HeartBeam (BEAT) 10-Q 10 Aug 23 2023 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2023	Aug. 09, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	001-41060
Entity Registrant Name	HEARTBEAM, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	47-4881450
Entity Address, Address Line One	2118 Walsh Avenue
Entity Address, Address Line Two	Suite 210
Entity Address, City or Town	Santa Clara
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95050
City Area Code	408
Local Phone Number	899-4443
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		26,311,904
Entity Central Index Key	0001779372
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false
Class A common Stock
Document Information [Line Items]
Title of 12(b) Security	Common Stock
Trading Symbol	BEAT
Security Exchange Name	NASDAQ
Redeemable Warrants
Document Information [Line Items]
Title of 12(b) Security	Warrants
Trading Symbol	BEATW
Security Exchange Name	NASDAQ

Condensed Balance Sheets (Unaud

Condensed Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Current Assets:
Cash and cash equivalents	$ 17,401,000	$ 3,594,000
Short-term investments	3,939,151	0
Prepaid expenses and other assets	292,000	445,000
Total Assets	21,632,000	4,039,000
Current Liabilities:
Accounts payable and accrued expenses (includes related party $1 and $2 respectively)	570,000	1,665,000
Total Liabilities	570,000	1,665,000
Commitments
Stockholders’ Equity
Preferred stock - $0.0001 par value; 10,000,000 authorized; 0 shares outstanding at June 30, 2023 and December 31, 2022	0	0
Common stock - $0.0001 par value; 100,000,000 shares authorized; 25,990,516 and 8,009,743 shares issued and outstanding at June 30, 2023 and December 31, 2022	3,000	1,000
Additional paid in capital	50,535,000	24,559,000
Accumulated deficit	(29,476,000)	(22,186,000)
Total Stockholders’ Equity	21,062,000	2,374,000
Total Liabilities and Stockholders’ Equity	$ 21,632,000	$ 4,039,000

Condensed Balance Sheets (Una_2

Condensed Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Current Liabilities:
Related party accounts payable and accrued expenses	$ 570,000	$ 1,665,000
Stockholders’ Equity
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	25,990,516	8,009,743
Common stock, shares outstanding (in shares)	25,990,516	8,009,743
Related Party
Current Liabilities:
Related party accounts payable and accrued expenses	$ 1,100	$ 2,000

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Operating Expenses:
General and administrative	$ 1,828	$ 1,793	$ 4,303	$ 3,208
Research and development	1,484	1,742	3,165	2,475
Total operating expenses	3,312	3,535	7,468	5,683
Loss from operations	(3,312)	(3,535)	(7,468)	(5,683)
Other Income
Interest income	158	10	178	12
Total other income	158	10	178	12
Loss before provision for income taxes	(3,154)	(3,525)	(7,290)	(5,671)
Income tax provision	0	0	0	0
Net Loss	$ (3,154)	$ (3,525)	$ (7,290)	$ (5,671)
Net loss per share, basic (in dollars per share)	$ (0.16)	$ (0.43)	$ (0.52)	$ (0.70)
Net loss per share, diluted (in dollars per share)	$ (0.16)	$ (0.43)	$ (0.52)	$ (0.70)
Weighted average common shares outstanding, basic (in shares)	19,690,251	8,145,967	13,910,365	8,092,237
Weighted average common shares outstanding, diluted (in shares)	19,690,251	8,145,967	13,910,365	8,092,237

