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)

3 Months Ended

Mar. 31, 2016

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

Assumptions used in calculating the fair value of the warrants at March 31, 2016 are as follows:

	March 31, 2016
Dividend yield		0%
Expected volatility		54.50% - 59.50%
Risk free interest rates		0.63% - 0.70%
Expected remaining term (in years)		1.25 – 1.82

Schedule of fair values and the changes in fair values of the warrants accounted for as derivative liabilities

The fair values and the changes in fair values of the warrants accounted for as derivative liabilities for the three months ended March 31, 2016 are as follows:

Balance, December 31, 2015	$	658,286
Gain on change in fair value for the three months ended March 31, 2016		(160,118	)
Balance, March 31, 2016	$	(498,168	)

Schedule of equity compensation plans

Activity under all of the Company’s equity compensation plans during the three months ended March 31, 2016 is summarized below:

	Shares			Weighted - Average Exercise Price
Outstanding at December 31, 2015		11,931,309		$	1.22
Granted		300,000			0.31
Forfeited		(90,000	)		1.08
Outstanding at March 31, 2016		12,141,309		$	1.20

Schedule of the estimated grant date fair values of options granted

The estimated grant date fair values of options granted during the three months ended March 31, 2016 were calculated using the Black-Scholes valuation model, based on the following assumptions:

Dividend yield			0%
Expected volatility			49.86%
Risk free interest rates			1.38%
Expected lives (in years)			6.0

Schedule of share-based compensation expense

The Company records share-based compensation expense on a straight-line basis over the related vesting period. For the three months ended March 31, 2016 and 2015, share-based compensation expense related to options was:


Three Months Ended March 31,
2016		2015
$	260,149	$	367,309

Schedule of common stock warrant activity

Warrants have generally been issued for terms of up to five years. Common stock warrant activity for the three months ended March 31, 2016 was as follows:

	Shares		Weighted - Average Exercise Price
Outstanding at December 31, 2015		33,816,102	$	0.66
Issued		-		-
Terminated		-		-
Outstanding at March 31, 2016		33,816,102	$	0.66

- 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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