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, 2024:


	Number of Options
Outstanding at January 1, 2024		14,271,587
Granted (1)		4,461,083
Exercised		(70,670	)
Forfeited / Cancelled / Expired		(181,006	)
Outstanding at March 31, 2024		18,480,994

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(1)

Includes employee new hire grants of stock options to purchase 91,100 shares of the Company's Class A common stock. Also includes annual employee grants of stock options and special employee grants of stock options to purchase 1,934,983 shares of the Company's Class A common stock, and grants to executive officers of stock options to purchase 2,435,000 shares of the Company's Class A common stock. The grants will vest 25% on the first anniversary date of the grant with the remainder vesting equally over the remaining 36 months, subject to the employee’s continued service to the Company through the applicable vesting dates.

In general, employee awards will vest based on continued service which is generally over four years. Nonemployee director awards generally will vest in one year based on continued service on the date of the next regular annual stockholders meeting. 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, 2024:


	Number of RSUs
Outstanding at January 1, 2024		369,026
Granted		—
Vested		(41,036	)
Forfeited		(13,747	)
Outstanding at March 31, 2024		314,243

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,
	2024		2023
Cost of sales	$	24	$	23
Research and development		337		206
Sales and marketing		39		38
General and administrative		632		859
	$	1,032	$	1,126