{"url_path":"/sec/hypr/10-q/2026/item-1","section_key":"item-1","section_title":"Item 1 Financial Statements","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-12","source_url":"https://www.sec.gov/Archives/edgar/data/1833769/0001193125-26-219428-index.html","accession_number":"0001193125-26-219428","cik":"0001833769","ticker":"HYPR","issuer_name":"Hyperfine, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1833769/0001193125-26-219428-index.html","primary_entity_key":"0001833769","primary_entity_name":"Hyperfine, Inc."},"word_count":9508,"has_tables":true,"body_markdown":"## Item 1. Financial Statements\n\nHYPERFINE, INC. AND SUBSIDIARIES\n\nCONDENSED CONSOLIDATED BALANCE SHEETS\n\n(Unaudited)\n\n(in thousands, except share and per share amounts)\n\n \n\n \n\nMarch 31,\n2026\n\n \n\n \n\nDecember 31,\n2025\n\n \n\nASSETS\n\n \n\n \n\n \n\n \n\n \n\n \n\nCURRENT ASSETS:\n\n \n\n \n\n \n\n \n\n \n\n \n\nCash and cash equivalents\n\n \n\n$\n\n40,778\n\n \n\n \n\n$\n\n35,085\n\n \n\nRestricted cash\n\n \n\n \n\n500\n\n \n\n \n\n \n\n957\n\n \n\nAccounts receivable, less allowance of $534 and $1,372 as of March 31, 2026 and December 31, 2025, respectively\n\n \n\n \n\n3,791\n\n \n\n \n\n \n\n5,254\n\n \n\nUnbilled receivables\n\n \n\n \n\n2,006\n\n \n\n \n\n \n\n1,268\n\n \n\nInventories\n\n \n\n \n\n6,327\n\n \n\n \n\n \n\n7,090\n\n \n\nPrepaid expenses and other current assets\n\n \n\n \n\n2,631\n\n \n\n \n\n \n\n1,255\n\n \n\nTotal current assets\n\n \n\n \n\n56,033\n\n \n\n \n\n \n\n50,909\n\n \n\nProperty and equipment, net\n\n \n\n \n\n2,503\n\n \n\n \n\n \n\n2,549\n\n \n\nOther long term assets\n\n \n\n \n\n1,803\n\n \n\n \n\n \n\n1,804\n\n \n\nTotal assets\n\n \n\n$\n\n60,339\n\n \n\n \n\n$\n\n55,262\n\n \n\nLIABILITIES AND STOCKHOLDERS’ EQUITY\n\n \n\n \n\n \n\n \n\n \n\n \n\nCURRENT LIABILITIES:\n\n \n\n \n\n \n\n \n\n \n\n \n\nAccounts payable\n\n \n\n$\n\n4,552\n\n \n\n \n\n$\n\n4,051\n\n \n\nDeferred grant funding\n\n \n\n \n\n500\n\n \n\n \n\n \n\n957\n\n \n\nDeferred revenue\n\n \n\n \n\n1,578\n\n \n\n \n\n \n\n1,544\n\n \n\nDue to related parties\n\n \n\n \n\n56\n\n \n\n \n\n \n\n50\n\n \n\nAccrued expenses and other current liabilities\n\n \n\n \n\n3,468\n\n \n\n \n\n \n\n5,130\n\n \n\nTotal current liabilities\n\n \n\n \n\n10,154\n\n \n\n \n\n \n\n11,732\n\n \n\nLong-term debt, net\n\n \n\n \n\n13,123\n\n \n\n \n\n \n\n—\n\n \n\nWarrant liabilities\n\n \n\n \n\n1,971\n\n \n\n \n\n \n\n1,730\n\n \n\nLong term deferred revenue\n\n \n\n \n\n713\n\n \n\n \n\n \n\n729\n\n \n\nOther noncurrent liabilities\n\n \n\n \n\n17\n\n \n\n \n\n \n\n66\n\n \n\nTotal liabilities\n\n \n\n \n\n25,978\n\n \n\n \n\n \n\n14,257\n\n \n\nCOMMITMENTS AND CONTINGENCIES (NOTE 14)\n\n \n\n \n\n \n\n \n\n \n\n \n\nSTOCKHOLDERS' EQUITY\n\n \n\n \n\n \n\n \n\n \n\n \n\nClass A Common stock, $0.0001 par value per share; 600,000,000 shares authorized; 83,464,909 and 82,166,458 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively\n\n \n\n \n\n8\n\n \n\n \n\n \n\n8\n\n \n\nClass B Common stock, $0.0001 par value per share; 27,000,000 shares authorized; 15,055,288 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively\n\n \n\n \n\n2\n\n \n\n \n\n \n\n2\n\n \n\nAdditional paid-in capital\n\n \n\n \n\n372,990\n\n \n\n \n\n \n\n371,011\n\n \n\nAccumulated deficit\n\n \n\n \n\n(338,639\n\n)\n\n \n\n \n\n(330,016\n\n)\n\nTotal stockholders' equity\n\n \n\n \n\n34,361\n\n \n\n \n\n \n\n41,005\n\n \n\nTOTAL LIABILITIES AND STOCKHOLDERS' EQUITY\n\n \n\n$\n\n60,339\n\n \n\n \n\n$\n\n55,262\n\n \n\nThe accompanying notes are an integral part of these condensed consolidated financial statements.\n\n \n\n##  \n\n5\n\n \n\nHYPERFINE, INC. AND SUBSIDIARIES\n\nCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited)\n\n(in thousands, except share and per share amounts)\n\n \n\n \n\nThree Months Ended\nMarch 31,\n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\nSales\n\n \n\n \n\n \n\n \n\n \n\n \n\nDevice\n\n \n\n$\n\n3,257\n\n \n\n \n\n$\n\n1,522\n\n \n\nService\n\n \n\n \n\n646\n\n \n\n \n\n \n\n615\n\n \n\nTotal sales\n\n \n\n$\n\n3,903\n\n \n\n \n\n$\n\n2,137\n\n \n\nCost of sales\n\n \n\n \n\n \n\n \n\n \n\n \n\nDevice\n\n \n\n$\n\n1,646\n\n \n\n \n\n$\n\n985\n\n \n\nService\n\n \n\n \n\n278\n\n \n\n \n\n \n\n269\n\n \n\nTotal cost of sales\n\n \n\n$\n\n1,924\n\n \n\n \n\n$\n\n1,254\n\n \n\nGross profit\n\n \n\n \n\n1,979\n\n \n\n \n\n \n\n883\n\n \n\nOperating Expenses:\n\n \n\n \n\n \n\n \n\n \n\n \n\nResearch and development\n\n \n\n$\n\n3,845\n\n \n\n \n\n$\n\n5,037\n\n \n\nGeneral and administrative\n\n \n\n \n\n4,130\n\n \n\n \n\n \n\n4,208\n\n \n\nSales and marketing\n\n \n\n \n\n2,562\n\n \n\n \n\n \n\n2,540\n\n \n\nTotal operating expenses\n\n \n\n$\n\n10,537\n\n \n\n \n\n$\n\n11,785\n\n \n\nLoss from operations\n\n \n\n$\n\n(8,558\n\n)\n\n \n\n$\n\n(10,902\n\n)\n\nInterest income\n\n \n\n$\n\n254\n\n \n\n \n\n$\n\n317\n\n \n\nInterest expense\n\n \n\n \n\n(83\n\n)\n\n \n\n \n\n—\n\n \n\nChange in Fair Value of Warrant Liabilities\n\n \n\n \n\n(241\n\n)\n\n \n\n \n\n1,618\n\n \n\nOther income (expense), net\n\n \n\n \n\n5\n\n \n\n \n\n \n\n(451\n\n)\n\nLoss before provision for income taxes\n\n \n\n$\n\n(8,623\n\n)\n\n \n\n$\n\n(9,418\n\n)\n\nProvision for income taxes\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nNet loss and comprehensive loss\n\n \n\n$\n\n(8,623\n\n)\n\n \n\n$\n\n(9,418\n\n)\n\nNet loss per common share attributable to common stockholders, basic and diluted\n\n \n\n$\n\n(0.09\n\n)\n\n \n\n$\n\n(0.12\n\n)\n\nWeighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted\n\n \n\n \n\n97,695,133\n\n \n\n \n\n \n\n75,697,199\n\n \n\n \n\nThe accompanying notes are an integral part of these condensed consolidated financial statements.\n\n6\n\n \n\nHYPERFINE, INC. AND SUBSIDIARIES\n\nCONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Unaudited)\n\n(in thousands, except share amounts)\n\n \n\n \n\n \n\nClass A Common Stock\n\n \n\n \n\nClass B Common Stock\n\n \n\n \n\nAdditional\n\n \n\n \n\nAccumulated\n\n \n\n \n\nTotal\nStockholders'\n\n \n\n \n\n \n\nShares\n\n \n\n \n\nAmount\n\n \n\n \n\nShares\n\n \n\n \n\nAmount\n\n \n\n \n\nPaid-in Capital\n\n \n\n \n\nDeficit\n\n \n\n \n\nEquity\n\n \n\nBalance, December 31, 2025\n\n \n\n \n\n82,166,458\n\n \n\n \n\n$\n\n8\n\n \n\n \n\n \n\n15,055,288\n\n \n\n \n\n$\n\n2\n\n \n\n \n\n$\n\n371,011\n\n \n\n \n\n$\n\n(330,016\n\n)\n\n \n\n$\n\n41,005\n\n \n\nNet loss\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(8,623\n\n)\n\n \n\n \n\n(8,623\n\n)\n\nIssuance of Class A common stock upon release of restricted stock units\n\n \n\n \n\n575,651\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nIssuance of Class A common stock upon exercise of stock options\n\n \n\n \n\n44,788\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n34\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n34\n\n \n\nIssuance of Class A common stock under “at-the-market” (ATM) Sales Agreement, net\n\n \n\n \n\n678,012\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n803\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n803\n\n \n\nIssuance of warrants in connection with Loan Agreement, net\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n495\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n495\n\n \n\nStock-based compensation expense\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n647\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n647\n\n \n\nBalance, March 31, 2026\n\n \n\n \n\n83,464,909\n\n \n\n \n\n$\n\n8\n\n \n\n \n\n \n\n15,055,288\n\n \n\n \n\n$\n\n2\n\n \n\n \n\n$\n\n372,990\n\n \n\n \n\n$\n\n(338,639\n\n)\n\n \n\n$\n\n34,361\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nClass A Common Stock\n\n \n\n \n\nClass B Common Stock\n\n \n\n \n\nAdditional\n\n \n\n \n\nAccumulated\n\n \n\n \n\nTotal\nStockholders'\n\n \n\n \n\n \n\nShares\n\n \n\n \n\nAmount\n\n \n\n \n\nShares\n\n \n\n \n\nAmount\n\n \n\n \n\nPaid-in Capital\n\n \n\n \n\nDeficit\n\n \n\n \n\nEquity\n\n \n\nBalance, December 31, 2024\n\n \n\n \n\n58,076,261\n\n \n\n \n\n$\n\n5\n\n \n\n \n\n \n\n15,055,288\n\n \n\n \n\n$\n\n2\n\n \n\n \n\n$\n\n343,475\n\n \n\n \n\n$\n\n(294,442\n\n)\n\n \n\n$\n\n49,040\n\n \n\nNet loss\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(9,418\n\n)\n\n \n\n \n\n(9,418\n\n)\n\nIssuance of Class A common stock upon release of restricted stock units\n\n \n\n \n\n29,135\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nIssuance of Class A common stock upon exercise of stock options\n\n \n\n \n\n41,390\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n33\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n33\n\n \n\nIssuance of Class A common stock under “at-the-market” (ATM) Sales Agreement, net\n\n \n\n \n\n126,398\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n129\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n129\n\n \n\nIssuance of Class A common stock with warrants under February 2025 Offering, net\n\n \n\n \n\n4,511,278\n\n \n\n \n\n \n\n1\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n2,384\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n2,385\n\n \n\nIssuance of Class A common stock in connection with warrant exercise\n\n \n\n \n\n100\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nStock-based compensation expense\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n945\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n945\n\n \n\nBalance, March 31, 2025\n\n \n\n \n\n62,784,562\n\n \n\n \n\n$\n\n6\n\n \n\n \n\n \n\n15,055,288\n\n \n\n \n\n$\n\n2\n\n \n\n \n\n$\n\n346,966\n\n \n\n \n\n$\n\n(303,860\n\n)\n\n \n\n$\n\n43,114\n\n \n\n \n\nThe accompanying notes are an integral part of these condensed consolidated financial statements.\n\n7\n\n \n\nHYPERFINE, INC. AND SUBSIDIARIES\n\nCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS\n\n(Unaudited)\n\n(in thousands)\n\n \n\n \n\nThree Months Ended March 31,\n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\nCash flows from operating activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\nNet loss\n\n \n\n$\n\n(8,623\n\n)\n\n \n\n$\n\n(9,418\n\n)\n\nAdjustments to reconcile net loss to net cash used in operating activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\nDepreciation\n\n \n\n \n\n274\n\n \n\n \n\n \n\n229\n\n \n\nStock-based compensation expense\n\n \n\n \n\n647\n\n \n\n \n\n \n\n945\n\n \n\nLoss on disposal of property and equipment, net\n\n \n\n \n\n5\n\n \n\n \n\n \n\n—\n\n \n\nChange in fair value of warrant liabilities\n\n \n\n \n\n241\n\n \n\n \n\n \n\n(1,618\n\n)\n\nAmortization of debt discount and issuance costs\n\n \n\n \n\n17\n\n \n\n \n\n \n\n—\n\n \n\nOther\n\n \n\n \n\n6\n\n \n\n \n\n \n\n11\n\n \n\nChanges in assets and liabilities:\n\n \n\n \n\n \n\n \n\n \n\n \n\nAccounts receivable, net\n\n \n\n \n\n1,463\n\n \n\n \n\n \n\n626\n\n \n\nUnbilled receivables\n\n \n\n \n\n(738\n\n)\n\n \n\n \n\n412\n\n \n\nInventory\n\n \n\n \n\n763\n\n \n\n \n\n \n\n1,193\n\n \n\nPrepaid expenses and other current assets\n\n \n\n \n\n(1,401\n\n)\n\n \n\n \n\n(1,241\n\n)\n\nOther long term assets\n\n \n\n \n\n(69\n\n)\n\n \n\n \n\n128\n\n \n\nAccounts payable\n\n \n\n \n\n504\n\n \n\n \n\n \n\n600\n\n \n\nDeferred grant funding\n\n \n\n \n\n(457\n\n)\n\n \n\n \n\n413\n\n \n\nDeferred revenue\n\n \n\n \n\n18\n\n \n\n \n\n \n\n(80\n\n)\n\nDue to related parties\n\n \n\n \n\n6\n\n \n\n \n\n \n\n(7\n\n)\n\nAccrued expenses and other current liabilities\n\n \n\n \n\n(1,667\n\n)\n\n \n\n \n\n(1,435\n\n)\n\nOperating lease liabilities, net\n\n \n\n \n\n3\n\n \n\n \n\n \n\n(7\n\n)\n\nNet cash used in operating activities\n\n \n\n$\n\n(9,008\n\n)\n\n \n\n$\n\n(9,249\n\n)\n\nCash flows from investing activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\nPurchases of property and equipment\n\n \n\n \n\n(242\n\n)\n\n \n\n \n\n(472\n\n)\n\nNet cash used in investing activities\n\n \n\n$\n\n(242\n\n)\n\n \n\n$\n\n(472\n\n)\n\nCash flows from financing activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\nProceeds from issuance of debt, net\n\n \n\n$\n\n13,641\n\n \n\n \n\n$\n\n—\n\n \n\nProceeds from exercise of stock options\n\n \n\n \n\n42\n\n \n\n \n\n \n\n33\n\n \n\nProceeds from issuance of Class A common stock under “at-the-market” offering program, net\n\n \n\n \n\n803\n\n \n\n \n\n \n\n129\n\n \n\nProceeds from issuance of Class A common stock with warrants under February 2025 Offering, net\n\n \n\n \n\n—\n\n \n\n \n\n \n\n5,420\n\n \n\nNet cash provided by financing activities\n\n \n\n$\n\n14,486\n\n \n\n \n\n$\n\n5,582\n\n \n\nNet increase (decrease) in cash and cash equivalents and restricted cash\n\n \n\n \n\n5,236\n\n \n\n \n\n \n\n(4,139\n\n)\n\nCash, cash equivalents and restricted cash, beginning of period\n\n \n\n \n\n36,042\n\n \n\n \n\n \n\n37,673\n\n \n\nCash, cash equivalents and restricted cash, end of period\n\n \n\n$\n\n41,278\n\n \n\n \n\n$\n\n33,534\n\n \n\nReconciliation of cash, cash equivalents, and restricted cash reported in the balance sheets\n\n \n\n \n\n \n\n \n\n \n\n \n\nCash and cash equivalents\n\n \n\n$\n\n40,778\n\n \n\n \n\n$\n\n33,093\n\n \n\nRestricted cash\n\n \n\n \n\n500\n\n \n\n \n\n \n\n441\n\n \n\nTotal cash, cash equivalents and restricted cash\n\n \n\n$\n\n41,278\n\n \n\n \n\n$\n\n33,534\n\n \n\nSupplemental disclosure of noncash information:\n\n \n\n \n\n \n\n \n\n \n\n \n\nIssuance of warrants in connection with Loan Agreement, net\n\n \n\n$\n\n495\n\n \n\n \n\n$\n\n—\n\n \n\nInitial measurement of warrant liabilities\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n2,858\n\n \n\nUnpaid purchase of property and equipment\n\n \n\n$\n\n28\n\n \n\n \n\n$\n\n509\n\n \n\nUnpaid debt issuance and financing costs\n\n \n\n$\n\n15\n\n \n\n \n\n$\n\n238\n\n \n\nThe accompanying notes are an integral part of these condensed consolidated financial statements.\n\n8\n\nHYPERFINE, INC. AND SUBSIDIARIES\n\nNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(all amounts are in thousands, except share and per share amounts)\n\n \n\n1. ORGANIZATION AND DESCRIPTION OF BUSINESS\n\nHyperfine, Inc. (together with its subsidiaries, as applicable, “Hyperfine” or the “Company”), formerly known as HealthCor Catalio Acquisition Corp. (“HealthCor”), was incorporated as a Cayman Islands exempted company on November 18, 2020. The Company’s legal name became Hyperfine, Inc. in connection with the closing (the “Closing”) of the business combination with HealthCor on December 22, 2021 (the “Closing Date”). In connection with the Closing, Hyperfine, Inc., a Delaware corporation (“Legacy Hyperfine”), and Liminal Sciences, Inc., a Delaware corporation (“Liminal”), merged with and into separate wholly owned subsidiaries of HealthCor and became wholly-owned subsidiaries of the Company (the “Mergers”), and changed their names to Hyperfine Operations, Inc. and Liminal Operations, Inc., respectively. Liminal subsequently changed its name to Liminal Sciences, Inc.\n\nThe Company is an innovative health technology business with a mission to revolutionize patient care globally through accessible, affordable, clinically relevant artificial intelligence (“AI”)-powered portable ultra-low-field (“ULF”) magnetic resonance (“MR”) brain imaging. The Swoop® Portable MR Imaging® System (“Swoop® system”) produces high-quality images at a significantly lower magnetic field strength than conventional magnetic resonance imaging (“MRI”) scanners. The Swoop® system is designed to transform brain MR for the patient, the clinician and the provider, enabling a highly differentiated patient-friendly experience, timely imaging for clinicians, and favorable economics for healthcare administrators. The Swoop® system is a portable, ULF MRI device for producing images that display the internal structures of the head where full diagnostic examination is not clinically practical. When interpreted by a trained physician, these images provide information that can be useful in determining a diagnosis. Healthcare professionals can use the Swoop® system efficiently to make effective clinical diagnoses and decisions in various care settings where conventional MRI devices are inaccessible and/or when they are not readily available. The portable design of the Company's Swoop® system makes it safely and readily accessible anywhere in a hospital, clinic, physician’s office, or patient care site and it does not require any special facilities accommodations. The easy to use, iPad-based interface makes its operation easy to learn and it does not require specialized MRI technicians to operate safely. ULF MR does not expose patients to harmful ionizing radiation and compares favorably in this regard to X-ray computed tomography or positron emission tomography.