Condensed Statement of Changes

Condensed Statement of Changes in Stockholders’ Equity (Deficit) (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2021		7,809,912
Beginning balance at Dec. 31, 2021	$ 13,410	$ 1	$ 22,633	$ (9,224)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock based compensation expense	423		423
Sale of Common Stock and Warrants (in shares)		136,025
Sale of Common Stock, net of issuance costs	804		804
Stock issuance upon vesting and exercise of stock options (in shares)		28,571
Stock issuance upon vesting and exercise of stock options	2		2
Stock issuance upon vesting of restricted stock awards (in shares)		7,500
Net loss	(5,671)			(5,671)
Ending balance (in shares) at Jun. 30, 2022		7,982,008
Ending balance at Jun. 30, 2022	8,968	$ 1	23,862	(14,895)
Beginning balance (in shares) at Mar. 31, 2022		7,958,888
Beginning balance at Mar. 31, 2022	12,227	$ 1	23,596	(11,370)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock based compensation expense	264		264
Stock issuance upon vesting and exercise of stock options (in shares)		19,370
Stock issuance upon vesting and exercise of stock options	2		2
Stock issuance upon vesting of restricted stock awards (in shares)		3,750
Net loss	(3,525)			(3,525)
Ending balance (in shares) at Jun. 30, 2022		7,982,008
Ending balance at Jun. 30, 2022	8,968	$ 1	23,862	(14,895)
Beginning balance (in shares) at Dec. 31, 2022		8,009,743
Beginning balance at Dec. 31, 2022	2,374	$ 1	24,559	(22,186)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock based compensation expense	1,095		1,095
Sale of Common Stock and Warrants (in shares)		17,872,955
Sale of Common Stock, net of issuance costs	$ 24,764	$ 2	24,762
Stock issuance upon vesting and exercise of stock options (in shares)	88,026	88,026
Stock issuance upon vesting and exercise of stock options	$ 103		103
Stock issuance upon vesting of restricted stock awards (in shares)		12,500
Stock issuance upon exercise of warrants (in shares)	1,471	7,292
Stock issuance upon exercise of warrants	$ 16		16
Net loss	(7,290)			(7,290)
Ending balance (in shares) at Jun. 30, 2023		25,990,516
Ending balance at Jun. 30, 2023	21,062	$ 3	50,535	(29,476)
Beginning balance (in shares) at Mar. 31, 2023		8,227,074
Beginning balance at Mar. 31, 2023	(859)	$ 1	25,462	(26,322)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock based compensation expense	702		702
Sale of Common Stock and Warrants (in shares)		17,666,666
Sale of Common Stock, net of issuance costs	24,270	$ 2	24,268
Stock issuance upon vesting and exercise of stock options (in shares)		88,026
Stock issuance upon vesting and exercise of stock options	103		103
Stock issuance upon vesting of restricted stock awards (in shares)		8,750
Net loss	(3,154)			(3,154)
Ending balance (in shares) at Jun. 30, 2023		25,990,516
Ending balance at Jun. 30, 2023	$ 21,062	$ 3	$ 50,535	$ (29,476)

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash Flows From Operating Activities
Net loss	$ (7,290)	$ (5,671)
Adjustments to reconcile net loss to net cash used in operating activities
Stock-based compensation expense	1,095	423
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	152	342
Accounts payable and accrued expenses	(1,094)	638
Net cash used in operating activities	(7,137)	(4,268)
Cash Flows From Investing Activities
Purchase of short-term investments	(3,939)	0
Net cash used in investing activities	(3,939)	0
Cash Flows From Financing Activities
Proceeds from sale of equity, net of issuance costs	24,764	348
Proceeds from exercise of stock options	103	2
Proceeds from exercise of warrants	16	0
Net cash provided by financing activities	24,883	350
Net increase (decrease) in cash	13,807	(3,918)
Cash and Cash Equivalents – Beginning of period	3,594	13,192
Cash and Cash Equivalents – Ending of period	17,401	9,274
Supplemental Disclosures of Cash Flow Information:
Taxes paid	0	0
Supplemental Disclosures of Non-cash Financing Activities:
Issuance of common stock and warrants to settle accrued expenses	$ 0	$ 456

ORGANIZATION AND OPERATIONS

ORGANIZATION AND OPERATIONS	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND OPERATIONS	ORGANIZATION AND OPERATIONS HeartBeam, Inc. (“HeartBeam” or the “Company”) is a cardiac technology company focusing on developing and commercializing higher resolution ambulatory Electrocardiogram (“ECG”) solutions that enable the detection and monitoring of cardiac disease outside a healthcare facility setting. The Company’s ability to develop higher resolution ECG solutions is achieved through the development of the Company’s proprietary and patented Vector Electrocardiography (“VECG”) technology platform. HeartBeam’s VECG is capable of developing three-dimensional (3D) images of cardiac electrical activity by displaying the spatial locations of ECG waveforms that demonstrated in early studies to deliver equal or superior diagnostic capability than traditional hospital-based ECG systems. The Company has validated this novel technology and is seeking U.S. Food and Drug Administration (“FDA”) clearance of its initial telehealth products during 2023 and 2024. The Company was incorporated in 2015 as a Delaware corporation. The Company’s operations are based in Santa Clara, California and operates as one segment.

