Mobetize (MPAY) 10-Q 20 Nov 17 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Sep. 30, 2017	Nov. 20, 2017
Document and Entity Information:
Entity Registrant Name	MOBETIZE, CORP.
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Trading Symbol	mpay
Amendment Flag	false
Entity Central Index Key	1,546,679
Current Fiscal Year End Date	--03-31
Entity Common Stock, Shares Outstanding		234,541
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2017	Mar. 31, 2017
Current Assets:
Cash	$ 103,650	$ 535,438
Accounts receivable	46,963	113,140
Prepaid expenses and deposits	49,985	44,783
Prepaid expenses and deposits - related party (Note 7)	0	15,639
Total Current Assets	200,598	709,000
Intangible asset (Note 3)	0	111,644
Equipment, net (Note 4)	6,507	7,629
Investment in joint venture (Note 3)	90,828	0
TOTAL ASSETS	297,933	828,273
Current Liabilities:
Accounts payable and accrued liabilities	159,295	108,381
Accounts payable and accrued liabilities - related party (Note 7)	405,452	320,391
Deposits due to customers	980	980
Promissory note (Note 5)	20,152	0
Promissory note- related party (Note 7(g) and (k))	145,152	43,798
Promissory notes (Note 6 and 7(j))	0	240,000
TOTAL LIABILITIES	731,031	713,550
STOCKHOLDERS' (DEFICIENCY) EQUITY
Common stock, $0.001 Par Value: 250,000,000 authorized and 234,514 common shares issued and outstanding, respectively (Note 8(a))	235	235
Warrants reserve	676,964	676,964
Options reserve	985,735	952,828
Additional paid-in capital	6,228,999	5,955,025
Accumulated other comprehensive loss	(13,048)	(10,267)
Accumulated deficit	(8,330,831)	(7,478,315)
Total Stockholders' (Deficiency) Equity	(433,098)	114,723
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIENCY) EQUITY	$ 297,933	$ 828,273

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2017	Mar. 31, 2017
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	234,514	234,514
Common stock, shares outstanding	234,514	234,514
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	75,000,000	75,000,000
Series A Preferred Stock [Member]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, issued	4,565,000	4,565,000
Preferred stock, outstanding	4,565,000	4,565,000
Series B Preferred Stock [Member]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, issued	14,282,976	13,688,408
Preferred stock, outstanding	14,282,976	13,688,408

Consolidated Statements of Loss

Consolidated Statements of Loss and Comprehensive Loss - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
OPERATING REVENUES
Revenues	$ 65,789	$ 140,630	$ 181,519	$ 216,248
OPERATING EXPENSES
Depreciation (Note 4)	884	795	1,655	1,600
General and administrative	93,066	96,040	205,598	203,660
General and administrative - related party (Note 7)	17,046	12,977	26,787	17,160
Investor relations and promotion	0	15,010	0	49,525
Investor relations and promotion - related party (Note 7)	60,000	0	77,078	0
Consulting fees	5,871	33,147	12,351	58,953
Management fees - related party (Note 7)	45,718	61,728	93,089	144,617
Professional fees	124,172	12,002	260,901	96,705
Research and development	127,932	76,143	255,372	191,775
Research and development - related party (Note 7)	43,441	30,896	75,815	58,050
Total Operating Expenses	518,130	338,738	1,008,646	822,045
LOSS BEFORE OTHER ITEMS	(452,341)	(198,108)	(827,127)	(605,797)
OTHER ITEMS
Loss on joint venture (Note 3)	(7,973)	0	(10,713)	0
Loss on settlement of accounts payable (Note 8(c))	0	0	(14,676)	0
NET LOSS	$ (460,314)	$ (198,108)	$ (852,516)	$ (605,797)
NET LOSS PER SHARE
Basic and diluted	$ (1.96)	$ (0.85)	$ (3.64)	$ (2.59)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
Basic and diluted	234,514	234,082	234,514	233,698
COMPREHENSIVE LOSS
Net loss	$ (460,314)	$ (198,108)	$ (852,516)	$ (605,797)
Other comprehensive loss:
Cumulative translation adjustment	3,092	(62)	(2,781)	(220)
Comprehensive loss	$ (457,222)	$ (198,170)	$ (855,297)	$ (606,017)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (852,516)	$ (605,797)
Items not affecting cash:
Amortization of intangible asset - research and development	10,103	0
Depreciation	1,655	1,600
Interest accrued on accounts payable - related party	1,973	1,900
Loss on joint venture	10,713	0
Loss on settlement of accounts payable	14,676	0
Shares issued for services	0	61,200
Shares issued to settle promissory note-related party	0	46,500
Stock-based compensation (Note 10)	32,907	127,439
Changes in non-cash working capital:
Accounts receivable	66,177	(53,029)
Prepaid expenses and deposits	(5,202)	10,273
Prepaid expenses and deposits - related party	15,639	6,740
Accounts payables and accrued liabilities	70,807	79,915
Accounts payable and accrued liabilities - related party	83,088	94,092
Deposits due to customers	0	(500)
Net cash used in operating activities	(549,980)	(229,667)
CASH FLOWS FROM FINANCING ACTIVITES
Proceeds from Shareholder loans, net of repayment	0	10,619
Proceeds from convertible promissory note, net of prepaid interest	0	22,000
Proceeds from promissory note	20,152	0
Proceeds from promissory note, net of prepaid interest-related party	100,000	38,761
Repayment of promissory note-related party	0	(50,000)
Net cash provided by financing activities	120,152	21,380
EFFECT OF EXCHANGE RATE CHANGES ON CASH	(1,960)	(105)
NET DECREASE IN CASH	(431,788)	(208,392)
CASH - BEGINNING OF PERIOD	535,438	210,341
CASH - END OF PERIOD	103,650	1,949
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Shares issued upon conversion of convertible debentures	240,000	0
Shares issued to settle accounts payable	34,568	0
Transfer from intangible asset to investment in joint venture	101,541	0
SUPPLEMENTAL DISCLOSURES:
Interest paid	0	22,490
Income taxes paid	$ 0	$ 0

