Quarterly report pursuant to Section 13 or 15(d)

STOCK-BASED COMPENSATION

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STOCK-BASED COMPENSATION
 6 Months Ended
Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
At the June 2024 annual stockholders’ meeting the 2022 Equity Incentive Plan was amended to increase the number of authorized shares from 5,900,000 shares to 8,900,000.
STOCK OPTIONS
The following is a summary of stock option activity during the six months ended June 30, 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
 114,000  2.27 
Options exercised
 (5,252) 1.54 
Options cancelled (25,748) 2.41 
Outstanding – June 30, 2024
 6,175,525  $ 2.23  8.4 $ 3,692 
Exercisable – June 30, 2024
 1,748,660  $ 1.90  7.4 $ 1,687 
The Company estimates the fair values of stock options using the Black-Scholes option-pricing model on the date of grant. For the six months ended June 30, 2024 and 2023, 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:

Six months ended June 30,
2024 2023
Weighted-average Black-Scholes option pricing model assumptions:
Volatility
125.89% - 128.74%
110.23% - 111.73%
Expected term (in years)
6.02 - 7.00
5.71 - 6.07
Risk-free rate
4.50% - 4.60%
3.54% - 3.80%
Expected dividend yield $ —  $ — 
Weighted average grant date fair value per share
$1.81 - $2.48
$1.73 - $3.38

RESTRICTED STOCK UNITS
The following is a summary of RSU’s awards activity:
Six months ended June 30, 2024
Numbers of Shares Weighted Average Grant Date Fair value
Non-Vested at beginning of period 217,881  $ 3.12 
Shares granted 243,357  2.26 
Shares vested (177,827) 3.13 
Non-vested at the end of period 283,411  $ 2.38 
STOCK BASED COMPENSATION

The following is a summary of stock-based compensation expense:
Three months ended June 30, Six months ended June 30,
2024 2023 2024 2023
General and administrative
Stock options 602,000  507,200  1,338,000  707,200 
RSU’s 142,000  116,400  283,000  217,400 
Total general and administrative 744,000  623,600  1,621,000  924,600 
Research and development
Stock options 287,000  78,800  607,000  170,800 
  RSU’s 9,000  —  19,000  — 
Total research and development 296,000  78,800  626,000  170,800 
Total 1,040,000  702,400  2,247,000  1,095,400 

During the six months ended 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 performed on a quarterly basis.

As of June 30, 2024, total compensation cost not yet recognized related to unvested stock options and unvested RSUs was approximately $6.4 million and $0.6 million, respectively, which is expected to be recognized over a weighted-average period of 2.4 years and 1.08 years, respectively.