LIQUIDITY, GOING CONCERN AND OT

LIQUIDITY, GOING CONCERN AND OTHER UNCERTAINTIES	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
LIQUIDITY, GOING CONCERN AND OTHER UNCERTAINTIES	LIQUIDITY, GOING CONCERN AND OTHER UNCERTAINTIES The Company is subject to a number of risks similar to those of early stage companies, including dependence on key individuals and products, the difficulties inherent in the development of a commercial market, the potential need to obtain additional capital, competition from larger companies, other technology companies and other technologies. The Company has incurred losses each year since inception and has experienced negative cash flows from operations in each year since inception. As of June 30, 2023 the Company has a cash and cash equivalents and short-term investments balance of approximately $21.3 million. Based on its current business plan assumptions and expected cash burn rate, the Company believes that the existing cash and cash equivalents and short-term investments are sufficient to fund operations for the next twelve months following the issuance of these unaudited condensed financial statements. The Company’s continued operations will depend on its ability to raise additional capital through various potential sources, such as equity and/or debt financings, strategic relationships and revenue. The Company expects no material commercial revenue in 2023. Management can provide no assurance that such financing or strategic relationships will be available on acceptable terms, or at all, which would likely have a material adverse effect on the Company and its financial statements.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION The accompanying condensed unaudited financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("US GAAP") and in conformity with the instructions on Form 10-Q and Rule 8-03 of Regulation S-X and the related rules and regulations of the Securities and Exchange Commission (“SEC”) and have been prepared on a basis which assumes that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. In the opinion of management, the unaudited interim condensed financial statements reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the balances and results of operations for the periods presented. The interim operating results are not necessarily indicative of results that may be expected for any subsequent period. The accompanying condensed unaudited financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in the Company’s Form 10-K filed with the SEC on March 16, 2023 (“2022 Annual Report”). CASH AND CASH EQUIVALENTS The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash deposits. The Company maintains its cash in institutions insured by the Federal Deposit Insurance Corporation and has cash balances in accounts which exceed the federally insured limits as of June 30, 2023 and December 31, 2022. SHORT-TERM INVESTMENTS Short-term investments consist of debt securities classified as held-to-maturity and have original maturities greater than 90 days but, less than one year as of the balance sheet date. Held-to-maturity investments are recorded at the amortized cost basis until date of maturity and are carried at amortized cost net of allowance for credit losses, which approximates their fair value determined based on Level 2 inputs. As of June 30, 2023, the short-term investments have an amortized cost basis of $3,939,151. USE OF ESTIMATES The preparation of financial statements in conformity with US GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be based on amounts that differ from those estimates. NET LOSS PER COMMON SHARE Basic net loss per share excludes the effect of dilution and is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including stock options and warrants to the extent dilutive. Basic net loss per share was the same as diluted net loss per share for the three and six months ended June 30, 2023 and 2022 as the inclusion of all potential common shares outstanding would have an anti-dilutive effect. In accordance with ASC 260-10-45-13, exercisable penny options are included in the calculation of weighted average basic and diluted earnings per share. As of June 30, 2023, 177,355 penny options have been included in the calculation of weighted average basic and diluted earnings per share. The following is a summary of awards outstanding as of June 30, 2023 and 2022, which are not included in the computation of basic and diluted weighted average shares: Three and Six months ended June 30, 2023 2022 Stock options (excluding exercisable penny stock options) 2,851,383 1,868,218 Restricted stock awards 246,470 22,500 Warrants 5,152,397 3,908,276 Total 8,250,250 5,798,994

