Company: TGNT
Filing Date: 2025-05-19
Form Type: 10-Q/A
Source: 0001477932-25-003978
Chunk: 20

Company: Totaligent, Inc.
Filing Date: 2025-05-19
Form: 10-Q/A
Chunk 20
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 2025, the Company issued the remaining shares from the treasury in connection with the conversion of shares of Series D Preferred stock. The shares were valued at $, resulting in an offset between paid in capital in the amount of $ and retained earnings in the amount of $. The amount recorded in .

| F-16 |

9. Income taxes

The Company did not provide any current or deferred US federal income tax provision or benefit for the three months ending March 31, 2025 and December 31, 2024 as they incurred tax losses during both of these periods.

When it is more likely than not, that a tax asset cannot be realized through future income, the Company must record an allowance against any future potential future tax benefit. The Company has provided a full valuation allowance against the net deferred tax asset, consisting of net operating loss carry forwards, because management has determined that it is more likely than not that the Company will not earn income sufficient to realize the deferred tax assets during the carry forward periods.

The Company has not taken a tax position that, if challenged, would have a material effect on the consolidated financial statements for the three months ended March 31, 2025 and 2024 as defined under ASC 740, "Accounting for Income Taxes."

The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate to income before provision for income taxes.

The sources and tax effects of the differences for the periods presented are as follows:

|                                               |     | Three Months Ended | March 31, 2025 |    |     |     | March 31, 2024 |    |
|:----------------------------------------------|:----|:-------------------|---------------:|:---|:----|:----|---------------:|:---|
| U.S. statutory federal income tax rate        |     |                    |             21 | %  |     |     |             21 | %  |
| State income taxes, net of federal income tax |     |                    |              4 | %  |     |     |              4 | %  |
| Change in valuation allowance                 |     | (25                |                | %) |     | (25 |                | %) |
| Effective income tax rate                     |     |                    |              0 | %  |     |     |              0 | %  |

A reconciliation of the income taxes computed at the statutory rate is as follows:

|                                              |     | Three Months Ended | March 31,