DERIVATIVE LIABILITIES

9 Months Ended

Dec. 31, 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 nine months ended December 31, 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]		649,533			642,417
Change in fair value of derivatives during period		487,272			(142,830	)
Reduction due to preferred shares converted [Note 9]		(1,065,202	)		(119,359	)
Derivative liabilities, end of period		1,507,271			1,139,293

The lattice methodology was used to value the derivative components of Series A Preferred Stock, using the following assumptions during the nine months ended December 31, 2024, and 2023:

	December 31, 2024		December 31, 2023
Dividend yield (%)		12		12
Risk-free rate for term (%)		4.1 – 5.1		4.7 – 5.2
Volatility (%)		91.2 – 194.2		71.9 – 111.4
Remaining terms (Years)		0.41 – 1.59		0.34 – 2.01
Stock price ($ per share)		0.24 – 1.14		1.15 – 3.82

BIOTRICITY INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 (Unaudited)

(Expressed in US dollars)

The Monte Carlo simulation methodology was used to value the derivative components of Series B Preferred Stock, using the following assumptions during the nine months ended December 31, 2024:

	December 31, 2024		December 31, 2023
Dividend yield (%)		12		12
Risk-free rate for term (%)		3.7 – 5.1		5.04 – 13.68
Volatility (%)		126.4 – 185.8		76.2 – 119.1
Remaining terms (Years)		0.72 – 2		0.25 – 1.97
Stock price ($ per share)		0.24 – 1.34		0.64 – 2.14

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, 2024, and 2023:

	Fiscal Year 2025			Fiscal Year 2024
	$			$
Balance beginning of period – March 31		991,866			1,008,216
New Issuance		—			1,224,933
Conversion to common shares		(490,972	)		(39,089	)
Change in fair value of derivative liabilities		(32,525	)		386,845
End of derivative treatment		—			(1,652,572	)
Convertible note redemption		(8,320	)		-
Balance end of period – December 31		460,059			928,333

The Monte-Carlo methodology was used to value the convertible note and warrant derivative components during the nine months ended December 31, 2024, and 2023, using the following assumptions:

	December 31, 2024	December 31, 2023
Risk-free rate for term (%)	4.1 – 5.2	4.2 - 5.3
Volatility (%)	91.2 – 352.4	76.2 - 126.6
Remaining terms (Years)	0.25 – 0.5	0.25 – 1.49
Stock price ($ per share)	0.24 – 1.45	0.46 - 3.04