STOCKHOLDERS_ EQUITY

STOCKHOLDERS’ EQUITY	6 Months Ended
	Jun. 30, 2023
Equity [Abstract]
STOCKHOLDERS’ EQUITY	STOCKHOLDERS’ EQUITY COMMON STOCK On May 2, 2023, the Company entered into a Securities Purchase Agreement with an accredited investor, for the purchase and sale in a registered direct offering of 1,000,000 shares of the Company’s common stock at a price of $1.50 per share, generating net proceeds from the offering of approximately $1.1 million after deducting financial advisory and legal fees as well as other estimated offering expenses. On April 20, 2023, the Company entered into a Placement Agency Agreement with Public Ventures, LLC to consummate an offering of 16,666,666 shares of Common Stock at an offering price of $1.50 per share, which closed in accordance with the subscription agreement dated May 2, 2023. The Company received $23.2 million in net proceeds from the offering after deducting placement agent discounts and commission and other estimated offering expenses payable by the Company. In addition, the subscription agreement grants placement agent warrants to purchase up to 1,666,666 shares of common stock at a per share exercise price of $1.875 and are exercisable after a 180-day lock-up period. The warrants will expire five years from the date of issuance. On February 2, 2023, the Company entered into a securities purchase agreement and a note purchase agreement (“SPA”, NPA” or together “Agreements”) with Maverick Capital Partners, LLC (“Maverick” or “Investor”). Pursuant to the terms of the Agreements, as amended, the Company agreed to sell up to $4,000,000 of the Company’s common stock at 75% of the average calculated Volume Weighted Average Price (“VWAP”) per share. On February 28, 2023, the Company issued a $500,000 Convertible Note to the Investor pursuant to the NPA. On March 9, 2023, the Convertible Note was settled upon the execution of the SPA and related issuance of 200,105 shares of common stock pursuant to the SPA draw down notice dated March 9, 2023. These shares of common stock were registered under the Company’s registration statement on Form S-3 dated February 10, 2023 and the related prospectus supplement dated March 9, 2023, whereby, the Company received total proceeds of $500,000 . These were the only transactions consummated under the SPA and NPA and the respective agreements expired on May 31 2023. On February 1, 2023, the Company entered into a Sales Agreement with certain investors to issue and sell through the sales agent shares of the Company’s common stock. The issuance and sale of shares of Common Stock to or through the sales agent will be effected pursuant to the Registration Statement dated February 2, 2023. The Company shall pay to the sales agent in cash, upon each sale of placement shares through the sales agent pursuant to the Sales Agreement, an amount equal to 3.00% of the aggregate gross proceeds from each sale of placement shares. In connection to the Sales Agreement, on February 17, 2023 and February 22, 2023, the Company sold 6,184 shares at $3.76 per share for gross proceeds of approxi mately $23,000. Total stock issuance costs, which consist primarily of legal, accounting and underwriting fees in connection with the above stated transactions was approximately $174,000, which as of June 30 2023, was fully recorded in additional paid in capital. WARRANTS On May 2, 2023 the Company issued 1,666,666 placement agent warrants to purchase shares of Common Stock sold in the offering, with an exercise price of $1.875 per share and are exercisable for five years from the date of issuance, after a 180 -day lockup period. During 2019, milestone warrants to purchase common stock were issued to certain executives totaling 407,272 warrants (“Penny Warrants”). These warrants were valued on the date of grant at $0.0003 and vest upon meeting certain milestones. These warrants expired unissued in February 2023. The following is a summary of warrant activity during the six months ended June 30, 2023: Number of Weighted Weighted Aggregate Outstanding - December 31, 2022 3,908,276 $ 5.42 3.47 $ 2,020 Issued 1,666,666 1.88 — — Exercised (11,638) 2.75 — — Expired (410,907) — — — Outstanding and Exercisable – June 30, 2023 5,152,397 $ 4.71 3.85 $ 892

