At the July 2025, annual stockholders’ meeting the 2022 Equity Incentive Plan was amended to increase the number of authorized shares from 8,900,000 shares to 11,900,000 shares and was approved by stockholders’.


	Number of options outstanding	Weighted average exercise price		Average remaining contractual life (in years)	Aggregate intrinsic value (in thousands)

Outstanding – December 31, 2024	7,386,369	$	2.26	8.36	$	2,627
Options granted	2,008,400	1.69
Options exercised	(60,259)	0.88
Options cancelled	(369,376)	1.54

Outstanding – June 30, 2025	8,965,134	$	2.17	8.28	$	357
Exercisable – June 30, 2025	2,884,652	$	2.10	7.07	$	357

During the six months ended June 30, 2025 and June, 30, 2024, options were granted to consultants and employees. During the six months ended June 30, 2025, 40,625 options were exercised by one of employees using net settlement, which resulted in net issuance of 9,081 shares. Additionally, during the six months ended June 30, 2025, 19,634 options were exercised by consultants for a de minimis amount of proceeds.

The Company estimates the fair values of stock options using the Black-Scholes option-pricing model on the date of grant. For the six months ended June 30, 2025 and 2024, the assumptions used in the Black-Scholes option pricing model, which was used to estimate the grant date fair value per option, were as follows:


	Six months ended June 30,
	2025		2024
Weighted-average Black-Scholes option pricing model assumptions:
Volatility	111.06% - 121.54%		125.89% - 128.74%
Expected term (in years)	5.00 - 6.08		6.02 - 7.00
Risk-free rate	3.90% - 4.41%		4.50% - 4.60%
Expected dividend yield	$	0.00	$	0.00
Weighted average grant date fair value per share	$1.38 - $1.99		$1.81 - $2.48


	Six months ended June 30, 2025
	Numbers of Shares	Weighted Average Grant Date Fair value
Non-Vested at beginning of period	283,411	$	2.38
Shares granted	—	—
Shares vested	—	—
Non-vested at the end of period	283,411	$	2.38


	Three months ended June 30,		Six months ended June 30,
	2025	2024	2025		2024
General and administrative
Stock option expense	384,000	602,000	$	591,000	$	1,338,000
RSU expense	120,000	142,000	266,000		283,000
Total general and administrative expense	504,000	744,000	857,000		1,621,000
Research and development
Stock option expense	666,000	287,000	1,413,000		607,000
RSU expense	7,000	9,000	16,000		19,000
Total research and development expense	673,000	296,000	1,429,000		626,000
Total Stock Based Compensation Expense	1,177,000	1,040,000	$	2,286,000	$	2,247,000

During 2023, the Company granted 2,208,000 options to various executives and employees. Sixty percent (60%) of these options vest based on FDA Clearance for marketing of HeartBeam’s synthesized 12L product and the remaining forty percent (40%) vest monthly over a period of 48 months. During the period ended June 30, 2025, management performed its probability assessment regarding the milestone achievement date and concluded that based on current status of discussion with FDA and planned V2 submission, no change in the estimated clearance date of December 31, 2025. The 60% milestone options are issued and outstanding as of June 30, 2025.

These performance-based options are expensed through the expected FDA clearance, which is based on management’s probability assessment performed on a quarterly basis.

As of June 30, 2025, total compensation cost not yet recognized related to unvested stock options and unvested RSUs was approximately $8.1 million and $0.1 million, respectively, which is expected to be recognized over a weighted-average period of 2.65 years and 0.95 years, respectively.