1. Nature of Operations and Con

1. Nature of Operations and Continuance of Business	6 Months Ended
	Sep. 30, 2017
Disclosure Text Block [Abstract]
1. Nature of Operations and Continuance of Business	1. Nature of Operations and Continuance of Business Mobetize Corp. (the “Company”) was incorporated in the state of Nevada on February 23, 2012, as Slavia, Corp. On August 13, 2013, its name changed to “Mobetize Corp.”. The Company provides Fintech solutions and services to enable and support the convergence of global telecom and financial services providers (“Customers”) through its Global Mobile B2B Fintech and Financial Services Marketplace (“Hub”). The Company’s activities are subject to significant risks and uncertainties, including the need to secure additional funding to optimize the Company’s existing technology. The Company’s ’s unaudited consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States. These unaudited consolidated financial statements include the accounts of its wholly owned subsidiaries, Mobetize Canada Inc., and Mobetize USA Inc. All significant intercompany transactions and balances have been eliminated. The accompanying quarterly unaudited consolidated financial statements should be read in conjunction with the annual financial statements and accompanying notes filed with the U.S. Securities and Exchange Commission on Form 10-K for the fiscal year ended March 31, 2017. In the opinion of management, the accompanying financial statements reflect all adjustments of a recurring nature considered necessary to present fairly the Company’s financial position and the results of its operations and cash flows for the periods shown. The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ materially from those estimates. The results of operations and cash flows for the periods shown are not necessarily indicative of the results to be expected for the full year. On July 11, 2017, the Company completed a consolidation of its issued and outstanding common shares on a one for one hundred (1/100) basis and a decrease in the number of its authorized common and preferred shares. All share and per share amounts have been retroactively restated to reflect the share consolidation. Going Concern These unaudited consolidated financial statements have been prepared on a going concern basis, which implies that the Company will continue to realize assets and discharge liabilities in the normal course of business. As of September 30, 2017, the Company has an accumulated deficit of $8,330,831, a history of net losses and a working capital deficiency of $530,433. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. The continuation of the Company as a going concern is dependent upon continuing financial support from management, increasing sales, securing debt or equity financing, cutting operating costs, launching viable products, and realizing profitable operations. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

2. Recently Accounting Pronounc

2. Recently Accounting Pronouncements	6 Months Ended
	Sep. 30, 2017
Disclosure Text Block [Abstract]
2. Recently Accounting Pronouncements	2. Recently Accounting Pronouncements In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Updates ASU 2017-07, requiring certain changes to the presentation of the expenses related to postretirement benefits accounted for under Topic 715. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company is currently assessing the impact adoption of this standard will have on its consolidated results of operations, financial condition, cash flows, and financial statement disclosures.

3. Joint Venture

3. Joint Venture	6 Months Ended
	Sep. 30, 2017
Disclosure Text Block [Abstract]
3. Joint Venture	3. Joint Venture On January 12, 2017, the Company entered into a Gateway License Agreement and Joint Venture Agreement (“Joint Venture”) with CPT Secure, Inc. (“CPT”), a company controlled by a shareholder of the Company, to further develop certain payment processing technology (“CPT IP”) on a 50/50 basis. In connection with the Joint Venture, the Company issued 500,000 Series B Preferred Shares with a fair value of $125,000 on January 12, 2017, to CPT in consideration for the license to the CPT IP which was contributed to MPAY Gateway Services Inc.. The license to the CPT IP has a term to January 11, 2019, and can be automatically renewed for successive two year periods unless either party elects not to renew 60 days prior to expiration. The license fee of $125,000 is being amortized over the initial term of the license. During the three months ended June 30, 2017, the Company recognized amortization of $10,103 on the license prior to transfer, which amount has been included in research and development expense. Effective May 29, 2017, the Company and CPT incorporated a joint venture company, MPAY Gateway Services Inc. (“MPAY”). Upon incorporation of MPAY, the Company transferred the remaining carrying value of the license to the CPT IP of $101,541 to MPAY, which has been presented on the balance sheet as an investment in joint venture. During the six months ended September 30, 2017, the Company recognized a loss on joint venture of $10,713, representing the Company’s 50% interest in the change in equity of MPAY.

4. Equipment

4. Equipment	6 Months Ended
	Sep. 30, 2017
Disclosure Text Block [Abstract]
4. Equipment	4. Equipment Equipment, net consisted of the following: September 30, 2017 March 31, 2017 Computer equipment $ 15,460 $ 14,421 Furniture 1,259 1,174 Total 16,719 15,595 Less: accumulated amortization 10,212 7,966 Equipment, net $ 6,507 $ 7,629 During the three months ended September 30, 2017, equipment cost increased by $1,124, and accumulated amortization was impacted by $591, as a result of foreign currency translation adjustments.

5. Promissory Note

5. Promissory Note	6 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
5. Promissory Note	5. Promissory Note On September 13, 2017, the Company entered into a Bridge Loan Promissory Note with a third party, whereby the Company received proceeds of $20,152 (CDN$25,000), which is non-interest bearing, unsecured, and matures on October 13, 2017 (Note 14). In consideration for the loan, the Company will pay a bridge loan fee of CDN$2,500 at the maturity date.

