Company: TGNT
Filing Date: 2025-04-30
Form Type: S-1
Source: 0001477932-25-003124
Chunk: 99

Company: Totaligent, Inc.
Filing Date: 2025-04-30
Form: S-1
Chunk 99
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 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 has expired, the Company has utilized the intrinsic value as the fair value. The intrinsic value is the difference between the quoted market price on the valuation date and the applicable conversion price.

Significant inputs and results arising from the Monte Carlo Simulation process are as follows for the embedded derivatives that have been bifurcated from the convertible notes and classified in liabilities:

|                                        |     |                | Inception Date |   |     |                | December 31, 2023 |   |     |                | December 31, 2024 |   |
|:---------------------------------------|:----|:---------------|---------------:|:--|:----|:---------------|------------------:|:--|:----|:---------------|------------------:|:--|
| Quoted market price on valuation date  |     | $              |          0.034 |   |     | $              |             0.012 |   |     | $              |             0.015 |   |
| Effective contractual conversion rates |     | $              |          0.026 |   |     | $              |             0.009 |   |     | $              |             0.012 |   |
| Contractual term to maturity           |     | 0.5 Years      |                |   |     | 0.25 Years     |                   |   |     | 0.25 Years     |                   |   |
| Market volatility:                     |     |                |                |   |     |                |                   |   |     |                |                   |   |
| Volatility                             |     | 200.36%-332.78 |                | % |     | 200.36%-332.78 |                   | % |     | 200.36%-332.78 |                   | % |
| Risk-adjusted interest rate            |     |                |             10 | % |     |                |                10 | % |     |                |                10 | % |

The following table reflects the issuances of embedded derivatives and changes in fair value inputs and