June 30, 2024 or December 31, 2023.

Income Taxes

The Company accounts for income taxes under an asset and liability approach for financial accounting and reporting for income taxes. Accordingly, the Company recognizes deferred tax assets and liabilities for the expected impact of differences between the financial statements and the tax basis of assets and liabilities.

The Company records a valuation allowance to reduce its deferred tax assets to the amount that is more likely than not to be realized. In the event the Company was to determine that it would be able to realize its deferred tax assets in the future in excess of its recorded amount, an adjustment to the deferred tax assets would be credited to operations in the period such determination was made. Alternatively, should the Company determine that it would not be able to realize all or part of its deferred tax assets in the future, an adjustment to the deferred tax assets would be charged to operations in the period such determination was made.

The Company is subject to U.S. federal income taxes and income taxes of the State of Georgia.

As the Company's net operating losses in the respective jurisdictions in which it operates have yet to be utilized, all previous tax years remain open to examination by the taxing authorities in which the Company currently operates. The Company had no unrecognized tax benefits as of June 30, 2024 and December 31, 2023 and does not anticipate any material amount of unrecognized tax benefits within the next 12 months.

The Company accounts for uncertainties in income tax law under a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax returns as prescribed by GAAP. The tax effects of a position are recognized only if it is "more-likely-than-not" to be sustained by the taxing authority as of the reporting date. If the tax position is not considered "more-likely-than-not" to be sustained, then no benefits of the position are recognized. As of June 30, 2024 and December 31, 2023, the Company had not recorded any liability for uncertain tax positions. In subsequent periods, any interest and penalties related to uncertain tax positions will be recognized as a component of income tax expense.

Table of Contents

The Tax Reform Act of 1986 limits the annual utilization of net operating loss and tax credit carry forwards, following an ownership change of the Company. Note that as a result of the Company's equity financings in recent years, the Company underwent changes in ownership for purposes of the Tax Reform Act. Pursuant to Sections 382 and 383 of the Internal Revenue Code, annual use of any of the Company's net operating loss carry forwards may be limited if cumulative changes in ownership of more than 50% occur during any three-year period.

Impairment of Long-Lived Assets

The Company reviews the carrying value of its long-lived assets annually or whenever events or changes in circumstances indicate that the historical cost-carrying value of an asset should no longer be appropriate. The Company assesses recoverability of the carrying value of the asset by estimating the future net undiscounted cash flows expected to result from the asset, including eventual disposition. If the future net undiscounted cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset’s carrying value and estimated fair value.

Stock-Based Compensation

The Company issues common stock and intends to issue stock options to officers, directors and consultants for services rendered. Options will vest and expire according to terms established at the issuance date of each grant. Stock grants, which are generally time vested, will be measured at the grant date fair value and charged to operations ratably over the vesting period.

The fair value of stock options granted as stock-based compensation will be determined utilizing the Black-Scholes option-pricing model, and can be affected by several variables, the most significant of which are the life of the equity award, the exercise price of the stock option as compared to the fair market value of the common stock on the grant date, and the estimated volatility of the common stock. Estimated volatility will be based on the historical volatility of the Company's common stock over an appropriate calculation period, or, if not available, by reference to the volatility of a representative sample of comparable public companies. The risk-free interest rate will be based on the U.S. Treasury yield curve in effect at the time of grant. The fair market value of the common stock will be determined by reference to the quoted market price of the Company's common stock on the grant date, or, if not available, by reference to an appropriate alternative valuation methodology.

The Company will recognize the fair value of stock-based compensation awards in general and administrative costs or in software development costs, as appropriate, in the Company's consolidated statements of operations. The Company will issue new shares of common stock to satisfy stock option exercises.

As of June 30, 2024 and December 31, 2023, the Company did not have any outstanding stock options.

Earnings (Loss) Per Share

The Company's computation of earnings (loss) per share ("EPS") includes basic and diluted EPS. Basic EPS is measured as the income (loss) attributable to common stockholders divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible notes payable, convertible preferred stock, warrants and stock options) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS.