6. Convertible Promissory Notes

6. Convertible Promissory Notes	6 Months Ended
	Sep. 30, 2017
Disclosure Text Block [Abstract]
6. Convertible Promissory Notes	6.Convertible Promissory Notes Date of issuance Principal September 30, 2017 Principal March 31, 2017 Interest Maturity November 21, 2016 (1) $ — 40,000 6% per annum November 21, 2017 January 27, 2017 (2) $ — 125,000 12% per annum January 27, 2018 January 30, 2017 (3) $ — 75,000 12% per annum January 30, 2018 $ — $ 240,000 (1) November 21, 2016 Issuance - $40,000: · Issued net of $2,400 of prepaid interest, based on an interest rate of 6% per annum (Note7 (j)) · The conversion feature was exercisable at the option of the holder (the “Conversion Feature”). The Conversion Feature enabled the holder to convert any portion of their outstanding Convertible Promissory Note principal balance into common shares at $0.25 per share on or after May 20, 2017, but no later than the maturity date. · The Company evaluated whether separate financial instruments with the same terms as the conversion features above would meet the characteristics of a derivative instrument as described in paragraphs ASC 815-15-25. The terms of the contracts do not permit net settlement, as the shares delivered upon conversion are not readily convertible to cash. As the conversion features would not meet the characteristics of a derivative instrument as described in paragraphs ASC 815-15-25, the conversion features are not required to be separated from the host instrument and accounted for separately. As a result, it was determined that no beneficial conversion feature existed on the commitment date. · On April 21, 2017, the Company issued 160,000 Series B Preferred Shares pursuant to the conversion of $40,000 of the convertible promissory notes. (2) January 27, 2017 Issuance - $125,000: · Issued net of $15,000 of prepaid interest, based on an interest rate of 12% per annum. · Of the $125,000 Convertible Promissory Notes, $50,000 is owed to a Director of the Company (Note 7(j)). · The Conversion Feature enables the holder to convert any portion of their outstanding Convertible Promissory Note principal balance into common shares at $0.50 per share on or after July 26, 2017, but no later than the maturity date. · The Company has evaluated whether separate financial instruments with the same terms as the conversion features above would meet the characteristics of a derivative instrument as described in paragraphs ASC 815-15-25. The terms of the contracts do not permit net settlement, as the shares delivered upon conversion are not readily convertible to cash. As the conversion features would not meet the characteristics of a derivative instrument as described in paragraphs ASC 815-15-25, the conversion features are not required to be separated from the host instrument and accounted for separately. As a result, it was determined that no beneficial conversion feature existed on the commitment date. · On August 3, 2017, the Company issued 250,000 Series B Preferred Shares pursuant to the conversion of $125,000 of the convertible promissory notes. (3) January 30, 2017 Issuance - $75,000: · Issued net of $9,000 of prepaid interest, based on an interest rate of 12% per annum. · The $75,000 Convertible Promissory Note is owed to a Director of the Company (Note 7(j)). · The Conversion Feature enables the holder to convert any portion of their outstanding Convertible Promissory Note principal balance into common shares at $0.50 per share on or after July 29, 2017, but no later than the maturity date. · The Company has evaluated whether separate financial instruments with the same terms as the conversion features above would meet the characteristics of a derivative instrument as described in paragraphs ASC 815-15-25. The terms of the contracts do not permit net settlement, as the shares delivered upon conversion are not readily convertible to cash. As the conversion features would not meet the characteristics of a derivative instrument as described in paragraphs ASC 815-15-25, the conversion features are not required to be separated from the host instrument and accounted for separately. As a result, it was determined that no beneficial conversion feature existed on the commitment date. · On August 3, 2017, the Company issued 150,000 Series B Preferred Shares pursuant to the conversion of $75,000 of the convertible promissory note.

7. Related Party Transactions

7. Related Party Transactions	6 Months Ended
	Sep. 30, 2017
Disclosure Text Block [Abstract]
7. Related Party Transactions	7. Related Party Transactions Six months ended September 30, Transactions with related parties 2017 2016 (a) Transactions incurred with the CEO or companies controlled by the CEO: Management fees $ 63,016 $ 37,500 Management fees – Stock-based compensation 613 20,284 Research and development 75,815 58,050 General and administrative 13,182 6,060 $ 152,626 $ 121,894 (b) Transactions incurred with the former CFO’s or a company controlled by a former CFO: Management fees $ — $ — General and administrative — 8,100 $ — $ 8,100 (c) Transactions incurred with the Chairman of the Company Management fees (1) $ 6,000 $ 27,000 Management fees – Stock-based compensation 16,757 42,738 $ 22,757 $ 69,738 (d) Transactions incurred with a Director of the Company Management fees – Stock-based compensation $ 6,703 $ 17,095 General and administrative – Interest on convertible promissory note 13,605 3,000 $ 20,308 $ 20,095 (e) Transactions incurred with a shareholder of the Company Investor relations and promotion $ 77,078 $ — $ 77,078 $ — Related party balances, as at September 30, 2017 March 31, 2017 (f) Amounts owed to the former CFO (existing shareholder): Accounts payable and accrued liabilities $ 19,606 $ 18,346 (g) Amounts owed to companies controlled by the CEO: Accounts payable and accrued liabilities $ 322,574 275,687 Promissory note – June 2, 2017 (2) 25,000 25,000 Promissory note – July 11, 2017 (3) 20,152 18,798 $ 367,726 $ 319,485 (h) Amounts owed to the Chairman of the Company $ 15,000 $ 9,000 (i) Amounts prepaid to a company controlled by the CEO Prepaid interest on promissory notes $ — $ 2,461 (j) Amounts owed to a Director of the Company Convertible promissory note November 21, 2017 (Note 6 (1) $ — $ 20,000 Convertible promissory note January 27, 2018 (Note 6 (2) — 50,000 Convertible promissory note January 30, 2018 (Note 6 (3) — 75,000 $ — $ 145,000 (k) Amounts prepaid to a Director of the Company Accounts payable and accrued liabilities $ 427 $ — Promissory note – September 17, 2017 (4) 100,000 — $ 100,427 $ — Prepaid interest on convertible promissory notes $ — $ 13,178 (l) Amounts owed to a shareholder of the Company Accounts payable and accrued liabilities $ 47,845 $ 17,358 (1) On July 1, 2016, the Company entered into an agreement with its Chairman whereby he would provide services to the Company at a monthly rate of $1,000 for a period of two years ending on June 30, 2018. (2) The promissory note maturing on June 2, 2017, was issued with a twelve-month term, comprises $25,000 principal, and bears interest at 12% per annum. The principal balance included prepaid interest of $3,000. (3) The promissory note maturing on July 11, 2017, was issued with a twelve-month term, comprises $20,152 (CAD $25,000) principal, and bears interest at 12% per annum. The principal balance included prepaid interest of $2,418 (CAD $3,000). (4) The promissory note maturing on March 17, 2018, was issued with a 6-month term, comprises $100,000 principal, and bears interest at 12% per annum.

