Company: TGNT
Filing Date: 2025-05-19
Form Type: 10-Q/A
Source: 0001477932-25-003978
Chunk: 15

Company: Totaligent, Inc.
Filing Date: 2025-05-19
Form: 10-Q/A
Chunk 15
---
 |    25,000 |     |      |       25,000 |
|     |      20 |     | **     |     | 12/18/2024 |              |         |             18,505 |     | 6/18/2025     |     |        |        6 |     |                         |    18,505 |     |      |       18,505 |
|     |      21 |     | **     |     | 2/18/2025  |              |         |             30,000 |     | 8/18/2025     |     |        |        6 |     |                         |    30,000 |     |      |            - |
|     |      22 |     | **     |     | 3/28/2025  |              |         |            100,000 |     | 8/18/2025     |     |        |        6 |     |                         |   100,000 |     |      |            - |
|     |      23 |     | **     |     | 3/31/2025  |              |         |            100,000 |     | 8/18/2025     |     |        |        6 |     |                         |   100,000 |     |      |            - |
|     |         |     |        |     | Total      |              |         |                    |     |               |     |        |          |     | $                       |   911,335 |     | $    |      681,335 |

*.

**The conversion price is fixed at $ per share.

*** In default as of March 31, 2025.

| F-13 |

Accounting considerations for notes with variable conversion prices

The Company evaluated the notes under ASC 815 Derivatives and Hedging (“ASC 815”). ASC 815 generally requires the analysis of embedded terms and features that have characteristics of derivatives to be evaluated for bifurcation and separate accounting in instances where their economic risks and characteristics are not clearly and closely related to the risks of the host contract. The material embedded derivative features consisted of the embedded conversion option. The conversion option bears risk of equity which were not clearly and closely related to the host debt agreement and required bifurcation. Current accounting principles that are also provided in ASC 815 do not permit an issuer to account