As of June 30, 2024 and December 31, 2023, the following shares were issuable and excluded from the calculation of diluted loss:

	June 30,<br><br> <br>2024		December 31,<br><br> <br>2023
Convertible Notes Payable		3,202,505		2,666,667

Fair Value of Financial Instruments

The authoritative guidance with respect to fair value established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels and requires that assets and liabilities carried at fair value be classified and disclosed in one of three categories, as presented below. Disclosure as to transfers in and out of Levels 1 and 2, and activity in Level 3 fair value measurements, is also required.

Table of Contents

Level 1. Observable inputs such as quoted prices in active markets for an identical asset or liability that the Company has the ability to access as of the measurement date. Financial assets and liabilities utilizing Level 1 inputs include active-exchange traded securities and exchange-based derivatives.

Level 2. Inputs, other than quoted prices included within Level 1, which are directly observable for the asset or liability or indirectly observable through corroboration with observable market data. Financial assets and liabilities utilizing Level 2 inputs include fixed income securities, non-exchange-based derivatives, mutual funds, and fair-value hedges.

Level 3. Unobservable inputs in which there is little or no market data for the asset or liability which requires the reporting entity to develop its own assumptions. Financial assets and liabilities utilizing Level 3 inputs include infrequently-traded non-exchange-based derivatives and commingled investment funds and are measured using present value pricing models.

The Company will determine the level in the fair value hierarchy within which each fair value measurement falls in its entirety, based on the lowest level input that is significant to the fair value measurement in its entirety. In determining the appropriate levels, the Company will perform an analysis of the assets and liabilities at each reporting period end.

The carrying value of financial instruments (consisting of cash and accounts payable and accrued expenses) 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 June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). ASU 2016-13 significantly changes how entities measure credit losses for most financial assets, including accounts and notes receivables. ASU 2016-13 will replace the current "incurred loss" approach with an "expected loss" model, under which companies will recognize allowances based on expected rather than incurred losses. Entities will apply the provisions of ASU 2016-13 as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which ASU 2016-13 is effective. As a small business filer, ASU 2016-13 will be effective for the Company for interim and annual reporting periods beginning after December 15, 2022. The Company adopted ASU 2016-13 effective January 1, 2023. The adoption of ASU 2016-13 did not have a material effect on the Company's financial statements and related disclosures.

Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, and the American Institute of Certified Public Accountants, did not or are not believed by management to have a material impact on the Company's present or future financial statements and related disclosures.

Table of Contents

3. Notes Payable

		December 31, 2023
Convertible Note Payable in the amount of 40,000, dated January 3, 2024, payable to Ridolfo R. Brown, a related party (the “Brown Note”). The note bears interest at 6.5% and has a maturity date of January 3, 2026. The Brown Note will automatically convert into common stock upon the Company’s sale of any equity securities with a value of not less than 1,000,000 at a conversion price equal to the lesser of 80% of the lowest price per share paid by the investors purchasing equity securities with an aggregate sales price of not less than 1,000,000. Should the note not convert to common stock at the maturity date, then, at any time from the maturity date to the repayment date, the note may be converted upon the approval of the Company’s Administrative Agent and the majority investors of the Company into the number of shares equal to the principal amount of the note divided by the conversion price, such conversion price to be calculated as 3,500,000 divided by the numbers of shares of the Company outstanding (calculated on a fully diluted basis). During the six months ended June 30, 2024 and 2023, the Company accrued interest in the amount of 1,275 and 0, respectively, on this note.	40,000	$	-
Convertible Note Payable in the amount of 40,000, dated December 26, 2023, payable to The National Legacy Foundation, a related party (the “Legacy Foundation Note”). The note bears interest at 6.5% and has a maturity date of December 26, 2025. The Legacy Foundation Note is convertible into common stock at a conversion price of 0.015, at the option of the holder any time prior to repayment. During the six months ended June 30, 2024 and 2023, the Company accrued interest in the amount of 1,350 and 0, respectively, on this note.	40,000		40,000
Loan in the amount of 4,095, dated January 4, 2023, payable to Lightspeed Capital (the “Lightspeed Loan”). The Lightspeed Loan is payable at the rate of 11% of the Company’s sales receipts. During the six months ended June 30, 2023, the Company received additional borrowings of 5,283, subject to the same repayment terms as the original agreement. During the six months ended June 30, 2024 and 2023, the Company made repayments of 0 and 4,094, respectively.	4,860		4,860
Economic Injury Disaster Loan (EIDL), dated June 9, 2020. The note bears interest at 3.75% and has a maturity date of June 9, 2050. Payments on the loan were deferred until June 2022, at which point monthly payments of principal and interest totaling 134 became due. Interest in the amount of 1,973 has been accrued as of December 31, 2023. During the six months ended June 30, 2024 and 2023, the Company made interest payments in the amount of 200 and 1,270, respectively.	27,300		27,300
Total	112,160	$	72,160
Current portion	6,374	$	6,377
Long term portion	105,786	$	65,783

All values are in US Dollars.

