In This Story
The Cannaisseur Group, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports a decrease in revenue to $285 for the three months ended September 30, 2024, compared to $17,238 for the same period in 2023. This decrease is attributed to the closure of the company's retail store.
Cost of revenue was $668 for the quarter, compared to $6,696 in the same quarter of the previous year. The decrease is primarily due to reduced sales.
The company reported a gross loss of $383 for the quarter, compared to a gross profit of $10,542 in the previous year, driven by a decrease in sales volume and write-offs of obsolete inventory.
Selling, general, and administrative expenses decreased to $20,953 from $65,019, primarily due to a reduction in rent and related fees.
Net loss for the quarter was $22,962, compared to $54,735 in the previous year. The increase in loss is attributed to a rise in interest expense.
Cash used in operating activities was $98,158 for the nine months ended September 30, 2024, compared to $93,247 in the previous year.
The company had total liabilities of $221,570 as of September 30, 2024, compared to $136,687 as of December 31, 2023. The increase is mainly due to an increase in accounts payable and long-term notes payable.
The filing indicates that the company is restructuring its website to focus on online sales and may reopen physical stores if advantageous.
The company acknowledges substantial doubt about its ability to continue as a going concern, citing a cumulative net loss of $1,624,543 and a working capital deficit of $106,986.
The filing details various financial agreements, including convertible notes payable to related parties and a settlement agreement related to a lease termination.
The company plans to raise additional capital through the sale of equity securities or debt-financing arrangements to meet future capital requirements.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the TCRG quarterly 10-Q report dated November 19, 2024. To report an error, please email earnings@qz.com.