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

5. Derivative Liabilities (Tables)

3 Months Ended

Jun. 30, 2015

	Measurement Date	Warrants	Remaining Contract Term in Years	Exercise Price		Volatility	Risk-free Interest Rate	Fair Value
Warrant
Placement Agent Warrants	March 31, 2014	16,500	2.09	$	5.00	128%	0.44%	$	37,000
Investor - Series A Warrants	March 31, 2014	1,000	1.41	$	3.00	128%	0.44%		1,000
Investor - Series B Warrants	March 31, 2014	1,400,000	1.41	$	3.63	128%	0.44%		2,958,000
Placement Agent Warrants	March 31, 2014	69,037	2.09	$	3.00	128%	0.44%		179,000
								$	3,175,000
Warrant
Placement Agent Warrants	June 30, 2014	16,500	1.84	$	5.00	100%	0.47%	$	19,000
Investor - Series A Warrants	June 30, 2014	1,000	1.16	$	3.00	100%	0.11%		1,000
Investor - Series B Warrants	June 30, 2014	1,400,000	1.16	$	3.63	100%	0.11%		1,568,000
Placement Agent Warrants	June 30, 2014	69,037	1.84	$	3.00	100%	0.47%		109,000
								$	1,697,000
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

	Three Months Ended June 30,
	2015		2014
Beginning balance	$	11,000	$	3,175,000
Mark to market net unrealized loss (gain)		59,000	$	(1,478,000	)
Ending balance	$	70,000	$	1,697,000