Future principal payments of notes payable are as follows:

Twelve months ending June 30,
2025	$	6,374
2026		80,652
2027		677
2028		703
2029		730
Thereafter		23,024
Total	$	112,160

Table of Contents

4. Settlement Payable

The Company leased its retail store in Atlanta, Georgia under a five-year lease executed on January 24, 2019. The monthly cash payment for this operating lease was approximately $2,000 per month, with the lease term ending on December 24, 2023. The Company recorded right-of-use assets and liabilities of $84,994 on January 24, 2019, based on the present value of payments and an incremental borrowing rate of 10.0% per annum.

On October 18, 2023, the Company entered into a Lease Termination and Settlement Agreement (the “Settlement Agreement”) with the Landlord, under which the Company surrendered the leased premises, and settled all outstanding obligations and debts. According to the terms of the Settlement Agreement, the Company forfeited all deposits, totaling $9,084, and settled the outstanding balance of $47,511, of past due rent and other charges, for $18,000, to be paid in monthly installments of $1,500 for 12 months. The Company derecognized a right of use asset of $4,185 and lease liability of $2,726 and recorded a gain on the settlement in the amount of $18,968.

During the six months ended June 30, 2024, the Company made payments of $5,500 on the rental settlement. As of June 30, 2024 and December 31, 2023, the amount due under the settlement payable was $9,501 and $15,001, respectively.

5. Related Party Transactions

Convertible Note Payable in the amount of $40,000, dated January 3, 2024, payable to Ridolfo R. Brown, a related party. The note bears interest at 6.5% and has a maturity date of January 3, 2026. The Brown Note is convertible into common stock at a conversion price equal to the lesser of (i) 80% of the lowest price per share paid by the investors purchasing equity securities with an aggregate sales price of not less than One Million Dollars, or (ii) the number equal to $3,500,000 divided by the numbers of shares of the Company outstanding (calculated on a fully diluted basis), at the option of the holder any time prior to repayment. During the six months ended June 30, 2024 and 2023, the Company accrued interest in the amount of $1,275 and $0, respectively, on this note.

Convertible Note Payable in the amount of $40,000, dated December 26, 2023, payable to The National Legacy Foundation, a related party. The note bears interest at 6.5% and has a maturity date of December 26, 2025. The Legacy Foundation Note is convertible into common stock at a conversion price of $0.015, at the option of the holder any time prior to repayment. During the six months ended June 30, 2024 and 2023, the Company accrued interest in the amount of $1,350 and $0, respectively, on this note.

On February 28, 2024, the Company’s Board of Directors approved the issuance of 1,000,000 shares of common stock with a fair value of $15,000 to each of its Chief Executive Officer and Interim Chief Financial Officer as a bonus.

On May 17, 2024, the Company issued 1,000,000 shares of common stock with a fair value of $230,000 to one of its directors as compensation.

On June 4, 2024, the Company issued 1,000,000 shares of common stock with a fair value of $230,000 to each of its Chief Executive Officer and Interim Chief Financial Officer as compensation for ongoing services.

On June 30, 2024, the Company issued 500,000 shares of common stock with a fair value of $115,000 to its Corporate Secretary as compensation for ongoing services.

On June 30, 2024, the Company issued 500,000 shares of common stock with a fair value of $115,000 to one of its directors as compensation.

During the six months ended June 30, 2024, the Company received capital contributions from related parties in the amounts of $5,000.

