Cannaisseur Group's Losses Mount Amid Zero Revenue Quarter

TL;DR

**TCRG is a zombie stock with no revenue and mounting losses; avoid at all costs.**

AI Summary

Cannaisseur Group Inc. (TCRG) reported a significant deterioration in its financial performance for the nine months ended September 30, 2025. The company generated no revenue, a sharp decline from $700 in the same period of 2024. Net loss attributable to TCRG widened substantially to $1,672,482, compared to a net loss of $1,179,005 in the prior year, representing a 41.8% increase in losses. Operating expenses surged to $1,614,324 from $1,174,730, primarily driven by a massive increase in selling, general and administrative expenses. Cash on hand plummeted to $143 as of September 30, 2025, from $563 at December 31, 2024. The company's working capital deficit expanded to $128,441, and it continues to operate with a cumulative net loss since inception of $3,387,458, raising substantial doubt about its ability to continue as a going concern. Strategic outlook involves potential reopening of physical stores, but current operations are online-only.

Why It Matters

This filing paints a dire picture for Cannaisseur Group Inc., indicating a company struggling to generate any revenue while its losses accelerate. For investors, the 'going concern' warning and near-zero cash balance signal extreme financial instability and a high risk of total capital loss. Employees face job insecurity as the company's viability is in question. Customers might experience service disruptions or product unavailability if the company cannot sustain operations. In the broader market, this highlights the challenges faced by small, unproven players in the competitive cannabis-related product space, especially those without a clear path to profitability or significant market differentiation.

Risk Assessment

Risk Level: high — The company reported zero revenue for the nine months ended September 30, 2025, a significant drop from $700 in the prior year. Its cash balance is critically low at $143, and it has a cumulative net loss of $3,387,458 since inception, alongside a working capital deficit of $128,441. These factors explicitly lead management to conclude there is 'substantial doubt about the Company's ability to continue as a going concern'.

Analyst Insight

Investors should immediately divest any holdings in TCRG. The company's inability to generate revenue, coupled with escalating losses and a 'going concern' warning, indicates a high probability of bankruptcy or further dilution. This stock is highly speculative and presents an unacceptable risk profile.

Financial Highlights

debt To Equity

N/A

revenue

$0

operating Margin

N/A

total Assets

$453

total Debt

$153,861

net Income

$(1,672,482)

eps

N/A

gross Margin

N/A

cash Position

$143

revenue Growth

-100.0%

Key Numbers

• $0 — Revenue, net of discounts (for the nine months ended September 30, 2025, down from $700 in 2024)
• $(1,672,482) — Net loss attributable to TCGI (for the nine months ended September 30, 2025, widened from $(1,179,005) in 2024)
• $1,614,324 — Total operating expenses (for the nine months ended September 30, 2025, up from $1,174,730 in 2024)
• $143 — Cash (as of September 30, 2025, down from $563 at December 31, 2024)
• $(128,441) — Working capital deficit (as of September 30, 2025, indicating current liabilities exceed current assets)
• $(3,387,458) — Cumulative net loss since inception (as of September 30, 2025, highlighting persistent unprofitability)
• 60,459,890 — Common Stock Shares Outstanding (as of November 11, 2025, increased from 44,337,557 at December 31, 2024)

Key Players & Entities

• Cannaisseur Group Inc. (company) — registrant
• Atlanta CBD, Inc. (company) — majority owned subsidiary
• Floretta Gogo (person) — CEO of both companies and majority owner of Atlanta CBD
• Xavier Carter (person) — COO of both companies and majority owner of Atlanta CBD
• U.S. Securities and Exchange Commission (regulator) — filing oversight
• State of Delaware (regulator) — incorporation jurisdiction
• State of Georgia (regulator) — subsidiary incorporation and tax jurisdiction

FAQ

Risk Factors

• Severe Cash Shortage and Going Concern Doubt [high — financial]: The company's cash position has drastically reduced to $143 as of September 30, 2025, down from $563 at December 31, 2024. This, coupled with a substantial working capital deficit of $128,441 and a cumulative net loss of $3,387,458, raises significant doubt about Cannaisseur Group Inc.'s ability to continue as a going concern.
• Deteriorating Revenue and Widening Net Loss [high — financial]: For the nine months ended September 30, 2025, revenue was $0, a complete drop from $700 in the prior year. Concurrently, the net loss attributable to TCGI widened by 41.8% to $1,672,482 from $1,179,005 in the same period of 2024.
• Surge in Operating Expenses [high — operational]: Total operating expenses increased significantly to $1,614,324 for the nine months ended September 30, 2025, up from $1,174,730 in the prior year. This surge is primarily driven by a massive increase in selling, general, and administrative expenses.
• Increased Share Count Dilution [medium — financial]: The number of common stock shares outstanding has increased from 44,337,557 at December 31, 2024, to 60,459,890 as of November 11, 2025. This represents a substantial dilution for existing shareholders.
• Uncertainty of Physical Store Reopening [medium — operational]: While the strategic outlook mentions potential reopening of physical stores, current operations are online-only. The success and timing of any physical store reopenings are uncertain and could require significant capital investment.

Industry Context

The cannabis industry, while experiencing growth in certain markets, remains highly regulated and competitive. Companies often face challenges related to capital access, evolving legal frameworks, and intense competition. Cannaisseur Group Inc.'s current financial state suggests it is struggling to navigate these industry-specific headwinds effectively.

Regulatory Implications

As a company operating in the cannabis sector, Cannaisseur Group Inc. is subject to complex and varying regulations across different jurisdictions. Changes in these regulations, or failure to comply, could significantly impact operations and financial performance. The current financial distress may also limit the company's ability to invest in compliance measures.

