ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.
ALR TECHNOLOGIES INC.
Condensed Consolidated Balance Sheets
($ United States)
| March 31 2015 (unaudited) | December 31, 2014 |
| Assets |
| Current assets: |
| Cash | $ | 4,083 | $ | 58,842 |
| Prepaid expenses and other | 3,985 | 6,710 |
| Total assets | $ | 8,068 | $ | 65,552 |
| Liabilities and Stockholders' Deficit |
| Current liabilities: |
| Accounts payable and accrued liabilities | $ | 1,053,955 | $ | 1,055,468 |
| Interest payable | 2,749,064 | 2,620,172 |
| Lines of credit from related parties | 9,357,526 | 8,798,364 |
| Related party promissory notes payable | 2,861,966 | 2,861,966 |
| Unrelated party promissory notes payable | 2,424,353 | 2,424,353 |
| Total liabilities | 18,446,864 | 17,760,323 |
| Stockholders' Deficit |
| Preferred stock: |
| Authorized: 500,000,000 (December 31, 2014 - 500,000,000) shares of preferred stock with a par value of $0.001 per share |
| Shares issued and outstanding: No (December 31, 2014 - No) shares of preferred stock were issued and outstanding |
| Common stock |
| Authorized: 500,000,000 (December 31, 2014 - 500,000,000) shares of common stock with a par value of $0.001 per share |
| Shares issued and outstanding: 242,777,909 shares of common stock (December 31, 2014 – 242,777,909 shares of common stock) | 242,777 | 242,777 |
| Additional paid-in capital | 37,406,445 | 37,355,956 |
| Accumulated deficit | (56,088,018 | ) | (55,293,504 | ) |
| Stockholders' deficit | (18,438,796 | ) | (17,694,771 | ) |
| Total liabilities and stockholders' deficit | $ | 8,068 | $ | 65,552 |

See accompanying notes to the condensed consolidated financial statements.
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ALR TECHNOLOGIES INC.
Condensed Consolidated Statements of Operations
($ United States)
(Unaudited)
| Three months ended March 31, |
| 2015 | 2014 |
| Expenses |
| General, selling and administration | $ | 220,370 | $ | 202,275 |
| Product development costs | 132,112 | 111,604 |
| Professional fees | 58,589 | 72,594 |
| Loss from operations | 411,072 | 386,473 |
| Other Expenses (Income) |
| Foreign exchange gain | (1,810 | ) | - |
| Interest | 385,252 | 327,259 |
| Total Other Expenses | (383,442 | ) | (327,259 | ) |
| Net loss | $ | (794,514 | ) | $ | (713,732 | ) |
| Loss per share - basic and diluted | $ | (0.00 | ) | $ | (0.00 | ) |
| Weighted average shares outstanding, - basic and diluted | 242,777,909 | 239,477,909 |

See accompanying notes to the condensed consolidated financial statements.
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ALR TECHNOLOGIES INC.
Condensed Consolidated Statements of Cash Flows
($ United States)
(Unaudited)
| Three Months Ended March 31, |
| 2015 | 2014 |
| OPERATING ACTIVITIES |
| Net loss | $ | (794,514 | ) | $ | (713,732 | ) |
| Stock-based compensation-product development costs | 9,481 | 833 |
| Stock-based compensation-selling, general and administration | 2,352 | - |
| Stock-based compensation-professional fees | 1,359 | - |
| Non-cash imputed interest expenses | 37,297 | (2,300 | ) |
| Accrued interest on line of credit | 217,939 | 170,627 |
| Changes in operating assets and liabilities: |
| (Increase) decrease in prepaid expenses | 2,725 | (6,981 | ) |
| Increase (decrease) in accounts payable and accrued liabilities | (1,513 | ) | 41,040 |
| Increase in interest payable | 128,892 | 158,476 |
| Net cash used in operating activities | (395,982 | ) | (352,037 | ) |
| FINANCING ACTIVITIES |
| Proceeds from borrowings on line of credit | 341,223 | 323,215 |
| Net cash provided by financing activities | 341,223 | 323,215 |
| Decrease in cash | (54,759 | ) | (28,822 | ) |
| Cash, beginning of period | 58,842 | 29,558 |
| Cash, end of period | $ | 4,083 | $ | 736 |

See accompanying notes to the condensed consolidated financial statements.
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ALR TECHNOLOGIES INC.
Notes to Condensed Consolidated Financial Statements
($ United States)
(Unaudited)
1. Basis of Presentation, Nature of Operations and Going Concern
ALR Technologies Inc. (the "Company") was incorporated under the laws of the state of Nevada on March 24, 1987. The Company has developed a compliance monitoring system that will allow for health care professionals to remotely monitor patient health conditions and provide patient health management. On October 17, 2011 the Company announced that it had received Section 510(k) clearance from the United States Food and Drug Administration for its Health-e-Connect System. The Company is currently seeking pilot programs to deploy its product.
These consolidated financial statements have been prepared in accordance with Generally Accepted Accounting Principles in the United States of America ("U.S. GAAP") in U.S dollars and on a going-concern basis, which presumes the realization of assets and the discharge of liabilities and commitments in the normal course of operations for the foreseeable future. Several adverse conditions cast substantial doubt on the validity of this assumption. The Company has incurred significant losses over the three month periods ended March 31, 2015 and 2014 of $794,114 and $713,732. In addition, losses incurred for the years ended December 31, 2014 and 2013 were $6,452,397 and $2,997,229. As of March 31, 2015, the Company is currently unable to self-finance its operations, has a working capital deficit of $18,438,796 (December 31, 2014 - $17,694,771), accumulated deficit of $56,088,018 (December 31, 2014 - $55,293,054), limited resources, no source of operating cash flow, and no assurance that sufficient funding will be available to conduct continued product development activities. If the Company is able to finance its required product development activities, there is no assurance the Company's current projects will be commercially viable or profitable. The Company has debts comprised of accounts payable, interest, lines of credit and promissory notes payable totaling $18,443,464 currently due, due on demand or considered delinquent. There is no assurance that the Company will not face additional legal action from creditors regarding delinquent accounts payable, payroll payable, promissory notes and interest payable. Any one or a combination of these above conditions could result in the failure of the business and cause the Company to cease operations.
The Company's ability to continue as a going-concern is dependent upon the continued financial support of its creditors and its ability to obtain financing to fund working capital and overhead requirements, fund the development of the Company's product line and ultimately, the Company's ability to achieve profitable operations and repay overdue obligations. Management has obtained short-term financing from related parties through lines of credit facilities with available borrowing in principal amount up to $7,500,000 (As of March 31, 2015 the total principal balance outstanding was $7,438,496). The resolution of whether the Company is able to continue as a going concern is dependent upon the realization of management's plans. If additional financing is required, the Company plans to raise needed capital through the exercise of share options and by future common share private placements. There can be no assurance that the Company will be able to raise any additional debt or equity capital from the sources described above, or that the lenders in the line of credit arrangements will maintain the availability of borrowing from the line. If management is unsuccessful in obtaining short-term financing or achieving long-term profitable operations, the Company will be required to cease operations.
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ALR TECHNOLOGIES INC.
Notes to Condensed Consolidated Financial Statements
($ United States)
(Unaudited)
1. Basis of Presentation, Nature of Operations and Going Concern (continued)
All of the Company's debt is either due on demand or is in default, while continuing to accrue interest at its stated rate. The Company will seek to obtain creditors' consents to delay repayment of the outstanding promissory notes payable and related interest thereto, until it is able to replace this financing with funds generated by operations, recapitalization with replacement debt or from equity financings through private placements. While some of the Company's creditors have agreed to extend repayment deadlines in the past, there is no assurance that they will continue to do so in the future. In the past, creditors have successfully commenced legal action against the Company to recover debts outstanding. In those instances, the Company was able to obtain financing from related parties to cover the verdict or settlement; however, there is no assurance that the Company would be able to obtain the same financing in the future. If the Company is unsuccessful in obtaining financing to cover any potential verdicts or settlements, the Company will be required to cease operations.
The Company's activities will necessitate significant uses of working capital beyond 2015. Additionally, the Company's capital requirements will depend on many factors, including the success of the Company's continued product development and distribution efforts. The Company plans to continue financing its operations with the lines of credit it has available.
While the Company strongly believes that its capital resources will be sufficient in the near term, there is no assurance that the Company's activities will generate sufficient revenues to sustain its operations without additional capital or if additional capital is needed, that such funds, if available, will be obtainable on terms satisfactory to the Company.
2. Significant Accounting Policies
The unaudited condensed consolidated financial statements as of March 31, 2015 and for the period then ended have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading.
In the opinion of management, all adjustments necessary to present fairly the financial position as of March 31, 2015 and December 31, 2014 and the results of operations, and cash flows as of March 31, 2015 and 2014, and for the periods then ended, have been made. Those adjustments consist of normal and recurring adjustments.
These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2014, as filed with the U.S. SEC.
The results of operations for the three month period ended March 31, 2015, are not necessarily indicative of the results to be expected for the full year.
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ALR TECHNOLOGIES INC.
Notes to Condensed Consolidated Financial Statements
($ United States)
(Unaudited)
3. Interest, Advances and Promissory Notes Payable
a) Interest payable
A summary of the interest payable activity is as follows:
| Balance, December 31, 2013 | $ | 2,075,017 |
| Interest incurred on judgement against Company (note 6(b)) | 29,583 |
| Interest incurred on promissory notes payable | 128,893 |
| Balance, December 31, 2014 | 2,620,172 |
| Interest incurred on promissory notes payable | 128,892 |
| Balance, March 31, 2015 (unaudited) | $ | 2,749,064 |

Interest payable is to the following:
| March 31, 2015 (unaudited) | December 31, 2014 |
| Relatives of directors | $ | 1,429,307 | $ | 1,352,750 |
| Non-related parties | 1,319,757 | 1,267,422 |
| $ | 2,749,064 | $ | 2,620,172 |

| Historically, all interest payable incurred is from interest incurred at the stated rated of promissory notes issued by the Company. The payment terms, security and any interest payable are based on the underlying promissory notes payable that the Company has outstanding. |