8. Common Stock and Preferred S

8. Common Stock and Preferred Stock	6 Months Ended
	Sep. 30, 2017
Disclosure Text Block [Abstract]
8. Common Stock and Preferred Stock	8. Common Stock and Preferred Stock a) Issuance of Common Stock: · On July 11, 2017, the Company completed a consolidation of the issued and outstanding common shares on a one for one hundred (1/100) basis, and amended the Company’s Articles of Incorporation to decrease the number of authorized shares of common stock from 525,000,000 shares with a par value $0.001 per share to 250,000,000 shares with a par value of $0.001 per share. All share and per share amounts have been retroactively restated to reflect the share consolidation. b) Authorization and Issuance of Series A Preferred Shares: · The Company is authorized to issue 250,000,000 shares of preferred stock with a par value of $0.001 per share and has designated 10,000,000 of the preferred stock as Series A Preferred Shares (“Series A Preferred Shares”). The Series A Preferred Shares have the same rights and privileges as the common stock, with the exception that the Series A Preferred Share holder has 10 votes per Series A Preferred Share versus one vote per share of common stock and does not have the right to sell the shares for a period of two years from the date of issue. · Effective April 7, 2017, the Company amended its Articles of Incorporation to decrease the number of authorized preferred shares from 250,000,000 shares with a par value $0.001 per share to 75,000,000 with a par value $0.001 per share. There were no changes in the number of designated or outstanding Series A Preferred Shares or Series B Preferred Shares. c) Authorization and Issuance of Series B Preferred Shares: · The Company has designated 25,000,000 shares of the authorized preferred stock as Series B Preferred Shares (“Series B Preferred Shares”). The Series B Preferred Shares have the same rights and privileges as the common stock, with the exception that the Series B Preferred Shares have an anti-dilution provision and the Series B Preferred Share holder does not have the right to convert Series B Preferred Shares into shares of common stock for a period of two years from the date of issue. · On April 21, 2017, the Company issued 160,000 Series B Preferred Shares pursuant to the conversion of $40,000 in convertible promissory notes at a conversion price of $0.25 per share (Note 6 (1) · On April 27, 2017, the Company issued 19,568 Series B Preferred Shares with a fair value of $1.00 per share to a consultant of the Company to settle $4,892 in amounts owing for services provided, resulting in a loss on settlement of debt of $14,676. · On May 29, 2017, the Company issued 15,000 Series B Preferred Shares with a fair value of $1.00 per share to a vendor pursuant to the settlement of $15,000 in accounts payable. · On August 3, 2017, the Company issued 400,000 Series B Preferred Shares pursuant to the conversion of $200,000 in convertible promissory notes at a conversion price of $0.50 per share (Note 6 (2) (3)

9. Share Purchase Warrants

9. Share Purchase Warrants	6 Months Ended
	Sep. 30, 2017
Disclosure Text Block [Abstract]
9. Share Purchase Warrants	9. Share Purchase Warrants The following table summarizes the continuity of share purchase warrants: Number of warrants Weighted average exercise price $ Balance, March 31, 2017 and September 30, 2017 26,364 104 As at September 30, 2017, the following share purchase warrants were outstanding: Number of warrants outstanding Exercise price $ Expiry date 6,944 100 June 24, 2018 3,866 125 December 10, 2018 15,554 100 September 1, 2018 26,364

10. Stock Options

10. Stock Options	6 Months Ended
	Sep. 30, 2017
Disclosure Text Block [Abstract]
10. Stock Options	10. Stock Options The Company has adopted a Stock Option Plan (“Stock Option Plan”) which permits the Company to issue stock options for up to 3,000,000 common shares of the Company to directors, officers, employees and consultants of the Company with a maximum term of 5 years, exercise prices equal to the minimum fair market value per common share on the date of grant, and a vesting schedule determined by the Board of Directors at the time of granting the options. The following table summarizes the continuity of stock options: Number of stock options Weighted average exercise price $ Balance, March 31, 2016 23,812 60 Expired (2,885 ) 60 Cancelled (727 ) 60 Outstanding, March 31, 2017 and September 30, 2017 20,200 60 Exercisable, September 30, 2017 17,720 60 As at September 30, 2017, the following share purchase options were outstanding: Number of options outstanding Number of options vested Exercise $ Expiry date 20,200 17,720 60 September 30, 2020 During the six months ended September 30, 2017, $32,907 (2016 - $127,439) in stock-based compensation expense was recorded and allocated amongst general and administrative, consulting fees, management fees, and research and development expenses. The intrinsic value of the options was $nil at September 30, 2017, and March 31, 2017.