What Investors Should Do

1. Monitor cash burn rate closely.
2. Evaluate the feasibility of strategic initiatives.
3. Assess the impact of share dilution.
4. Consider the going concern warning.

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 financial results reported — Indicates zero revenue, a substantial increase in net loss to $1,672,482, and a drastic reduction in cash to $143, raising going concern issues.
• 2025-12-31: Year-end 2024 financial position reported — Showed $563 in cash and a cumulative net loss of $1,714,976 (before the nine-month period's losses), providing a baseline for the current deterioration.
• 2024-09-30: Nine months ended September 30, 2024 financial results reported — Reported $700 in revenue and a net loss of $1,179,005, highlighting the significant decline in performance in the current period.

Glossary

Going Concern

An accounting assumption that a business will continue to operate for the foreseeable future. If there is substantial doubt about this, it must be disclosed. (The company's severe financial distress, including minimal cash and significant losses, has led to substantial doubt about its ability to continue as a going concern.)

Working Capital Deficit

Occurs when a company's current liabilities exceed its current assets, indicating potential short-term liquidity problems. (Cannaisseur Group Inc. has a working capital deficit of $128,441 as of September 30, 2025, signaling an inability to meet its short-term obligations.)

Cumulative Net Loss

The total accumulated losses of a company from its inception to a specific date. (The company has a cumulative net loss of $3,387,458, demonstrating a history of unprofitability that impacts its financial stability.)

Selling, General and Administrative Expenses (SG&A)

Costs incurred by a company in the process of selling products or services, and for the general management of the business. (A significant increase in SG&A expenses is the primary driver of the surge in total operating expenses, contributing to the widening net loss.)

Additional Paid in Capital

The amount of capital a company has received from investors in exchange for stock, above the stock's par value. (This account has increased substantially from $1,476,904 to $3,370,194, likely due to equity issuances, which may be an attempt to raise capital amidst financial difficulties.)

Year-Over-Year Comparison

Cannaisseur Group Inc. has experienced a dramatic financial downturn compared to the prior year. Revenue has fallen to $0 from $700 for the nine-month period, while net losses have widened by 41.8% to $1,672,482. Operating expenses have surged, primarily due to increased SG&A, and cash reserves have dwindled to a critical $143. The company's financial position has deteriorated significantly, marked by an expanded working capital deficit and a heightened risk of not being able to continue as a going concern.

Key Financial Figures

• $0.0001 — mber 11, 2025: Common Stock, par value $0.0001 60,459,890 The Cannaisseur Group, Inc

Filing Documents

• tcrg10q093025.htm (10-Q) — 624KB
• tcrgex10-8.htm (EX-10.8) — 6KB
• tcrgex10-9.htm (EX-10.9) — 13KB
• tcrgex31-1.htm (EX-31.1) — 8KB
• tcrgex31-2.htm (EX-31.2) — 8KB
• tcrgex32-1.htm (EX-32.1) — 5KB
• 0001185185-25-001785.txt ( ) — 4535KB
• tcrg-20250930.xsd (EX-101.SCH) — 39KB
• tcrg-20250930_cal.xml (EX-101.CAL) — 33KB
• tcrg-20250930_def.xml (EX-101.DEF) — 212KB
• tcrg-20250930_lab.xml (EX-101.LAB) — 321KB
• tcrg-20250930_pre.xml (EX-101.PRE) — 227KB
• tcrg10q093025_htm.xml (XML) — 457KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 3 Item 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 18 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 23 Item 4

Controls And Procedures

Controls And Procedures 23 PART II Other Information Item 1

Legal Proceedings

Legal Proceedings 24 Item 1A

Risk Factors

Risk Factors 24 Item 2 Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 24 Item 3 Defaults Upon Senior Securities 24 Item 4 Mine Safety Disclosures 24 Item 5 Other Information 24 Item 6 Exhibits 24

Signatures

Signatures 25 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements The Cannaisseur Group, Inc. Condensed Consolidated Balance Sheets September 30, December 31, 2025 2024 ASSETS Current Assets: Cash $ 143 $ 563 Accounts receivable — 285 Inventory 310 1,028 Total current assets 453 1,876 TOTAL ASSETS $ 453 $ 1,876 LIABILITIES AND STOCKHOLDERS' DEFICIT Current Liabilities: Accounts payable and accrued expenses 110,592 169,807 Settlement payable 9,501 9,501 Short-term loan payable - related party — 1,500 Notes payable, current portion 7,193 6,697 Convertible notes payable - related party, current portion — 40,000 Dividends payable 1,608 1,608 Total current liabilities 128,894 229,113 Long term notes payable, non current portion 24,967 25,463 Convertible notes payable - related party, non current portion — 51,000 Total long term liabilities 24,967 76,463 TOTAL LIABILITIES 153,861 305,576 Mezzanine Equity — 37,875 Stockholders' Equity (Deficit) Common stock, $ 0.0001 par value, 500,000,000 shares authorized, 60,459,890 and 44,337,557 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively 6,046 4,433 Additional paid in capital 3,370,194 1,476,904 Accumulated deficit ( 3,387,458 ) ( 1,714,976 ) Minority interest ( 142,190 ) ( 107,936 ) Total Stockholders' Deficit ( 153,408 ) ( 341,575 ) TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 453 $ 1,876 The accompanying notes are an integral part of these financial statements. 3 Table of Contents The Cannaisseur Group, Inc. Condensed Consolidated Statements of Operations (unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 Revenue, net of discounts $ — $ 285 $ — $ 700 Cost of revenue 272 668 718 3,162 Gross profit ( 272 ) ( 383 ) ( 718 ) ( 2,462 ) Operating Expenses Selling, general and administrative expenses 690,209 20,953 1,614,324 1

View Full Filing

View this 10-Q filing on SEC EDGAR