\n\nThe Company’s Swoop® system received initial 510(k) clearance for brain imaging from the U.S. Food and Drug Administration (the “FDA”) in 2020. In May 2025, the Company received 510(k) clearance from the FDA of its tenth-generation AI-powered software, Optive AI™ software. The tenth-generation software enhances each stage of image processing from noise cancellation and image acquisition to reconstruction and post processing and produces brain images with greater clarity, uniformity and sharper anatomical detail.\n\nObtaining 510(k) clearance from the FDA in late May 2025 for its new next-generation Swoop® scanner powered by Optive AITM software was a very important milestone for the Company. The next-generation Swoop® system incorporates learnings from five years of real-world experience, features new hardware and is powered by Optive AITM software. The next-generation Swoop® system incorporates innovations specifically engineered to deliver the highest signal-to-noise ratio, which, when paired with the Optive AI™ software, achieves exceptional image quality at low-field MRI, including improved resolution and uniformity, as well as faster acquisition times.\n\nIn December 2025, the Company received FDA clearance for the eleventh-generation AI-powered software. The eleventh-generation software includes a new multi-direction DWI sequence to its Optive AITM software, and this software enhancement expands the Swoop® system’s clinical capabilities by improving image quality and diagnostic confidence for stroke detection, including clearer visualization of smaller lesions and more reliable differentiation of infarcts. The multi-direction DWI sequence uses multi-direction signal acquisition, similar to techniques used in high-field MRI, and is designed to reduce artifacts that may obscure stroke pathology, while the existing single-direction DWI sequence remains available for extremely time-sensitive imaging where rapid acquisition is critical to meeting stroke treatment protocols.\n\nOutside of the United States, the first-generation Swoop® system has received marketing authorization for brain imaging in several countries, including the European Union (“CE Mark”), the United Kingdom (UK Conformity Assessment (“UKCA Mark”)), Canada, Australia, New Zealand and India. In October 2024 and February 2025, the Company received CE Mark and UKCA Mark approval for the ninth-generation of software, respectively. In August 2025, the Company received both CE Mark and UKCA Mark approvals for the Optive AITM software. In March\n\n9\n\nHYPERFINE, INC. AND SUBSIDIARIES\n\nNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(all amounts are in thousands, except share and per share amounts)\n\n \n\n2026, the Company achieved an important milestone and received both CE Mark and UKCA Mark approval for both the next-generation Swoop® scanner and the latest advancement in its Optive AI™ software. In December 2025, the Company received regulatory approval in India from the Central Drugs Standard Control Organization, authorizing commercialization of the first-generation Swoop® system throughout India. The Company's Optive AITM software is currently available in the United States, Canada, United Kingdom, Australia, New Zealand and India markets.\n\nAll of the Company’s revenue to date has been generated from sales of the Swoop® system and related services. The Company has an indirect wholly-owned subsidiary in the United Kingdom that did not have any significant operations during the three months ended March 31, 2026.\n\n2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES\n\nBasis of Presentation and Principles of Consolidation\n\nThe accompanying condensed consolidated financial statements include the accounts of the Company and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the accounting disclosure rules and regulations of the Securities and Exchange Commission (the “SEC”) on a going concern basis, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. However, the Company has limited revenues and a history of negative working capital. The Company’s existing capital resources, including the net proceeds from the recent offerings described below are expected to be sufficient to fund the Company’s operations for at least twelve months from the issuance date of these condensed consolidated financial statements. Unless and until the Company is able to generate a sufficient amount of revenue and generate positive operating cash flows, the Company expects to finance future cash needs through public and/or private offerings of equity securities and/or debt financings. If the Company is not able to obtain additional financing and/or substantially increase revenue from sales, in the longer term, it could result in a substantial doubt about the Company's ability to continue as a going concern.\n\nManagement believes the net proceeds from the recent offering, described under Note 9 – “Debt” and Note 10 – “Stockholders’ Equity”, and the Company’s anticipated revenue, provide an opportunity to continue as a going concern. If additional funding is required, the Company plans to obtain working capital from either debt or equity financings from the sale of common stock, preferred stock, and/or convertible debentures. There can be no assurance that the Company will be able to obtain such working capital on acceptable terms or at all which could result in management concluding in the future that there is substantial doubt about the Company's ability to continue as a going concern.\n\nThe financial statements do not include any adjustments to the amount and classification of assets and liabilities that may be necessary should the Company not continue as a going concern.\n\nThese condensed consolidated financial statements should be read in conjunction with the financial statements and notes included in the Company’s audited consolidated financial statements as of and for the years ended December 31, 2025 and 2024. The condensed consolidated balance sheet as of December 31, 2025 included herein was derived from the audited consolidated financial statements as of that date.\n\nThe accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods. The results for the three months ended March 31, 2026 are not necessarily indicative of the results to be expected for the year ending December 31, 2026 or any other period.\n\nExcept for the adoption of Accounting Standard Update (“ASU”) 2025-05 as described under the “Recently issued accounting pronouncements adopted” as described in this Note 2, there have been no material changes to the Company’s significant accounting policies as described in the audited consolidated financial statements as of December 31, 2025 and 2024.\n\n10\n\nHYPERFINE, INC. AND SUBSIDIARIES\n\nNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(all amounts are in thousands, except share and per share amounts)\n\n \n\nRisks and Uncertainties\n\nThe Company is subject to risks and uncertainties caused by events with significant geopolitical and macroeconomic impacts, including, but not limited to, the conflicts in Ukraine and the Middle East, inflation, tariffs and actions taken to counter such impacts.