Quarterly report pursuant to Section 13 or 15(d)

Stockholders??? Equity

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Stockholders’ Equity
 6 Months Ended
Jun. 30, 2024
Equity [Abstract]  
Stockholders' Equity
8. Stockholders’ Equity
2024 Public Offering
In March 2024, the Company completed a public offering of 2,653,848 shares of its common stock, composed of 2,307,694 shares of common stock offered at a public offering price of $6.50 per share and an additional 346,154
shares of common stock sold pursuant to the exercise of the underwriters' option to purchase additional shares at the public offering price.
Net proceeds from the offering totaled approximately $16.2 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.
Equity Compensation Plans
The Fourth Amended and Restated 2013 Incentive Compensation Plan became effective in 2022. In May 2024, the Company's stockholders approved the Fifth Amended and Restated 2013 Incentive Compensation Plan, which increased the number of shares of common stock available for awards under the plan by 1.95 million shares. 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 the 2023 Form 10-K.
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 June 30,
(in thousands)
2024
2023
Cost of revenue $ 29  $ 27 
Research and development 406  370 
Sales and marketing 524  484 
General and administrative 837  764 
Share-based compensation expense $ 1,796  $ 1,645 
Six Months Ended June 30,
(in thousands)
2024
2023
Cost of revenue $ 51  $ 47 
Research and development 743  652 
Sales and marketing 945  847 
General and administrative 1,561  1,406 
Share-based compensation expense $ 3,300  $ 2,952 

Share-based compensation expense by type of share-based award is summarized below:
Three Months Ended June 30,
(in thousands)
2024
2023
Stock options $ 195  $ 266 
RSAs and RSUs 1,540  1,312 
ESPP 61  67 
$ 1,796  $ 1,645 
Six Months Ended June 30,
(in thousands)
2024
2023
Stock options $ 403  $ 514 
RSAs and RSUs 2,776  2,304 
ESPP 121  134 
$ 3,300  $ 2,952 
Total unrecognized compensation expense by type of award and the weighted-average remaining requisite holding period over which such expense is expected to be recognized (in thousands, unless otherwise noted):
June 30, 2024
Unrecognized Expense Remaining Weighted-Average Recognition Period (in years)
Stock options $ 597  1.31
RSAs and RSUs $ 11,310  2.03
Stock Option Activity
Stock option activity under the Company’s current and previous plans during the six months ended June 30, 2024 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, 2023 1,478,157  $ 8.40 
Exercised (11,000) $ 3.01 
Forfeited or expired (6,112) $ 42.82 
Outstanding at June 30, 2024 1,461,045  $ 8.30  4.99 $ 2,183 
Exercisable at June 30, 2024 1,302,175  $ 8.03  4.60 $ 2,183 
Vested and expected to vest at June 30, 2024 1,461,045  $ 8.30  4.99 $ 2,183 
(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 six months ended June 30, 2024 is summarized below:
Restricted Stock Awards Weighted - Average
Grant
Date Fair Value
Outstanding at December 31, 2023 376,914  $ 12.02 
Vested (147,197) $ 11.76 
Forfeited (3,679) $ 12.11 
Outstanding at June 30, 2024 226,038  $ 12.18 
Restricted Stock Unit Activity
Restricted stock unit ("RSU") activity for the six months ended June 30, 2024 is summarized below:
Restricted Stock Units Weighted - Average
Grant
Date Fair Value
Outstanding at December 31, 2023 768,139  $ 8.15 
Granted 1,192,622  $ 6.16 
Vested (260,441) $ 8.06 
Forfeited (12,911) 8.52 
Outstanding at June 30, 2024 1,687,409  $ 6.76 
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, 2024, 62,800 shares were purchased at an average per share price of $4.58.