Quarterly report pursuant to Section 13 or 15(d)

STOCK-BASED COMPENSATION

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STOCK-BASED COMPENSATION
 3 Months Ended
Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATIONIn 2015, the Company’s Board of Directors approved the HeartBeam, Inc. 2015 Equity Incentive Plan ("2015 Plan"), to attract and retain the best available personnel for positions of substantial responsibility, to provide additional incentive to employees, directors, and consultants, and to promote the success of the Company’s business. The 2015 Plan provides for the grant of stock options and RSU’s to purchase common stock of which 1,636,362 were authorized by the board of which 1,193,194 are outstanding. The 2015 Plan was terminated upon shareholder approval of the 2022 Equity Incentive Plan (“2022 Equity Plan”) whereby no new awards can be issued under the 2015 Plan.
The Company’s shareholders approved the 2022 Equity Plan at the annual meeting of stockholders held on June 15, 2022, pursuant to which 1,900,000 shares of common stock was authorized for issuance. Under the 2022 Equity Plan, the number of shares available for issuance will be increased on the first day of each fiscal year beginning with the 2023 fiscal year, in an amount equal to the least of 3,800,000 shares, five percent (5%) of the total number of shares of all classes of common stock of the Company outstanding on the last day of the immediately preceding fiscal year, and a lesser number of shares determined by the administrator. On January 1, 2023 400,487 shares were added to the shares available for issuance under the 2022 Equity Plan.

The 2022 Equity Plan includes a provision for add back of any cancelled options from the 2015 Plan up to 1,372,816 shares, and as of March 31, 2023, there are 111,167 shares from the 2015 Plan that are included in the 946,259 shares available for issuance under the 2022 Equity Plan.
The Company had no stock options exercised during the quarter ended March 31, 2023 and as of March 31, 2022, the Company received proceeds of a de minimis amount from the exercise of stock options

STOCK OPTIONS
The following is a summary of stock option activity during the three months ended March 31, 2023:
Number of
options
outstanding		 Weighted
average
exercise
price (*)		 Average
remaining
contractual life
(in years)		 Aggregate
intrinsic value
(in thousands)
Outstanding – December 31, 2022
 2,196,798  $ 1.76  8.7 $ 6,770 
Options granted
 312,800  4.00 
Options exercised
 —  — 
Options cancelled (111,208) 1.83 
Outstanding – March 31, 2023
 2,398,390  2.06  8.5 1,752 
Exercisable – March 31, 2023
 860,898  $ 1.43  7.3 $ 957 
(*) $ - Indicates exercise price less than $0.01 per share
The Company estimates the fair values of stock options using the Black-Scholes option-pricing model on the date of grant. For the three months ended March 31, 2023 and 2022, the assumptions used in the Black-Scholes option pricing model, which was used to estimate the grant date fair value per option, were as follows:
Three months ended March 31,
2023 2022
Weighted-average Black-Scholes option pricing model assumptions:
Volatility 110.23  % 107.25  %
Expected term (in years) 6.07 5.8
Risk-free rate 3.80% 1.47%
Expected dividend yield —  — 
Weighted average grant date fair value per share $ 3.38  $ 1.55 
RESTRICTED STOCK UNITS

The following is a summary of RSU’s awards activity:
Three months ended March 31, 2023
Numbers of Shares Weighted Average Grant Date Fair value
Non-Vested at beginning of period 253,970  $ 1.47 
Shares granted —  — 
Shares vested (3,750) 3.20 
Non-vested 250,220  $ 1.44 

STOCK BASED COMPENSATION

The following is a summary of stock-based compensation expense:
Three months ended March 31,
2023 2022
General and administrative
Stock options 200,000  121,000 
RSU’s 101,000  12,000 
Total general and administrative 301,000  133,000 
R&D
Stock options 92,000  26,000 
Total $ 393,000  $ 159,000 

As of March 31, 2023, total compensation cost not yet recognized related to unvested stock options and unvested RSUs was approximately $2.8 million and $0.1 million, respectively, which is expected to be recognized over a weighted-average period of 2.42 years and 0.3 years, respectively.