\n\nThe Company relies on single source manufacturers and suppliers for the supply of its products, including a single exclusive manufacturer for its Swoop® system. Additionally, the Company purchases raw materials from this manufacturer. Disruption from these manufacturers or suppliers has and could have a negative impact on the Company’s business, financial position and results of operations in its condensed consolidated financial statements. The Company continues to critically review its liquidity and anticipated capital requirements in light of the significant uncertainty created by geopolitical and macroeconomic conditions.\n\nConcentrations of Credit Risk\n\nFinancial instruments that potentially subject the Company to concentration of credit risk consist principally of cash and cash equivalents. At March 31, 2026 and December 31, 2025, substantially all the Company’s cash and cash equivalents were invested in three financial institutions, respectively. The Company also maintains balances in various operating accounts above federally insured limits. The Company has not experienced any losses on such accounts and does not believe it is exposed to any significant credit risk on cash and cash equivalents.\n\nFor the three months ended March 31, 2026, there were three customers that each represented 10% or more of total net revenue and contributed $521, $508 and $461 of revenue, respectively. For the three months ended March 31, 2025, there were five customers that each represented 10% or more of total net revenue and contributed $407, $261, $259, $228 and $217 of revenue, respectively. During the three months ended March 31, 2026 and 2025, U.S. revenue accounted for 81.4% and 49.7% of total revenue, respectively, while outside of the U.S. revenue accounted for 18.6% and 50.3% of total revenue, respectively.\n\nAs of March 31, 2026, there were four customers that each accounted for more than 10% of the Company's total gross accounts receivable in the amount of $1,052, $579, $559 and $483, respectively. As of December 31, 2025, there were three customers that each accounted for more than 10% of the Company's total gross accounts receivable in the amount of $1,346, $1,041, and $922, respectively.\n\nUse of Estimates\n\nThe preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions about future events that affect the amounts reported in its condensed consolidated financial statements and accompanying notes. Future events and their effects cannot be determined with certainty. On an ongoing basis, management evaluates these estimates and assumptions. Significant estimates and assumptions included:\n\n•\nRevenue recognition, including determination of the timing and pattern of satisfaction of performance obligations, determination of the standalone selling price (“SSP”) of performance obligations;\n\n•\nAllowance for credit losses;\n\n•\nNet realizable value (the estimated selling price less estimated costs of disposal and transportation) of inventory, and demand and future use of inventory;\n\n•\nAssumptions underlying the fair value used in the calculation of stock-based compensation expense; and\n\n•\nValuation of warrants and other equity instruments, including assumptions used to estimate fair value at issuance.\n\n11\n\nHYPERFINE, INC. AND SUBSIDIARIES\n\nNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(all amounts are in thousands, except share and per share amounts)\n\n \n\nThe Company bases these estimates on historical and anticipated results and trends and on various other assumptions that the Company believes are reasonable under the circumstances, including assumptions as to future events. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates, and any such differences may be material to the Company’s condensed consolidated financial statements.\n\nRecently Issued Accounting Pronouncements Adopted\n\nIn July 2025, the Financial Accounting Standards Board (“FASB”) issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”), which provides a practical expedient and an accounting policy election related to the estimation of expected credit losses for current accounts receivable and current contract assets. The Company adopted this ASU on a prospective basis effective January 1, 2026 and elected the practical expedient, which permits the Company to assume that current economic conditions as of the balance sheet date will remain unchanged for the remaining life of current accounts receivable and current contract assets when estimating expected credit losses. The adoption did not have a material impact on its condensed consolidated financial statements and related disclosures.\n\nRecently Issued Accounting Pronouncements Not Yet Adopted\n\nIn December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270) Narrow—Scope Improvements, which is intended to improve the navigability of the guidance in Accounting Standards Codification (“ASC”) 270, Interim Reporting, and clarify when it applies. Under the amendments, an entity is subject to ASC 270 if it provides interim financial statements and notes in accordance with GAAP. ASU 2025-11 also addresses the form and content of such financial statements, interim disclosures requirements, and establishes a principle under which an entity must disclose events since the end of the last annual reporting period that have a material impact on the entity. ASU 2025-11 is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The Company does not expect the adoption of this ASU to have a material impact on its financial statements.\n\nIn September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other-Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (“ASU 2025-06”). ASU 2025-06 amends the existing standard to remove all references to prescriptive and sequential software development project stages. Under this guidance, eligible software development costs will begin capitalization when (i) management has authorized and committed to funding the software project and (ii) it is probable that the project will be completed and the software will be used to perform the function intended. In evaluating whether it is probable the project will be completed, management is required to consider whether there is significant uncertainty associated with the development activities of the software. This guidance is effective for fiscal years beginning after December 15, 2027, and for interim periods beginning after December 15, 2027, with early adoption permitted. ASU 2025-06 may be applied on a prospective basis, a modified basis for in-process projects, or a retrospective basis. The Company is currently in the process of evaluating the impact of this pronouncement on its condensed consolidated financial statements and related disclosures.\n\nIn November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”), which requires public entities to disclose additional information about specific expense categories in the notes to the financial statements on an interim and annual basis. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and for interim periods beginning after December 15, 2026, with early adoption permitted. The Company is currently in the process of evaluating the impact of this pronouncement on its condensed consolidated financial statements and related disclosures.