Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation

v3.22.1
Stock-Based Compensation
 3 Months Ended
Mar. 31, 2022
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 (“RSAs”) 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 March 31, 2022, there were 176,439 shares available for issuance under the 2015 Plan.
STOCK OPTIONS
The following is a summary of stock option activity during the three months ended March 31, 2022:
Number of
options
outstanding		 Weighted
average
exercise
price (*)		 Average
remaining
contractual life
(in years)		 Aggregate
intrinsic value
(in thousands)
Outstanding – December 31, 2021
 1,105,938  $ 2.03  8.8 $ 1,535 
Options granted
 58,000  1.91 
Options exercised
 (9,201) — 
Outstanding – March 31, 2022
 1,154,737  2.04  8.6 779 
Exercisable – March 31, 2022
 403,130  $ 0.79  7.3 $ 529 
(*) $ - 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, 2022 and 2021, 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,
2022 2021
Weighted-average Black-Scholes option pricing model assumptions:
Volatility 107.25  % 76.90  %
Expected term (in years) 5.80 5.66
Risk-free rate 1.47  % 0.48  %
Expected dividend yield $ —  $ — 
Weighted average grant date fair value per share $ 1.55  $ 1.59 
The following is a summary of stock-based compensation expense for stock options:
Three months ended March 31,
2022 2021
General and administration $ 120,876  $ 5,546 
Research and development 25,832  3,850 
$ 146,708  $ 9,396 
As of March 31, 2022, total compensation cost not yet recognized related to unvested stock options is approximately $1,650,000, which is expected to be recognized over a weighted-average period of 2.0 years.
As of March 31, 2022 and 2021, a de minimis value was recognized upon the exercise of stock options.

RESTRICTED STOCK AWARDS

The following is a summary of RSA’s awards activity during the three months ended March 31, 2022:
Three months ended March 31, 2022
Numbers of Shares Weighted Average Grant Date Fair value
Non-Vested at beginning of period 30,000  $ 3.20 
Shares vested 3,750  3.20 
Non-vested 26,250  $ 3.20 

As of March 31, 2022, the Company recognized approximately $12,000 of stock based compensation expense related to RSA’s and is included in general and administrative expense, in the accompanying statement of operations.

As of March 31, 2022, total compensation cost not yet recognized related to unvested RSA’s is approximately $84,000, which is expected to be recognized over a weighted-average period of 1.5 years.