v3.26.1
DERIVATIVE LIABILITIES
 3 Months Ended
Jun. 30, 2026
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, 2026 and March 31, 2026.

 

   June 30, 2026   March 31, 2026 
   $   $ 
Derivative liabilities, beginning of period   1,396,908    1,478,717 
New issuance [Note 9]   -    - 
Change in fair value of derivatives during period   105,616    125,814 
Reduction due to preferred shares converted [Note 9]   -    (207,623)
Derivative liabilities, end of period   1,502,524    1,396,908 

 

The lattice methodology was used to value the derivative components of Preferred Stock, using the following assumptions during the three months ended June 30, 2026, and March 31, 2026:

 

   June 30, 2026   March 31, 2026 
Dividend yield (%)   12    12 
Risk-free rate for term (%)   3.5-4.1    3.5 – 4.1 
Volatility (%)   104.7-156.4    104.7 – 156.4 
Remaining terms (Years)   0.25-0.5    0.25 – 0.5 
Stock price ($ per share)   0.12-0.53    0.24 – 0.53 

 

 

BIOTRICITY INC.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

JUNE 30, 2026 (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, 2026, and March 31 2026:

 

   June 30, 2026   March 31, 2026 
   $   $ 
         
Balance beginning of period   445,893    424,200 
Issuance   -    - 
Conversion to common shares   -    - 
Convertible note redemption   -    (19,842)
Change in fair value of derivative liabilities   4,435    41,535 
End of derivative treatment   -    - 
Balance end of period –   450,328    445,893 

 

The Monte-Carlo methodology was used to value the convertible note and warrant derivative components during the three months ended June 30, 2026 and March 31, 2026, using the following assumptions:

 

    June 30, 2026    March 31, 2026 
Risk-free rate for term (%)   0.2 – 4.1    0.2 – 4.1 
Volatility (%)   104.7 – 172.5    104.7 – 172.5 
Remaining terms (Years)   0.25 – 0.47    0.25 – 0.47 
Stock price ($ per share)   0.12 – 0.71    0.24 – 0.71