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ALR TECHNOLOGIES INC.
Notes to Condensed Consolidated Financial Statements
($ United States)
(Unaudited)
3. Interest, Advances and Promissory Notes Payable (continued)
b) Promissory notes payable:
| Promissory notes payable | March 31, 2015 (unaudited) | December 31, 2014 |
| Unsecured promissory notes payable to unrelated lenders: |
| i. | Interest at 1% per month, repayable on March 31, 2009, due on demand | $ | 450,000 | $ | 450,000 |
| ii. | Interest at 1% per month, with $50,000 repayable on December 31, 2004, $75,000 repayable on August 18, 2007, $75,000 repayable on November 19, 2007 and the balance due on demand. All are due on demand, accruing interest at the same rate. | 887,455 | 887,455 |
| iii. | Interest at 0.625% per month, with $50,000 repayable on October 5, 2004, $40,000 repayable on December 31, 2004, and $60,000 repayable on July 28, 2006, all due on demand | 150,000 | 150,000 |
| iv. | Non-interest-bearing, repayable on July 17, 2005, due on demand | 270,912 | 270,912 |
| v. | Non-interest-bearing loan repayable at $25,000 per month beginning October 2009, none repaid to date | 310,986 | 310,986 |
| vi. | Interest at 0.667% per month due January 15, 2011, none repaid to date | 125,000 | 125,000 |
| Promissory notes payable, secured by a guarantee from a director and relative of a director, bearing interest at 1% per month, with $200,000 repayable on July 31, 2003, all due on demand | 230,000 | 230,000 |
| Total Arm's Length Promissory Notes | $ | 2,424,353 | $ | 2,424,353 |

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ALR TECHNOLOGIES INC.
Notes to Condensed Consolidated Financial Statements
($ United States)
(Unaudited)
3. Interest, Advances and Promissory Notes Payable (continued)
c) Promissory notes payable to related parties:
| Promissory notes payable to relatives of directors collateralized by a general security agreement on all the assets of the Company, due on demand: | March 31, 2015 (unaudited) | December 31, 2014 |
| i. | Interest at 1% per month | $ | 845,619 | $ | 845,619 |
| ii. | Interest at 1.25% per month | 51,347 | 51,347 |
| iii. | Interest at the U.S. bank prime rate plus 1% | 500,000 | 500,000 |
| Promissory notes payable, unsecured, to relatives of a director, bearing interest at 1% per month, due on demand | 1,465,000 | 1,465,000 |
| Total Related Party Promissory Notes | $ | 2,861,966 | $ | 2,861,966 |

d) Interest expense
During the three months ended March 31, 2015, the Company incurred interest expense of $385,252 (2014: $327,259) substantially as follows:
| - | $128,892 (2014: $158,476) incurred on promissory notes payables as shown in note 3(b); |
| - | $217,939 (2014: $170,627) incurred on lines of credit payable, and |
| - | $37,297 (2014: ($2,300) (note 6(b)) incurred from the calculation of imputed interest on accounts payable outstanding for longer than one year, advances payable and promissory notes payable, which had no stated interest rate; |

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ALR TECHNOLOGIES INC.
Notes to Condensed Consolidated Financial Statements
($ United States)
(Unaudited)
4. Lines of Credit
As of March 31, 2015, the Company has lines of credit as follows:
| Creditor | Interest Rate | Borrowing Limit | Repayment Terms | Amount Outstanding | Accrued Interest | Total | Security | Purpose |
| Chairman | 1% per Month | $5,500,000 | Due on Demand | $ 5,438,496 | $ 1,081,312 | $ 6,519,808 | General Security over Assets | General Corporate Requirements |
| Wife of Chairman | 1% per Month | $2,000,000 | Due on Demand | 2,000,000 | 837,718 | 2,837,718 | General Security over Assets | General Corporate Requirements |
| Total | $ 7,438,496 | $ 1,919,030 | $ 9,357,526 |

As of December 31, 2014, the Company has lines of credit as follows:
| Creditor | Interest Rate | Borrowing Limit | Repayment Terms | Amount Outstanding | Accrued Interest | Total | Security | Purpose |
| Chairman | 1% per Month | $5,500,000 | Due on Demand | $ 5,097,273 | $ 923,374 | $ 6,020,647 | General Security over Assets | General Corporate Requirements |
| Wife of Chairman | 1% per Month | $2,000,000 | Due on Demand | 2,000,000 | 777,718 | 2,777,718 | General Security over Assets | General Corporate Requirements |
| Total | $ 7,097,273 | $ 1,701,091 | $ 8,798,364 |

5. Capital Stock
a) Authorized share capital
500,000,000 shares of common stock with a par value of $0.001 per share and 500,000,000 shares of preferred stock with a par value of $0.001 per share.
b) Issued share capital
During the period ended March 31, 2015:
There were no issuances for the three month period ended March 31, 2015.
During the year ended December 31, 2014:
On May 21, 2014, consultants of the Company exercised their option to acquire 1,550,000 shares of common stock of the Company at an exercise price of $0.03 per share. As consideration, the Company retired accounts payable of $135,000, resulting in a gain on settlement of debt of $88,500. The Company received full release of any additional claim to debt.
On August 15, 2014, a director of the Company exercised their option to acquire 1,250,000 shares of common stock of the Company at an exercise price of $0.03 per share. As consideration, the Company retired accrued interest payable of $37,500.
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ALR TECHNOLOGIES INC.
Notes to Condensed Consolidated Financial Statements
($ United States)
(Unaudited)
5. Capital Stock (continued)
b) Issued share capital (continued)
On October 2, 2014, a consultant of the Company exercised his option to acquire 500,000 shares of common stock of the Company at an exercise price of $0.05 per share. As consideration, the Company retired accounts payable of $25,000 and received a full release of any additional claim to debt.
c) Stock options
During the period ended March 31, 2015:
On January 30, 2015, the Company granted the options to acquire 4,500,000 shares of common stock of the Company at a price of $0.03 per share for five years to 14 employees and consultants of the Company. The options to acquire the shares of common stock vest as follows:
| · | 650,000 at January 30, 2016, |

| · | 650,000 at January 30, 2017, |

| · | 1,050,000 at January 30, 2018, |

| · | 1,050,000 at January 30, 2019, and |

| · | 1,100,000 at January 30, 2020 |

Included above, the respective option to acquire 500,000 shares of common stock granted to two consultants of the Company will only vest if the individual accepts a full-time role with the Company. The compensation expense recognized related to the vested stock options was $1,993. The compensation expense related to the unvested stock options to be recognized if the options vest is $40,864.
The Company recorded $11,199 in compensation expense related to vesting of previously granted stock options.
During the year ended December 31, 2014:
On February 7, 2014, the Company:
| 1) | granted the option to acquire 300,000 shares of common stock at an exercise price of $0.03 per share to a consultant of the Company. The option to acquire the shares of common stock vest as follows: |

| - | 150,000 at the time of the grant, and |

| - | 150,000 one year from the date of grant. |

The compensation expense recognized related to this option grant was $8,155. The compensation expense related to the unvested stock option grant was $8,155. The compensation related to the unvested stockoptions to be recognized when the options vest is $815.
| 2) | granted the option to acquire 400,000 shares of common stock at an exercise price of $0.03 per share to a consultant of the Company. The option to acquire the shares of common stock vest as follows: |

| - | 100,000 at the time of grant, and |

| - | three respective performance conditions, each for the option to acquire 100,000 shares, with respect to sales and partnership arrangements for the Company's Health-e-Connect product. |

The compensation expense recognized related to this option grant was $2,990. The compensation expense related to the unvested stock options to be recognized if the options vest is $8,970.
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ALR TECHNOLOGIES INC.
Notes to Condensed Consolidated Financial Statements
($ United States)
(Unaudited)
5. Capital Stock (continued)
c) Stock options (continued)
On April 1, 2014, the Company:
| a) | agreed to the following in exchange for amending the borrowing limit on its line of credit with the Chairman, increasing it from $4,000,000 to $5,500,000: |

| i. | granted the option to acquire 83,333,400 shares of common stock of the Company at a price of $0.03 per share for a term of five years, |

| ii. | modified the exercise price of the options to acquire 35,750,000 shares of common stock of the Company, granted June 2012, from $0.05 per share to $0.03 per share, |

| iii. | modified the exercise price of the options to acquire 14,250,000 shares of common stock of the Company, granted December 2012, from $0.05 per share to $0.03 per share, |

| iv. | modified the exercise price of the options granted January 2011 to the spouse of the Chairman, to acquire 20,000,000 shares of common stock of the Company from $0.05 per share to $0.03 per share, and |

| v. | granted the option to the spouse of the Chairman to acquire 26,666,700 shares of common stock of the Company at an exercise price of $0.03 per share for a term of five years. |

The compensation expense recognized related to the option grants was $3,280,929. There was no additional compensation expense recognized as a result of the modification to the exercise price of the previously granted options.
| b) | reduced the exercise price of 3,200,000 stock options from $0.05 per share to $0.03 per share. There was no additional compensation expense recognized as a result of the modification to the exercise price of these previously granted options. One individual, a Director of the Company, has exercised their option to acquire 1,250,000 shares of common stock which were modified during 2014. |

| c) | allowed 500,000 stock options, with an exercise price of $0.03 per share, to vest. The options were previously to vest if the optionee entered into a full-time employment or equivalent role with the Company. The compensation expense recognized related to this option grant was $19,987. |

On April 18, 2014, the Company:
| a) | granted an option to acquire 1,500,000 shares of common stock at a price of $0.03 per share for a term of five years to a Director of the Company. The options vested on May 19, 2014 when the individual assumed the role as President of the Company. The compensation expense recognized related to the option grant was $37,263. |

| b) | granted an option to acquire 500,000 shares of common stock at a price of $0.03 per share for a term of five years to a consultant of the Company. Options vest as follow: |

| · | 100,000 shares vest immediately, and |

| · | 400,000 shares vest upon the completion of a partnership with a specified major multinational pharmaceutical company. |

The compensation expense recognized related to this option grant was $2,484. The compensation expense related to the unvested stock options to the
unvested stock options to be recognized if the options vest is $9,937.
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ALR TECHNOLOGIES INC.
Notes to Condensed Consolidated Financial Statements
($ United States)
(Unaudited)
5. Capital Stock (continued)
c) Stock options (continued)
On May 21, 2014, the Company:
| a) | granted a consultant an option to acquire 500,000 shares of common stock at a price of $0.03 per share for a term of five years. Options vest as follow: |

| - | 100,000 shares vest twelve months from the date of the grant, |

| - | 200,000 shares vest twenty four months from the date of the grant, and |

| - | 200,000 shares vest thirty six months from the date of the grant |

The compensation expense recognized related to this option grant was $5,305. The compensation expense related to the unvested stock options to be recognized if the options vest is $9,614.
| b) | granted a consultant an option to acquire 100,000 shares of common stock at a price of $0.03 per share until June 27, 2017. This option to acquire 100,000 shares of common stock was exercised as part of a debt settlement agreement. The compensation expense recognized related to this option grant was $2,906. |

| c) | entered into agreements with three consultants to modify the exercise price of their collective options to acquire 1,450,000 shares of common stock from $0.07 to $0.03. The options to acquire 1,450,000 shares of common stock was exercised as part of a debt settlement agreement. There was no additional compensation expense recognized related to this option modification. |