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATIONIn 2015, the Company’s Board of Directors approved the HeartBeam, Inc. 2015 Equity Incentive Plan ("2015 Plan"), to attract and retain the best available personnel for positions of substantial responsibility, to provide additional incentive to employees, directors, and consultants, and to promote the success of the Company’s business. The 2015 Plan provides for the grant of stock options and RSU’s to purchase common stock of which 1,636,362 were authorized by the board of which 1,083,749 are outstanding. The 2015 Plan was terminated upon shareholder approval of the 2022 Equity Incentive Plan (“2022 Equity Plan”) whereby no new awards can be issued under the 2015 Plan. The Company’s shareholders approved the 2022 Equity Plan at the annual meeting of stockholders held on June 15, 2022, pursuant to which 1,900,000 shares of common stock were authorized for issuance. Under the 2022 Equity Plan, the number of shares available for issuance will be increased on the first day of each fiscal year beginning with the 2023 fiscal year, in an amount equal to the lesser of 3,800,000 shares, five percent (5%) of the total number of shares of all classes of common stock of the Company outstanding on the last day of the immediately preceding fiscal year, and a lesser number of shares determined by the administrator. On January 1, 2023 400,487 shares, equivalent to five percent (5%) of common stock outstanding were added to the shares available for issuance under the 2022 Equity Plan. The 2022 Equity Plan includes a provision to add-back any cancelled options from the 2015 Plan up to 1,372,816 shares. As of June 30, 2023, there are 160,689 shares from the 2015 Plan that are included in the 222,885 shares available for issuance under the 2022 Equity Plan. The Company received proceeds of $0.1 million from the exercise of stock options during the quarter ended June 30, 2023 and a de minimis amount during the quarter ended June 30, 2022. STOCK OPTIONS The following is a summary of stock option activity during the six months ended June 30, 2023: Number of Weighted Average Aggregate Outstanding – December 31, 2022 2,196,798 $ 1.76 8.7 $ 6,770 Options granted 1,115,800 2.62 — — Options exercised (88,026) 1.17 — — Options cancelled (195,834) 1.70 — — Outstanding – June 30, 2023 3,028,738 2.10 8.7 2,040 Exercisable – June 30, 2023 1,052,605 $ 1.64 7.6 $ 1,177 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, 2023 and 2022, 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, 2023 2022 Weighted-average Black-Scholes option pricing model assumptions: Volatility 110.23% - 111.73% 107.25% - 110.98% Expected term (in years) 5.71 - 6.07 5.73 - 5.80 Risk-free rate 3.54% - 3.80% 1.47% - 2.85% Expected dividend yield $ — $ — Weighted average grant date fair value per share $1.73 - $3.38 $1.08 - $1.75 RESTRICTED STOCK UNITS The following is a summary of RSU’s awards activity: Six months ended June 30, 2023 Numbers of Shares Weighted Average Grant Date Fair value Non-Vested at beginning of period 253,970 $ 1.47 Shares granted 5,000 2.24 Shares vested (12,500) 2.82 Non-vested 246,470 $ 1.44 STOCK BASED COMPENSATION The following is a summary of stock-based compensation expense: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 General and administrative Stock options 507,200 175,900 707,200 296,800 RSU’s 116,400 23,100 217,400 35,000 Total general and administrative 623,600 199,000 924,600 331,800 R&D Stock options 78,800 64,800 170,800 90,900 Total $ 702,400 $ 263,800 $ 1,095,400 $ 422,700 As of June 30, 2023, total compensation cost not yet recognized related to unvested stock options and unvested RSUs was approximately $3.5 million and $0.01 million, respectively, which is expected to be recognized over a weighted-average period of 2.23 years and 0.03 years, respectively.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2023
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONSDuring the course of business, the Company obtains accounting services from CTRLCFO, a firm in which an executive of the Company has significant influence. The Company incurred accounting fees from this firm of approximately $4,000 and $9,000 during the three and six months ended June 30, 2023, respectively and approximately $4,000 and $11,000 during the three and six months ended June 30, 2022, respectively. The Company had balances due to these firms amounting to approximately $1,100 and $2,000 as of June 30, 2023 and December 31, 2022, respectively.

COMMITMENTS

COMMITMENTS	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS	COMMITMENTS Lease Obligations On May 1, 2019, the Company entered into a month to month lease agreement for their headquarters. The agreement is for an undefined term and can be cancelled at any time, given one month’s notice by either party. The Company’s monthly rent expense associated with this agreement is approximately $1,440. The Company’s month to month headquarters lease is in the name of the Company’s Chief Executive Officer, and the cost is reimbursed monthly. For the three and six months ended June 30, 2023 and 2022, rent expense was approximately $4,000 and $8,000, respectively for each period. Professional Services Agreement In March 2022, the Company entered into a professional services agreement with Triple Ring Technologies, Inc (“TRT”) a co-development company, which was followed by several amendments. The Company currently has one open committed project for device cost reductions totaling $1.7 million. As of June 30, 2023 the Company has a remaining commitment of $0.8 million.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2023
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTSAt the July 7, 2023 Annual Shareholders’ Meeting, the proposal to amend the 2022 Equity Incentive Plan to increase the number of authorized shares from 1,900,000 shares to 5,900,000 shares was approved.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION
CASH AND CASH EEQUIVALENTS	CASH AND CASH EQUIVALENTS The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash deposits. The Company maintains its cash in institutions insured by the Federal Deposit Insurance Corporation and has cash balances in accounts which exceed the federally insured limits as of June 30, 2023 and December 31, 2022.
SHORT-TERM INVESTMENTS	SHORT-TERM INVESTMENTSShort-term investments consist of debt securities classified as held-to-maturity and have original maturities greater than 90 days but, less than one year as of the balance sheet date. Held-to-maturity investments are recorded at the amortized cost basis until date of maturity and are carried at amortized cost net of allowance for credit losses, which approximates their fair value determined based on Level 2 inputs. As of June 30, 2023, the short-term investments have an amortized cost basis of $3,939,151.
USE OF ESTIMATES	USE OF ESTIMATES The preparation of financial statements in conformity with US GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be based on amounts that differ from those estimates.
NET LOSS PER COMMON SHARE	NET LOSS PER COMMON SHARE Basic net loss per share excludes the effect of dilution and is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including stock options and warrants to the extent dilutive. Basic net loss per share was the same as diluted net loss per share for the three and six months ended June 30, 2023 and 2022 as the inclusion of all potential common shares outstanding would have an anti-dilutive effect. In accordance with ASC 260-10-45-13, exercisable penny options are included in the calculation of weighted average basic and diluted earnings per share. As of June 30, 2023, 177,355 penny options have been included in the calculation of weighted average basic and diluted earnings per share.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following is a summary of awards outstanding as of June 30, 2023 and 2022, which are not included in the computation of basic and diluted weighted average shares: Three and Six months ended June 30, 2023 2022 Stock options (excluding exercisable penny stock options) 2,851,383 1,868,218 Restricted stock awards 246,470 22,500 Warrants 5,152,397 3,908,276 Total 8,250,250 5,798,994

