DERIVATIVE LIABILITIES

9 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE LIABILITIES

8. DERIVATIVE LIABILITIES

The Company analyzed the compound features of variable conversion and redemption embedded in the series A and series B preferred shares instruments, for potential derivative accounting treatment on the basis of ASC 820 (Fair Value in Financial Instruments), ASC 815 (Accounting for Derivative Instruments and Hedging Activities), Emerging Issues Task Force (“EITF”) Issue No. 00–19 and EITF 07–05, and determined that the embedded derivatives should be bundled and valued as a single, compound embedded derivative, bifurcated from the underlying equity instrument, treated as a derivative liability, and measured at fair value. A roll-forward of activity is presented below for the nine months ended December 31, 2023 and 2022:

	2023			2022
	$			$
Derivative liabilities, beginning of period		759,065			352,402
Derivative liabilities recognized pursuant to issuance of Series B preferred shares (Note 9)		642,417			—
Change in fair value of derivatives during period		(142,830	)		442,309
Reduction due to preferred shares converted		(119,359	)		(53,036	)
Derivative liabilities, end of period		1,139,293			741,675

The lattice methodology was used to value the derivative components, using the following assumptions during the nine months ended December 31, 2023 and 2022:

	2023		2022
Dividend yield (%)		12		12
Risk-free rate for term (%)		4.7 – 13.7		2.1 – 4.4
Volatility (%)		71.9 – 119.1		85.4 – 102
Remaining terms (Years)		0.25 – 2.01		1 – 3.01
Stock price ($ per share)		0.64 – 3.82		0.45 – 10.62

BIOTRICITY INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2023 (Unaudited)

(Expressed in US dollars)

In addition, the Company recorded derivative liabilities related to the conversion and redemption features of the convertible notes, as well as warrants that were issued in connection with the convertible notes (Note 5). Any noteholder and placement agent warrants that were issued after the finalization of exercise price was accounted for as equity. A roll-forward of activity is presented below for the nine months ended December 31, 2023 and 2022:

	2023			2022
	$			$
Balance beginning of period – March 31		1,008,216			520,747
New Issuance		1,224,933			—
Conversion to common shares		(39,089	)		(192,794	)
Change in fair value of derivative liabilities		386,845			27,662
End of derivative treatment		(1,652,572	)		(17,979	)
Convertible note modification		—			(53,402	)
Balance end of period – December 31		928,333			351,719

The Monte-Carlo methodology was used to value the convertible note and warrant derivative components during the six months ended December 31, 2023 and 2022, using the following assumptions:

	2023	2022
Risk-free rate for term (%)	4.2 – 5.3	4.4 – 4.4
Volatility (%)	76.2 – 126.6	94 – 102
Remaining terms (Years)	0.25 – 1.49	1 – 1
Stock price ($ per share)	0.46 – 3.04	0.45 – 0.45