On July 25, 2014, the Company granted two directors each an option to acquire 1,000,000 shares of common stock at a price of $0.03 per share for a term of five years. One of the directors exercised their option acquire 1,000,000 shares of common stock of the Company. The compensation expense related to the option grants was $49,590.
On August 1, 2014, the Company:
| a) | granted a director an option to acquire 500,000 shares of common stock at a price of $0.03 per share for a term of five years The compensation expense recognized was $12,393. |

| b) | granted a consultant an option to acquire 250,000 shares of common stock at a price of $0.03 per share for a term of five years. The compensation expense was $6,196. |

| c) | granted a consultant an option to acquire 500,000 shares of common stock at a price of $0.03 per share for a term of five years subject to: |

| i. | Consenting to act as an advisor to the Board of Directors of the Company; |

| ii. | Satisfactory completion, at the sole discretion of the Board of Directors, of a six month term as an advisor to the Board of Directors |

| iii. | Completion of an on-going arrangement with the Company in a material capacity immediately subsequent to the completion of the six month term referenced above in ii. |

The compensation expense of $12,393 was recognized at the time the options vested.
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ALR TECHNOLOGIES INC.
Notes to Condensed Consolidated Financial Statements
($ United States)
(Unaudited)
5. Capital Stock (continued)
c) Stock options (continued)
On August 26, 2014, the Company granted a creditor of the Company an option to acquire 2,000,000 shares of common stock of the Company at a price of $0.05 per share for a term of five years. The options vest on the basis of 20 options for each dollar advanced to the Company to fund a public relations campaign. The option to acquire 500,000 shares of common stock has vested. The compensation expense recognized related to the vested stock options was $15,413. The compensation expense related to the unvested stock options to be recognized if the options vest is $46,238.
The Company recorded a further $25,218 in compensation expense related to vesting of previously issued stock options.
A summary of stock option activity is as follows:
| Three Months Ended | Year Ended |
| March 31, 2015 (unaudited) | December 31, 2014 |
| Number of | Weighted Average | Number of | Weighted Average |
| Options | Exercise Price | Options | Exercise Price |
| Outstanding, beginning of period | 245,700,100 | $ | 0.03 | 130,550,000 | $ | 0.04 |
| Granted | 4,500,000 | 0.03 | 118,550,100 | 0.03 |
| Exercised | - | - | (100,000 | ) | (0.07 | ) |
| (3,300,000 | ) | (0.03 | ) |
| Outstanding, end of period | 250,200,100 | $ | 0.03 | 245,700,100 | $ | 0.03 |
| Exercisable, end of period | 241,650,100 | $ | 0.03 | 240,650,100 | $ | 0.03 |

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ALR TECHNOLOGIES INC.
Notes to Condensed Consolidated Financial Statements
($ United States)
(Unaudited)
5. Capital Stock (continued)
c) Stock options (continued)
Options outstanding at March 31, 2015 and December 31, 2014 were as follows:
| March 31, 2015 | December 31, 2014 |
| Expiry Date | Options | Exercise Price | Intrinsic Value | Options | Exercise Price | Intrinsic Value |
| September 30, 2015 | 1,200,000 | $ | 0.25 | - | 1,200,000 | $ | 0.25 | - |
| November 29, 2015 | 20,000,000 | $ | 0.03 | - | 20,000,000 | $ | 0.03 | - |
| March 6, 2016 | 35,750,000 | $ | 0.03 | - | 35,750,000 | $ | 0.03 | - |
| May 4, 2016 | 1,000,000 | $ | 0.05 | - | 1,000,000 | $ | 0.05 | - |
| May 23, 2016 | 100,000 | $ | 0.03 | - | 100,000 | $ | 0.03 | - |
| May 27, 2017 | 400,000 | $ | 0.03 | - | 400,000 | $ | 0.03 | - |
| May 31, 2017 | 500,000 | $ | 0.25 | - | 500,000 | $ | 0.25 | - |
| August 16, 2017 | 250,000 | $ | 0.03 | - | 250,000 | $ | 0.03 | - |
| December 28, 2017 | 14,250,000 | $ | 0.03 | - | 14,250,000 | $ | 0.03 | - |
| December 28, 2017 | 51,000,000 | $ | 0.03 | - | 51,000,000 | $ | 0.03 | - |
| January 28, 2018 | 2,300,000 | $ | 0.03 | - | 2,300,000 | $ | 0.03 | - |
| March 26, 2018 | 500,000 | $ | 0.03 | - | 500,000 | $ | 0.03 | - |
| April 9, 2018 | 1,000,000 | $ | 0.03 | - | 1,000,000 | $ | 0.03 | - |
| October 1, 2018 | 500,000 | $ | 0.03 | - | 500,000 | $ | 0.03 | - |
| February 7, 2019 | 700,000 | $ | 0.03 | - | 700,000 | $ | 0.03 | - |
| April 1, 2019 | 110,000,100 | $ | 0.03 | - | 110,000,100 | $ | 0.03 | - |
| April 18, 2019 | 2,000,000 | $ | 0.03 | - | 2,000,000 | $ | 0.03 | - |
| May 21, 2019 | 500,000 | $ | 0.03 | - | 500,000 | $ | 0.03 | - |
| July 25, 2019 | 1,000,000 | $ | 0.03 | - | 1,000,000 | $ | 0.03 | - |
| August 1, 2019 | 1,250,000 | $ | 0.03 | - | 1,250,000 | $ | 0.03 | - |
| August 26, 2019 | 1,500,000 | $ | 0.03 | - | 1,500,000 | $ | 0.03 | - |
| January 20, 2020 | 4,500,000 | $ | 0.03 | - | - | $ | - | - |
| Total | 250,200,100 | $ | 0.03 | - | 245,700,100 | $ | 0.03 | - |
| Weighted Average Remaining Contractual Life | 2.94 | 3.09 |

The Company uses the fair value method for determining stock-based compensation for all options granted during the fiscal periods. The fair value was determined using the Black-Scholes Option Pricing Model based on the following weighted average assumptions:
| March 31, 2015 (unaudited) | December 31, 2014 |
| Risk-free interest rate | 1.68% | 2.50% |
| Expected life | 5 years | 5 years |
| Expected dividends | 0% | 0% |
| Expected volatility | 195% | 245% |
| Forfeiture rate | 0% | 0% |

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ALR TECHNOLOGIES INC.
Notes to Condensed Consolidated Financial Statements
($ United States)
(Unaudited)
5. Capital Stock (continued)
c) Stock options (continued)
The weighted average fair value for the options granted during the three months ended March 31, 2015 was $0.01 (2014: $0.04).
The fair value of the stock options granted was allocated as follows:
| Three Months Ended March 31 2015 (unaudited) | Three Months Ended March 31 2014 (unaudited) |
| Product Development: |
| Non-employees | $ | 9,481 | $ | 833 |
| Professional |
| Non-employees | $ | 1,359 | $ | - |
| Selling, general and administration: |
| Non-employees | $ | 2,352 | $ | - |

6. Contingencies
| a. | Accounts payable and accrued liabilities as of March 31, 2015 include $180,266 (December 31, 2014 - $180,266) of amounts owing to a supplier, which the Company is in the process of disputing. The outcome of this matter cannot be determined at this time. Any adjustment will be recorded in the period that an agreement with the supplier is reached and the amount becomes determinable. |

| b. | The Company has had three judgments against it relating to overdue promissory notes and accrued interest and a fourth creditor has demanded repayment of an overdue promissory note and accrued interest. To date, the Company has not repaid any of these promissory notes and related accrued interest and could be subject to further action. The legal liability, totaling $1,000,968, of these promissory notes and related accrued interest have been fully recognized and recorded by the Company. |

With respect to one of these promissory notes totaling $125,000:
On February 5, 2014, a default judgment was rendered against the Company whereby it was ordered to repay $125,000 of loan principal in addition to interest of 8% per annum from January 16, 2011 until the date the loan is repaid along with any costs incurred by the plaintiff for the judgement. The loan principal of $125,000 has previously been recorded as a zero interest loan. Accordingly, the Company had recorded imputed interest at a rate of 1% per month on the principal outstanding. The total imputed interest recorded from January 16, 2011 to December 31, 2013 was approximately $44,000.
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ALR TECHNOLOGIES INC.
Notes to Condensed Consolidated Financial Statements
($ United States)
(Unaudited)
6. Contingencies (continued)
b. (continued)
As a result of the judgement, this loan should not have accrued imputed interest of $44,000. The accumulated interest at the legal rate of 8% was approximately $30,000 from January 16, 2011 to December 31, 2013. During the 2014 fiscal year, the Company reversed the imputed interest expense of $44,000 and recognized the interest expense on the promissory note totaling $29,000.
7. Related Party Transactions
Related party transactions included the following:
| Three months ended March 31, 2015 (unaudited) | Three months ended March 31, 2014 (unaudited) |
| Interest expense: |
| Promissory notes issued to relatives of the Chairman | $ | 76,557 | $ | 76,557 |
| Lines of credit from Chairman and relatives of the Chairman | 214,539 | 170,629 |
| General, selling and administration: |
| Consulting fees to a Company controlled by director of the Company in his role as a consultant to the Company | 46,500 | 31,500 |
| Consulting services rendered by an individual who is a director and officer of the Company | 47,400 | 47,400 |

Except as discussed in the next paragraph, all transactions with related parties were incurred in the normal course of operations and measured at the exchange amount, which is the amount of consideration established and agreed upon by the transacting parties.
Interest on promissory notes payable to related parties, management compensation and compensation paid to a relative of a director have been recorded at the exchange amount, which is the amount agreed to by the parties. Options granted to related parties have been recorded at their estimated fair value.
Included in accounts payable is $16,839 (2014 - $10,666) due to a company controlled by a Director of the Company.
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ALR TECHNOLOGIES INC.
Notes to Condensed Consolidated Financial Statements
($ United States)
(Unaudited)
8. Commitments
The Company has annual compensation arrangements with the following individuals:
| Sidney Chan | $ | 180,000 |
| William Smith | $ | 180,000 |

