Quarterly report pursuant to Section 13 or 15(d)

STOCK-BASED COMPENSATION

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STOCK-BASED COMPENSATION
 6 Months Ended
Jun. 30, 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 RSU’s to purchase common stock of which 1,636,362 were authorized by the board of which 1,325,867 are outstanding. The 2015 Plan was terminated upon shareholder approval of the 2022 Equity Incentive Plan (“2022 Plan”) whereby no awards can be issued under the 2015 Plan.

The Company’s shareholders approved the 2022 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. As of June 30, 2022, there were 1,165,000 shares available for issuance under the 2022 Equity Plan.
As of June 30, 2022 and 2021, 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 six months ended June 30, 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
 961,000  1.39 
Options exercised
 (28,571) — 
Outstanding – June 30, 2022
 2,038,367  1.72  8.9 499 
Exercisable – June 30, 2022
 451,133  $ 0.89  7.7 $ 366 
(*) $ - Indicates exercise price less than $0.01 per share

During the three months ended June 30, 2022 the Company modified options to purchase 63,636 shares of common stock with an exercise price of $2.80 to an exercise price of $1.60. The total incremental cost of the modification was de minimis.
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, 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:
Six months ended June 30,
2022 2021
Weighted-average Black-Scholes option pricing model assumptions:
Volatility
107.25% - 110.98%
76.8% - 76.9%
Expected term (in years)
5.73 - 5.80
 5.66
Risk-free rate
1.47% - 2.85%
0.48% - 0.82%
Expected dividend yield —  — 
Weighted average grant date fair value per share
$1.08 - $1.75
$1.59 - $1.81
RESTRICTED STOCK UNITS

The following is a summary of RSU’s awards activity during the six months ended June 30, 2022:

Six months ended June 30, 2022
Numbers of Shares Weighted Average Grant Date Fair value
Non-Vested at beginning of period 30,000  $ 3.20 
Shares vested 7,500  3.20 
Non-vested 22,500  $ 3.20 
STOCK BASED COMPENSATION

The following is a summary of stock-based compensation expense:
Three months ended June 30, Six months ended June 30,
2022 2021 2022 2021
General and administration
Stock options 175,900  21,000  296,800  26,000 
RSU’s 23,100  —  35,000  — 
Total general and administration 199,000  21,000  331,800  26,000 
R&D
Stock options 64,800  2,400  90,900  6,000 
Total $ 263,800  $ 23,400  $ 422,700  $ 32,000 

As of June 30, 2022, total compensation cost not yet recognized related to unvested stock options was approximately $2.4 million, which is expected to be recognized over a weighted-average period of 3.22 years.

As of June 30, 2022, total compensation cost not yet recognized related to unvested RSU’s is approximately $61,000, which is expected to be recognized over a weighted-average period of 1.3 years.