The Company's 2021 Equity Incentive Plan (the “Hyperfine Plan”) is administered by the Company's board of directors and its compensation committee, which may grant restricted stock units (“RSUs”) and options to purchase shares either as incentive stock options or non-qualified stock options, and other stock-based awards. The option grants are subject to certain terms and conditions, option periods and conditions, exercise rights and privileges as set forth in the Hyperfine Plan.

The following table summarizes the changes in the Company’s outstanding stock options for the three months ended March 31, 2023:


	Number of Options
Outstanding at January 1, 2023		10,719,564
Granted(1)		3,077,411
Exercised		(54,211	)
Forfeited		(444,776	)
Outstanding at March 31, 2023		13,297,988

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(1) Includes inducement stock options to purchase 1,000,000 shares of common stock granted to the Company’s Chief Administrative Officer and Chief Financial Officer outside of the Hyperfine Plan and in accordance with Nasdaq Listing Rule 5635(c)(4).

In general, each award will vest based on continued service which is generally over 4 years. The grant date fair value of the award will be recognized as stock-based compensation expense over the requisite service period. The grant date fair value was determined using similar methods and assumptions as those previously disclosed by the Company.

The following table summarizes the changes in the Company’s outstanding RSUs for the three months ended March 31, 2023:


	Number of RSUs
Outstanding at January 1, 2023		1,585,359
Granted		26,500
Vested		(324,296	)
Forfeited		(135,967	)
Outstanding at March 31, 2023		1,151,596

Included in the table above are service-based RSUs. During the three months ended March 31, 2023, the Company granted 26,500 service-based awards. The fair value of RSUs was estimated on the date of grant based on the fair value of the Company’s Class A common stock.

The following table presents details of stock-based compensation expenses by functional line item noted within the Company's operating expenses:


	Three Months Ended March 31,
	2023		2022
Cost of sales	$	23	$	16
Research and development		206		781
Sales and marketing		38		96
General and administrative		859		3,218
	$	1,126	$	4,111