The Hyperfine 2021 Equity Incentive Plan (the “Hyperfine Plan”) is administered by the Company's board of directors. The board of directors 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 and six months ended June 30, 2022:


	Number of Options
Outstanding at January 1, 2022		7,522,136
Granted		4,231,693
Exercised		—
Forfeited		(271,368	)
Outstanding at March 31, 2022		11,482,461
Granted		699,170
Exercised		(16,375	)
Forfeited		(383,090	)
Outstanding at June 30, 2022		11,782,166

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 restricted stock units for the three and six months ended June 30, 2022:


	Number of RSUs
Outstanding at January 1, 2022		117,516
Granted		1,660,535
Vested		—
Forfeited		—
Outstanding at March 31, 2022		1,778,051
Granted		742,900
Vested		(19,220	)
Forfeited		(115,084	)
Outstanding at June 30, 2022		2,386,647

Included in the table above are service-based restricted stock units. During the three and six months ended June 30, 2022, the Company granted 0.7 million and 2.4 million service-based awards, respectively, of which 0.6 million related to awards associated with the Company’s CEO RSUs awarded on April 26, 2022. Each award will vest based on continued service, which is generally over 3-4 years except for the CEO RSUs awarded on April 26, 2022, which do not include a service condition. The grant date fair value of the award will be recognized as stock-based compensation expense over the requisite service period. The fair value of restricted stock units was estimated on the date of grant based on the fair value of the Company’s Class A common stock.

On June 27, 2022, Dave Scott delivered his resignation as the Company’s President, Chief Executive Officer and member of the Board of Directors, effective as July 29, 2022. Pursuant to the terms of the Restricted Stock Unit Award Grant Notice and Agreement dated April 26, 2022 with Mr. Scott under the Hyperfine Plan, the 649,350 RSUs awarded on April 26, 2022 will continue to remain outstanding until paid in accordance with the schedule set forth in the grant notice. All other equity awards held by Mr. Scott will cease to vest as of the resignation date of July 29, 2022, all unvested RSUs and unvested options were immediately forfeited in accordance with the Hyperfine Plan and the applicable award agreement, and any vested options may be exercised in accordance with the Hyperfine Plan and the applicable award agreement.

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


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Cost of sales	$	35	$	—	$	51	$	—
Research and development		731		413		1,512		622
Sales and marketing		116		31		212		37
General and administrative		6,220		1,045		9,438		1,097
	$	7,102	$	1,489	$	11,213	$	1,756