6. Mezzanine Equity

Mezzanine equity, as of June 30, 2024 and December 31, 2023, consists of 1,518 shares of preferred stock of Atlanta CBD with redeemable features that allow the investors (“Investors”) to request repayment of their investment. The Investors are also entitled to profit distributions equal to the lesser of (i) 25% interest, (ii) the difference between the ownership percentage of management and 50%, which will be distributed to management, until a 35% profit goal achieved. Preferred shareholders are entitled to a return of their investment upon 15 days’ notice given to the Company after any distribution. No payments have been made on the Mezzanine Equity as of June 30, 2024.

Table of Contents

7. Stockholders' Equity

The Company is authorized to issue up to 100,000,000 shares of common stock, $0.0001 par value per share. At June 30, 2024 and December 31, 2023, the Company had 44,219,224 and 42,547,484 shares of common stock issued and outstanding.

Equity transactions during the six months ended June 30, 2024:

On January 16, 2024, the Company received capital contributions from a related party in the amount of $1,000.

On February 28, 2024, the Company’s Board of Directors approved the issuance of 1,000,000 shares of common stock with a fair value of $15,000 to its Chief Executive Officer as a bonus.

On February 28, 2024, the Company’s Board of Directors approved the issuance of 1,000,000 shares of common stock with a fair value of $15,000 to its Interim Chief Financial Officer as a bonus.

On May 8, 2024, the Company sold 21,740 shares of common stock at a price of $0.23 per share for cash proceeds of $5,000.

On May 17, 2024, the Company issued 1,000,000 shares of common stock with a fair value of $230,000 to one of its directors as compensation.

On June 4, 2024, the Company issued 1,000,000 shares of common stock with a fair value of $230,000 to its Chief Executive Officer as compensation for ongoing services.

On June 4, 2024, the Company issued 1,000,000 shares of common stock with a fair value of $230,000 to its Interim Chief Financial Officer as compensation for ongoing services.

On June 30, 2024, the Company issued 500,000 shares of common stock with a fair value of $115,000 to its Corporate Secretary as compensation for ongoing services.

On June 30, 2024, the Company issued 500,000 shares of common stock with a fair value of $115,000 to one of its directors as compensation.

On June 30, 2024, the Company issued 400,000 shares of common stock with a fair value of $115,000 for services.

During the three months ended June 30, 2024, the Company cancelled 4,750,000 shares of common stock which were held by service providers. These service providers returned these shares to the Company as the services were not performed. The Company recorded the cancellation of these shares at their par value and charged the amount of $475 to additional paid-in capital.

During the three months ended June 30, 2024, the Company received capital contributions from a related party in the amount of $4,000.

Equity transactions during the six months ended June 30, 2023:

On February 16, 2023, the Company sold 333,334 shares of common stock in a private placement for gross proceeds of $10,000.

On February 9, 2023, February 17, 2023, and March 9, 2023, the Company received capital contributions from a related party in the amounts of $1,797, $3,705 and $5,000, respectively.

On April 27, 2023, the Company issued 914,286 shares of common stock to a related party for cash proceeds in the amount of $20,000 ($0.022 per share).

On May 10, 2023, the Company sold 1,066,666 shares of common stock at a price of $0.015 per share for cash proceeds of $16,000 to each of two investors (a total of 2,133,332 shares of common stock for aggregate cash proceeds of $32,000).

Table of Contents

8. Commitments and Contingencies

Legal Matters

The Company leased its retail store in Atlanta, Georgia under a five-year lease executed on January 24, 2019. The monthly cash payment for this operating lease was approximately $2,000 per month, with the lease term ending on December 24, 2023. On August 14, 2023, the Landlord initiated a civil action against the Company and Guarantors styled AP 1039 Grant St., LLC v. Inno Medicinals LLC, a/k/a InnoMedicals Atlanta CBD, Inc., Xavier Carter, and Floretta Gogo, State Court of DeKalb County, Georgia, Case No. 23A03681 for failing to pay amounts owed under the lease. The Company and Guarantors filed counterclaims against the Landlord for breach of fiduciary duties, breach of contract, and attorney’s fees.

On October 18, 2023, the Company entered into a Lease Termination and Settlement Agreement (the “Settlement Agreement”) with the Landlord, under which the Company surrendered the leased premises, and settled all outstanding obligations and debts. According to the terms of the Settlement Agreement, the Company forfeited all deposits, totaling $9,084, and settled the outstanding balance of $47,511, of past due rent and other charges, for $18,000, to be paid in monthly installments of $1,500 for 12 months. The Company recorded a gain on settlement in the amount of $18,968 during the year ended December 31, 2023.