11. Concentration of Risk

11. Concentration of Risk	6 Months Ended
	Sep. 30, 2017
Disclosure Text Block [Abstract]
11. Concentration of Risk	11. Revenues are currently generated through licensing, professional services, and payment processing services provided by Mobetize to our existing customers. During the six months ended September 30, 2017, the Company had revenues from five customers (2016 –five customers) with 62% (2016 – 66%) of revenues generated from the Company’s largest customer. At September 30, 2017, the Company’s accounts receivable is concentrated and due from four customers (March 31, 2017 – five customers) with 89% (March 31, 2017 – 61%) of accounts receivable due from the Company’s largest customer.

12. Commitment

12. Commitment	6 Months Ended
	Sep. 30, 2017
Disclosure Text Block [Abstract]
12. Commitment	12. Commitments and Claims a) The Company has an obligation under a rental lease for its office. As of September 30, 2017, the remaining term of the lease is 15 months with monthly payments of $4,995. The Company’s lease includes a renewal option. b) The Company received a Citation and Notice of Assessment dated October 14, 2016, that Stephen J. Fowler (“Fowler”), a former Director and Chief Financial Officer of the Company, had initiated a complaint with the State of Washington Department of Labor and Industries for amounts allegedly due to him for unpaid wages of $45,000 in wages in addition to assessed interest of $3,368, and a penalty of $4,500. An appeal presented by the Company alleged that the calculation of amounts due to Fowler was incorrect and that he had improperly obtained shares of its common stock. A hearing before the Office of Administrative Hearings has not been set. See Note 7(f) for amounts recorded as owed to Fowler. The Company received a Notice of Civil Claim dated April 26, 2017, filed in the British Columbia Supreme Court by Fowler, naming the Company and its three present directors as defendants. Fowler asserts claims against Mobetize for unpaid expenses, and breach of contract. He also asserts claims for breach of fiduciary duty, misrepresentation and conspiracy. The Company has advanced its own counterclaims against Fowler, including fraudulent or negligent misrepresentation, breach of fiduciary duty, negligence and unjust enrichment. On June 23, 2017, Mobetize filed its response to Fowler’s claims and its own counterclaims against Fowler. No trial date has been set. The Company received a Complaint dated May 12, 2017, filed in the Second Judicial District Court of the State of Nevada, by Fowler naming the Company and its three present directors as defendants. The Nevada action concerns substantially the same facts and seeks substantially the same relief as Fowler’s British Columbia action. On June 23, 2017, the Company filed a Motion to Dismiss or in the alternative, an Application for Preliminary Injunction to either dismiss or stay the Complaint. On October 31, 2017, the Company attended a court hearing on its Motion to Dismiss. The court has not rendered a decision on the Motion to Dismiss and no trial date has been set. The Company received a Complaint dated May 3, 2017, filed in the Eight Judicial District Court of the State of Nevada by Cary Fields (“Fields”) naming the Company and its three present directors as defendants, to obtain a preliminary injunction to enjoin a consolidation of the Company’s common stock, and seek damages for breach of fiduciary duty, conversion and unjust enrichment. On May 18, 2017, after due consideration, the court denied Fields application and determined not to grant a temporary injunction. The court did not rule on the question of alleged damages to Fields. On August 4, 2017, the Company and its three directors received an Amended Complaint seeking damages for breach of fiduciary duty, conversion and unjust enrichment. On November 17,2017 in the Eight Judicial District Court of the State of Nevada, the Company filed a Motion dismiss the Amended Complaint. A trial date has been set for October 8, 2018.

13. Segment Information

13. Segment Information	6 Months Ended
	Sep. 30, 2017
Disclosure Text Block [Abstract]
13. Segment Information	13. Segment Information The Company has a single operating segment being the provision of Fintech Solutions and Services to businesses located in Canada and the United States of America (“USA”). Revenues are generated in Canada and the USA while all assets are located in Canada. During the six months ended September 30, 2017, the Company generated revenue of $56,607 (CDN$70,927) in Canada and $124,912 in the USA. The costs incurred to generate this revenue are expensed as research and development. At September 30, 2017, the Company’s long-lived assets are located in Canada.

14. Subsequent Events

14. Subsequent Events	6 Months Ended
	Sep. 30, 2017
Disclosure Text Block [Abstract]
14. Subsequent Events	14. Subsequent Events The Company evaluated its September 30, 2017, consolidated financial statements for subsequent events through the date the consolidated financial statements were issued. The Company is not aware of any subsequent events which would require recognition or disclosure in the consolidated financial statements except as described below. On October 4, 2017, the Company repaid a Bridge Loan Promissory Note of CDN$25,000 and paid a bridge loan fee of CDN$2,500 (Note 5). On November 7, 2017, the Company entered into a $50,000 Bridge Loan Promissory Note with Donald Duberstein. Interest accrues at the rate of twelve percent (12%) per annum, compounded annually, based on a 365-day year and the actual number of days elapsed. Interest is payable by the Company on a monthly basis in the amount of $500.00.