STOCKHOLDERS_ EQUITY (Tables)

STOCKHOLDERS’ EQUITY (Tables)	6 Months Ended
	Jun. 30, 2023
Equity [Abstract]
Schedule of Stockholders' Equity Note, Warrants or Rights	The following is a summary of warrant activity during the six months ended June 30, 2023: Number of Weighted Weighted Aggregate Outstanding - December 31, 2022 3,908,276 $ 5.42 3.47 $ 2,020 Issued 1,666,666 1.88 — — Exercised (11,638) 2.75 — — Expired (410,907) — — — Outstanding and Exercisable – June 30, 2023 5,152,397 $ 4.71 3.85 $ 892

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Share-based Payment Arrangement, Option, Activity	The following is a summary of stock option activity during the six months ended June 30, 2023: Number of Weighted Average Aggregate Outstanding – December 31, 2022 2,196,798 $ 1.76 8.7 $ 6,770 Options granted 1,115,800 2.62 — — Options exercised (88,026) 1.17 — — Options cancelled (195,834) 1.70 — — Outstanding – June 30, 2023 3,028,738 2.10 8.7 2,040 Exercisable – June 30, 2023 1,052,605 $ 1.64 7.6 $ 1,177
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	For the six months ended June 30, 2023 and 2022, 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, 2023 2022 Weighted-average Black-Scholes option pricing model assumptions: Volatility 110.23% - 111.73% 107.25% - 110.98% Expected term (in years) 5.71 - 6.07 5.73 - 5.80 Risk-free rate 3.54% - 3.80% 1.47% - 2.85% Expected dividend yield $ — $ — Weighted average grant date fair value per share $1.73 - $3.38 $1.08 - $1.75
Schedule of Nonvested Restricted Stock Units Activity	The following is a summary of RSU’s awards activity: Six months ended June 30, 2023 Numbers of Shares Weighted Average Grant Date Fair value Non-Vested at beginning of period 253,970 $ 1.47 Shares granted 5,000 2.24 Shares vested (12,500) 2.82 Non-vested 246,470 $ 1.44
Share-based Payment Arrangement, Expensed and Capitalized, Amount	The following is a summary of stock-based compensation expense: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 General and administrative Stock options 507,200 175,900 707,200 296,800 RSU’s 116,400 23,100 217,400 35,000 Total general and administrative 623,600 199,000 924,600 331,800 R&D Stock options 78,800 64,800 170,800 90,900 Total $ 702,400 $ 263,800 $ 1,095,400 $ 422,700

ORGANIZATION AND OPERATIONS (De

ORGANIZATION AND OPERATIONS (Details)	6 Months Ended
	Jun. 30, 2023 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of operating segments	1

LIQUIDITY, GOING CONCERN AND _2

LIQUIDITY, GOING CONCERN AND OTHER UNCERTAINTIES (Details) $ in Millions	Jun. 30, 2023 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Cash, cash equivalents, and short term investments	$ 21.3

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Net Loss Per Common Share (Details) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Short-term investments	$ 3,939,151		$ 0
Exercisable penny options (in shares)	177,355
Antidilutive securities excluded from computation of earnings per share (in shares)	8,250,250	5,798,994
Stock options (excluding exercisable penny stock options)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	2,851,383	1,868,218
Restricted stock awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	246,470	22,500
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	5,152,397	3,908,276

