Quarterly report pursuant to Section 13 or 15(d)

Stockholders??? Equity

v3.22.2.2
Stockholders’ Equity
 9 Months Ended
Sep. 30, 2022
Equity [Abstract]  
Stockholders' Equity
8. Stockholders’ Equity
2021 Public Offering
On February 23, 2021, the Company completed a public offering of 2,127,660 shares of its common stock, composed of 1,850,140 shares of common stock initially offered at a public offering price of $23.50 per share and an additional 277,520 shares of common stock sold pursuant to the exercise of the underwriters’ option to purchase additional shares at the price of $22.09 per share.
Net proceeds from the offering totaled approximately $46.8 million after deducting underwriting discounts and commissions, and other offering expenses paid by the Company.
The underwriting agreement contains representations, warranties, agreements and indemnification obligations by the Company that are customary for this type of transaction.
Share-Based Compensation Expense
The Company records share-based compensation expense on a straight-line basis over the related vesting period and recognizes forfeitures as they occur. The following table sets forth share-based compensation expense included in general and administrative expense in the condensed consolidated statements of operations:
Three Months Ended September 30,
Nine Months Ended September 30,
(in thousands) (in thousands)
2022 2021 2022 2021
$1,175 $586 $2,954 $1,153
As of September 30, 2022, there was $1.6 million and $6.0 million of total unrecognized compensation expense related to stock options and restricted stock, respectively, which is expected to be recognized over a weighted-average period of 2.0 years and 2.3 years, respectively.
Stock Option Activity
Stock option activity under all of the Company’s plans during the nine months ended September 30, 2022 is summarized below:
Stock Options Weighted-average
Exercise price
per share		 Weighted-average
Remaining Contractual Life (in years)
Intrinsic
Value(1)
(in thousands)
Outstanding at December 31, 2021 1,350,473  $ 10.10 
Granted 147,723  $ 10.91 
Exercised (29,000) $ 2.36 
Forfeited or expired (69,723) $ 43.24 
Outstanding at September 30, 2022 1,399,473  $ 8.70  6.4 $ 7,251 
(1) Intrinsic value is calculated as the estimated fair value of the Company’s stock at the end of the related period less the option exercise price of in-the-money options.
Restricted Stock Activity
Restricted stock activity, which includes restricted stock awards ("RSA") and restricted stock unit awards ("RSU"), for the nine months ended September 30, 2022 is summarized below:
Restricted Stock Weighted - Average
Grant
Date Fair Value
Outstanding at December 31, 2021 380,105  $ 10.41 
Granted 471,863  $ 11.10 
Vested (169,666) $ 13.28 
Forfeited (26,941) $ 13.92 
Outstanding at September 30, 2022 655,361  $ 11.27 
ESPP
On June 3, 2021, the Company’s stockholders adopted and approved the ClearPoint Neuro, Inc. Employee Stock Purchase Plan (the “ESPP”), which allows eligible employees to acquire shares of the Company’s common stock through payroll deductions at a discount to market price. A total of 400,000 shares of the Company’s common stock were made available for issuance pursuant to the terms of the ESPP. Each offering period is for six months, and the first offering period commenced on July 1, 2021. During the six months ended June 30, 2022, 26,354 shares were purchased at an average per share price of $9.86.
Warrants
Warrants to purchase shares of the Company's common stock were issued in connection with financing transactions in 2015 and 2017. These warrants contain net exercise provisions giving the holder the option of acquiring a number of shares having a value equal to the difference between the exercise price and the current stock price, in lieu of paying the exercise price to acquire the full number of stated shares. All of the warrants outstanding at September 30, 2022 will terminate in 2023.
Common stock warrant activity for the nine months ended September 30, 2022 is as follows:
Warrant
Shares 		Weighted-average
Exercise price
per share
Intrinsic
Value(1)
(in thousands)
Outstanding at December 31, 2021 668,907  $ 2.97 
Exercised (462,353) $ 2.20 
Terminated (170,000) $ 2.20 
Outstanding at September 30, 2022
 36,554  $ 16.23  $ — 
(1) Intrinsic value is calculated as the estimated fair value of the Company’s stock at the end of the related period less the warrant exercise price of in-the-money warrants.