Totaligent, Inc. Quarterly Report Released - Here’s What You Should Know

Totaligent, Inc.
Quarterly Report for the period ended June 30, 2025

Key Financial Metrics:

• Revenues: $0 for both three and six months ended June 30, 2025 (compared to $73,610 for three months, $414,539 for six months ended June 30, 2024).
• Cost of Revenue: $0 for 2025 periods (compared to $37,532 for three months, $334,610 for six months ended June 30, 2024).
• Gross Profit: $0 for 2025 periods (compared to $36,078 and $79,929 in the three and six months ended June 30, 2024, respectively).
• Operating Expenses: Decreased to $104,505 for three months and $182,528 for six months ended June 30, 2025 (from $141,938 and $353,237 for the same periods in 2024).
• Net Operating Loss: $104,505 for three months and $182,528 for six months ended June 30, 2025.
• Other Income (Expense): $49,733 income (three months) and ($37,722) expense (six months) in 2025; compared to ($17,942) expense and $9,016 income in same periods of 2024.
• Net Loss to Common Shareholders: $54,772 (three months) and $373,472 (six months) in 2025; compared to $123,802 and $264,292 in 2024.
• Loss per Share: $(0.00) for all periods.
• Weighted Shares Outstanding: 211,101,313 for all periods.
• Cash and Cash Equivalents: $62,626 as of June 30, 2025 (up from $22,128 at December 31, 2024).
• Total Assets: $245,070 (as of June 30, 2025).
• Total Liabilities: $2,202,572.
• Stockholders’ Deficit: $(1,957,502).
• Convertible Notes Payable: $911,335 (current liability; up from $681,335 at December 31, 2024).
• Accumulated Deficit: $(2,180,835).

Cash Flow:

• Net cash used in operating activities: $174,268 for the six months ended June 30, 2025 (compared to $104,403 in 2024).
• Net cash used in investing activities: $15,234 (2025) vs. $41,700 (2024).
• Net cash provided by financing activities: $230,000 (2025) vs. $0 (2024).

Risks:

• Going Concern: The company has negative working capital ($2,138,934 deficit) and has sustained operating losses since inception. Management concluded there is substantial doubt about the company’s ability to continue as a going concern absent additional capital raises or revenue growth.
• Dependence on Additional Capital: Operations are currently funded mainly by private investments and issuance of convertible notes. Without future capital infusions, the company could be forced to curtail operations or cease entirely.
• Revenue Uncertainty: There were no revenues in the first six months of 2025, compared to substantial revenue in prior year periods, raising concerns about the company’s ability to generate future sales.
• Increasing Debt: Convertible notes payable have increased by $230,000 since year-end 2024 and include significant derivative liability ($146,543 as of June 30, 2025).
• Continued Operating Losses: The company anticipates ongoing losses in the near term, per management’s discussion.
• Concentrated Control and Ownership: No off-balance sheet arrangements, but note significant convertible securities and derivative holdings which could impact ownership structure in future.

Management Discussion and Analysis:

• Platform Development: The company continued developing and updating its person-based digital marketing platform but generated no revenue in the latest quarter or six-month period. Platform capabilities include programmatic ad buying, email/SMS/push marketing, unique data management and audience targeting.
• Cost Reductions: Operating expenses were materially lower in 2025 compared to 2024 due to reduced consulting, personnel, and admin/general expenses (e.g., $182,528 for the first half of 2025 vs. $353,237 in 2024).
• Cash Situation: Cash increased due to proceeds from new convertible notes, but operational funding is not sufficient to support growth or sustain current activities without raising further capital.
• Financial Leverage: The company’s liabilities surpass its assets by approximately $1.96 million; convertible notes form a significant portion of current liabilities, often with default risks (see table of various notes in default and derivative features).
• No Legal Proceedings: As of the reporting date, there were no pending or threatened legal proceedings.
• No Off-Balance Sheet Arrangements or New Material Contracts.

Summary for Investors:

Totaligent, Inc. is currently pre-revenue with declining operating expenses but expanding financial risk. The company’s ability to continue depends on its capacity to raise additional capital and eventually restore revenue generation from its digital marketing platform. Balance sheet risk is pronounced, with a growing stockholders’ deficit and increasing convertible debt, some of which is already in default. The lack of revenue in 2025 to date highlights a fundamental risk to the business model's viability. Investors should closely monitor fundraising developments and any updates on new client contracts or platform monetization.

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