9. Subsequent Events

Subsequent to June 30, 2024, the Company sold 10,000 shares of common stock at a price of $0.23 per share for cash proceeds in the amount of $2,300 and received capital contributions from a related party in the amount of $2,000.

Table of Contents

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operation

Cautionary Note Regarding Forward Looking Statements

This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our business and operations, future trends and operating results of such business, the planned expansion of those operations into new markets and applications, characteristics and trends and the demand for the products and services we offer, the need for and use of proceeds from one or more financings for strategic arrangements and partnerships, our future capital needs and ability to obtain financings and liquidity. All statements other than statements of historical facts contained in this report, including statements regarding our future financial position, liquidity, working capital sources, business strategy and plans and objectives of management for future operations, are forward-looking statements. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “will,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs.

The results anticipated by any or all of these forward-looking statements might not occur. Important factors, uncertainties and risks that may cause actual results to differ materially from these forward-looking statements include the future impact of the geopolitical conflicts in Israel and Ukraine, inflation and Federal Reserve interest rate increases in response thereto on the economy including the potential for a recession, downturn in economic activity and the capital markets and a resulting reduction in demand for our offerings, declines in expenditures for digital marketing campaigns and a trend towards in-housing those functions, our limited operating history and revenue, our ability to effectively navigate challenges posed by the complex industries we serve including the potential for rapid and unpredictable technological change, regulatory burdens and an intense competitive environment. We undertake no obligation to publicly update or revise any forward-looking statements, whether as the result of new information, future events or otherwise.

Background of the Company

The Cannaisseur Group, Inc. (the “Company” or “TCG”) was established in December 2020. On January 4, 2021 the Company acquired a fifty-one percent (51%) interest in Atlanta CBD Inc. (d/b/a as Inno Medicinals) (“Atlanta CBD”). Atlanta CBD is engaged in hemp cultivation, extraction, manufacturing, distribution, and retail through CBD stores. Currently, the Company’s only assets and operations consist of the 51% interest it owns in Atlanta CBD, Inc. TCG manages and 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 is a hemp products supplier and retailer. It sells its retail hemp products through trade name, Inno Medicinals, located in Atlanta Georgia. Atlanta CBD intends in the future to engage in cultivation and extraction of hemp flower, through a trade name Requisite Technologies. Requisite Technologies will be dedicated to producing and selling premium oil, tinctures, capsules, edibles, and topicals. Our mission is to grow one of the best hemp plants and produce high-quality infused products to provide customers with products and services they trust. We expect that, when established, Requisite Technologies will have the ability to grow hemp year-round, aiming to grow up to 12 different strains, and can produce from seedling to finished product.

Results of Operations for the Three Months Ended June 30, 2024 Compared with the Three Months Ended June 30, 2023

Revenue

Revenue was $0 for the three months ended June 30, 2024, compared $19,050 for the three months ended June 30, 2023, a decrease of $19,050, or 100%. The decrease in revenue was due to a decline in retail sales driven 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 $485 for the three months ended June 30, 2024, which consisted entirely of inventory written off as obsolete, compared to $4,774 during the three months ended June 30, 2023, a decrease of $4,289, or 89.8%. The decrease was driven primarily by reduced sales in the current period.

Table of Contents

There was no reportable gross profit margin during the three months ended June 30, 2024, because there was no revenue. Gross profit margin during the three months ended June 30, 2023 was 40.3%. The change was driven primarily by a decrease in sales volume and write-off of obsolete inventory during the three months ended June 30, 2024. Continued growth of the consumer market for CBD products and increases in competition are anticipated to continue to create pressure on gross profit margins.

Selling, General and Administrative Expenses

Selling, general and administrative expenses were $1,069,581 for the three months ended June 30, 2024, compared to $57,865 during the three months ended June 30, 2023, an increase of $1,011,716, or 1,748.4%. The increase was driven primarily by an increase in noncash compensation, as well as costs associated with public company filings, including legal, audit and accounting fees.

Other Expense, Net

Other expense, net was $1,560 during the three months ended June 30, 2024, compared to $255 during the three months ended June 302023, an increase of $1,305, or 511.8%. The increase was the result of an increase in interest expense during the three months ended June 30, 2024.