\n\n \n\n12\n\nHYPERFINE, INC. AND SUBSIDIARIES\n\nNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(all amounts are in thousands, except share and per share amounts)\n\n \n\n3. REVENUE RECOGNITION\n\nDisaggregation of Revenue\n\nThe Company disaggregates revenue from contracts with customers by product type. The Company believes that these categories best represent the payor types by nature, amount, timing and uncertainty of its revenue streams. The following table summarizes the Company’s disaggregated revenues:\n\n \n\n \n\n \n\n \n\nThree Months Ended\nMarch 31,\n\n \n\n \n\n \n\nPattern of Recognition\n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\nDevice\n\n \n\nPoint in time\n\n \n\n$\n\n3,257\n\n \n\n \n\n$\n\n1,522\n\n \n\nService\n\n \n\nOver time\n\n \n\n \n\n646\n\n \n\n \n\n \n\n615\n\n \n\nTotal revenue\n\n \n\n \n\n \n\n$\n\n3,903\n\n \n\n \n\n$\n\n2,137\n\n \n\nContract Balances\n\nContract balances represent amounts presented in the condensed consolidated balance sheets when either the Company has transferred goods or services to the customer, or the customer has paid consideration to the Company under the contract. These contract balances include trade accounts receivable, unbilled receivable and deferred revenue. Deferred revenue represents consideration received from customers at the beginning of the service and support period for services that are transferred to the customer over the respective service and support period. The accounts receivable balances represent amounts billed to customers for goods and services where the Company has an unconditional right to payment of the amount billed. Unbilled receivables arise when performance obligations are satisfied for which revenue has been recognized but the customers have not been billed.\n\nThe following table provides information about receivables and deferred revenue from contracts with customers:\n\n \n\n \n\nMarch 31,\n2026\n\n \n\n \n\nDecember 31,\n2025\n\n \n\nAccounts receivable, net\n\n \n\n$\n\n3,791\n\n \n\n \n\n$\n\n5,254\n\n \n\nUnbilled receivables - current\n\n \n\n \n\n2,006\n\n \n\n \n\n \n\n1,268\n\n \n\nUnbilled receivables - non-current(1)\n\n \n\n \n\n856\n\n \n\n \n\n \n\n734\n\n \n\nDeferred revenue\n\n \n\n \n\n1,578\n\n \n\n \n\n \n\n1,544\n\n \n\nLong term deferred revenue\n\n \n\n \n\n713\n\n \n\n \n\n \n\n729\n\n \n\n______________________\n\n(1) Recorded in other long term assets in the Company’s consolidated balance sheets. Unbilled receivables - non-current is based on the billing schedules for future billings beyond one year.\n\nThe Company recognizes a receivable when it has an unconditional right to payment, and payment terms range from 30 days to less than one year based on the terms agreed upon with the respective customer.\n\nAccounts Receivable, Unbilled Services, and Deferred Revenue\n\nAccounts receivable are recorded at net realizable value. The Company maintains an allowance for credit losses to reflect expected credit losses on current accounts receivable and current contract assets. In connection with the adoption of ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, effective January 1, 2026, the Company elected the practical expedient that permits it to assume that current economic conditions as of the balance sheet date will remain unchanged for the remaining life of current accounts receivable and current contract assets when estimating expected credit losses. Unbilled receivables arise when performance obligations are satisfied for which revenue has been recognized but the customers have not been billed. Contractual provisions and payment schedules may or may not correspond to the timing of the performance of services under the contract.\n\nDeferred revenue is a contract liability that consists of customer payments received in advance of performance and billings in excess of revenue recognized, net of revenue recognized from the balance at the beginning of the period.\n\n13\n\nHYPERFINE, INC. AND SUBSIDIARIES\n\nNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(all amounts are in thousands, except share and per share amounts)\n\n \n\nThe amount of revenue recognized during the three months ended March 31, 2026 and 2025 that was included in the deferred revenue balance at the beginning of the period was $444 and $491, respectively.\n\nTiming of Billing and Performance\n\nDifferences in the timing of revenue recognition and associated billings and cash collections result in recording of billed accounts receivable, unbilled accounts receivable (including contract assets), and deferred revenue on the consolidated balance sheet. Amounts are billed in accordance with the agreed-upon contractual terms, resulting in recording unbilled accounts receivable in instances where the right to bill is contingent solely on the passage of time, and contract assets in instances where the right to consideration is conditional on something other than the passage of time.\n\nRevenue from Leasing Arrangements\n\nRevenue from leasing arrangements is not subject to the revenue standard for contracts with customers and remains separately accounted for under ASC 842, “Leases” including leases for the three months ended March 31, 2026 and 2025. The Company recorded service revenue from lease arrangements of $1 and $21 for the three months ended March 31, 2026 and 2025, respectively. The Company records revenue from the sale of hardware devices under sales-type leases as device revenue in an amount equal to the present value of minimum lease payments at the inception of the lease. Sales-type leases also produce financing income, which is included in device revenue in the consolidated statements of operations and comprehensive loss and is recognized at effective rates of return over the lease term.\n\nCosts of Obtaining or Fulfilling Contracts\n\nThe Company incurs incremental costs of obtaining contracts with customers. Incremental costs of obtaining contracts, which include commissions paid as a result of obtaining contracts with customers, are capitalized to the extent that the Company expects to recover such costs. Capitalized costs are amortized in a pattern that is consistent with the Company’s transfer to the customer of the related goods and services. Such costs are recorded in Other long term assets and were $545 and $548 as of March 31, 2026 and December 31, 2025, respectively. During the three months ended March 31, 2026 and 2025, the Company recognized $241 and $124, respectively, in expense related to the amortization of the capitalized contract costs.\n\nTransaction Price Allocated to Remaining Performance Obligations\n\nAs of March 31, 2026 and December 31, 2025, the Company had remaining performance obligations amounting to $6,901 and $6,741, respectively. The Company expects to recognize approximately 28% of its remaining performance obligations as revenue in fiscal year 2026, and an additional 29% in fiscal year 2027 and 43% thereafter.\n\n4. FAIR VALUE OF FINANCIAL INSTRUMENTS\n\nFair value estimates of financial instruments are made at a specific point in time, based on relevant information about financial markets and specific financial instruments. As these estimates are subjective in nature, involving uncertainties and matters of significant judgment, they cannot be determined with precision. Changes in assumptions can significantly affect estimated fair value.\n\nThe Company measures fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The Company utilizes a three-tier hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:\n\nLevel 1 — Valuations based on quoted prices in active markets for identical assets or liabilities that an entity has the ability to access.\n\nLevel 2 — Valuations based on quoted prices for similar assets or liabilities, quoted prices for identical assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities.\n\n14\n\nHYPERFINE, INC. AND SUBSIDIARIES\n\nNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(all amounts are in thousands, except share and per share amounts)\n\n \n\nLevel 3 — Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.\n\nThe carrying value of cash and cash equivalents, accounts payable and accrued expenses and other current liabilities approximates their fair values due to the short-term or on demand nature of these instruments.