Company: TGNT
Filing Date: 2025-05-16
Form Type: 10-Q
Source: 0001477932-25-003912
Chunk: 33

Company: Totaligent, Inc.
Filing Date: 2025-05-16
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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25,000   25,000  19  ** 12/9/2024  25,000  6/9/2025  6   25,000   25,000  20   ** 12/18/2024  18,505  6/18/2025  6   18,505   18,505  21   ** 2/18/2025  30,000  8/18/2025  6   30,000   -  22   ** 3/28/2025  100,000  8/18/2025  6   100,000   -  23   ** 3/31/2025  100,000  8/18/2025  6   100,000   -       Total           $911,335  $681,335  *The conversion price is the average closing bid price for the 10 trading days prior to the conversion date multiplied by 80%, not to exceed $0.01.**The conversion price is fixed at $0.01 per share.*** In default as of March 31, 2025.

 F-13Table of Contents

Accounting considerations for notes with variable conversion prices  The Company evaluated the notes under ASC 815 Derivatives and Hedging (“ASC 815”). ASC 815 generally requires the analysis of embedded terms and features that have characteristics of derivatives to be evaluated for bifurcation and separate accounting in instances where their economic risks and characteristics are not clearly and closely related to the risks of the host contract. The material embedded derivative features consisted of the embedded conversion option. The conversion option bears risk of equity which were not clearly and closely related to the host debt agreement and required bifurcation. Current accounting principles that are also provided in ASC 815 do not permit an issuer to account separately for individual derivative terms and features that require bifurcation and liability classification.  Rather, such terms and features must be and were bundled together and fair valued as a single, compound embedded derivative. Accounting considerations for notes with fixed conversion prices  The Company evaluated the notes under ASC 815. ASC 815 generally requires the analysis of embedded terms and features that have characteristics of derivatives to be evaluated for bifurcation and separate accounting in instances