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FINANCIAL INSTRUMENTS | 3 Months Ended
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Jun. 30, 2025
Investments, All Other Investments [Abstract] |
FINANCIAL INSTRUMENTS | 14. FINANCIAL INSTRUMENTS On January 4, 2023, the Company entered into a series of agreements with certain accredited investors, pursuant to which the Company received a net proceed of $15,000,000 in consideration of the issuance of:
| ● | senior secured convertible notes in the aggregate original principal amount of approximately $16.7 million with an interest rate of 5% per annum (the “Convertible Notes”); The Convertible Notes matured on July 4, 2024. The conversion price is $1.25, subject to adjustment under several conditions.
| ● | warrants (“Warrants”) to purchase up to approximately 16.1 million shares of common stock of the Company (the “Common Stock”) until on or prior to 11:59 p.m. (New York time) on the five-year anniversary of the closing date at an exercise price of $1.25 per share, also subject to adjustment under several conditions.
The Warrants are considered a freestanding instrument issued together with the Convertible Notes and measured at their issuance date fair value. Proceeds received were first allocated to the Warrants based on their initial fair value. The initial fair value of the Warrants was $3.9 million. The Warrants were marked to the market with the changes in the fair value of warrant recorded in the consolidated statements of operations and comprehensive loss. As of June 30, 2025, the balance of the Warrants was approximately $0.8 million (March 31, 2025: $1.0 million). The Convertible Notes are classified as a liability and is subsequently stated at amortized cost with any difference between the initial carrying value and the repayment amount as interest expenses using the effective interest method over the period from the issuance date to the maturity date. The embedded conversion feature should be bifurcated and separately accounted for using fair value, as this embedded feature is considered not clearly and closely related to the debt host. The bifurcated conversion feature was recorded at fair value with the changes recorded in the consolidated statements of operations and comprehensive loss. The initial fair value of the embedded conversion feature was $1.2 million. As of June 30, 2025, the fair value of the conversion option was $0.03 million (March 31, 2025: $1.4 million). The Company determined that the other embedded features do not require bifurcation as they either are clearly and closely related to the Convertible Notes or do not meet the definition of a derivative. The total proceeds of the Convertible Notes and the Warrants, net of issuance cost, of $15.0 million were received by the Company in January 2023, and allocated to each of the financial instruments as following: SCHEDULE OF FINANCIAL INSTRUMENTS
|  | As of January 4, 2023 |
Derivative liabilities – Fair value of the Warrants |  | $ | 3,858,521 |
Derivative liabilities – Embedded conversion feature |  |  | 1,247,500 |
Convertible Notes |  |  | 9,893,979 |
|  | $ | 15,000,000 |
In January 2023, the Company also granted to the placement agent a warrant as partial payment of an agency fee to purchase 0.7 million shares of Common Stock of the Company. The warrant matures in five years with an exercise price of $1.25 subject to adjustments under different conditions. The warrant was recognized as a derivative liability with an initial fair value of $0.168 million. The Company’s Convertible Notes’ obligations were as the following for the three months ended June 30, 2025 and 2024: SCHEDULE OF CONVERTIBLE NOTES OBLIGATION
|  | 2025 |  |  | 2024 |
|  | Three months ended |
|  | June 30, |
|  | 2025 |  |  | 2024 |
Carrying value – beginning balance |  | $ | 2,900,160 |  |  | $ | 2,684,697 |
Converted to ordinary shares |  |  | (2,290,408 | ) |  |  | - |
Amortization of debt discount |  |  | 66,222 |  |  |  | 682,648 |
Deferred debt discount and cost of issuance |  |  | 416,667 |  |  |  | 261 |
Interest charge |  |  | 69,563 |  |  |  | 151,393 |
Carrying value – ending balance |  | $ | 1,162,204 |  |  | $ | 3,518,999 |
During the three months ended June 30, 2025, $2.3 million of Convertible Notes was converted into approximately 4.3 million shares of Common Stock, with an average effective conversion price of $0.5363 per share. During the three months ended June 30, 2024, no Convertible Notes was converted into shares of Common Stock. The Company’s derivative liabilities were as the following for the three months ended March 31, 2025 and 2024: SCHEDULE OF DERIVATIVE LIABILITIES
|  | 2025 |  |  | 2024 |
|  | Three months ended June 30, |
|  | 2025 |  |  | 2024 |
Derivative liabilities –Warrants |  | $ |  |  |  | $ | - |
Beginning balance |  |  | 989,852 |  |  |  | 251,657 |
Marked to the market |  |  | (251,657 | ) |  |  | (134,217 | )
Ending fair value |  |  | 738,195 |  |  |  | 117,440 |
Derivative liabilities – Embedded conversion feature |  |  |  |  |  |  |  |
Beginning balance |  |  | 1,782,498 |  |  |  | 36,298 |
Converted to ordinary shares |  |  | (1,572,238 | ) |  |  | - |
Remeasurement on change of convertible price |  |  | 19,457 |  |  |  | (261 | )
Marked to the market |  |  | (201,792 | ) |  |  | - |
Ending fair value |  |  | 27,925 |  |  |  | 36,037 |
Total Derivative fair value at end of period |  | $ | 766,120 |  |  | $ | 153,477 |

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- Definition The entire disclosure for financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 825 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/825/tableOfContent + Details
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