EQUITY INCENTIVE PLAN (Tables)
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12 Months Ended |
Dec. 31, 2022 |
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| Share-Based Payment Arrangement [Abstract] |
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| Summary of Stock Option Activity |
A summary of the stock option activity under the Hyperfine Plan is presented in the table below:
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Number of Options |
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Weighted Average Exercise Price |
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Weighted Average Remaining Contractual Term |
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Aggregate Intrinsic Value |
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Outstanding at January 1, 2021 |
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1,903,479 |
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$ |
0.87 |
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|
7.07 |
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$ |
2,073 |
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Granted |
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6,771,237 |
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3.37 |
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Exercised |
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(565,533 |
) |
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|
2.65 |
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Forfeited |
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(587,047 |
) |
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3.86 |
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Outstanding at December 31, 2021 |
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7,522,136 |
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$ |
3.21 |
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8.79 |
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$ |
30,052 |
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Granted |
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8,685,663 |
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2.43 |
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Exercised |
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(25,870 |
) |
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0.26 |
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Forfeited / Expired |
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(5,462,365 |
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3.03 |
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Outstanding at December 31, 2022 |
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10,719,564 |
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$ |
1.34 |
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Options exercisable at December 31, 2022 |
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3,442,085 |
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$ |
1.97 |
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8.71 |
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$ |
124 |
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Vested and expected to vest at December 31, 2022 |
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10,719,564 |
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$ |
1.34 |
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|
8.75 |
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$ |
157 |
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| Assumptions Used to Value Option Grants to Employees and Nonemployees |
The assumptions used to value option grants to employees and nonemployees for the years ended December 31, 2022 and 2021 were as follows:
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2022 |
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2021 |
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Risk Free interest rate |
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0.91% - 4.18% |
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0.95% - 1.13% |
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Expected dividend yield |
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0% |
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0% |
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Expected term (1) |
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0.51 years - 7.50 years |
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5.40 years - 6.17 years |
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Expected volatility |
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49% - 56% |
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70% |
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_________________________ (1) Expected term of 0.51 years related to certain employee award granted and forfeited within approximately six months.
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| Summary of Stock Options Granted |
The stock options granted to the Company's employees and nonemployees for the periods presented were as follows:
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2022 |
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2021 |
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Stock options granted to employee |
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7,901,501 |
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3,534,844 |
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Stock options granted to nonemployee |
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784,162 |
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3,236,393 |
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Total stock options granted |
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8,685,663 |
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6,771,237 |
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| Summary of Restricted Stock Unit Activity |
The following table summarizes the changes in the Company’s outstanding restricted stock units (“RSUs”) for the year ended December 31, 2022:
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Number of
RSUs |
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Outstanding at January 1, 2021 |
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— |
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Granted |
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117,516 |
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Released |
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— |
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Forfeited |
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— |
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Outstanding at December 31, 2021 |
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117,516 |
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Granted |
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2,493,335 |
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Released |
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(319,557 |
) |
Forfeited |
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(694,514 |
) |
Expired |
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(11,421 |
) |
Outstanding at December 31, 2022 |
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1,585,359 |
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| Key Assumptions Used in Valuation for Earn-Out Shares |
The key assumptions used in the valuation were as follows:
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2021 |
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Stock Price |
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10.92 |
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Risk Free interest rate |
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|
0.96 |
% |
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Expected dividend yield |
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|
0.0 |
% |
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Term (years) |
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3 |
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Expected volatility |
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54.5 |
% |
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| Summary of Stock-Based Compensation Expense |
The Company’s stock-based compensation expense for the periods presented was as follows:
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2022 |
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2021 |
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Cost of sales |
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|
115 |
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24 |
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Research and development |
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2,141 |
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|
1,327 |
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General and administrative |
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8,064 |
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5,482 |
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Sales and marketing |
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332 |
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68 |
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Total stock-based compensation expense |
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$ |
10,652 |
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$ |
6,901 |
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