Sonnet BioTherapeutics, Inc. Quarterly report pursuant to Section 13 or 15(d)

Derivative Liability (Tables)

3 Months Ended

Mar. 31, 2020

Assumptions used in calculating the fair value of the make-whole provision at the issuance date and as of March 31, 2020 include the following:

March 31, 2020
Sonnet
Dividend Yield	0	%
Expected volatility	110	%
Risk-free interest rate	0	%
Expected remaining term (in years)	0.356

Amergent
Dividend Yield	0	%
Expected volatility	134	%
Risk-free interest rate	0.13	%
Expected remaining term (in years)	0.356

Correlation between the returns on Sonnet and Amergent	19	%

Issuance Date
Chanticleer
Dividend Yield	0	%
Expected volatility	83	%
Risk-free interest rate	0.13	%
Expected remaining term (in years)	0.50

The fair values and the changes in fair values of this derivative liability as of, and during the three months ended, March 31, 2020 is as follows:

	(Unaudited)
	March 31, 2020
Balance beginning of period		-
Bifurcation of derivative liability from preferred stock series 2		529,000
Loss on change in fair value for the period		297,000
Balance, end of period	$	826,000