Quarterly report pursuant to Section 13 or 15(d)

Stockholders??? Equity

v3.23.1
Stockholders’ Equity
 3 Months Ended
Mar. 31, 2023
Equity [Abstract]  
Stockholders' Equity
8. Stockholders’ Equity
We maintain the Fourth Amended and Restated 2013 Incentive Compensation Plan which became effective in 2022. The plan permits the issuance of options, restricted stock, restricted stock units and other awards to selected
employees, directors and consultants of the Company. The equity incentive plans are more fully described in Note 9 to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2022.
Share-Based Compensation Expense
The Company records share-based compensation expense on a straight-line basis over the vesting periods of the related grants and recognizes forfeitures as they occur. The following table sets forth share-based compensation expense included in the condensed consolidated statements of operations:
Three Months Ended March 31,
(in thousands)
2023 2022
Cost of revenue 21  10 
Research and development 282  361 
Sales and marketing 362  150 
General and administrative 642  378 
Share-based compensation expense $ 1,307  $ 899 
Share-based compensation expense by type of share-based award:
Three Months Ended March 31,
(in thousands)
2023 2022
Stock options 248  318 
RSAs and RSUs 992  525 
ESPP 67  56 
$ 1,307  $ 899 
Total unrecognized compensation expense by type of award and the weighted-average remaining requisite period over which such expense is expected to be recognized (in thousands, unless otherwise noted):
March 31, 2023
Unrecognized Expense Remaining Weighted-Average Recognition Period (in years)
Stock options $ 1,708  2.15
RSAs and RSUs $ 9,803  2.45
Stock Option Activity
Stock option activity under all of the Company’s plans during the three months ended March 31, 2023 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, 2022 1,398,286  $ 8.69 
Granted 111,107  $ 8.10 
Outstanding at March 31, 2023 1,509,393  $ 8.65  6.17 $ 5,336 
Exercisable at March 31, 2023 1,134,204  $ 8.12  5.23 $ 5,087 
Vested and expected to vest at March 31, 2023 1,509,393  $ 8.65  6.17 $ 5,336 
(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 Award Activity
Restricted stock award ("RSA") activity for the three months ended March 31, 2023 is summarized below:
Restricted Stock Awards Weighted - Average
Grant
Date Fair Value
Outstanding at December 31, 2022 684,389  $ 11.10 
Vested (15,036) $ 14.17 
Forfeited (1,064) $ 9.40 
Outstanding at March 31, 2023 668,289  $ 11.04 
Restricted Stock Unit Activity
Restricted stock unit ("RSU") activity for the three months ended March 31, 2023 is summarized below:
Restricted Stock Units Weighted - Average
Grant
Date Fair Value
Outstanding at December 31, 2022 13,146  $ 11.41 
Granted 630,922  $ 8.17 
Vested (4,846) $ 8.32 
Outstanding at March 31, 2023 639,222  $ 8.24 
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. On March 31, 2023, 320,521 shares of common stock were available for issuance under the ESPP.
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.
There was no common stock warrant activity for the three months ended March 31, 2023. There were a total of 36,554 warrant shares outstanding at March 31, 2023 with a weighted-average exercise price of $16.23. All of the warrants outstanding at March 31, 2023 will expire in 2023.