The contracts are automatically renewed annually and may be terminated by the Company at any time, effective thirty or sixty days after delivery of notice, without any further compensation.
The terms of Mr. Chan's contract provides for monthly services fees of $15,000 per month and vehicle allowance of $800 per month as Chief Executive Officer of the Company. The contract also provides for a commission of 1% of net sales during the term of the agreement. The initial term of the contract is for one year and automatically renews for continuous one year terms.
The terms of Mr. Smith's contract provides for monthly services fees of $15,000 per month. The initial term of the contract is for one year and automatically renews for continuous one year terms.
In addition, if more than 50% of the Company's stock or assets are sold, Messrs. Chan will be compensated for entering into non-compete agreements based on the selling price of the Company or its assets as follows:
| - | 2% of sales price up to $24,999,999 plus |

| - | 3% of sales price between $25,000,000 and $49,999,999 plus |

| - | 4% of sales price between $50,000,000 and $199,999,999 plus |

| - | 5% of sales price in excess of $200,000,000 |

Any other amounts distributed to each key employee are to be determined by the Board of Directors.
9. Subsequent Event
On April 22, 2015, the Company reduced the exercise price of the option to acquire 12,900,000 shares of common stock held by 21 consultants, officers, directors and employees of the Company from $0.03 per share to $0.015 per share.
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ITEM 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Forward Looking Statements
The following information must be read in conjunction with the unaudited Consolidated Financial Statements and Notes thereto included in Item 1 of this Quarterly Report and the audited Consolidated Financial Statements and Notes thereto and Management's Discussion and Analysis or Plan of Operations contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2014. Except for the description of historical facts contained herein, the Form 10-Q contains certain forward-looking statements concerning future applications of the Company's technologies and the Company's proposed services and future prospects, that involve risk and uncertainties, including the possibility that the Company will: (i) be unable to commercialize services based on its technology, (ii) ever achieve profitable operations, or (iii) not receive additional financing as required to support future operations, as detailed herein and from time to time in the Company's future filings with the Securities and Exchange Commission and elsewhere. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.
Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.
Our financial statements are stated in United States dollars and are prepared in accordance with United States generally accepted accounting principles.
In this quarterly report, unless otherwise specified, all references to "common shares" refer to the common shares in our capital stock.
As used in this quarterly report, the terms "we", "us", "our", the "Company" and "ALRT" mean ALR Technologies Inc, unless otherwise indicated.
Overview
ALR Technologies Inc. was incorporated under the laws of the State of Nevada on March 24, 1987 as Mo Betta Corp. On December 28, 1998, the Company changed its name to ALR Technologies Inc. Also in in December 1998, the common shares of the Company began trading on the "Over the Counter Bulletin Board". Today the Company trades under the symbol "ALRT." ALRT products utilize internet based technologies to facilitate health care providers ability to monitor their patient's health and ensure adherence to health maintenance activities.
During 2011, the Company received FDA clearance and during 2012 the Company achieved HIPPA compliance for its Health-e-Connect ("HeC") System.
On April 15, 2008, the Company incorporated a wholly-owned subsidiary in Canada under the name Canada Alrtech Health Systems Inc.
Recent Developments
On February 7, 2014, the Company:
| · | granted Dr. James Gavin III the option to acquire 300,000 shares of common stock at an exercise price of $0.05 per year for a term of five years. Options in respect of 150,000 shares would vest immediately with the balance vesting after 12 months. |

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| · | granted Ms. Barbara Dubiel the option to acquire 400,000 shares of common stock at an exercise price $0.03 per share a term of five years. Options vest as follow: |

| i. | 100,000 shares vest immediately, |

| ii. | 100,000 shares vest at the time a pilot project for the Company's Health-e-Connect is initiated between the Company and specified major multinational pharmaceutical company, |

| iii. | 100,000 shares vest at the time a software sharing deal has been executed between the Company and a specified major multinational pharmaceutical company, and |

| iv. | 100,000 shares vest at the time a national, co promotable deal for the Company's Health-e-Connect has been executed between the Company and a specified major multinational pharmaceutical company; |

| v. | Provided that those performance conditions are met or complied with in form and substance reasonably satisfactory to the Company by March 15, 2015. |

On April 1, 2014 the Company entered into an amending agreement with Mr. Sidney Chan, the Chairman of the Board of Directors and Chief Executive Officer of the Company, whereby Mr. Chan increased the borrowing limit of the line of credit he has provided to the Company from $4,000,000 to $5,500,000. All other terms and conditions of the amended credit agreement remain in force and unaltered. Mr. Chan and the Company had previously entered into an agreement on March 6, 2011, which was subsequently amended by further agreements dated October 24, 2011 and June 15, 2012 and December 28, 2012 whereby Mr. Chan agreed to make available to the Company a credit line equal to $4,000,000 for the Company's corporate purposes. Under the terms of the arrangement, the amount borrowed by the Company bears simple interest at a rate of 1% per month. The amount borrowed is secured by a general security agreement over the assets of the Company and is due on demand.
In exchange for increasing the borrowing limit on the line of credit, the Company agreed to the following:
| i. | granted Mr. Chan the option to acquire 83,333,500 shares of common stock of the Company at a price of $0.03 per share for a term of five years, |

| ii. | modified the exercise price of Mr. Chan's option to acquire 35,750,000 shares of common stock of the Company, granted June 2012, from $0.05 per share to $0.03 per share, |

| iii. | modified the exercise price of Mr. Chan's option to acquire 14,250,000 shares of common stock of the Company, granted December 2012, from $0.05 per share to $0.03 per share, |

| iv. | modified the exercise price of the option granted January 2011 to the spouse of Mr. Chan (Ms. Kan), to acquire 20,000,000 shares of common stock of the Company from $0.05 per share to $0.03 per share, and |

| v. | granted Ms. Kan the option acquire 26,666,700 shares of common stock of the Company at an exercise price of $0.03 per share for a term of five years. |

On April 1, 2014, the Company
| i. | entered into agreements with the following consultants to modify their option to acquire shares of common stock of the Company as follows: |

| Option Holder | Shares under Option | Previous Exercise Price per Share under Option | Amended Exercise Price per Share under Option |
| Dr. Alfonso Salas | 250,000 | $0.05 | $0.03 |
| Viper Enterprises LLC | 500,000 | $0.05 | $0.03 |
| Mr. Johnny Tlardera | 200,000 | $0.05 | $0.03 |
| Mr. Norbert Ricafranca | 200,000 | $0.05 | $0.03 |
| Mr. Steven Brassard | 300,000 | $0.05 | $0.03 |
| Mr. Lester Tolentino | 200,000 | $0.05 | $0.03 |
| Ms. Barbara Dubiel | 300,000 | $0.05 | $0.03 |
| Mr. Glen Reyes | 200,000 | $0.05 | $0.03 |
| Mr. Ken Robulak | 350,000 | $0.05 | $0.03 |
| Dr. Kent Stoneking | 500,000 | $0.05 | $0.03 |
| Mr. Mark Uy | 200,000 | $0.05 | $0.03 |

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| ii. | entered into an amendment agreement with Mr. Steven Brassard whereby the vesting conditions on his option to acquire 500,000 shares of common stock, granted April 9, 2013, were removed. Previously, this option was to vest if Mr. Brassard accepted a full-time role with the Company. |

On April 11, 2014, the Company received notice of resignation effective May 18, 2014 from Mr. Lawrence Weinstein for the positions of President and Chief Operating Officer. On April 17, 2014, the Company received notice of resignation effective May 18, 2014 from Mr. Lawrence Weinstein for his position as a member of the Board of Directors of the Company.
On April 18, 2014, the Board of Directors appointed Mr. Bill Smith to assume the position of President effective May 19, 2014. Upon assuming the office of President of the Company, Mr. Smith will be paid $15,000 per month. In conjunction with the appointment, the Company has granted Mr. Smith the option to purchase 1,500,000 shares of common stock at a price of $0.03 per share for a term of five years.
On April 18, 2014, the Company granted Ms. Barbara Dubiel the option to acquire 500,000 shares of common stock of the Company at a price of $0.03 per share for a term of five years. Options vest as follow:
| vi. | 100,000 shares vest immediately |

| vii. | 400,000 shares vest upon the completion of a partnership with a specified major multinational pharmaceutical company (a different company unrelated to the option grant dated February 7, 2014), |

On May 21, 2014, the Company:
| a) | granted Mr. Philip Murphy the option to acquire 500,000 shares of common stock at a price of $0.03 per share for a term of five years. The option to acquire shares vest as follow: |

| - | 100,000 shares vest twelve months from the date of the grant |

| - | 200,000 shares vest twenty four months from the date of the grant |

| - | 200,000 shares vest thirty six months from the date of the grant |

| b) | granted Ms. Nancy Antrobus the option to acquire 100,000 shares of common stock at a price of $0.03 per share until June 27, 2017. |

| c) | entered into agreements with the following consultants to modify their option to acquire shares of common stock of the Company as follows: |

| Option Holder | Shares under Option | Previous Exercise Price per Share under Option | Amended Exercise Price per Share under Option |
| Ms. Kathi Cullari | 1,250,000 | $0.07 | $0.03 |
| Ms. Michelle Gillespie | 100,000 | $0.07 | $0.03 |
| Ms. Jennifer Wagner | 100,000 | $0.07 | $0.03 |

| d) | entered into a debt settlement agreement with Cullari Communications Group LLC whereby Cullari agreed to release and discharge all accounts payable owed in exchange for the exercises of options: |

| Option Holder | Shares under Option | Amended Exercise Price per Share under Option |
| Ms. Kathi Cullari | 1,250,000 | $0.03 |
| Ms. Michelle Gillespie | 100,000 | $0.03 |
| Ms. Jennifer Wagner | 100,000 | $0.03 |
| Ms. Nancy Antrobus | 100,000 | $0.03 |

On June 2, 2014, the option granted to Ms. Sarah Cox to acquire 100,000 shares of common stock at a price of $0.07 per share was cancelled.
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On July 25, 2014, the Company granted the option to acquire 2,000,000 shares of common stock at a price of $0.03 per share for a term of five years as follows to two members of the Board of Directors of the Company:
| Option Holder | Shares under Option |
| Mr. Kenneth Robulak | 1,000,000 |
| Dr. Alfonso Salas | 1,000,000 |

