Company: TGNT
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001477932-25-005790
Chunk: 92

Company: Totaligent, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 92
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 liabilities and linked common shares as of June 30, 2025 and December 31, 2024 and the amounts that were reflected in income related to derivatives for the period ended:   June 30, 2025 The financings giving rise to derivative financial instruments Indexed Shares  Fair Values Embedded derivatives  12,249,668  $146,543 Total  12,249,668  $146,543    December 31, 2024 The financings giving rise to derivative financial instruments Indexed Shares  Fair Values Embedded derivatives  35,592,281  $158,055 Total  35,592,281  $158,055 

 F-15Table of Contents

The following table summarizes the effects on the Company’s gain (loss) associated with changes in the fair values of the derivative financial instruments by type of financing for the three and six months ended June 30, 2025 and 2024:   For the three months ended   June 30, 2025  June 30, 2024 Embedded derivatives $66,848  $(5,845)Loss on issuance of derivative  -   - Total gain (loss) $66,848  $(5,845)   For the six months ended   June 30, 2025  June 30, 2024 Embedded derivatives $11,512  $38,062 Loss on issuance of derivative  -   - Total gain (loss) $11,512  $38,062  Current accounting principles that are provided in ASC 815 require derivative financial instruments to be classified in liabilities and carried at fair value with changes recorded in income. The Company has selected the Monte Carlo Simulation Model, which approximates the Monte Carlo Simulations, valuation technique to fair value the embedded derivative because it believes that this technique is reflective of all significant assumption types, and ranges of assumption inputs, that market participants would likely consider in transactions involving embedded derivatives. Such assumptions include, among other inputs, interest risk assumptions, credit risk assumptions and redemption behaviors in addition to traditional inputs for option models such as market trading volatility and risk-free rates. The Binomial Lattice Model technique is a level three valuation technique because it requires the development of significant internal assumptions in addition to observable market indicators. For instruments in which the time to expiration