Results of Operations for the Six Months Ended June 30, 2024 Compared with the Six Months Ended June 30, 2023

Revenue

Revenue was $415 for the six months ended June 30, 2024, compared $35,513 for the six months ended June 30, 2023, a decrease of $35,098, or 98.8%. The decrease in revenue was due to a decline in retail sales driven by the closing of the Company’s retail store.

Costs of Revenue

Cost of revenue was $2,494 for the six months ended June 30, 2024, compared to $14,609 during the six months ended June 30, 2023, a decrease of $12,115, or 82.9%. The decrease was driven primarily by reduced sales in the current period.

The Company’s gross profit margins were -501% during the six months ended June 30, 2024 compared to 58.9% during the six months ended June 30, 2023. The decrease was driven primarily by a decrease in sales volume and an increase in write-off of obsolete inventory during the six months ended June 30, 2024. Continued growth of the consumer market for CBD products and increases in competition are anticipated to continue to create pressure on gross profit margins.

Selling, General and Administrative Expenses

Selling, general and administrative expenses were $1,153,777 for the six months ended June 30, 2024, compared to $96,040 during the six months ended June 30, 2023, an increase of $1,057,737, or 1,101.4%. The increase was driven primarily by an increase in noncash compensation, as well as costs associated with public company filings, including legal, audit and accounting fees.

Other Expense, Net

Other expense, net was $3,100 during the six months ended June 30, 2024, compared to $1,102 during the six months ended June 30, 2023, an increase of $1,998, or 181.3%. The increase was the result of an increase in interest expense during the six months ended June 30, 2024.

Liquidity and Capital Resources

As of June 30, 2024, the Company had $4,280 in total assets including cash of $1,471, as compared to $43,693 in total assets including of cash of $38,390, as of December 31, 2023. The decrease in assets is attributable to a decrease in cash and a reduction of inventory.

As of June 30, 2024, the Company had total liabilities of $204,230 consisting of accounts payable and accrued expenses of $80,961, rent settlement payable of $9,501, notes payable - current of $6,374, dividends payable of $1,608, and long-term notes payable of $105,786. As of December 31, 2023, the Company had total liabilities of $136,687 including accounts payable and accrued expenses of $47,918, rent settlement payable of $15,001, notes payable - current of $6,377, dividends payable of $1,608, and long-term notes payable of $65,783. The increase in liabilities is mainly due to an increase in accounts payable and long-term notes payable.

Table of Contents

Cash Flows from Operating Activities

For the six months ended June 30, 2024, cash used in operating activities of $86,919 resulted from a net loss of $1,158,956, adjustments for share-based compensation of $1,042,000 and a net increase of $30,037 in the components of working capital. The change in the components of working capital was due primarily to an increase in accounts payable, a decrease in inventory, and a decrease in settlement payable, with the remaining change attributable to normal operational fluctuations in current assets and current liabilities.

For the six months ended June 30, 2023, cash used in operating activities of $82,387 resulted primarily from a net loss of $76,238 adjustments for non-cash items totaling $11,678 and a net decrease of $17,827 in the components of working capital. The non-cash adjustments to net income are attributable to charges of $10,181 for amortization of right of use asset and $1,497 for depreciation. The change in the components of working capital was due primarily to a decrease of $6,084 in deposits and a decrease in lease liability of $11,273, with the remaining change attributable to normal operational fluctuations in current assets and current liabilities.

Cash Flows Provided by Financing Activities

Our financing activities consisted primarily of the sale of common stock, borrowings and repayments of debt, and contributed capital from related parties.

For the six months ended June 30, 2024, cash provided by financing activities was $50,000 consisting of $40,000 in proceeds from convertible notes payable, $5,000 in proceeds from the sale of common stock, and contributed capital by related parties of $5,000.

For the six months ended June 30, 2023, cash provided by financing activities was $76,961 consisting of $62,000 in proceeds from the sale of common stock, $9,378 in proceeds from short term loan offset by repayments of $3,949, repayments of related party debt of $950, and contributed capital by related parties of $10,482.

General

Historically, we have financed the Company through a combination of debt and equity transactions. To meet future capital requirements, we plan to raise additional capital through the sale of equity securities or through equity-linked or debt-financing arrangements, to the extent our operating cash flow is insufficient to fund our operations in future periods.