STOCKHOLDERS_ EQUITY - Common S

STOCKHOLDERS’ EQUITY - Common Stock (Details) - USD ($)	May 02, 2023	Apr. 20, 2023	Mar. 09, 2023	Feb. 22, 2023	Jun. 30, 2023	Feb. 28, 2023	Feb. 01, 2023	Dec. 31, 2022	Dec. 31, 2019
Class of Stock [Line Items]
Number of shares of common stock called by warrants (in shares)	1,666,666
Exercise price of warrants (in dollars per share)	$ 1.875				$ 4.71			$ 5.42
Warrant lock-up period	180 days
Warrant exercisable term	5 years
Warrants outstanding (in shares)	1,666,666				5,152,397			3,908,276	407,272
Maverick Capital Partners, LLC | Convertible Debt [Member]
Class of Stock [Line Items]
Face amount						$ 500,000
Private Placement
Class of Stock [Line Items]
Shares issued in offering (in shares)	1,000,000	16,666,666
Shares issued in private placement, price per share (in dollars per share)	$ 1.50	$ 1.50
Proceeds from sale of stock	$ 1,100,000	$ 23,200,000
Private Placement | Maverick Capital Partners, LLC
Class of Stock [Line Items]
Shares issued in offering (in shares)			200,105
Proceeds from sale of stock			$ 500,000
Sale of stock, maximum amount authorized						$ 4,000,000
Sale of stock volume weighted average price per common share, percentage						75%
Private Placement | Certain Investors
Class of Stock [Line Items]
Shares issued in offering (in shares)				6,184
Shares issued in private placement, price per share (in dollars per share)				$ 3.76
Sale of stock, placement fee, percentage							3%
Gross consideration received on transaction				$ 23,000
Payments of stock issuance costs				$ 174,000

STOCKHOLDERS_ EQUITY - Warrants

STOCKHOLDERS’ EQUITY - Warrants (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2023	May 02, 2023	Dec. 31, 2022	Dec. 31, 2019
Equity [Abstract]
Warrants outstanding (in shares)	5,152,397	1,666,666	3,908,276	407,272
Grant date fair value per share, warrants (in dollars per share)				$ 0.0003
Warrants exercised (in shares)	11,638
Cashless warrants exercised (in shares)	5,817
Number of warrants utilized in cashless exercise (in shares)	4,347
Stock issuance upon exercise of warrants (in shares)	1,471
Number of warrants exercised for cash (in shares)	5,821
Payments for repurchase of warrants	$ 16

STOCKHOLDERS_ EQUITY - Warran_2

STOCKHOLDERS’ EQUITY - Warrants Outstanding (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Number of shares
Warrants outstanding, beginning balance (in shares)	3,908,276
Issued (in shares)	1,666,666
Exercised (in shares)	(11,638)
Expired (in shares)	(410,907)
Warrants outstanding, ending balance (in shares)	5,152,397	3,908,276
Warrants exercisable (in shares)	5,152,397
Weighted average exercise price
Outstanding, beginning balance (in dollars per share)	$ 5.42
Issued (in dollars per share)	1.88
Exercised (in dollars per share)	2.75
Expired (in dollars per share)	0
Outstanding, ending balance (in dollars per share)	4.71	$ 5.42
Weighted average exercise price of warrants, exercisable (in dollars per share)	$ 4.71
Weighted average remaining life (years)
Outstanding at end of period	3 years 10 months 6 days	3 years 5 months 19 days
Weighted average remaining life, exercisable	3 years 10 months 6 days
Aggregate intrinsic value (in thousands)
Outstanding at end of period	$ 892	$ 2,020
Aggregate intrinsic value, exercisable	$ 892

STOCK-BASED COMPENSATION - Equi

STOCK-BASED COMPENSATION - Equity Incentive Plan (Details) - USD ($) $ in Thousands			3 Months Ended	6 Months Ended
	Jan. 01, 2023	Jun. 15, 2022	Jun. 30, 2023	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from exercise of stock options			$ 100	$ 103	$ 2
2015 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for issuance (in shares)			160,689	160,689
Number of additional shares authorized for issuance (in shares)		1,372,816
2015 Equity Incentive Plan | Share-Based Payment Arrangement, Option And Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for issuance (in shares)						1,636,362
Number of shares outstanding (in shares)			1,083,749	1,083,749
2022 Equity Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for issuance (in shares)		1,900,000	222,885	222,885
Number of annual increase of shares authorized (in shares)		3,800,000
Percentage of total number of outstanding shares of all classes of common stock	5%
Number of additional shares authorized for issuance (in shares)	400,487

