Company: TGNT
Filing Date: 2025-11-17
Form Type: 10-Q
Source: 0001477932-25-008363
Chunk: 131

Company: Totaligent, Inc.
Filing Date: 2025-11-17
Form: 10-Q
Item: Part II, Item 8
Chunk 131
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 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 31,2024  September 30,2025 Quoted market price on valuation date $ 0.027 - 0.045   $0.0152  $0.032 Effective contractual conversion rates $0.0204 – 0.0366   $0.01296  $0.024 Contractual term to maturity 0.5 Years  0.25 Years  0.25 Years Market volatility:           Volatility 200.36%-332.78% 86.07%-169.31% 102.35%-153.35% Risk-adjusted interest rate  10%  10%  10%

 F-16Table of Contents

 The following table reflects the issuances of embedded derivatives and changes in fair value inputs and assumptions related to the embedded derivatives as of September 30, 2025 and December 31, 2024:   Nine MonthsEnded   Year Ended    September 30,2025  December 31,2024 Balances at beginning of period $158,055  $149,182 Issuances:        Embedded derivatives  -   - Conversions/extinguishments        Changes in fair value inputs and assumptions reflected in income  63,534   8,873 Balances at end of period $221,589  $158,055 

8. Commitments and contingencies Legal contingencies  The Company may be subject to legal proceedings from time to time as part of its business activities. As of September 30, 2025, the Company was not subject to any threatened or pending legal actions or claims. Significant agreements and contracts On September 8, 2025, the Company entered into