Quarterly report pursuant to Section 13 or 15(d)

Stockholders??? Equity

v3.22.1
Stockholders’ Equity
 3 Months Ended
Mar. 31, 2022
Equity [Abstract]  
Stockholders' Equity
7. 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 selling, general and administrative expense in the condensed consolidated statements of operations:
Three Months Ended March 31,
(in thousands)
2022 2021
$899 $320
As of March 31, 2022, there was $0.9 million and $2.7 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 1.8 years and 2.1 years, respectively.
Stock Option Activity
Stock option activity under all of the Company’s Plans during the three months ended March 31, 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 —  — 
Exercised (1,000) $ 2.60 
Forfeited or expired (24,933) $ 37.68 
Outstanding at March 31, 2022 1,324,540  $ 9.59  6.25 $ 7,499 
(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 award ("RSA") activity for the three months ended March 31, 2022 is summarized below:
Restricted Stock Award Weighted - Average
Grant
Date Fair Value
Outstanding at December 31, 2021 380,105  $ 10.41 
Granted 39,916  $ 8.63 
Vested (10,089) $ 9.77 
Forfeited or expired (10,000) $ 20.45 
Outstanding at March 31, 2022 399,932  $ 9.79 
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 are available for issuance pursuant to the terms of the ESPP. During the year ended December 31, 2021, 22,918 shares were purchased at an average per share price of $9.78. As of March 31, 2022, 377,082 shares of common stock were available for issuance under the Purchase Plan.
Warrants
Warrants to purchase shares of the Company's common stock were issued in connection with financing transactions in 2015 and 2017, and are for a term of generally five years. 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 March 31, 2022 will terminate in 2022 and 2023.
Common stock warrant activity for the three months ended March 31, 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 (14,728) $ 2.20 
Outstanding at March 31, 2022
 654,179  $ 2.98  $ 5,071 
(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.