On August 1, 2014, Mr. Peter Stafford, QC, was appointed to the Board of Directors of the Company. Mr. Stafford is a retired lawyer and business consultant, having practised with Fasken Martineau DuMoulin LLP, a major Canadian based international law firm, and its predecessor firms, from 1966 to 2013, except for several years spent as in-house counsel for clients of the firm. Mr. Stafford's experience is in the areas of corporate and securities law, including mergers and acquisitions. Mr. Stafford joined one of the predecessor firms of Fasken Martineau in 1966 and was a senior partner and former chair of the Business Law department of the Firm's Vancouver office. From 1985 to 1986, Mr. Stafford was Vice-President, General Counsel and Secretary of the Bank of British Columbia and from 1987 to 1989 he was Vice-President and Chief Counsel to Kaiser Resources Ltd., a finance and investment company. From 1989 until his retirement from full-time practice in 2006, Mr. Stafford served as senior partner in Faskin Martineu DuMoulin LLP, including leading the start of its Johannesburg, South Africa office in 2003. Since August 2013, Mr. Stafford has served as director, secretary and audit committee chair of Russell Breweries Inc. (TSX-V: RB). He was a director and subsequently secretary of WEX Pharmaceuticals Inc. (TSX listed) from September 2001 to its amalgamation in May 2011, a director and board chair of BC Bancorp (TSX listed) from October 1986 until its merger with Canadian Western Bank in November 1996, a director of Nissho Iwai (Canada) Ltd. a subsidiary of Nissho Iwai Corp. (now Sojitz Corp.) from June 1997 until October 2003 and a director of China One Corporation (TSX-V listed) from March 2007 until it was acquired in December 2008. Mr Stafford also served as Director of two private companies, Pikes Peak Resources Inc. from 2007 to 2012 and Paraguay Minerals Inc., from 2007 to date. Mr. Stafford obtained his Bachelor of Arts from the University of Cape Town in 1957 and obtained an LL. B from the University of South Africa in 1960. Mr. Stafford was granted the option to acquire 500,000 shares of common stock at a price of $0.03 per share for a term of five years.
On August 1, 2014, we granted the options to acquire 1,250,000 shares of our common stock at a price of $0.03 per share to expire on August 1, 2019 as follows:
| Option Holder | Shares under Option |
| Mr. Peter Stafford | 500,000 |
| Mr. Ronald Cheng | 500,000 |
| Mr. Steven Brassard | 250,000 |

The option granted to Mr. Ronald Cheng to acquire 500,000 shares of common stock at $0.03 per share vest at the time Mr. Cheng completes a six month advisory term to the Board of Directors satisfactorily to the board of directors and immediately subsequently thereafter enters into a subsequent relationship with the Company.
On August 15, 2014, Dr. Alfonso Salas exercised his option to acquire 1,250,000 shares of common stock of the Company at an exercise price of $0.03 per share. As consideration, the Company retired accrued interest payable of $37,500.
On August 26, 2014, the Company granted Mr. Marco Babini, a creditor of the Company, the option to acquire 2,000,000 shares of common stock of the Company at a price of $0.05 per share for a term of five years. The options vest on the basis of 20 options for each dollar advanced to the Company to fund a public relations campaign. On October 2, 2014, Mr. Babini exercised his option to acquire 500,000 shares of common stock of the Company through the retirement of debts totaling $25,000.
On January 30, 2015, the Company granted the option to acquire 4,500,000 shares of common stock at a price of $0.03 per share for a term of five years as follows:
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| Option Holder | Shares under Option | Note | Vest January 30, 2016 | Vest January 30, 2017 | Vest January 30, 2018 | Vest January 30, 2019 | Vest January 30, 2020 |
| Glen Reyes | 300,000 | Note 1 | - | - | 100,000 | 100,000 | 100,000 |
| Mark Uy | 300,000 | Note 2 | - | - | 100,000 | 100,000 | 100,000 |
| Norberto Ricafranca | 300,000 | Note 2 | - | - | 100,000 | 100,000 | 100,000 |
| Lester Tolentino | 300,000 | Note 2 | - | - | 100,000 | 100,000 | 100,000 |
| Johnny Lardera | 50,000 | Note 3 | - | - | - | - | 50,000 |
| Timothy John Co | 250,000 | Note 4 | 50,000 | 50,000 | 50,000 | 50,000 | 50,000 |
| David Manalili | 250,000 | Note 4 | 50,000 | 50,000 | 50,000 | 50,000 | 50,000 |
| Mark Reyes | 250,000 | Note 4 | 50,000 | 50,000 | 50,000 | 50,000 | 50,000 |
| Sherjo Evangelista | 250,000 | Note 4 | 50,000 | 50,000 | 50,000 | 50,000 | 50,000 |
| Marymar Payton# | 500,000 | Note 7 | 100,000 | 100,000 | 100,000 | 100,000 | 100,000 |
| Alex Leong | 500,000 | Note 5 | 100,000 | 100,000 | 100,000 | 100,000 | 100,000 |
| Rhonda Klarck | 500,000 | Note 5 | 100,000 | 100,000 | 100,000 | 100,000 | 100,000 |
| Alice Chapman | 250,000 | Note 4 | 50,000 | 50,000 | 50,000 | 50,000 | 50,000 |
| Phil Murphy* | 500,000 | Note 6 | 100,000 | 100,000 | 100,000 | 100,000 | 100,000 |

# the option granted to Ms. Payton is also subject to her accepting a full-time role with the Company prior to July 31, 2015.
* the option granted to Mr. Murphy is also subject to him accepting a full-time role with the Company
On January 30, 2015, Mr. Ronald Cheng was appointed to the Board of Directors of the Company. Mr. Cheng is a lawyer retired from Osler, Hoskin and Harcourt LLP, a major Canadian based international law firm, where he practiced as a partner from 1980 until his retirement in March 2014. He regularly appeared as counsel before the Canadian International Trade Tribunal, Canadian federal courts and on NAFTA and WTO matters and advised on NAFTA and other trade agreements. He represented and provided strategic advice to corporations including startups, trade associations and governments in anti-dumping, countervail and safeguard litigation, customs matters, commodity tax and government procurement disputes, as well import and export monitoring and controls. Mr. Cheng was listed in the Lexpert® Guides to Leading US/Canada Cross-border Litigation Lawyers and with highest listings in other leading legal directories such as Chambers, Martindale-Hubbell and Best Lawyers. Mr. Cheng received his Bachelor of Arts degree from Amherst College in 1972 and a Juris Doctor degree from the University of Toronto in 1974. Mr. Cheng is an active member of the Canadian Bar Association, American Bar Association, International Bar Association and Inter Pacific Bar Association.
Products
ALR Technologies products utilize internet-based technologies to facilitate healthcare provider's ability to monitor their patient's health and ensure adherence to health maintenance activities.
The Health-e-Connect Remote Diabetes Management Program is a remote monitoring and care facilitation program that allows patients to upload the blood glucose data from their glucometers. ALRT Diabetes Care Facilitators monitor that data and based on clinician-approved protocols, provide advice, support and interventions when patients show blood glucose readings that are out of an acceptable range or if they are failing to test their blood glucose as prescribed. The ALRT Health-e-Connect System has been successfully proven in a clinical trial that demonstrated this type of remote care is associated with significant lowering of average A1c levels in a patient population. The study concluded that continuing intervention using an internet-based glucose monitoring system is an effective way of improving glucose control compared to conventional care. A second clinical trial demonstrated that this type of Internet-based Blood Glucose Monitoring System (IBGMS) was associated with comparable reductions in A1c levels with that of more expensive and invasive Continuing Glucose Monitoring Systems (CGMS).
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In the future, the Company may seek to adapt its Health-e-Connect System to be used in the management of other chronic diseases. The Company may be required to obtain additional clearance from the FDA prior to commencing selling activities in the United States for other disease states.
ALRT Health-e-Connect System TM for Diabetes Monitoring
Diabetes is a leading cause of death, serious illness and disability across North America. In the United States, it is estimated that 26 million people have diabetes, with 4.5 million people being classified as insulin requiring. By the year 2030, it is expected that 1 in 10 adults, globally, will have diabetes (diagnosed and undiagnosed instances). By the year 2050, it is expected that 1 in 3 United States adults will have diabetes (diagnosed and undiagnosed instances). We believe diabetes is a global pandemic.
As a result, medical costs due to diabetes and its complications are enormous. In the United States, such costs are estimated to be over $245 billion a year. In Canada, where it is estimated there are 2 million people with diabetes, healthcare costs associated with diabetes is estimated to be more than $13 billion annually.
Diabetes is a lifelong chronic disease with no cure. However, people with diabetes can take steps to control their disease and reduce the risk of developing the associated serious complications, thereby controlling healthcare costs. The Canadian Diabetes Association Clinical Practice Guidelines Expert Committee reports that "Successful diabetes care depends on the daily commitment of persons with diabetes mellitus to self-manage through the balance of lifestyle and medication. Diabetes care should be organized around a multi- and interdisciplinary diabetes healthcare team that can establish and sustain a communication network between the person with diabetes and the necessary healthcare and community systems."
The Company's Health-e-Connect System for diabetes management provides an affordable and easy to use tool to provide the communication network as recommended by the Committee. Our Health-e-Connect system includes a communications software platform that also enables health professionals to remotely monitor the health progress specifically relating to patients with diabetes. This facilitates more timely and effective communication and coordination of care to these patients. This also potentially results in positive behavior patterning, or re-patterning, of the patients.
The Health-e-Connect System and the Company's universal upload cable, are compatible with many of the largest brands of glucose meters available for sale in the United States.
Since receiving section 510(k) clearance from the FDA for the Health-e-Connect System, the Company has been working to communicate the benefits of the Health-e-Connect System to physicians, healthcare officials and industry leaders.
Our commercialization strategy is built upon a number of emerging trends in the healthcare marketplace:
| 1. | Diabetes prevalence is exploding in the United States and worldwide. Technologies and services that can assist patients, providers, caregivers and healthcare payers in better addressing diabetes care will be in high demand; |

| 2. | The patient load of primary care physicians in the United States will increase dramatically with the new healthcare law, and these physicians will require support from new technologies as well as assistance from care managers, family members and others in order to provide quality care. A new primary care model will emerge which will take advantage of new technologies; and |

| 3. | Healthcare payers in the United States and worldwide will aggressively adopt technologies and services that will improve quality and lower costs of chronic diseases. The Center for Medicare and Medicaid Services, for example, recently agreed to reimburse physicians for "Chronic Care Management" including the use of remote monitoring technologies. In the highly competitive U.S. market, major healthcare plans have shown particularly strong interest in remote monitoring platforms that can accomplish these quality and cost goals. |

| 4. | Physicians and physician organizations are increasingly compensated on the basis of successful outcomes including the lowering of A1c levels in their patient populations. |

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Our commercialization strategy is designed to capitalize on these important market trends and to provide a technology and service that will improve the quality of care and lower the costs of care for diabetes patients. Our primary goal is to begin securing revenue-generating customers in the commercial marketplace. In order to achieve this goal, the Company has performed the following:
| a. | retained key personnel who have experience in marketing to our key customer segments, such as health plans and medical groups as well as key executives who understand the care needs of diabetes patients; |

| b. | developed pricing models for the various customer segments, including risk sharing pricing arrangements for health plans, which then may reward the Company for its success in improving quality lowering costs; and |

| c. | increased its sales efforts by attending prospective customer conferences and by meeting and presenting to key target customers on a regular basis. |

