DERIVATIVE LIABILITIES DISCLOSURE

6 Months Ended

Sep. 30, 2019

NOTE 7 - DERIVATIVE LIABILITIES

	September 30, 2019		March 31, 2019
Balance, at beginning of period	$	2,110,425	$	933,198
Derivative additions associated with convertible notes on issuance	$	1,797,069		2,040,191
Day one loss on derivatives		1,158,338		539,087
Change in fair value as at period end		(1,227,150)		169,818
Value transferred to paid in capital on conversion of convertible notes		(1,575,513)		(1,571,869)
Balance, at end of period	$	2,263,169	$	2,110,425

Since the convertible loan notes issued during the period have a beneficial conversion feature which is contingent upon future market prices, they did not meet the conditions necessary for equity classification and as a result, the embedded conversion feature is considered a derivative liability.

The fair value of the derivative was estimated on the issue date and subsequently re-measured on September 30, 2019 using the Black-Scholes valuation technique, using the following assumptions:

	Issue date	September 30, 2019	Issue date	March 31, 2019
Expected dividend	nil	nil	nil	nil
Risk free interest rate	3%	3%	2.96%	2.96%
Expected volatility	110% -152%	151%	102% -167%	120%
Expected term	219 days -365 days	15 days - 358 days	91 days -365 days	66 days - 361 days

Plyzer Technologies Inc. 10-Q/A