Quarterly report pursuant to Section 13 or 15(d)

Stockholders??? Equity

v3.23.3
Stockholders’ Equity
 9 Months Ended
Sep. 30, 2023
Equity [Abstract]  
Stockholders' Equity
8. Stockholders’ Equity
The Fourth Amended and Restated 2013 Incentive Compensation Plan 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 the Company's 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 September 30,
(in thousands)
2023 2022
Cost of revenue 26  17 
Research and development 357  216 
Sales and marketing 431  300 
General and administrative 770  642 
Share-based compensation expense $ 1,584  $ 1,175 

Nine Months Ended September 30,
(in thousands)
2023 2022
Cost of revenue 74  33 
Research and development 1,009  701 
Sales and marketing 1,277  639 
General and administrative 2,176  1,581 
Share-based compensation expense $ 4,536  $ 2,954 
Share-based compensation expense by type of share-based award is summarized below:
Three Months Ended September 30,
(in thousands)
2023 2022
Stock options 233  260 
RSAs and RSUs 1,308  860 
ESPP 43  55 
$ 1,584  $ 1,175 
Nine Months Ended September 30,
(in thousands)
2023 2022
Stock options 747  830 
RSAs and RSUs 3,612  1,957 
ESPP 177  167 
$ 4,536  $ 2,954 
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):
Years Ended September 30, 2023
Unrecognized Expense Remaining Weighted-Average Recognition Period (in years)
Stock options $ 1,208  1.82
RSAs and RSUs $ 8,187  1.94
Stock Option Activity
Stock option activity under the Company’s current and previous plans during the nine months ended September 30, 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 
Exercised (20,000) $ 1.82 
Forfeited or expired (4,374) $ 41.52 
Outstanding at September 30, 2023 1,485,019  $ 8.64  5.69 $ 1,867 
Exercisable at September 30, 2023 1,258,707  $ 8.29  5.10 $ 1,867 
Vested and expected to vest at September 30, 2023 1,485,019  $ 8.64  5.69 $ 1,867 
(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 nine months ended September 30, 2023 is summarized below:
Restricted Stock Awards Weighted - Average
Grant
Date Fair Value
Outstanding at December 31, 2022 684,389  $ 11.10 
Vested (270,042) $ 10.06 
Forfeited (5,395) $ 12.51 
Outstanding at September 30, 2023 408,952  $ 11.78 
Restricted Stock Unit Activity
Restricted stock unit ("RSU") activity for the nine months ended September 30, 2023 is summarized below:
Restricted Stock Units Weighted - Average
Grant
Date Fair Value
Outstanding at December 31, 2022 13,146  $ 11.41 
Granted 766,625  $ 8.11 
Vested (13,660) $ 8.73 
Outstanding at September 30, 2023 766,111  $ 8.15 
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 first offering period of 2023, 51,041 shares were purchased at an average per share price of $6.15.
Warrants
Warrants to purchase shares of the Company's common stock were issued in connection with financing transactions in 2015 and 2017. These warrants contained 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 remaining outstanding warrants expired in the second quarter of 2023.
Warrant activity for the nine months ended September 30, 2023 is summarized below:
Shares Weighted - Average
Exercise
Price
Outstanding at December 31, 2022 36,554  $ 16.23 
Expired (36,554) $ 16.23 
Outstanding at September 30, 2023 —  —