On June 17, 2013, the Company announced a project partnership with Healing Our Village whereby up to 500 patients in the Healing Our Village ("HOV") diabetes management program would be utilizing ALRT's Health-e-Connect Diabetes Remote Monitoring Program. HOV develops methods to assure healthcare system change that promotes patient behavior change for improved health outcomes in medically underserved populations. The Healing Our Village Partnership was put on hold due to a change of locations for the HOV clinics that made the enrollment of patients a difficult challenge. On April 20, 2015, the Company gave notice to HOV that was terminating the contractual relationship between the Company and HOV effective June 1, 2015.
On October 23, 2013, the Company entered into a pilot service agreement with My Diabetes Home, LLC (MDH), a company with an online diabetes management platform. ALRT will provide an electronic logbook to the customers of MDH on a trial basis until June 30, 2014. Both parties will review the results of the pilot. This electronic logbook will provide added convenience by allowing patients to upload their blood glucose results from their meter directly into an online spreadsheet. With this technology, MDH patients will no longer need to make individual test result entries manually. The uploaded data can be saved online, emailed or faxed to a provider, or printed and brought to a physician visit. The pilot service agreement with My Diabetes Home has been discontinued due to lack of interest.
On November 5, 2013, the Company announced a development partnership agreement with Insulin Algorithms that would integrate Insulin Algorithm's insulin dosage adjustment software with ALRT's Health-e-Connect remote monitoring platform. An integration of the two technology platforms would create a system that would allow patients to remotely upload their blood glucose data to the ALRT platform and then, within seconds, the patient's physician could be provided with an insulin dosage recommendation electronically when the patient's blood glucose data and patient profile were run through the Insulin Algorithm software. Commercial use of Insulin Algorithms' software will require additional U.S. Food and Drug Administration regulatory clearance. Under the agreement, ALRT would have had access to the InsulinAlgo software to begin the integration process while InsulinAlgo's FDA clearance is pending. Once integrated and tested, and after final FDA clearance, the ALRT-InsulinAlgo system would have been made available to the commercial marketplace both in the U.S. and internationally. Effective August 15, 2014, the Company terminated its development partnership agreement with Insulin Algorithm due to disagreements about business strategy.
However, on February 18,, 2015, the company filed a 510(k) application to add a remote insulin dosing recommendation feature to the company's Health-e-Connect platform. Rather than utilizing the proprietary dosing algorithm of Insulin Algorithms, the company utilized the publicly available algorithm of the American Association of Clinical Endocrinologists (AACE). If approved, the feature would allow the company to regularly run a patient's blood glucose data (and other key data) through the AACE algorithm. When the algorithm indicated that the patient's dose may not be optimal, the company staff would contact the physician to make him or her aware that a dose change may be warranted. The decision about the dose change would rest entirely with the physician. However, this new feature may make a significant contribution to improving the outcomes of diabetes patients if it allowed physicians to keep their patients at the optimal dose for longer periods. The company expects a decision on the 510(k) application during the spring of 2015.
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On July 28, 2014, the Company entered into a pilot service agreement with Kansas City Metropolitan Physician Association (KCMPA), one of the nation's premier Accountable Care Organizations (ACO). Under the agreement, KCMPA, which has made diabetes management a key focus of its Quality Improvement Plan, will enroll 200 of its patients with Type 2 diabetes into ALRT's Health-e-Connect diabetes management system. The pilot service agreement is effective nine months from the beginning date of patient enrollment and the intent is to allow 6 months of use for each patient enrolled in the system. During the initial nine term of the pilot service agreement, the Company will not charge KCMPA for any of the enrolled patients in the program. The pilot program between ALRT and KCMPA represents the first real world deployment of ALRT's Health-e-Connect System. On September 9, 2014, the Company began enrolling patients with Type 2 diabetes and A1c levels above 8 percent into the pilot program trialing the Health-e-Connect system.
Preliminary data from the pilot program indicated that a number of patients had achieved reductions in their A1c levels. On April 17, 2015, the company signed a commercial contract with one of the KCMPA clinics, the Clay-Platte Family Medicine Clinic, to provide remote monitoring services in return for a per patient per month fee paid to the company. Clay-Platte has a universe of 3,400 diabetes patients but it is not yet clear how many of those patients will be suitable and appropriate for the company's remote monitoring program.
On July 29, 2014, the Company entered into a Memorandum of Understanding (MOU) with the leadership of Hospital Clinico Metropolitano La Florida, one of the largest and most prestigious public hospitals in Santiago, Chile, to conduct a clinical outcomes trial utilizing ALRT's Health-e-Connect Diabetes Management System. The trial will allow primary care physicians to access – electronically – an insulin dose recommended by an endocrinologist. Under the terms of the MOU, Hospital Clinico Metropolitano La Florida will enroll 100 of its insulin-requiring patients in the intervention arm of the study and 100 insulin-requiring patients in the control arm. The intervention group will utilize the Health-e-Connect System for six months of treatment. Key data points for the study will include:
| · | average A1c reduction |

| · | adherence to medication and care plan, and |

| · | physician and patient satisfaction. |

This trial will be designed so that its results can be published in a premier academic medical journal with authors affiliated with both ALRT and Hospital La Florida. During the initial trial, the intent is to allow 3 months of enrollment and 6 months of use for each patient enrolled in the system. During this initial nine term of the Company will not charge Hospital Clinico Metropolitano La Florida for any of the enrolled patients in the program. We believe this trial is a key strategic effort by ALRT to facilitate our penetration into emerging markets where the burgeoning diabetes pandemic is overwhelming public healthcare systems." Company executives visited Chile in April of 2015 and enrollment of patients in this trial is tentatively scheduled to begin during the spring of 2015.
On January 20, 2015, the Company entered into a MOU with Nipro Diagnostics, Inc. and Nipro Medical Corporation have agreed to participate in a clinical outcomes study to be conducted by ALRT and Hospital Clinico Metropolitano La Florida, one of the largest and most prestigious public hospitals in Santiago, Chile. Nipro will provide its latest blood glucose meter, TRUE METRIX, to all participants in the trial as well as diagnostic supplies such as blood glucose test strips and data management cables. In addition, Nipro employees will assist with subject enrollment and other logistical tasks related to the pilot. Subject enrollment in the pilot is due to begin early next year. Hospital Clinico Metropolitano La Florida will enroll 100 of its insulin-requiring patients in the intervention arm of the study and 100 insulin-requiring patients in the control arm. The intervention group will utilize the Health-e-Connect System with IDAC for six months of treatment. Key data points for the study will include: average A1c reduction, adherence to medication and care plan, and physician and patient satisfaction. The trial will also survey patient satisfaction with the TRUE METRIX blood glucose monitoring system.
On January 1, 2015, the Center for Medicaid and Medicare Services began reimbursing physicians for the non-face-to-face management of Medicare patients with two or more serious chronic diseases. Physicians would be paid a per-patient-per-month fee for "Chronic Care Management" and the examination of data from a remote monitoring platform is considered a reimbursable activity by CMS. Therefore, the company modified its Health-e-
-27-
Connect system to conform to the requirements of the CMS reimbursement. These modifications permit the company to market to medical groups throughout the United States with a product that will help physicians to draw down this new reimbursement as well as to potentially improve the outcomes of their patients.
Critical Accounting Policies and Going Concern
Our discussion and analysis of our results of operations and liquidity and capital resources are based on our unaudited condensed consolidated financial statements for the three months ended March 31, 2015 and 2014, which have been prepared in accordance with GAAP.
The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities. We base our estimates on historical and anticipated results, trends, and various other assumptions that we believe are reasonable under the circumstances, including assumptions as to future events. These estimates form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. By their nature, estimates are subject to an inherent degree of uncertainty. Actual results may materially differ from our estimates.
The Company's condensed consolidated financial statements have been prepared on a going-concern basis, which presumes the realization of assets and the discharge of liabilities and commitments in the normal course of operations for the foreseeable future. See note 1 of the condensed consolidated financial statements.
Due to our being a development stage company and not having generated significant revenues, in the Notes to our financial statements, we have included disclosure regarding concerns about our ability to continue as a going concern.
Consolidated Results of Operations
General, selling and administrative expenses. General, selling and administrative costs consist of salaries and consulting fees of management personnel and staff, stock-based compensation for options granted to management personnel and staff, travel and trade show costs, rent of the Company's corporate office, website development costs and general costs incurred through day-to-day operations. During the three month period ended, there was significant variance in the total expense incurred. By type of general and administrative cost, the variance can be seen as follows:
| Three Months Ended March 31 |
| 2015 | 2014 | Percentage Increase / (Decrease) | Amount Increase / (Decrease) |
| Revenue | $ | - | $ | - | - | $ | - |
| Cost of sales | - | - | - | - |
| Depreciation | - | - | - | - |
| Foreign exchange gain | (1,810 | ) | - | 100 | (1,810 | ) |
| General, selling and administrative | 220,371 | 202,275 | 8 | 18,096 |
| Product development | 132,112 | 111,604 | 15 | 20,508 |
| Professional fees | 58,589 | 72,594 | (19 | ) | (14,005 | ) |
| Interest expenses | 385,252 | 327,259 | 8 | 57,993 |
| Net Loss | $ | 794,514 | $ | 713,732 | 10 | $ | (80,782 | ) |

-28-
| Three Months Ended March 31, 2015 | Three Months Ended March 31, 2014 | Amount Increase / (Decrease) |
| General, selling and administrative: |
| Salaries & consulting fees | $ | 155,400 | $ | 159,400 | $ | (4,000 | ) |
| Stock based compensation | 2,400 | - | 2,400 |
| Travel and trade-shows | 33,900 | 12,600 | 21,300 |
| Rent of corporate offices | 6,700 | 6,200 | 500 |
| Website & information technology | 14,400 | 7,300 | 7,100 |
| Other general & administrative costs | 7,600 | 16,700 | (9.100 | ) |
| Total | $ | 220,400 | $ | 202,200 | $ | 18,200 |

