Quarterly report pursuant to Section 13 or 15(d)

STOCK-BASED COMPENSATION

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STOCK-BASED COMPENSATION
 3 Months Ended
Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
At the March 28, 2024, Board of Directors meeting, the proposal to amend the 2022 Equity Incentive Plan to increase the number of authorized shares from 5,900,000 shares to 8,900,000 shares was approved, which is pending stockholders’ approval during upcoming annual meeting in June 2024.
STOCK OPTIONS
The following is a summary of stock option activity during the three months ended March 31, 2024:
Number of
options
outstanding		 Weighted
average
exercise
price		 Average
remaining
contractual life
(in years)		 Aggregate
intrinsic value
(in thousands)
Outstanding – December 31, 2023
 6,092,525  $ 2.22  8.7 $ 2,945 
Options granted
 —  — 
Options exercised
 —  — 
Options cancelled (25,748) 2.41 
Outstanding – March 31, 2024
 6,066,777  2.23  8.8 2,402 
Exercisable – March 31, 2024
 1,526,836  $ 1.88  7.4 $ 1,149 
RESTRICTED STOCK UNITS
The following is a summary of RSU’s awards activity:
Three months ended March 31, 2024
Numbers of Shares Weighted Average Grant Date Fair value
Non-Vested at beginning of period 217,881  $ 3.12 
Shares granted —  — 
Shares vested —  — 
Non-vested 217,881  $ 3.12 

STOCK BASED COMPENSATION

The following is a summary of stock-based compensation expense:
Three months ended March 31,
2024 2023
General and administrative
Stock options 736,000  200,000 
RSU’s 141,000  101,000 
Total general and administrative 877,000  301,000 
Research and development
Stock options 319,000  92,000 
  RSU’s 10,000  — 
Total research and development 329,000  92,000 
Total $ 1,206,000  $ 393,000 
During 2023, the Company granted 2,208,000 options to various executives and employees. Sixty percent (60%) of these options vest based on FDA Clearance for marketing of HeartBeam’s synthesized 12L product and the remaining forty percent (40%) vest monthly over a period of 48 months.

The Company calculated the fair value for each of these grants using the Black-Scholes option pricing model and the performance-based options are expensed beginning from date of grant to the expected FDA clearance, which is based on management’s probability assessment.

As of March 31, 2024, total compensation cost not yet recognized related to unvested stock options and unvested RSUs was approximately $7.0 million and $0.2 million, respectively, which is expected to be recognized over a weighted-average period of 2.4 years and 0.95 years, respectively.