4. Equipment (Tables)

4. Equipment (Tables)	6 Months Ended
	Sep. 30, 2017
Disclosure Text Block [Abstract]
Schedule of equipment	September 30, 2017 March 31, 2017 Computer equipment $ 15,460 $ 14,421 Furniture 1,259 1,174 Total 16,719 15,595 Less: accumulated amortization 10,212 7,966 Equipment, net $ 6,507 $ 7,629

6. Convertible Promissory Not21

6. Convertible Promissory Notes (Tables)	6 Months Ended
	Sep. 30, 2017
Disclosure Text Block [Abstract]
Convertible Debentures	Date of issuance Principal September 30, 2017 Principal March 31, 2017 Interest Maturity November 21, 2016 (1) $ — 40,000 6% per annum November 21, 2017 January 27, 2017 (2) $ — 125,000 12% per annum January 27, 2018 January 30, 2017 (3) $ — 75,000 12% per annum January 30, 2018 $ — $ 240,000

7. Related Party Transactions (

7. Related Party Transactions (Tables)	6 Months Ended
	Sep. 30, 2017
Disclosure Text Block [Abstract]
Schedule of Related Party Transactions	Six months ended September 30, Transactions with related parties 2017 2016 (a) Transactions incurred with the CEO or companies controlled by the CEO: Management fees $ 63,016 $ 37,500 Management fees – Stock-based compensation 613 20,284 Research and development 75,815 58,050 General and administrative 13,182 6,060 $ 152,626 $ 121,894 (b) Transactions incurred with the former CFO’s or a company controlled by a former CFO: Management fees $ — $ — General and administrative — 8,100 $ — $ 8,100 (c) Transactions incurred with the Chairman of the Company Management fees (1) $ 6,000 $ 27,000 Management fees – Stock-based compensation 16,757 42,738 $ 22,757 $ 69,738 (d) Transactions incurred with a Director of the Company Management fees – Stock-based compensation $ 6,703 $ 17,095 General and administrative – Interest on convertible promissory note 13,605 3,000 $ 20,308 $ 20,095 (e) Transactions incurred with a shareholder of the Company Investor relations and promotion $ 77,078 $ — $ 77,078 $ — Related party balances, as at September 30, 2017 March 31, 2017 (f) Amounts owed to the former CFO (existing shareholder): Accounts payable and accrued liabilities $ 19,606 $ 18,346 (g) Amounts owed to companies controlled by the CEO: Accounts payable and accrued liabilities $ 322,574 275,687 Promissory note – June 2, 2017 (2) 25,000 25,000 Promissory note – July 11, 2017 (3) 20,152 18,798 $ 367,726 $ 319,485 (h) Amounts owed to the Chairman of the Company $ 15,000 $ 9,000 (i) Amounts prepaid to a company controlled by the CEO Prepaid interest on promissory notes $ — $ 2,461 (j) Amounts owed to a Director of the Company Convertible promissory note November 21, 2017 (Note 6 (1) $ — $ 20,000 Convertible promissory note January 27, 2018 (Note 6 (2) — 50,000 Convertible promissory note January 30, 2018 (Note 6 (3) — 75,000 $ — $ 145,000 (k) Amounts prepaid to a Director of the Company Accounts payable and accrued liabilities $ 427 $ — Promissory note – September 17, 2017 (4) 100,000 — $ 100,427 $ — Prepaid interest on convertible promissory notes $ — $ 13,178 (l) Amounts owed to a shareholder of the Company Accounts payable and accrued liabilities $ 47,845 $ 17,358

9. Share Purchase Warrants (Tab

9. Share Purchase Warrants (Tables)	6 Months Ended
	Sep. 30, 2017
Disclosure Text Block [Abstract]
Schedule of Warrants, Activity	Number of warrants Weighted average exercise price $ Balance, March 31, 2017 and September 30, 2017 26,364 104
Schedule of Outstanding Warrants	Number of warrants outstanding Exercise price $ Expiry date 6,944 100 June 24, 2018 3,866 125 December 10, 2018 15,554 100 September 1, 2018 26,364

10. Stock Options (Tables)

10. Stock Options (Tables)	6 Months Ended
	Sep. 30, 2017
Disclosure Text Block [Abstract]
Schedule of stock option activities	Number of stock options Weighted average exercise price $ Balance, March 31, 2016 23,812 60 Expired (2,885 ) 60 Cancelled (727 ) 60 Outstanding, March 31, 2017 and September 30, 2017 20,200 60 Exercisable, September 30, 2017 17,720 60
Schedule of stock options outstanding	Number of options outstanding Number of options vested Exercise $ Expiry date 20,200 17,720 60 September 30, 2020

1. Nature of Operations and C25

1. Nature of Operations and Continuance of Business (Details Narrative) - USD ($)	Sep. 30, 2017	Mar. 31, 2017
Disclosure Text Block [Abstract]
Accumulated deficit	$ (8,330,831)	$ (7,478,315)
Working capital deficiency	$ (530,433)

3. Joint Venture (Details Narra

3. Joint Venture (Details Narrative)	6 Months Ended
	Sep. 30, 2017USD ($)
Disclosure Text Block [Abstract]
Amortization of license	$ 10,103
Loss on joint venture	$ (10,713)

4. Equipment (Details)

4. Equipment (Details) - USD ($)	Sep. 30, 2017	Mar. 31, 2017
Equipment, Gross	$ 16,719	$ 15,595
Less: accumulated amortization	10,212	7,966
Equipment, net	6,507	7,629
Computer Equipment [Member]
Equipment, Gross	15,460	14,421
Furniture [Member]
Equipment, Gross	$ 1,259	$ 1,174

4. Equipment (Details Narrative

4. Equipment (Details Narrative)	6 Months Ended
	Sep. 30, 2017USD ($)
Disclosure Text Block [Abstract]
Increase in equipment cost	$ 1,124
Foreign currency translation adjustments	$ 591