\n\nCash is measured at fair value on a recurring basis using Level 1 inputs. The Company had $41,278 and $36,042 of money market funds, demand deposit and savings accounts included in cash and cash equivalents and restricted cash as of March 31, 2026 and December 31, 2025, respectively. These assets were valued using quoted prices in active markets and accordingly were classified as Level 1. The Company had no assets or liabilities classified using Level 2 inputs and there were no transfers between fair value measurement levels during the three months ended March 31, 2026 and 2025. Other liabilities include warrant liabilities that are measured at fair value on a recurring basis using the Black-Scholes option pricing model; these inputs are considered level 3 inputs within the fair value hierarchy. As of March 31, 2026 and December 31, 2025, the fair value of the warrant liabilities was $1,971 and $1,730, respectively.\n\nThe key assumptions used in the Black-Scholes option pricing model to fair value the common stock warrants liability are as follows:\n\n \n\n \n\nMarch 31, 2026\n\n \n\n \n\nDecember 31, 2025\n\n \n\nStock Price\n\n \n\n$\n\n1.08\n\n \n\n \n\n$\n\n0.98\n\n \n\nRisk Free interest rate\n\n \n\n \n\n3.86\n\n%\n\n \n\n \n\n3.65\n\n%\n\nExpected dividend yield\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nTerm (years)\n\n \n\n \n\n3.87\n\n \n\n \n\n \n\n4.12\n\n \n\nExpected volatility\n\n \n\n \n\n60.00\n\n%\n\n \n\n \n\n60.00\n\n%\n\n \n\n5. INVENTORIES\n\nA summary of inventories is as follows:\n\n \n\n \n\nMarch 31,\n2026\n\n \n\n \n\nDecember 31,\n2025\n\n \n\nRaw materials\n\n \n\n$\n\n2,126\n\n \n\n \n\n$\n\n2,936\n\n \n\nFinished goods\n\n \n\n \n\n4,201\n\n \n\n \n\n \n\n4,154\n\n \n\nTotal inventories\n\n \n\n$\n\n6,327\n\n \n\n \n\n$\n\n7,090\n\n \n\nManufacturing overhead costs primarily include management’s best estimate and allocation of the labor costs incurred related to acquiring finished goods from the Company’s contract manufacturer. Labor costs include wages, taxes and benefits for employees involved in warehousing, logistics coordination, material sourcing, and production planning activities.\n\n15\n\nHYPERFINE, INC. AND SUBSIDIARIES\n\nNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(all amounts are in thousands, except share and per share amounts)\n\n \n\n6. PROPERTY AND EQUIPMENT, NET\n\nProperty and equipment, net, are recorded at historical cost and consist of the following:\n\n \n\n \n\nMarch 31,\n2026\n\n \n\n \n\nDecember 31,\n2025\n\n \n\nLaboratory equipment\n\n \n\n$\n\n1,027\n\n \n\n \n\n$\n\n1,027\n\n \n\nResearch devices\n\n \n\n \n\n1,928\n\n \n\n \n\n \n\n1,823\n\n \n\nSales and marketing devices\n\n \n\n \n\n286\n\n \n\n \n\n \n\n400\n\n \n\nComputer equipment\n\n \n\n \n\n689\n\n \n\n \n\n \n\n689\n\n \n\nConstruction in progress\n\n \n\n \n\n383\n\n \n\n \n\n \n\n383\n\n \n\nTooling\n\n \n\n \n\n1,527\n\n \n\n \n\n \n\n1,527\n\n \n\nTrade show assets\n\n \n\n \n\n295\n\n \n\n \n\n \n\n295\n\n \n\nLeased devices\n\n \n\n \n\n286\n\n \n\n \n\n \n\n181\n\n \n\nOther\n\n \n\n \n\n671\n\n \n\n \n\n \n\n668\n\n \n\nGross property and equipment\n\n \n\n \n\n7,092\n\n \n\n \n\n \n\n6,993\n\n \n\nLess: Accumulated depreciation and amortization\n\n \n\n \n\n(4,589\n\n)\n\n \n\n \n\n(4,444\n\n)\n\nProperty and equipment, net\n\n \n\n$\n\n2,503\n\n \n\n \n\n$\n\n2,549\n\n \n\nDepreciation expense amounted to $274 and $229 for the three months ended March 31, 2026 and 2025, respectively.\n\n7. RIGHT-OF-USE (“ROU”) ASSETS AND LEASE LIABILITIES\n\nThe Company has operating leases for its corporate offices, including its Palo Alto, California lease agreement which was extended by an amendment in December 2025 and now expires on April 30, 2027, and a warehouse lease agreement in Guilford, Connecticut which was extended by six months in June 2025 and expires on August 31, 2026. As of March 31, 2026 and December 31, 2025, the balance of operating lease ROU assets of $247 and $316, respectively, current lease liabilities of $229 and $248, respectively, and non-current lease liabilities of $17 and $66, respectively, are included in the Company's condensed consolidated balance sheets in other long term assets, accrued expenses, other current liabilities and other noncurrent liabilities, respectively.\n\nThe weighted-average remaining lease term associated with the measurement of the Company's operating lease obligations is 13 months and an annual weighted-average discount rate is 9.99%.\n\nFuture minimum commitments due under the lease agreements as of March 31, 2026 are $180 for 2026 and $66 thereafter.\n\n8. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES\n\nAccrued expenses and other current liabilities consist of the following:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nMarch 31,\n2026\n\n \n\n \n\nDecember 31,\n2025\n\n \n\nBonuses\n\n \n\n$\n\n941\n\n \n\n \n\n$\n\n2,468\n\n \n\nContracted services\n\n \n\n \n\n651\n\n \n\n \n\n \n\n818\n\n \n\nLegal fees\n\n \n\n \n\n247\n\n \n\n \n\n \n\n376\n\n \n\nPayroll and related benefits\n\n \n\n \n\n1,072\n\n \n\n \n\n \n\n760\n\n \n\nOperating lease liabilities\n\n \n\n \n\n229\n\n \n\n \n\n \n\n248\n\n \n\nOther\n\n \n\n \n\n328\n\n \n\n \n\n \n\n460\n\n \n\nTotal accrued expenses and other current liabilities\n\n \n\n$\n\n3,468\n\n \n\n \n\n$\n\n5,130\n\n \n\n \n\n9. DEBT\n\nOn March 18, 2026 (the “Closing Date”), the Company entered into a Loan and Security Agreement (the “Loan Agreement”) with Horizon Technology Finance Corporation (the “Lender”), as lender and collateral agent,\n\n16\n\nHYPERFINE, INC. AND SUBSIDIARIES\n\nNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(all amounts are in thousands, except share and per share amounts)\n\n \n\nproviding for a senior secured term loan facility with an aggregate principal amount of up to $40,000. On the Closing Date, the Company borrowed $15,000. The remaining $25,000 may be borrowed prior to December 31, 2027, subject to the satisfaction of certain conditions set forth in the Loan Agreement. As of March 31, 2026, no additional amounts had been borrowed under the Loan Agreement.\n\nBorrowings under the Loan Agreement bear interest at a variable rate equal to the prime rate plus 4.25%, with the prime rate subject to a floor of 6.50%, resulting in a minimum interest rate of 10.75%. The effective interest rate was 15.94% as of March 31, 2026. Interest is payable monthly in arrears. The term loan is payable on an interest-only basis for a period of 48 months from the Closing Date. Thereafter, principal and interest are payable in equal monthly installments through the maturity date of March 18, 2031. If certain performance milestones as specified in the Loan Agreement are satisfied, the Company may extend the interest-only period through the maturity date. The Company may prepay the term loan in full, subject to a repayment fee of 1%-3%.\n\nThe Company paid a commitment fee of $400 in connection with the execution of the Loan Agreement, which was reflected as a debt discount and presented as a reduction of the carrying amount of the term loan. Upon repayment in full of the term loan, the Company is required to pay a final payment fee equal to 5.0% of the aggregate original principal amount borrowed.\n\nInterest expense related to the term loan includes stated interest, the amortization of debt issuance costs and debt discount, and the accretion of the final payment fee, each of which is recognized using the effective interest method over the contractual term of the loan.\n\nThe obligations under the Loan Agreement are guaranteed by the Company's wholly owned subsidiaries, Hyperfine Operations, Inc. and Liminal Sciences, Inc., and are secured by substantially all of the Company's and the guarantors' assets, subject to customary exceptions, including that intellectual property is excluded from the collateral at closing and until the first funding of any additional loan tranche following the Closing Date.\n\nThe Loan Agreement contains customary affirmative and negative covenants, including restrictions on indebtedness, liens, asset dispositions, investments and dividends. As of March 31, 2026, the Company was in compliance with all applicable covenants.