The sale of additional equity or debt securities may result in additional dilution to our shareholders. If we raise additional funds through the issuance of debt securities or preferred stock, these securities could have rights senior to those of our common stock and could contain covenants that would restrict our operations. Any such required additional capital may not be available on reasonable terms, if at all. If we were unable to obtain additional financing, we may be required to reduce the scope of, delay or eliminate some or all of our planned activities and limit our operations which could have a material adverse effect on our business, financial condition and results of operations.

TCG expects to raise funds through private investors and investment firms and is looking to secure a non-recourse loan for work capital and operating expenses. We intend to continue offering smaller investment opportunities. Long term, we plan to seek larger amounts of investment to expand our operations. TCG will also look to attain a non-recourse loan of $50,000.

There can be no assurances that we will be able to raise additional capital. The inability to raise capital would adversely affect our ability to achieve our business objectives. In addition, if our operating performance during the next 12 months is below our expectations, our liquidity and ability to operate our business could be adversely affected. We continue to monitor macro-economic factors such as inflationary pressures, continued Federal Reserve interest rate hikes and recessionary fears, as well as trends within our industry, all of which may affect our working capital requirements.

Inflation

The amounts presented in our consolidated financial statements do not provide for the effect of inflation on our operations or financial position. The net operating losses shown would be greater than reported if the effects of inflation were reflected either by charging operations with amounts that represent replacement costs or by using other inflation adjustments.

Table of Contents

Going Concern

The accompanying financial statements have been prepared on a going concern basis. For the six months ended June 30, 2024, the Company had a net loss of $1,158,956, net cash used in operating activities of $86,919, negative working capital of $94,164, an accumulated deficit of $1,602,210 and stockholders’ deficit of $237,825. These matters raise substantial doubt about the Company’s ability to continue as a going concern for a period of one year from the date of this filing. The Company’s ability to continue as a going concern is dependent upon its ability to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due, to fund possible future acquisitions, and to generate profitable operations in the future. Management plans to provide for the Company’s capital requirements by continuing to issue additional equity and debt securities. The outcome of these matters cannot be predicted at this time and there are no assurances that, if achieved, the Company will have sufficient funds to execute its business plan or generate positive operating results. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Off-Balance Sheet Arrangements

There are no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues, expenses, results of operations, liquidity, capital expenditures or capital resources.

Critical Accounting Policies and Estimates

This discussion and analysis of our financial condition and results of operations are based on our financial statements that have been prepared under accounting principle generally accepted in the United States of America. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

A summary of significant accounting policies is included in Note 2 to the consolidated financial statements included in this Registration Statement. Of these policies, we believe that the following items are the most critical in preparing our financial statements.

Consolidation Policy

TCG relied upon the guidance of ASC 250 Accounting Changes and Error Corrections (“ASC 250”) and ASC 805 Business Combinations (“ASC 805”) in accounting for and presenting acquisition of Atlanta CBD. 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.

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

TCG 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:

Table of Contents

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.
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.
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.
The price of the product is properly allocated to the sole performance of providing the product.
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 assets and liabilities, and the reported revenues and expenses.

Most Recent accounting pronouncements

Refer to Note 2 in the accompanying consolidated financial statements.

Impact of Most Recent Accounting Pronouncements

There were no recent accounting pronouncements that have had a material effect on the Company’s financial position or results of operations.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

Our disclosure controls and procedures are designed to ensure that information required to be disclosed in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC. Ms. Floretta Gogo, our Chief Executive Officer, and Mr. Xavier Carter, our Interim Chief Financial Officer, have reviewed the effectiveness of our “disclosure controls and procedures” (as defined in the Exchange Act Rules 13(a)-15(e) and 15(d)-15(e)) as of the end of the period covered by this Quarterly Report on Form 10-Q and have concluded that our disclosure controls and procedures are not effective to ensure that material information relating to the Company is recorded, processed, summarized, and reported in a timely manner.

Changes in Internal Controls over Financial Reporting

There have been no changes in the Company's internal control over financial reporting during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

Table of Contents

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

None.

