v3.25.2
DERIVATIVE LIABILITIES
 12 Months Ended
Mar. 31, 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 year ended March 31, 2025 and 2024:

 

  

Fiscal Year 2025

$

  

Fiscal Year 2024

$

 
Derivative liabilities, beginning of year   1,435,668    759,065 
New issuance [Note 9]   649,533    964,446 
Change in fair value of derivatives during the year   553,208    (92,961)
Reduction due to preferred shares redeemed [Note 9]   (1,159,692)   (194,882)
Derivative liabilities, end of year   1,478,717    1,435,668 

 

 

BIOTRICITY INC.

Notes to Consolidated Financial Statements

Years ended March 31, 2025 and 2024

(Expressed in US Dollars)

 

The lattice methodology was used to value the derivative components, using the following assumptions:

  

   Fiscal Year   Fiscal Year 
   2025   2024 
Dividend yield (%)   12    12 
Risk-free rate for term (%)   3.7 – 5.1     4.7 – 13.7  
Volatility (%)   91.2 – 194.2     71.9 – 119.1  
Remaining terms (Years)   0.17 – 2.0    0.25 – 2.01  
Stock price ($ per share)   0.24 – 1.34     0.98 – 3.82  

 

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.

 

  

Fiscal Year 2025

$

  

Fiscal Year 2024

$

 
         
Balance beginning of year   991,866    1,008,216 
New Issuance   -    1,224,932 
Conversion to common shares   (509,303)   (45,680)
Convertible note redemption   (59,011)   - 
Change in fair value of derivative liabilities   648    83,184 
End of derivative treatment of warrants   -    (1,278,786)
Convertible note modification   -    - 
Balance end of year   424,200    991,866 

 

The Monte-Carlo methodology was used to value the convertible note and warrant derivative components, using the following assumptions:

  

    Fiscal Year    Fiscal Year 
    2025    2024 
Risk-free rate for term (%)   0.1 – 5.2     4.2 – 5.3  
Volatility (%)   91.2 – 194.4     76.2 – 126.6  
Remaining terms (Years)   0.25 – 0.5     0.25 – 1.49  
Stock price ($ per share)   0.24 – 1.45     1.08 – 4.20  

 

 

BIOTRICITY INC.

Notes to Consolidated Financial Statements

Years ended March 31, 2025 and 2024

(Expressed in US Dollars)