Emmaus Life Sciences, Inc. General form of registration statement for all companies including face-amount certificate companies

DERIVATIVE LIABILITIES (Tables)

12 Months Ended

Sep. 30, 2016

The range of Black-Scholes option-pricing model assumption inputs for all the valuation dates are in the table below:

	September 30, 2015 through to September 30, 2016
	Low			High
Annual dividend yield		—			—
Expected life (years)		2.5			5.00
Risk-free interest rate		0.56	%		1.81	%
Expected volatility		191.05	%		273.10	%

The following tables include a roll-forward of liabilities classified within Levels 1, 2 and 3:

	Level 1		Level 2		Level 3

Stock warrant and other derivative liabilities at September 30, 2014	$	-	$	-	$	153,100
Change in fair value		-		-		(153,100	)
Stock warrant and other derivative liabilities at September 30, 2015						833,000
Total derivative liabilities at September 30, 2015	$	-	$	-	$	833,000
$3M of convertible debt prior to amendment 12/22/15		-		-		(772,800	)
$3M of convertible debt as amended 12/23/15		-		-		962,300
Change in fair value as of 06/30/26		-		-		(263,100	)
Derivative liabilities upon Note origination 12/23/15 through 8/16/16		-		-		1,079,800
$6M of convertible debt prior to amendment 09/16/16		-		-		1,070,500
$6M of convertible debt as amended 09/19/16		-		-		3,412,300
Elimination of derivative liabilities on Note conversion to Common Stock		-		-		(6,322,000	)
Total derivative liabilities at September 30, 2016	$	-	$	-	$	-