Annual report pursuant to Section 13 and 15(d)

Stock-Based Compensation

v3.22.1
Stock-Based Compensation
 12 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement [Abstract]  
Stock-Based Compensation STOCK-BASED COMPENSATION
In 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 restricted stock awards (“RSUs”) to purchase common stock. The Board of Directors approved 363,636 shares of common stock issuance under the 2015 Plan. On January 31, 2018, the Board of Directors added an additional 545,454 shares of common stock for issuance under the 2015 Plan. On June 15, 2021, the Board of Directors added an additional 727,272 shares of common stock for issuance under the 2015 Plan.

As of December 31, 2021, there were 234,439 shares available for issuance under the 2015 Plan.
STOCK OPTIONS

The following is a summary of stock option activity during the years ended December 31, 2021 and 2020:
Number of
options
outstanding		 Weighted
average
exercise
price (*)		 Average
remaining
contractual life
(in years)		 Aggregate
intrinsic value
(in thousands)
(**)
Outstanding – December 31, 2019 297,560  $ —  7.6 $ 81 
Options granted 214,182  0.28 
Options exercised (45,000) — 
Outstanding – December 31, 2020
 466,742  $ 0.14  8.2 $ 81 
Options granted
 679,495  3.22 
Forfeitures
 (5,453) 0.07 
Options exercised
 (34,846) — 
Outstanding – December 31, 2021
 1,105,938  2.03  8.8 1,535 
Exercisable – December 31, 2021
 346,096  $ 0.57  7.3 $ 878 

(*) $ - Indicates exercise price less than $0.01 per share
(**) Intrinsic value is based on the fair market value of the Company's common stock.

The Company estimates the fair values of stock options using the Black-Scholes option-pricing model on the date of grant. For the years ended December 31, 2021 and 2020, 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:
Year ended December 31,
2021 2020
Weighted-average Black-Scholes option pricing model assumptions:
Volatility
90.01% - 106.22%
74.61% - 74.89%
Expected term (in years)
5.69 - 5.93
5.55 - 5.87
Risk-free rate
0.69% - 1.08%
0.25% - 0.39%
Expected dividend yield $ —  $ — 
Weighted average grant date fair value per share
$2.07 - 3.44
$0.16 - 0.18

The following is a summary of stock-based compensation expense:
Year ended December 31,
2021 2020
General and administration $ 164,933  $ 5,846 
Research and development 27,376  3,850 
$ 192,309  $ 9,696 
RESTRICTED STOCK UNITS

On December 14, 2021, the Company issued 30,000 shares of restricted stock awards to a consultant to provide services over the next two years. The total fair value of the issuances is $96,000. During the year ended December 31, 2021, the compensation expense for the RSUs was de minimis.

The following is a summary of non-vested RSUs award activity for the year ended December 31, 2021, we had no such activity in 2020:
Number of Shares Weighted Average Grant Date Fair Value
Non-vested 30,000  $ 3.20