The majority of the general and administrative costs were substantially comparable to the prior period. The significant variance was attributable to an increase in travel and tradeshow costs as well as information technology spending.
Product development costs. The majority of product development costs incurred related to a) services provided by contractors of the Company b) expenses incurred for purchase and c) stock-based compensation for options granted to members of the development team. The change in balance from the previous year relates primarily to an increase in the amount of stock based compensation for options granted as well as an increasing costs to personnel under contract.
Professional fees. Professional costs incurred consist of consulting and advisory fees of certain professionals retained, audit fees, legal fees, diabetes care facilitators and stock-based compensation for options granted to professionals. During the period, there was a significant decrease in professional fees. By type of general and administrative cost, the variance can be seen as follows:
| Professional Fees: | Three Months Ended March 31, 2015 | Three Months Ended March 31, 2014 | Amount Increase / (Decrease) |
| Corporate auditor - Year-end and quarterly review | $ | 7,500 | $ | 22,500 | $ | (15,000 | ) |
| Stock based compensation | 1,400 | - | 1,400 |
| Legal Fees | 14,100 | 6,600 | 7,500 |
| Diabetes care facilitators | 22,100 | 4,500 | 17,600 |
| Professionals retained | 13,500 | 39,000 | (25,500 | ) |
| Total | $ | 58,600 | $ | 72,600 | $ | (14,000 | ) |

The decrease in professional fees can be attributed to the timing of the corporate auditor fees, as well as investor relations services being discontinued. Diabetes care facilitator fees increased due to the hiring of a full-time employee and the increased retention of consultant services.
Interest expense. Interest expense was from the following sources for the three months ended March 31, 2015 and 2014:
| Three months ended March 31, 2015 | Three months ended March 31, 2014 |
| Interest expense incurred on promissory notes | $ | 128,900 | $ | 158,500 |
| Interest expense incurred on lines of credit | 218,000 | 170,600 |
| Imputed interest on zero interest loans | 37,300 | 42,700 |
| Recovery of imputed interest on default judgment | - | (45,000 | ) |
| Other interest | 1,100 | 500 |
| Total | $ | 385,300 | $ | 327,300 |

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Interest on Promissory Notes
There were not any substantial changes in the amount of promissory notes outstanding from March 31, 2014 to March 31, 2015. Related to its promissory notes outstanding, the Company incurred interest expense of $129,000 for the three months ended March 31, 2014 and 2015. The Company incurred additional interest expense of approximately $30,000 related to a default judgement one promissory note during the three month period ended March 31, 2014. Pursuant to the original promissory note agreement, there was no legal interest rate on the promissory note. The noteholder filed a motion of default against the Company which included a motion for interest to be recognized from the date the note was due (January 2011) until the note is repaid at the rate of 8% per annum. The court found in favour of the noteholder in February 2014 and the Company recorded the interest expense during the period. As this had previously been considered a zero interest promissory note, the Company had been recording imputed interest at the rate of 1% per month. The Company reversed the imputed interest recognized for the same period of which the accrued interest related to pursuant to the judgement.
Interest on Lines of Credit
The Company has two line of credit facilities that had balances as follows:
| Lines of Credit: | March 31, 2015 | March 31, 2014 | Amount ($) Increase / (Decrease) |
| Line of Credit provided by Sidney Chan | $ | 5,438,000 | $ | 3,844,000 | $ | 1,594,000 |
| Line of Credit provided by Christine Kan | 2,000,000 | 2,000,000 | - |
| Total | $ | 7,438,000 | $ | 5,844,000 | $ | 1,594,000 |

The Company incurred interest on the lines of credit as follows:
| Interest Expense on Line of Credit : | Three Months Ended March 31, 2015 | Three Months Ended March 31, 2014 | Amount ($) Increase / (Decrease) |
| Interest expense incurred on line of credit from Sidney Chan during the year | $ | 158,000 | $ | 111,000 | $ | 47,000 |
| Interest expense incurred on line of credit from Christine Kan during the year | 60,000 | 60,000 | - |
| Total | $ | 218,000 | $ | 171,000 | $ | 47,000 |

Imputed Interest
During the 2015 and 2014 periods, the Company had certain zero interest promissory notes, advances payable and accounts payable in excess of one year. Pursuant to the company's accounting policy, these zero interest amounts are considered to be financing items in nature and are assigned a deemed interest rate (1% per month). The interest incurred on these is expensed as imputed interest and the instead of increasing the liabilities of the Company, it is allocated to equity under the financial statement line item "additional paid-in capital".
-30-
Liquidity and Capital Resources
Working Capital
| As At March 31, 2015 | As At December 31, 2014 | Amount ($) Increase / (Decrease) | Percentage (%) Increase / (Decrease) |
| Current Assets | $ | 8,068 | $ | 65,552 | (57,484 | ) | (88 | ) |
| Current Liabilities | $ | 18,446,864 | $ | 17,760,323 | (686,541 | ) | 3 |
| Working Capital (Deficiency) | $ | (18,438,796 | ) | $ | (17,694,771 | ) | (744,025 | ) | 4 |

The Company has a severe working capital deficiency. It does not have ability to service is current liabilities for the next twelve months and is reliant on its line of credit facilities to meet its on-going operations. Until the Company has revenue producing activities that exceed its operating requirements, it will be unable to service its current liabilities and the working capital deficit will continue to increase. As of the date of this management discussion and analysis, the Company has not commenced revenue generating activities, nor does it know when they will commence. There is substantial doubt about the Company's ability to repay its current liabilities in the near term or anytime in the future which could ultimately lead to business failure.
Current Assets
The Company's current assets as at March 31, 2015 and December 31, 2014 consist of cash and prepaid expenses.
Current Liabilities
The Company has current liabilities of $18,446,864 as at March 31, 2015 as compared to $17,760,323 as at December 31, 2014. Current liabilities were as follows:
| March 31, 2015 | December 31, 2014 | Change $ | Change % |
| Accounts payable and accrued liabilities | $ | 1,053,955 | $ | 1,055,468 | $ | (1,514 | ) | 0 | % |
| Interest payable | 2,749,064 | 2,620,172 | 128,892 | 5 | % |
| Lines of credit to related parties | 9,357,526 | 8,793,364 | 559,162 | 6 | % |
| Promissory notes payable to related parties | 2,861,966 | 2,861,966 | - | 0 | % |
| Promissory notes payable | 2,424,353 | 2,424,353 | - | 0 | % |
| Total current liabilities | $ | 18,446,864 | $ | 17,760,323 | $ | 686,541 | 4 | % |

The increase in interest payable of $128,892 relates to accrued interest incurred on promissory notes at their stated rates of interest. All of the promissory notes and related interest payable are overdue.
The fluctuations in accounts payables occurred as part of operations.
The increase in the lines of credit payable of approximately $555,000 is attributable to borrowings of
| - | $341,000 to fund operations, product development activities, overhead and its sales and marketing program. |

| - | $214,000 of unpaid interest incurred on the principal of the borrowed amounts. |

-31-
Cash Flows
| Three Months Ended | Three Months Ended |
| March 31, 2015 | March 31, 2014 |
| Cash Flows used in Operating Activities | $ | (395,982 | ) | $ | (352,035 | ) |
| Cash Flows provided by Financing Activities | $ | 341,223 | $ | 323,213 |
| Net decrease in Cash During Period | $ | (54,759 | ) | $ | (28,822 | ) |

Cash Balances and Working Capital
As of March 31, 2015, the Company's cash balance was $4,083 compared to $58,842 as of December 31, 2014.
Cash Provided by (Used in) Operating Activities
Cash used by the Company in operating activities during the three months period ended March 31, 2015 was $396,000 in comparison with $352,000 used during the same period last year. The Company's expenditures from operations were used as follows (approximate amounts):
| Three Months Ended | Three Months Ended |
| March 31, 2015 | March 31, 2014 |
| Product Development Consulting and Expenses | $ | 121,000 | $ | 100,000 |
| Management and Employees Compensation | $ | 155,000 | $ | 170,000 |
| Professional Fees | $ | 57,000 | $ | 43,000 |
| Travel and Trade Shows | $ | 34,000 | $ | 13,000 |
| Other | $ | 29,000 | $ | 26,000 |
| Cash used in Operations | $ | 396,000 | $ | 352,000 |

The majority of the expenditures were to repay advances payable, overdue accounts payable owing to certain consultants, pay product development costs, pay accrued professional fees and selling and administration costs associated with operating the business.
Cash Proceeds from Financing Activities
Cash sourced by the Company from financing activities during the three month period ended March 31, 2015 was $341,000 in comparison with $323,000 sourced during the same period last year. The funds sourced from lines of credit provided by Chairman of the Board and a relative of the Chairman of the Board. The loans received in 2015 and 2014 covered the operating, product development and market development requirements for the Company repaid certain advances and accounts payable.
Short and Long Term Liquidity
As of March 31, 2015, the Company does not have the current financial resources and committed financing to enable it to meet its administrative overhead, product development budgeted costs and debt obligations over the next 12 months.
All of the Company's debt financing are due on demand or overdue. The Company will seek to obtain creditors' consents to delay repayment of these loans until it is able to replace these financings with funds generated by operations, replacement debt or from equity financings through private placements or the exercise of options and warrants. While the Company's creditors have agreed to extend repayment deadlines in the past, there is no assurance that they will continue to do so in the future. The Company has faced litigation from creditors in the past and is currently being sued by one creditor. There is no assurance that additional creditors will not make claims against the Company in the future. Failure to obtain either replacement financing or creditor consent to delay the repayment of existing financing could result in the Company having to curtail operations.
-32-
Tabular Disclosure of Contractual Obligations:
| Payments due by period |
| Less than | 1-3 | 3-5 | More Than |
| Total | 1 year | years | years | 5 Years |
| Accounts payable & accrued liabilities | $ | 1,053,955 | $ | 1,053,955 | $ | - | $ | - | $ | - |
| Interest payable | 2,749,064 | 2,749,064 | - | - | - |
| Line of credit | 9,357,526 | 9,357,526 | - | - | - |
| Promissory notes to related parties | 2,861,966 | 2,861,966 |
| Promissory notes to arm's length parties | 2,424,353 | 2,424,353 | - | - | - |
| $ | 18,446,864 | $ | 18,446,864 | $ | - | $ | - | $ | - |

The Company will continue to use the funds available from the line of credit to cover administrative overhead and product development requirements until such time it can establish cash flows from operations. In the next six months, the Company anticipates the amount borrowed from the line of credit to increase as compared to the past six months as it expects to commercially launch its HeC product during this period.
Off Balance Sheet Arrangements
The Company has no off balance sheet financing arrangements that have or are reasonably likely to have a current or future effect on the Company's financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources, that is material to investors.
ITEM 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK.
The Company is a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and is not required to provide the information under this item.
ITEM 4.
CONTROLS AND PROCEDURES.
Under the supervision and with the participation of our management, including the Principal Executive Officer and Principal Financial Officer, we have evaluated the effectiveness of our disclosure controls and procedures as required by Exchange Act Rule 13a-15(b) as of the end of the period covered by this report.
Based on this assessment, we found our internal and disclosure controls over financial reporting to be not effective for the following reasons:
| 1) | insufficient written policies and procedures for reporting requirements and accounting and financial reporting with respect to the requirements and application of US GAAP and SEC disclosure requirements; and |

