Company: TGNT
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001477932-25-002496
Chunk: 221

Company: Totaligent, Inc.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 1C
Chunk 221
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 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 adoption.

The cost of goods sold for the years ended December 31, 2024 and 2023 were $401,461 and $481,335, respectively. 

The Company’s cost of goods sold primarily consists of outsourced service fees tied to the execution of managed marketing campaigns on behalf of clients, including contractor costs, digital ad spend, and third-party software tools.

In 2024, as the Company scaled back these client-facing services to prioritize its internal platform development:

 ·There was a natural decrease in outsourced execution activities, leading to a 17% reduction in COGS. ·The decrease in COGS was proportionate to the drop in campaign volume, indicating that these costs are variable in nature and scale with service delivery.

Operating expenses increased from $604,302 in 2023 to $927,749 in 2024, largely due to higher professional fees associated with compliance reporting requirements, which were necessitated by the Company's expanded operations from managed campaigns. Other income (expenses) also saw a shift, increasing from ($48,212) in 2023 to ($62,555) in 2024. This change was primarily due to an