5. Promissory Note (Details Nar

5. Promissory Note (Details Narrative) - USD ($)	6 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Notes to Financial Statements
Proceeds from promissory note	$ 20,152	$ 0
Maturity date	Oct. 13, 2017

6. Convertible Debentures (Deta

6. Convertible Debentures (Details) - USD ($)		6 Months Ended
		Sep. 30, 2017	Mar. 31, 2017
Convertible Debentures		$ 0	$ 240,000
Maturity		Oct. 13, 2017
Convertible Debentures [Member]
Date of issuance	[1]	Nov. 21, 2016
Convertible Debentures		$ 0	40,000
Interest		6.00%
Maturity		Nov. 21, 2017
Convertible Debentures one [Member]
Date of issuance	[2]	Jan. 27, 2017
Convertible Debentures		$ 0	125,000
Interest		12.00%
Maturity		Jan. 27, 2018
Convertible Debentures Two[Member]
Date of issuance	[3]	Jan. 30, 2017
Convertible Debentures		$ 0	$ 75,000
Interest		12.00%
Maturity		Jan. 30, 2018
[1]	November 21, 2016 Issuance - $40,000: Issued net of $2,400 of prepaid interest, based on an interest rate of 6% per annum (Note7 (j)). The conversion feature was exercisable at the option of the holder (the Conversion Feature). The Conversion Feature enabled the holder to convert any portion of their outstanding Convertible Promissory Note principal balance into common shares at $0.25 per share on or after May 20, 2017, but no later than the maturity date. The Company evaluated whether separate financial instruments with the same terms as the conversion features above would meet the characteristics of a derivative instrument as described in paragraphs ASC 815-15-25. The terms of the contracts do not permit net settlement, as the shares delivered upon conversion are not readily convertible to cash. As the conversion features would not meet the characteristics of a derivative instrument as described in paragraphs ASC 815-15-25, the conversion features are not required to be separated from the host instrument and accounted for separately. As a result, it was determined that no beneficial conversion feature existed on the commitment date. On April 21, 2017, the Company issued 160,000 Series B Preferred Shares pursuant to the conversion of $40,000 of the convertible promissory notes.
[2]	January 27, 2017 Issuance - $125,000: Issued net of $15,000 of prepaid interest, based on an interest rate of 12% per annum. Of the $125,000 Convertible Promissory Notes, $50,000 is owed to a Director of the Company (Note 7(j)). The Conversion Feature enables the holder to convert any portion of their outstanding Convertible Promissory Note principal balance into common shares at $0.50 per share on or after July 26, 2017, but no later than the maturity date. The Company has evaluated whether separate financial instruments with the same terms as the conversion features above would meet the characteristics of a derivative instrument as described in paragraphs ASC 815-15-25. The terms of the contracts do not permit net settlement, as the shares delivered upon conversion are not readily convertible to cash. As the conversion features would not meet the characteristics of a derivative instrument as described in paragraphs ASC 815-15-25, the conversion features are not required to be separated from the host instrument and accounted for separately. As a result, it was determined that no beneficial conversion feature existed on the commitment date.On August 3, 2017, the Company issued 250,000 Series B Preferred Shares pursuant to the conversion of $125,000 of the convertible promissory notes.
[3]	January 30, 2017 Issuance - $75,000: Issued net of $9,000 of prepaid interest, based on an interest rate of 12% per annum. The $75,000 Convertible Promissory Note is owed to a Director of the Company (Note 7(j)). The Conversion Feature enables the holder to convert any portion of their outstanding Convertible Promissory Note principal balance into common shares at $0.50 per share on or after July 29, 2017, but no later than the maturity date. The Company has evaluated whether separate financial instruments with the same terms as the conversion features above would meet the characteristics of a derivative instrument as described in paragraphs ASC 815-15-25. The terms of the contracts do not permit net settlement, as the shares delivered upon conversion are not readily convertible to cash. As the conversion features would not meet the characteristics of a derivative instrument as described in paragraphs ASC 815-15-25, the conversion features are not required to be separated from the host instrument and accounted for separately. As a result, it was determined that no beneficial conversion feature existed on the commitment date. On August 3, 2017, the Company issued 150,000 Series B Preferred Shares pursuant to the conversion of $75,000 of the convertible promissory note.

7. Related Party Transactions31

7. Related Party Transactions (Details) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Mar. 31, 2017
Research and development	$ 127,932	$ 76,143	$ 255,372	$ 191,775
General and administrative	93,066	96,040	205,598	203,660
Investor relations and promotion	0	$ 15,010	0	49,525
Accounts payable and accrued liabilities	159,295		159,295		$ 108,381
Convertible debenture	0		0		240,000
Convertible debenture	0		0		240,000
Due to related party	145,152		145,152		43,798
Chief Executive Officer [Member]
Management fees			63,016	37,500
Management fees - Stock-based compensation			613	20,284
Research and development			75,815	58,050
General and administrative			13,182	6,060
Due to related party			152,626	121,894
Accounts payable and accrued liabilities	322,574		322,574		275,687
Promissory note	25,000		25,000		25,000
Promissory note	20,152		20,152		18,798
Prepaid interest on promissory notes	0		0		2,461
Due to related party	367,726		367,726		319,485
Chief Financial Officer [Member]
Management fees			0	0
General and administrative			0	8,100
Due to related party			0	8,100
Accounts payable and accrued liabilities	19,606		19,606		18,346
Board of Directors Chairman [Member]
Management fees			6,000	27,000
Management fees - Stock-based compensation			16,757	42,738
Due to related party			22,757	69,738
Due to related party	15,000		15,000		9,000
Director [Member]
General and administrative			6,703	17,095
General and administrative - Interest on convertible debenture			13,605	3,000
Due to related party			20,308	20,095
Accounts payable and accrued liabilities	427		427		0
Promissory note	100,000		100,000		0
Total prepaid amount	100,427		100,427		0
Prepaid interest on convertible debentures	0		0		13,178
Convertible debenture	0		0		20,000
Convertible debenture	0		0		50,000
Convertible debenture	0		0		75,000
Due to related party	0		0		145,000
Shareholder [Member]
Investor relations and promotion			77,078	0
Due to related party			77,078	$ 0
Accounts payable and accrued liabilities	$ 47,845		$ 47,845		$ 17,358