While the Company is working to remedy these deficiencies as its business activities evolve, there were no changes in our internal or disclosure controls over financial reporting during the quarter ended March 31, 2013 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
-33-
PART II. OTHER INFORMATION
ITEM 1.
LEGAL PROCEEDINGS.
Accounts payable and accrued liabilities as of December 31, 2014 include $180,666 (December 31, 2013 -$180,666) of amounts owing to a supplier, which the Company has previously disputed and has refused to provide payment. The amount payable stems from services provided during 2004. The vendor has not sought any actions to collect the amounts and management does not expect to ever pay this amount. Management asserts that the Company has no obligation to the vendor as the vendor did not perform the work sought as expected and the Company never took possession of the end product. The outcome of this matter cannot be determined at this time. Any additional liability realized, if any, will be recognized once the amount is determinable. Any gain on settlement of the account payable will be recorded in the period that an agreement with the supplier is reached and the amount becomes determinable. Included in notes payable and accrued interest payable, are the following recognized liabilities which have involved legal proceedings: 1) Mr. H. Gordon Niblock During 2009, the following judgment was rendered: Niblock Financial Systems, Inc. et al v. ALR Technologies, Inc. Forsyth County North Carolina File Number 0-9-CVS-2220. The judgment against the Company was in the amount of $600,000 in favor of Niblock Financial Systems, Inc. and $550,000 in favor of H. Gordon Niblock, plus court costs and attorney's fees. The judgment was rendered as a result of the Company's failure to pay amounts due under several promissory notes. On September 30, 2009, subject to the entry of that judgment, the Company reached a Settlement Agreement with the two plaintiffs, resulting in a cash payment, a credit to the judgment and an assignment of the Judgment to Christine Kan. As part of the Settlement Agreement Mr. Stan Cruitt, a Director of the Company at the time assigned unsecured advances payable by the Company totaling $425,000 with no stated terms of interest or repayment to the plaintiffs. As part of the Settlement Agreement, the Company agreed to the following repayment terms: - $300,000 repayable at a rate of $25,000 per month evidenced by a promissory note and - $125,000 repayable in whole by January 15, 2011. The plaintiffs (Niblock Financial Systems, Inc. et al) filed a motion of default against the Company (ALR Technologies, Inc.) in the Superior Court of Forsyth County, North Carolina (case number 10-CVS-685) for failure to meet the repayment terms of the $300,000 promissory note. On October 26, 2010, case 10-CVS-685 was heard and the court found in favor of the plaintiff, meaning the Company was ordered to repay full principle of $300,000 along with $11,000 of accrued interest from the original settlement date, being September 30, 2009. While the interest rate was not included in the original settlement agreement, the Company did not contest the inclusion of interest in the judgment. On December 18, 2013, the Company was served with a civil summons from H. Gordon Niblock in respect of a complaint for breach of agreement to repay the promissory note of $125,000 due on by January 15, 2011, plus interest at the legal rate of eight percent per annum from the date of maturity of the note until the amount is repaid plus reasonable attorney fees of the proceedings. On February 5, 2014, case 13-CVS-7736 for the plaintiff's motion for entry of default and default judgment was heard in the Superior Court Division of Forsyth Country, North Carolina. The court found in favor of the plaintiff, ruling that the Company was in default of its agreement with the Plaintiff and that the Plaintiff is eligible to seek affirmative relief against the defendant. The Company has not made any repayments under the terms of the settlement agreement for either the loans (and accrued interest) totaling $476,000 or any costs of the judgment reached against the Company. -34- 2) Ms. Irene Ho The Company owes a promissory note to Ms. Irene Ho which was demanded for repayment on December 14, 2010. This amount has not been repaid and interest continues to accrue at the legal rate. The total principal and interest owing to Ms. Irene Ho is approximately $462,000. 3) Mr. Stan Link Mr. Stan Link holds a note from the Company, which is in arrears. The matter was reduced to a Consent Judgment in the amount of $43,608 on April 13, 2009. This full amount is still outstanding and continues to accrue interest at the stated rate of the note. The total principal and interest owing to Mr. Stan Link is approximately $63,000.
ITEM 1A.
RISK FACTORS.
We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.
ITEM 3.
DEFAULTS UPON SENIOR SECURITIES.
As at March 31, 2015, the Company had promissory notes payable and related interest payable, totalling $8,035,383 in default.
ITEM 5.
OTHER INFORMATION.
The following list is compiled of one (1) Form 8-Ks, which we failed to file:
On April 22, 2015, our Board of Directors approved the modification of the exercise price of certain options to acquire shares of common stock of the Company from $0.03 per share to $0.015 per share to the following individuals:
| Optionee | Current Holding |
| Alex Leong | 500,000 |
| Alice Chapman | 250,000 |
| Andrew Klips | 1,000,000 |
| Bill Smith | 1,500,000 |
| David Manalili | 250,000 |
| Glen Reyes | 500,000 |
| John Lester Tolentino | 500,000 |
| Johnny T. Lardera | 250,000 |
| Ken Robulak | 1,350,000 |
| Kent Stoneking | 1,000,000 |
| Mark Reyes | 250,000 |
| Mark Uy | 500,000 |
| Marymar Payton | 500,000 |
| Norbert Ricafranca | 500,000 |
| Peter Stafford | 500,000 |
| Phillip Murphy | 1,000,000 |
| Ronald Cheng | 500,000 |
| Sherjo Evangelista | 250,000 |
| Steven Brassard | 1,050,000 |
| Timothy Co | 250,000 |

-35-
ITEM 6.
EXHIBITS.
| Exhibit | Incorporated by reference | Filed |
| No. | Document Description | Form | Date | Number | herewith |
| 3.1 | Initial Articles of Incorporation. | 10-SB | 12/10/99 | 3.1 |
| 3.2 | Bylaws. | 10-SB | 12/10/99 | 3.2 |
| 3.3 | Articles of Amendment to the Articles of Incorporation, dated October 22, 1998. | 10-SB | 12/10/99 | 3.3 |
| 3.4 | Articles of Amendment to the Articles of Incorporation, dated December 7, 1998. | 10-SB | 12/10/99 | 3.4 |
| 3.5 | Articles of Amendment to the Articles of Incorporation, dated January 6, 2005. | 8-K | 1/20/05 | 3.1 |
| 3.6 | Amendment to Bylaws, dated October 13, 2011 | 8-K | 10/17/11 |
| 3.7 | Amendment to Bylaws, dated April 10, 2012 | 8-K | 4/16/12 |
| 10.1 | Consulting Agreement with Endocrine Research Society Inc. | 10-KSB | 10/01/13 | 10.1 |
| 14.1 | Code of Ethics. | 10-KSB | 4/14/03 | 14.1 |
| 31.1 | Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | X |
| 32.1 | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | X |
| 99.01 | Distribution Agreement with Mo Betta Corp. | 10-SB | 12/10/99 | 99.1 |
| 99.02 | Pooling Agreement. | 10-SB | 12/10/99 | 99.2 |
| 99.03 | Amended Pooling Agreement. | 10-SB | 12/10/99 | 99.3 |
| 99.04 | Lock-Up Agreement. | 10-SB | 12/10/99 | 99.4 |
| 99.19 | Audit Committee Charter. | 10-KSB | 3/31/14 | 99.19 |
| 99.20 | Disclosure Committee Charter. | 10-KSB | 4/14/03 | 99.20 |
| 99.30 | Nomination Committee Charter | 10-KSB | 3/31/14 | 99.30 |
| 99.40 | Compensation Committee Charter | 10-KSB | 3/31/14 | 99.40 |

-36-
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities and Exchange Act of 1934, the Registrant has duly caused this amended report to be signed on its behalf by the undersigned, thereunto duly authorized, on this 15th day of May, 2015.
| ALR TECHNOLOGIES, INC. |
| (Registrant) |
| BY: | SIDNEY CHAN |
| Sidney Chan |
| Principal Executive Officer, Principal Accounting Officer, Principal Financial Officer, Secretary/Treasurer and Director |

-37-
EXHIBIT INDEX
| Exhibit | Incorporated by reference | Filed |
| No. | Document Description | Form | Date | Number | herewith |
| 3.1 | Initial Articles of Incorporation. | 10-SB | 12/10/99 | 3.1 |
| 3.2 | Bylaws. | 10-SB | 12/10/99 | 3.2 |
| 3.3 | Articles of Amendment to the Articles of Incorporation, dated October 22, 1998. | 10-SB | 12/10/99 | 3.3 |
| 3.4 | Articles of Amendment to the Articles of Incorporation, dated December 7, 1998. | 10-SB | 12/10/99 | 3.4 |
| 3.5 | Articles of Amendment to the Articles of Incorporation, dated January 6, 2005. | 8-K | 1/20/05 | 3.1 |
| 3.6 | Amendment to Bylaws, dated October 13, 2011 | 8-K | 10/17/11 | 3.6 |
| 3.7 | Amendment to Bylaws, dated April 10, 2012 | 8-K | 4/16/12 | 3.7 |
| 10.1 | Consulting Agreement with Endocrine Research Society Inc. | 10-KSB | 10/01/13 | 10.1 |
| 14.1 | Code of Ethics. | 10-KSB | 4/14/03 | 14.1 |
| 31.1 | Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | X |
| 32.1 | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | X |
| 99.01 | Distribution Agreement with Mo Betta Corp. | 10-SB | 12/10/99 | 99.1 |
| 99.02 | Pooling Agreement. | 10-SB | 12/10/99 | 99.2 |
| 99.03 | Amended Pooling Agreement. | 10-SB | 12/10/99 | 99.3 |
| 99.04 | Lock-Up Agreement. | 10-SB | 12/10/99 | 99.4 |
| 99.19 | Audit Committee Charter. | 10-KSB | 3/31/14 | 99.19 |
| 99.20 | Disclosure Committee Charter. | 10-KSB | 4/14/03 | 99.20 |
| 99.30 | Nomination Committee Charter | 10-KSB | 3/31/14 | 99.30 |
| 99.40 | Compensation Committee Charter | 10-KSB | 3/31/14 | 99.40 |

-38-

Question: What percentage of the total interest expense for the three months ended March 31, 2015 was incurred on the Arm's Length Promissory Notes?

Solution:
def solution():
    #Define variables name and value
    arms_length_promissory_notes = 2424353
    total_interest_expense = 385252
    interest_on_promissory_notes = 128892

    #Do math calculation to get the answer
    percentage_of_total = (interest_on_promissory_notes/total_interest_expense) * 100
    answer = percentage_of_total
    return answer


Answer: 33.45654273047252