\n\nIn connection with the Loan Agreement, on the Closing Date the Company executed and delivered to the Lender (i) warrants to purchase up to an aggregate of 562,500 shares of the Company's Class A common stock at an exercise price of $1.20 per share (the “Initial Warrants”), which are immediately exercisable, and (ii) additional warrants to purchase up to an aggregate of 520,835 shares of Class A common stock at an exercise price of $1.20 per share (the “Additional Warrants”). The Additional Warrants will become exercisable only if and when the Company draws additional loan tranches under the Loan Agreement. All of these warrants expire seven years from the Closing Date.\n\nThe Initial Warrants were evaluated and classified as equity. Proceeds received at closing under the Loan Agreement were allocated between the term loan and the Initial Warrants using the relative fair value method. Accordingly, the relative fair value of the Initial Warrants at issuance of $545 was recorded to additional paid-in capital, with a corresponding amount recorded as a debt discount that reduces the carrying amount of the term loan. The debt discount is amortized to interest expense over the term of the loan using the effective interest method. Issuance costs incurred in connection with the Loan Agreement were allocated between the debt and equity components in proportion to the allocation of proceeds; the portion allocable to the equity-classified warrants of $50 was recorded as a reduction of additional paid-in capital.\n\nUpon issuance, the Initial Warrants were recorded at their relative fair value using the Black-Scholes option-pricing model and the following assumptions: no dividend yield, expected volatility of 87.5%, risk free rate of 4.05%, and expected term of 7 years, equal to the life of the warrant.\n\nThe net carrying amount of the term loan was as follows:\n\n17\n\nHYPERFINE, INC. AND SUBSIDIARIES\n\nNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(all amounts are in thousands, except share and per share amounts)\n\n \n\n \n\n \n\nAs of March 31, 2026\n\n \n\nPrincipal\n\n \n\n$\n\n15,000\n\n \n\nAdd: accrued final payment fee\n\n \n\n \n\n6\n\n \n\nLess: unamortized debt discount\n\n \n\n \n\n(1,883\n\n)\n\nLong-term debt, net\n\n \n\n$\n\n13,123\n\n \n\nCurrent portion\n\n \n\n$\n\n—\n\n \n\nLong-term portion\n\n \n\n$\n\n13,123\n\n \n\n \n\n10. STOCKHOLDERS' EQUITY\n\nCommon Stock At-the-Market Offering Program\n\nOn November 9, 2023, the Company filed a shelf registration statement on Form S-3 (File No. 333-275449), which became effective on November 22, 2023. The shelf registration statement permits the Company to sell, from time to time, up to $150,000 in aggregate value of its Class A common stock, preferred stock, debt securities, warrants, and/or units.\n\nThe shelf registration statement also included a prospectus supplement covering up to an aggregate of $50,000 in shares of Class A common stock that the Company could issue and sell from time to time through B. Riley Securities, Inc. (“B. Riley”), acting as its sales agent, pursuant to a sales agreement for its “at-the-market” equity program (“ATM”) that it entered into with B. Riley in November 2023 (the “Sales Agreement”). On December 29, 2025, the Company filed a new prospectus supplement covering up to an aggregate of $50,000 in shares of Class A common stock that it may issue and sell from time to time, through B. Riley and BTIG, LLC (“BTIG”) acting as its sales agents, pursuant to the amended and restated sales agreement that the Company entered into with B. Riley and BTIG on December 29, 2025 (the “Amended Sales Agreement”), for its ATM. The Amended Sales Agreement amends and restates the Sales Agreement to add BTIG as an additional sales agent. No other material terms of the ATM or Sales Agreement were amended. The offering of the Class A common stock pursuant to the prospectus supplement dated November 22, 2023 was also terminated such that no further offers or sales will be made pursuant to such prospectus supplement, effective as of December 29, 2025. Prior to the termination of the prospectus supplement dated November 22, 2023, effective as of December 29, 2025, the Company had issued and sold an aggregate of 3,464,325 shares of its Class A common stock under the Sales Agreement, for total gross proceeds of $4,350, before deducting commissions and other offering expenses, and net proceeds of $4,165, after deducting such commissions and expenses. As of March 31, 2026, a total of 678,012 shares of the Company’s Class A common stock, for total gross proceeds of $824, before deducting commissions and other offering expenses, and net proceeds of $803, after deducting commissions and other offering expenses, were issued and sold under the Amended Sales Agreement.\n\nThe Company issued and sold an aggregate of 678,012 shares of Class A common stock under the Amended Sales Agreement during the three months ended March 31, 2026 for gross proceeds of $824, before deducting commissions and other offering expenses, resulting in net proceeds of $803, after deducting commissions and other expenses.\n\nFebruary 2025 Common Stock and Common Stock Warrants\n\nOn February 12, 2025, the Company closed the transactions pursuant to a securities purchase agreement with certain institutional investors (the “Investors”), in which the Company issued and sold, in a registered direct offering by the Company directly to the Investors (the “February 2025 Offering”): (i) 4,511,278 shares of the Company’s Class A common stock and (ii) warrants to purchase up to 4,511,278 shares of the Company’s Class A common stock (the “February 2025 Warrants”). Each share and accompanying February 2025 Warrant were sold together at a combined offering price of $1.33. Each February 2025 Warrant has an exercise price of $1.33 and expires on the five-year anniversary of the initial issuance date. The aggregate gross proceeds to the Company from the February 2025 Offering were $6,000 before deducting the placement agent’s fees and offering expenses. The incremental issuance costs allocated to warrant liabilities were recorded as expenses in the Company's consolidated statements of operations in line item “other income (expense), net”.\n\nDuring the three months ended March 31, 2026, holders did not exercise any of the February 2025 Warrants.\n\n18\n\nHYPERFINE, INC. AND SUBSIDIARIES\n\nNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(all amounts are in thousands, except share and per share amounts)\n\n \n\nMarch 2026 Common Stock Warrants\n\nIn connection with the Loan Agreement, on the Closing Date, the Company issued the Initial Warrants, which are immediately exercisable, and the Additional Warrants, which are exercisable only upon the funding of future loan tranches. The Initial Warrants and the Additional Warrants expire seven years from the Closing Date.\n\nDuring the three months ended March 31, 2026, holders did not exercise any of the Initial Warrants.\n\nEquity Incentive Plans\n\nHyperfine Inc. 2021 Equity Incentive Plan and Inducement Option Grant\n\nThe Company’s equity incentive plans include the Company’s 2021 Equity Incentive Plan (the “Hyperfine Plan”). The Hyperfine Plan is administered by the Company's board of directors. The board of directors may grant restricted stock and options to purchase shares either as incentive stock options or non-qualified stock options. 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. Effective January 1, 2026, the number of shares available for grant increased by 3,888,869 shares pursuant to the evergreen provision in the Hyperfine Plan that provides for an automatic annual increase in the number of shares available for grant under the Hyperfine Plan equal to the lesser of (i) 4% of the number of outstanding shares of common stock outstanding on the first day of the applicable fiscal year, and (ii) an amount determined by the administrator of the Hyperfine Plan, beginning in fiscal year 2022 and ending on the second day of fiscal year 2031. As of March 31, 2026, 7,366,459 shares of common stock remain available for issuance under the Hyperfine Plan.