DERIVATIVE LIABILITIES

3 Months Ended

Jun. 30, 2024

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 preferred shares instrument, 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 three months ended June 30, 2024 and 2023:

	Fiscal Year 2025			Fiscal Year 2024
	$			$
Derivative liabilities, beginning of period - March 31		1,435,668			759,065
New issuance [Note 9]		472,341			—
Change in fair value of derivatives during period – June 30		300,438			(79,827	)
Reduction due to preferred shares converted [Note 9]		(885,073	)		—
Derivative liabilities, end of period		1,323,374			679,238

The lattice methodology was used to value the derivative components of Series A Preferred Stock, using the following assumptions during the three months ended June 30, 2024 and 2023:

	June 30, 2024		June 30, 2023
Dividend yield (%)		12		12
Risk-free rate for term (%)		5 - 5.1		4.7 – 13.7
Volatility (%)		91.2 - 118.3		71.9 – 119.1
Remaining terms (Years)		0.92 - 1.59		0.25 – 2.01
Stock price ($ per share)		0.9 - 1.14		0.98 – 3.82

The Monte Carlo simulation methodology was used to value the derivative components of Series B Preferred Stock, using the following assumptions during the three months ended June 30, 2024:

	June 30, 2024
Dividend yield (%)		12
Risk-free rate for term (%)		4.7 - 5.1
Volatility (%)		154.9 - 182.2
Remaining terms (Years)		1.22 - 2
Stock price ($ per share)		0.9 - 1.34

BIOTRICITY INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2024 (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 three months ended June 30, 2024 and 2023:

	Fiscal Year 2025			Fiscal Year 2024
	$			$
Balance beginning of period – March 31		991,866			1,008,216
New Issuance		—			1,014,703
Conversion to common shares		(475,616	)		—
Change in fair value of derivative liabilities		6,416			(21,625	)
Convertible note redemption		(6,559	)		(16,513	)
Balance end of period – June 30		516,107			1,984,781

The Monte-Carlo methodology was used to value the convertible note and warrant derivative components during the three months ended June 30, 2024 and 2023, using the following assumptions:

	June 30, 2024	June 30, 2023
Risk-free rate for term (%)	5 - 5.2	4.2 - 5
Volatility (%)	91.2 - 120.5	93.8 - 126.6
Remaining terms (Years)	0.25 - 0.44	0.5 - 1.49
Stock price ($ per share)	0.9 - 1.45	0.46 - 0.7