Company: TGNT
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001477932-25-005790
Chunk: 61

Company: Totaligent, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 61
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 gross profits of $0 and $36,078, respectively. The Company’s volume of sales decreased in the three months ended June 30, 2025 when compared to the three months ended June 30, 2024 primarily due to a decrease in managed campaign activity.

Cost of goods sold for the three months ended June 30, 2025 and 2024 were $0 and $37,532, respectively. Cost of goods sold consists primarily of costs associated with outsourcing certain campaign activities. The decrease in cost of goods sold for the three months ended June 30, 2025 when compared to the three months ended June 30, 2024 was primarily due to the corresponding decrease in revenues.

The Company’s operating expenses decreased from $141,938 for the three months ended June 30, 2024 to $104,505 for the three months ended June 30, 2025 due primarily to a decrease in personnel expenses due employment agreements expiring on December 31, 2024.

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Other income (expenses) went from ($17,942) in expense for the three months ended June 30, 2024 to $49,733 in income for the three months ended June 30, 2025. The primary reason for the difference is the Company recorded a gain on the change in fair value of derivative liability in the amount of $66,848 versus a loss on the change in fair value of derivative liability in the amount of $5,845 for the prior period.

As a result of decreased sales, we had a net loss of $54,772 for the three months ended June 30, 2025 compared to a net loss of $123,802 for the three months ended June 30, 2024. 

Liquidity and Capital Resources

Going Concern

We have had negative working capital and have sustained operating losses since inception. These factors, and the need for additional financing in order for the Company to meet its business plan raises substantial doubt about the Company’s ability to continue as a going concern. 

We anticipate that operating losses will continue in the near term. We intend to meet near-term obligations with private placement offerings. We currently have limited revenue, which is not sufficient to cover operational expenses.

Failure to raise adequate capital and generate adequate revenues could result in the Company having to curtail or cease operations. The Company’s ability to raise additional capital through the future issuances of the common stock is unknown. Additionally, even if the Company