On June 9, 2017, the Company issued warrants for the purchase of 33,275 shares of common stock to its IPO selling agent (the “June 2017 Warrants”). The June 2017 Warrants became fully vested, exercisable on December 9, 2017 by the holder at an exercise price of $8.25 per share and have a life of five years. The June 2017 Warrants include a fundamental transaction clause which provide for the warrant holder to be paid in cash upon an event as defined in the warrant. The cash payment is to be computed using the Black-Scholes valuation model for the unexercised portion of the warrant. Accordingly, under ASC 815 Derivative and Hedging the June 2017 Warrants were deemed to be a derivative liability and are marked to market at each reporting period. On March 31, 2019 and December 31, 2018, the derivative liability was marked to its then fair value market value of approximately $1,700 and $3,700 respectively.

Assumptions utilized in the valuation of the June 2017 Warrant, for the three months ended March 31, 2019, were as follows:

Risk-free interest rate	2.23%
Expected life	3.19 years
Expected volatility of underlying stock	59.47%
Expected dividend yield		—

On February 8, 2019, the Company issued warrants for the purchase of 363,400 shares of common stock to its February 2019 Offering selling agent (the “February 2019 Warrants”). The February 2019 Warrants are exercisable at any time after August 8, 2019 by the holder at an exercise price of $1.75 per share and have a life of four years. The warrants include a fundamental transaction clause that include transactions that may not require approval by the Company, such as a hostile tender offer. These transactions could require the Company to settle in cash upon exercise. Upon a fundamental transaction, the warrant holder would receive the equivalent securities or alternate considerations just prior to the triggering event by apportioning the exercise price among the equivalent securities. Accordingly, under ASC 815 Derivative and Hedging the warrants were deemed to be a derivative liability and marked to market at each reporting period. Accordingly, on the date of issuance the Company recorded as a derivative liability the fair value of the February 2019 Warrants of approximately $196,000 and on March 31, 2019 the derivative liability was marked to its then fair market value of approximately $156,000.

Assumptions utilized in the valuation of the February 2019 Warrant for the three months ended March 31, 2019, were as follows:

Risk-free interest rate	2.19%
Expected life	3.86 years
Expected volatility of underlying stock	60.00%
Expected dividend yield		—