ClearPoint Neuro, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2015

Schedule of assumptions used in calculating the fair value of the warrants

Assumptions used in calculating the fair value of the warrants at September 30, 2015 are noted below:


Dividend yield			0%
Expected volatility			45.51% – 46.50%
Risk free interest rates			0.448% – 0.685%
Expected remaining term (in years)			1.76 – 2.32

Schedule of fair value of liabilities measured on recurring basis

The fair values and the changes in fair values of the warrants accounted for as a derivative liability is reflected below:


Fair value at December 31, 2014	$	2,198,162
Gain on change in fair value		(981,223	)
Fair value at September 30, 2015	$	1,216,939

Schedule of compensation, stock option, activity

Activity under all of the Company’s equity compensation plans during the nine months ended September 30, 2015 is summarized below:


	Shares			Weighted - Average Exercise Price
Outstanding at December 31, 2014		10,343,309		$	1.36
Granted		2,216,500			0.80
Forfeited		(858,500	)		1.50
Outstanding at September 30, 2015		11,701,309		$	1.15

Schedule of share based payment award stock option valuation assumptions

The estimated grant date fair values of options granted during the nine months ended September 30, 2015 were calculated using the Black-Scholes valuation model, based on the following assumptions:


Dividend yield			0%
Expected volatility			46.67% to 59.49%
Risk free interest rates			1.48% to 1.80%
Expected lives (in years)			6.0

Schedule of employee serviceshare based-compensation, allocation of recognized period costs

The Company records share-based compensation expense on a straight-line basis over the related vesting period. For the periods indicated below, share-based compensation expense, which includes the expense associated with the modification of option terms discussed above and in Note 4, related to options was:


Three Months Ended September 30,
2015		2014
	$ 268,880		$ 192,001


Nine Months Ended September 30,
2015		2014
	$ 1,421,198		$ 555,909

Schedule of stockholders' equity note warrants or rights

Warrants have generally been issued for terms of up to five years. Common stock warrant activity for the nine months ended September 30, 2015 was as follows:


	Shares			Weighted - Average Exercise Price
Outstanding at December 31, 2014		20,759,136		$	0.91
Issued		35,000			1.00
Terminated		(25,444	)		8.00
Outstanding at September 30, 2015		20,768,692			0.90

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

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