Company: TGNT
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001477932-25-002496
Chunk: 36

Company: Totaligent, Inc.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 1
Chunk 36
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119,655 Personnel expenses  378,000   378,000 General and administrative  196,844   106,647 Total operating expenses  927,749   604,302          Net operating loss  (884,681 )  (353,958 )         Other income (expense)        Interest expense  (47,215 )  (35,122 )Amortization of debt discount  (6,467 )  (19,908 )Loss on settlement of debt  -   (11,765 )(Loss) gain on change in fair value of derivative liability  (8,873 )  38,759 Loss on sale of property and equipment  -   (20,176 )Total other income (expense)  (62,555 )  (48,212 )         Loss before income taxes  (947,236 )  (402,170 )         Provision for income tax  -   -          Net loss $(947,236 ) $(402,170 )         Loss per share - basic and diluted $(0.00 ) $(0.00 )         Weighted average shares outstanding - basic and diluted  211,101,313   141,192,451 

 30Table of Contents

For the years ended December 31, 2024 and 2023, the Company generated total revenues of $444,529 and $731,679, respectively, and gross profits of $43,068 and $250,344, respectively. This decrease in revenues and profitability in 2024 was primarily driven by the allocating more internal resources and capital to finalize the development and deployment of its proprietary platform. This strategic shift temporarily reduced the Company’s ability to focus on revenue-generating client work, such as managed marketing campaigns and related services, which had previously been the main contributors to topline revenue in 2023.

As a result of this internal pivot:

 ·Revenue decreased by approximately 39% year-over-year. ·Gross profit fell more sharply (approximately 83%), reflecting the lower revenue base and fixed or semi-fixed costs associated with maintaining infrastructure and personnel.

This drop in gross margin percentage (from ~34% in 2023 to ~10% in 2024) also reflects the upfront investment nature of product development, where expenses continue but revenue generation lags until launch and