FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Dec. 31, 2025

	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

The Company’s Convertible Notes’ obligations were as the following for the three and nine months ended December 31, 2025 and 2024:

	Three months ended					Nine months ended
	December 31,					December 31,
	2025		2024			2025			2024
Carrying value – beginning balance	$	-	$	3,214,514		$	2,900,160		$	2,684,697
Converted to ordinary shares		-		-			(3,054,240	)		(82,642	)
Redemption		-		(544,706	)		(334,534	)		(544,706	)
Amortization of debt discount		-		74,113			418,510			756,761
Deferred debt discount and cost of issuance		-		15,633			-			(250,136	)
Interest charge		-		37,589			70,104			233,169
Carrying value – ending balance	$	Nil	$	2,797,143		$	Nil		$	2,797,143

The Company’s derivative liabilities were as the following for the three and nine months ended December 31, 2025 and 2024:

SCHEDULE OF DERIVATIVE LIABILITIES

	2025		2024			2025			2024
	Three months ended					Nine months ended
	December 31,					December 31,
	2025		2024			2025			2024
Derivative liabilities –Warrants	$		$			$			$
Beginning balance		1,191,178		301,989			989,852			251,657
Marked to the market		4,141,237		352,320			4,342,563			402,652
Ending fair value		5,332,415		654,309			5,332,415			654,309

Derivative liabilities – Embedded conversion feature
Beginning balance		-		645,958			1,782,498			36,298
Converted to shares of Common Stock		-		-			(1,589,352	)		(1,330	)
Remeasurement on change of convertible price		-		(15,633	)		17,625			248,292
Redemption		-		(103,786	)		(8,979	)		(103,786	)
Marked to the market				297,575			(201,792	)		644,641
Ending fair value		Nil		824,115			Nil			824,115

Total Derivative fair value at end of period	$	5,332,415	$	1,478,424		$	5,332,415		$	1,478,424

ADDENTAX GROUP CORP. 10-Q