Derivative Liabilities (Tables)

6 Months Ended

Sep. 30, 2015


	September 30, 2015
Balance, March 31, 2015	$	1,803,965
Initial valuation of derivatives		411,283
Transfer from liabilities classification to equity classification		(87,945)
Change in fair value		(1,165,385)
Balance, September 30, 2015	$	961,918


	March 31, 2015	September 30, 2015
Market value of common stock on measurement date (1)	$0.01	$0.0023~$0.0010
Adjusted conversion price (2)	$0.008	65% to 80% of the low trade in 10 trading days
Risk free interest rate (3)	0.56%	0.08%~0.42%
Life of the note in years (weighted average)	0~1.35 years	0.17 ~1 years
Expected volatility (4)	270%	303%~311%
Expected dividend yield (5)	-	-

(1) The market value of common stock is based on closing market price as of initial valuation dates and September 30, 2015.

(2) The adjusted conversion price is calculated based on conversion terms described in the note agreement.

(3) The risk-free interest rate was determined by management using the 2-year Treasury Bill as of the respective Offering or measurement date.

(4) The volatility factor was estimated by management using the historical volatilities of the Company’s stock.

(5) Management determined the dividend yield to be 0% based upon its expectation that it will not pay dividends for the foreseeable future.

HydroPhi Technologies Group, Inc. 10-Q