STOCK-BASED COMPENSATION - Stoc

STOCK-BASED COMPENSATION - Stock Options Activity (Details) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares
Number of options outstanding
Beginning balance (in shares) | shares	2,196,798
Options granted (in shares) | shares	1,115,800
Options exercised (in shares) | shares	(88,026)
Options Cancelled (in shares) | shares	(195,834)
Ending balance (in shares) | shares	3,028,738	2,196,798
Weighted average exercise price
Beginning balance (in dollars per share) | $ / shares	$ 1.76
Options granted (in dollars per share) | $ / shares	2.62
Options exercised (in dollars per share) | $ / shares	1.17
Options Cancelled (in dollars per share) | $ / shares	1.70
Ending balance (in dollars per share) | $ / shares	$ 2.10	$ 1.76
Stock Options Additional Disclosures
Average remaining contractual life	8 years 8 months 12 days	8 years 8 months 12 days
Aggregate intrinsic value, outstanding | $	$ 2,040	$ 6,770
Exercisable (in shares) | shares	1,052,605
Exercisable, Weighted average exercise price (in dollars per share) | $ / shares	$ 1.64
Exercisable, Average remaining contractual life	7 years 7 months 6 days
Exercisable, Aggregate intrinsic value | $	$ 1,177

STOCK-BASED COMPENSATION - Assu

STOCK-BASED COMPENSATION - Assumptions (Details) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Volatility	110.23%	107.25%
Expected term (in years)	5 years 8 months 15 days	5 years 8 months 23 days
Risk-free rate	3.54%	1.47%
Weighted average grant date fair value per share (in dollars per share)	$ 1.73	$ 1.08
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Volatility	111.73%	110.98%
Expected term (in years)	6 years 25 days	5 years 9 months 18 days
Risk-free rate	3.80%	2.85%
Weighted average grant date fair value per share (in dollars per share)	$ 3.38	$ 1.75
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend yield	$ 0	$ 0

STOCK-BASED COMPENSATION - Rest

STOCK-BASED COMPENSATION - Restricted Stock Units (Details)	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Weighted Average Grant Date Fair value
Shares granted (in dollars per share) | $ / shares	$ 2.24
RSU’s
Numbers of Shares
Non-vested, beginning balance (in shares) | shares	253,970
Shares granted (in shares) | shares	5,000
Shares vested (in shares) | shares	(12,500)
Non-vested, ending balance (in shares) | shares	246,470
Weighted Average Grant Date Fair value
Non-Vested at beginning of period (in dollars per share) | $ / shares	$ 1.47
Shares vested (in dollars per share) | $ / shares	2.82
Non-vested, ending balance (in dollars per share) | $ / shares	$ 1.44

STOCK-BASED COMPENSATION - St_2

STOCK-BASED COMPENSATION - Stock-Based Compensation (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 702,400	$ 263,800	$ 1,095,400	$ 422,700
Cost not yet recognized, options, amount	3,500,000		3,500,000
Cost not yet recognized, excluding options, amount	10,000		$ 10,000
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cost not yet recognized, period of recognition			2 years 2 months 23 days
RSU’s
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cost not yet recognized, period of recognition			10 days
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	623,600	199,000	$ 924,600	331,800
General and administrative | Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	507,200	175,900	707,200	296,800
General and administrative | RSU’s
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	116,400	23,100	217,400	35,000
R&D | Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 78,800	$ 64,800	$ 170,800	$ 90,900

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Related Party Transaction [Line Items]
Investments from related parties	$ 4,000	$ 4,000	$ 9,000	$ 11,000
Related party accounts payable and accrued expenses	570,000		570,000		$ 1,665,000
Related Party
Related Party Transaction [Line Items]
Related party accounts payable and accrued expenses	$ 1,100		$ 1,100		$ 2,000

COMMITMENTS (Details)

COMMITMENTS (Details) - USD ($)		3 Months Ended		6 Months Ended
	May 01, 2019	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Long-term Purchase Commitment [Line Items]
Operating lease, prior notice for cancellation	1 month
Monthly rent expense	$ 1,440
Rent expense		$ 4,000	$ 8,000	$ 4,000	$ 8,000
Committed project for device cost reductions		1,700,000
Remaining commitment		$ 800,000		$ 800,000

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - 2022 Equity Plan - shares	Jul. 07, 2023	Jun. 30, 2023	Jun. 15, 2022
Subsequent Event [Line Items]
Number of shares authorized for issuance (in shares)		222,885	1,900,000
Subsequent Event
Subsequent Event [Line Items]
Number of shares authorized for issuance (in shares)	5,900,000