DERIVATIVE LIABILITIES

3 Months Ended

Jun. 30, 2025

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, 2025 and 2024:

	Fiscal Year 2026		Fiscal Year 2025
	$		$
Derivative liabilities, beginning of period - March 31		1,478,717		1,435,668
New issuance [Note 9]		-		472,341
Change in fair value of derivatives during period – June 30		2,805		300,438
Reduction due to preferred shares converted [Note 9]				(885,073	)
Derivative liabilities, end of period		1,481,522		1,323,374

BIOTRICITY INC.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

JUNE 30, 2025 (Unaudited)

(Expressed in US dollars)

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, 2025 and 2024:

	June 30, 2025		June 30, 2024
Dividend yield (%)		12		12
Risk-free rate for term (%)		4.1 - 4.3		5 - 5.1
Volatility (%)		116.9 - 194.2		91.2 - 118.3
Remaining terms (Years)		0.17 - 1.25		0.92 - 1.59
Stock price ($ per share)		0.24 - 0.37		0.9 - 1.14

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, 2025:

	June 30, 2025		June 30, 2024
Dividend yield (%)		12		12
Risk-free rate for term (%)		3.7 - 4.8		4.7 – 5.1
Volatility (%)		121.7 - 185.8		154.9-182.2
Remaining terms (Years)		0.22 - 2		1.22-2
Stock price ($ per share)		0.24 - 0.9		0.9-1.34

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, 2025 and 2024:

	Fiscal Year 2026			Fiscal Year 2025
	$			$
Balance beginning of period – March 31		516,107			991,866
Conversion to common shares		-			(475,616	)
Change in fair value of derivative liabilities		22,395			6,416
Convertible note redemption		(8,433	)		(6,559	)
Balance end of period – June 30		438,162			516,107

The Monte-Carlo methodology was used to value the convertible note and warrant derivative components during the three months ended June 30, 2025 and 2024, using the following assumptions:

	June 30, 2025		June 30, 2024
Risk-free rate for term (%)		0.1 - 5		5 - 5.2
Volatility (%)		107.6 - 352.4		91.2 - 120.5
Remaining terms (Years)		0.25 - 0.5		0.25 - 0.44
Stock price ($ per share)		0.24 - 0.8		0.9 - 1.45

BIOTRICITY INC.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

JUNE 30, 2025 (Unaudited)

(Expressed in US dollars)