Company: TGNT
Filing Date: 2025-11-17
Form Type: 10-Q
Source: 0001477932-25-008363
Chunk: 130

Company: Totaligent, Inc.
Filing Date: 2025-11-17
Form: 10-Q
Item: Part II, Item 8
Chunk 130
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 certain terms and conditions that were not clearly and closely related to the host debt agreement in terms of economic risks and characteristics. These terms and features consist of the embedded conversion option. The following tables summarize the components of the Company’s derivative liabilities and linked common shares as of September 30, 2025 and December 31, 2024 and the amounts that were reflected in income related to derivatives for the period ended:   September 30, 2025 The financings giving rise to derivative financial instruments Indexed Shares  Fair Values Embedded derivatives  20,313,173  $221,589 Total  20,313,173  $221,589    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 nine months ended September 30, 2025 and 2024:   For the nine months ended   September 30,2025  September 30,2024 Embedded derivatives $(63,534 ) $(67,004 )Loss on issuance of derivative  —   — Total gain (loss) $(63,534 ) $(67,004 )   For the three months ended   September 30,2025  September 30,2024 Embedded derivatives $(75,046 ) $(105,066 )Loss on issuance of derivative  —   — Total gain (loss) $(75,046 ) $(105,066 ) 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