8. Common Stock and Preferred32

8. Common Stock and Preferred Stock (Details Narrative) - USD ($)	6 Months Ended
	Sep. 30, 2017	Mar. 31, 2017
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	234,514	234,514
Common stock, shares outstanding	234,514	234,514
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	75,000,000	75,000,000
Loss on settlement of debt	$ 14,676
Series A Preferred Stock [Member]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, issued	4,565,000	4,565,000
Preferred stock, outstanding	4,565,000	4,565,000
Series B Preferred Stock [Member]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, issued	14,282,976	13,688,408
Preferred stock, outstanding	14,282,976	13,688,408

9. Share Purchase Warrants (Det

9. Share Purchase Warrants (Details) - $ / shares	Sep. 30, 2017	Mar. 31, 2017
Disclosure Text Block [Abstract]
Number of warrants	26,364	26,364
Weighted average exercise price per warrants	$ 104	$ 104

9. Share Purchase Warrants (D34

9. Share Purchase Warrants (Details 1) - $ / shares	6 Months Ended
	Sep. 30, 2017	Mar. 31, 2017
Number of warrants outstanding	26,364	26,364
Exercise Price	$ 104	$ 104
Warrant [Member]
Number of warrants outstanding	26,364
Warrant [Member] | $100 [Member]
Number of warrants outstanding	6,944
Exercise Price	$ 100
Expiry date	Jun. 24, 2018
Warrant [Member] | $125 [Member]
Number of warrants outstanding	3,866
Exercise Price	$ 125
Expiry date	Dec. 10, 2018
Warrant [Member] | $100 [Member]
Number of warrants outstanding	15,554
Exercise Price	$ 100
Expiry date	Sep. 1, 2018

10. Stock Options (Details)

10. Stock Options (Details) - $ / shares	12 Months Ended
	Mar. 31, 2017	Sep. 30, 2017
Disclosure Text Block [Abstract]
Options, Outstanding, Beginning Balance	23,812
Options, Expired	(2,885)
Options, Canceled	(727)
Options, Outstanding, Ending Balance	20,200
Options , Exercisable at the end		17,720
Weighted Average Exercise Price, Options, Outstanding, Beginning Balance	$ 60
Weighted Average Exercise Price, Options, Expired	60
Weighted Average Exercise Price, Options Canceled,	60
Weighted Average Exercise Price ,Options Outstanding, Ending Balance	$ 60
Weighted Average Price Per Share exercisable at the end		$ 60

10. Stock Options (Details 1)

10. Stock Options (Details 1)	6 Months Ended
	Sep. 30, 2017$ / sharesshares
Disclosure Text Block [Abstract]
Number of options outstanding	20,200
Number of options vested	17,720
Exercise Price | $ / shares	$ 60
Expiry date	Sep. 30, 2020

10. Stock Options (Details Narr

10. Stock Options (Details Narrative) - USD ($)	6 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Mar. 31, 2017
Disclosure Text Block [Abstract]
Stock-based compensation expense	$ 32,907	$ 127,439
Intrinsic value of options	$ 0		$ 0

11. Concentration of Risk (Deta

11. Concentration of Risk (Details Narrative) - Five customers [Member]	6 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Sales Revenue, Net [Member]
Concentration percentage	62.00%	66.00%
Accounts Receivable [Member]
Concentration percentage	89.00%	61.00%

12. Commitment (Details Narrati

12. Commitment (Details Narratives)	6 Months Ended
	Sep. 30, 2017USD ($)
Disclosure Text Block [Abstract]
Monthly rental payments	$ 4,995
Lease term	1 year 3 months
Commitments Description	a) The Company received a Citation and Notice of Assessment dated October 14, 2016, that Stephen J. Fowler (“Fowler”), a former Director and Chief Financial Officer of the Company, had initiated a complaint with the State of Washington Department of Labor and Industries for amounts allegedly due to him for unpaid wages of $45,000 in wages in addition to assessed interest of $3,368, and a penalty of $4,500. An appeal presented by the Company alleged that the calculation of amounts due to Fowler was incorrect and that he had improperly obtained shares of its common stock. A hearing before the Office of Administrative Hearings has not been set. See Note 7(f) for amounts recorded as owed to Fowler.

13. Segment Information (Detail

13. Segment Information (Details Narrtaive)	6 Months Ended
	Sep. 30, 2017USD ($)
USA
Revenues	$ 124,912
CANADA
Revenues	$ 56,607

14. Subsequent Events (Details

14. Subsequent Events (Details Narrative)	Nov. 07, 2017	Oct. 04, 2017
Subsequent Event [Member]
Subsequent Event, Description	On November 7, 2017, the Company entered into a $50,000 Bridge Loan Promissory Note with Donald Duberstein. Interest accrues at the rate of twelve percent (12%) per annum, compounded annually, based on a 365-day year and the actual number of days elapsed. Interest is payable by the Company on a monthly basis in the amount of $500.00.	On October 4, 2017, the Company repaid a Bridge Loan Promissory Note of CDN$25,000 and paid a bridge loan fee of CDN$2,500 (Note 5).