Sonoma Pharmaceuticals, Inc. Quarterly report pursuant to Section 13 or 15(d)

5. Derivative Liabilities (Tables)

9 Months Ended

Dec. 31, 2015

	Measurement Date	Warrants		Remaining Contract Term in Years		Exercise Price		Volatility		Risk-free Interest Rate		Fair Value
Warrant
Placement Agent Warrants	March 31, 2015		16,500		1.09		5.00		100%		0.26%	$	1,000
Investor - Series A Warrants	March 31, 2015		1,000		0.41		3.00		100%		0.14%		–
Investor - Series B Warrants	March 31, 2015		1,400,000		0.41		3.63		100%		0.14%		5,000
Placement Agent Warrants	March 31, 2015		69,037		1.09		3.00		100%		0.26%		5,000
												$	11,000

Warrant
Placement Agent Warrants	June 30, 2015		16,500		0.84		5.00		143%		0.28%	$	5,000
Investor - Series A Warrants	June 30, 2015		1,000		0.16		3.00		143%		0.01%		–
Investor - Series B Warrants	June 30, 2015		1,400,000		0.16		3.63		143%		0.01%		35,000
Placement Agent Warrants	June 30, 2015		69,037		0.84		3.00		143%		0.28%		30,000
												$	70,000
Warrant
Placement Agent Warrants	September 30, 2015		16,500		0.59		5.00		100%		0.08%	$	–
Placement Agent Warrants	September 30, 2015		69,037		0.59		3.00		100%		0.08%		5,000
												$	5,000
Warrant
Placement Agent Warrants	December 31, 2015		16,500		0.34		5.00		100%		0.16%	$	–
Placement Agent Warrants	December 31, 2015		69,037		0.34		3.00		100%		0.16%		1,000
												$	1,000

	Three Months Ended December 31,						Nine Months Ended December 31,
	2015			2014			2015			2014
Beginning balance	$	5,000		$	856,000		$	11,000		$	3,175,000
Mark to market net unrealized gain		(4,000	)	$	(679,000	)	$	(10,000	)	$	(2,998,000	)
Ending balance	$	1,000		$	177,000		$	1,000		$	177,000