Item 1A. Risk Factors

See the Company’s Registration Statement on Form S-1 (File No. 333-262710) for the Risk Factors applicable to the Company and its securities.

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

Item 6. Exhibits

Exhibit<br><br> <br>Number	Exhibit Description	Filed<br><br> <br>Herewith
3.1*	Articles of Incorporation
3.2*	Amended Articles of Incorporation
3.5*	Bylaws
4.1*	Specimen Stock Certificate
10.1*	Purchase Agreement with Atlanta CBD, Inc.
10.2*	Agreement with Liberty Management, LLC
10.3*	Atlanta CBD Operating Agreement
10.4*	Conflict of Interest Agreement
10.5**	Convertible Promissory Note – The Legacy Foundation
10.6***	Convertible Promissory Note – Ridolfo R. Brown
31.1	Certification of Principal Executive Officer pursuant to Rule 13a-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	X
31.2	Certification of Principal Financial Officer pursuant to Rule 13a-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	X
32.1	Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	X
101	Pursuant to Rules 405 and 406 of Regulation S-T, the following information is formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) the Unaudited Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023, (ii) the Unaudited Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2024 and 2023, (iii) the Unaudited Condensed Consolidated Statements of Stockholders’ Equity for the Three and Six Months Ended June 30, 2024 and 2023, (iv) the Unaudited Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2024 and 2023, (v) Notes to the Unaudited Condensed Consolidated Financial Statements, and (vi) the cover page.	X
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

* Incorporated by reference from the Company’s Registration Statement on Form S-1, as amended, filed on February 14, 2022, filed with the Securities and Exchange Commission.

** Incorporated by reference from the Company’s Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission on April 15, 2024.

*** Incorporated by reference from the Company’s Form 10-Q for the quarter ended March 31, 2024, filed with the Securities and Exchange Commission on May 15, 2024.

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	The Cannaisseur Group, Inc.
Dated: August 16, 2024	By:	/s/ Floretta Gogo
		Floretta Gogo, Chief Executive Officer<br><br> <br>(Principal Executive Officer)
Dated: August 16, 2024	By:	/s/ Xavier Carter
		Xavier Carter, Interim Chief Financial Officer<br><br> <br>(Principal Financial Officer)

ex_712640.htm

Exhibit 31.1

Certification of Chief Executive Officer pursuant

to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a)

I, Floretta Gogo, certify that:

I have reviewed this Quarterly Report for the period ended June 30, 2024 on Form 10-Q of The Cannaisseur Group, Inc.;
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
The registrant’s other certifying officer and I responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;
b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

The registrant’s other certifying officer and I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
August 16, 2024	By: /s/ Floretta Gogo
---	---
	Name: Floretta Gogo<br><br> <br>Title: Chief Executive Officer<br><br> <br>(Principal Executive Officer)

ex_712641.htm

Exhibit 31.2

Certification of Chief Financial Officer pursuant

to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a)

I, Xavier Carter, certify that:

I have reviewed this Quarterly Report for the period ended June 30, 2024 on Form 10-Q of The Cannaisseur Group, Inc.;
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
The registrant’s other certifying officer and I responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;
b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

The registrant’s other certifying officer and I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
August 16, 2024	By: /s/ Xavier Carter
---	---
	Name: Xavier Carter<br><br> <br>Title: Interim Chief Financial Officer<br><br> <br>(Principal Financial Officer)

ex_712642.htm

Exhibit 32.1

Certifications pursuant to Securities Exchange Act of 1934 Rule 13a-14(b) or 15d-14(b) and 18 U.S.C.

Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002

In connection with the Quarterly Report of The Cannaisseur Group, Inc.; (the “Company”) on Form 10-Q for the quarter ended June 30, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Floretta Gogo, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
---	---
August 16, 2024	By: /s/ Floretta Gogo
---	---
	Name: Floretta Gogo<br><br> <br>Title: Chief Executive Officer<br><br> <br>(Principal Executive Officer)

In connection with the Quarterly Report of The Cannaisseur Group, Inc. (the “Company”) on Form 10-Q for the quarter ended June 30, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Xavier Carter, Interim Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
---	---
August 16, 2024	By: /s/ Xavier Carter
---	---
	Name: Xavier Carter<br><br> <br>Title: Interim Chief Financial Officer<br><br> <br>(Principal Financial Officer)