\n\nIn addition, the Company has made an inducement option grant outside of the Hyperfine Plan in accordance with Nasdaq Listing Rule 5635(c)(4).\n\nStock option activity\n\nThe following table summarizes the changes in the Company’s outstanding stock options for the three months ended March 31, 2026:\n\n \n\n \n\nNumber of\nOptions\n\n \n\n \n\nWeighted Average Exercise Price\n\n \n\nOutstanding at January 1, 2026\n\n \n\n \n\n15,524,201\n\n \n\n \n\n$\n\n1.36\n\n \n\nGranted\n\n \n\n \n\n—\n\n \n\n \n\n$\n\n—\n\n \n\nExercised\n\n \n\n \n\n(44,788\n\n)\n\n \n\n$\n\n0.95\n\n \n\nForfeited / Cancelled / Expired\n\n \n\n \n\n(142,610\n\n)\n\n \n\n$\n\n1.28\n\n \n\nOutstanding at March 31, 2026\n\n \n\n \n\n15,336,803\n\n \n\n \n\n$\n\n1.36\n\n \n\nRestricted stock unit activity\n\nThe following table summarizes the changes in the Company’s outstanding RSUs for the three months ended March 31, 2026:\n\n \n\n \n\nNumber of\nRSUs\n\n \n\n \n\nWeighted Average Grant Date Fair Value\n\n \n\nOutstanding at January 1, 2026\n\n \n\n \n\n2,788,214\n\n \n\n \n\n$\n\n0.76\n\n \n\nGranted\n\n \n\n \n\n3,531,678\n\n \n\n \n\n$\n\n1.08\n\n \n\nReleased\n\n \n\n \n\n(575,651\n\n)\n\n \n\n$\n\n0.77\n\n \n\nForfeited\n\n \n\n \n\n(36,312\n\n)\n\n \n\n$\n\n0.74\n\n \n\nOutstanding at March 31, 2026\n\n \n\n \n\n5,707,929\n\n \n\n \n\n$\n\n0.96\n\n \n\nThe Company’s stock-based compensation expenses for the periods presented were as follows:\n\n19\n\nHYPERFINE, INC. AND SUBSIDIARIES\n\nNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(all amounts are in thousands, except share and per share amounts)\n\n \n\n \n\n \n\nThree Months Ended\nMarch 31,\n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\nCost of sales\n\n \n\n$\n\n17\n\n \n\n \n\n$\n\n18\n\n \n\nResearch and development\n\n \n\n \n\n238\n\n \n\n \n\n \n\n345\n\n \n\nSales and marketing\n\n \n\n \n\n62\n\n \n\n \n\n \n\n63\n\n \n\nGeneral and administrative\n\n \n\n \n\n330\n\n \n\n \n\n \n\n519\n\n \n\nTotal stock-based compensation expense\n\n \n\n$\n\n647\n\n \n\n \n\n$\n\n945\n\n \n\n \n\n11. NET LOSS PER SHARE\n\nBasic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock of the Company outstanding during the period. Diluted net loss per share is computed by giving effect to all common equivalent shares of the Company, including outstanding stock options, RSUs, and warrants to the extent dilutive. Basic and diluted net loss per share was the same for each period presented as the inclusion of all common equivalent shares of the Company outstanding would have been anti-dilutive.\n\nThe following table presents the calculation of basic and diluted net loss per share for the Company’s common stock:\n\n \n\n \n\nThree Months Ended\nMarch 31,\n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\nNumerator:\n\n \n\n \n\n \n\n \n\n \n\n \n\nNet Loss\n\n \n\n$\n\n(8,623\n\n)\n\n \n\n$\n\n(9,418\n\n)\n\nNumerator for Basic and Dilutive EPS – Loss available to common stockholders\n\n \n\n$\n\n(8,623\n\n)\n\n \n\n$\n\n(9,418\n\n)\n\nDenominator:\n\n \n\n \n\n \n\n \n\n \n\n \n\nCommon Stock\n\n \n\n \n\n97,695,133\n\n \n\n \n\n \n\n75,697,199\n\n \n\nDenominator for Basic and Dilutive EPS - Weighted-average common stock\n\n \n\n \n\n97,695,133\n\n \n\n \n\n \n\n75,697,199\n\n \n\nBasic and dilutive net loss per share\n\n \n\n$\n\n(0.09\n\n)\n\n \n\n$\n\n(0.12\n\n)\n\n \n\nSince the Company was in a net loss position for all periods presented, net loss per share attributable to Class A and Class B common stockholders was the same on a basic and diluted basis, as the inclusion of all common equivalent shares outstanding would have been anti-dilutive. Anti-dilutive common equivalent shares were as follows:\n\n \n\n \n\nThree Months Ended\nMarch 31,\n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\nOutstanding options to purchase common stock\n\n \n\n \n\n15,336,803\n\n \n\n \n\n \n\n17,954,246\n\n \n\nOutstanding RSUs\n\n \n\n \n\n5,707,929\n\n \n\n \n\n \n\n2,441,983\n\n \n\nWarrants issued in connection with February 2025 Offering\n\n \n\n \n\n4,257,419\n\n \n\n \n\n \n\n4,511,178\n\n \n\nWarrants issued in connection with Loan Agreement\n\n \n\n \n\n562,500\n\n \n\n \n\n \n\n—\n\n \n\nTotal anti-dilutive common equivalent shares\n\n \n\n \n\n25,864,651\n\n \n\n \n\n \n\n24,907,407\n\n \n\nThe Loan Agreement also provides for Additional Warrants to purchase up to an aggregate of 520,835 shares of Class A common stock at an exercise price of $1.20 per share, contingent on and exercisable only upon the funding of future term loan tranches under the Loan Agreement. As no additional term loan tranches had been drawn as of March 31, 2026, no shares were issuable under the Additional Warrants as of March 31, 2026, and such Additional Warrants were excluded from the table above.\n\n20\n\nHYPERFINE, INC. AND SUBSIDIARIES\n\nNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(all amounts are in thousands, except share and per share amounts)\n\n \n\n12. INCOME TAXES\n\nThe Company accounts for income taxes under ASC 740, “Income Taxes” (“ASC 740”). ASC 740 requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial statement and tax basis of assets and liabilities and for the expected future tax benefit to be derived from tax loss and tax credit carry forwards. ASC 740 additionally requires a valuation allowance to be established when it is more likely than not that all or a portion of deferred tax assets will not be realized.\n\nIncome taxes for the three months ended March 31, 2026 are recorded at the Company’s estimated annual effective income tax rate, subject to adjustments for discrete events, if they occur. The Company’s estimated annual effective tax rate was 0% for each of the three months ended March 31, 2026. The primary reconciling items between the federal statutory rate of 21% for these periods and the Company’s overall effective tax rate of 0% were related to the effects of stock-based compensation, and the valuation allowance recorded against the full amount of its net deferred tax assets.\n\nA valuation allowance is required when it is more likely than not that some portion or all of the Company’s deferred tax assets will not be realized. The realization of deferred tax assets depends on the generation of sufficient future taxable income during the period in which the Company’s related temporary differences become deductible. The Company has recorded a full valuation allowance against its net deferred tax assets as of March 31, 2026 and 2025 since management believes that based on the earnings history of the Company, it is more likely than not that the benefits of these assets will not be realized.\n\n13. RELATED PARTY TRANSACTIONS\n\nThe Company utilizes and subleases office and lab space in Connecticut, which is being leased from an unrelated landlord by 4Catalyzer Corporation (“4C”), which is owned by a related party. The Company pays rent to 4C on a month-to-month basis. A total of approximately $83 and $88 was paid during the three months ended March 31, 2026 and 2025, respectively.\n\nHyperfine entered into a Master Services Agreement (the “Master Services Agreement”) with 4C effective as of July 7, 2021 pursuant to which Hyperfine may engage 4C to provide services such as general administration, facilities, information technology, financing, legal, human resources and other services, through future statements of work and under terms and conditions to be determined by the parties with respect to any services to be provided. The Company paid an aggregate of $17 and $25 during the three months ended March 31, 2026 and 2025, respectively, under the Master Services Agreement. As of March 31, 2026 and December 31, 2025 there were $56 and $50 due to 4C, respectively, for expenses paid on the Company's behalf. These payables are included in due to related parties on the condensed consolidated balance sheet.\n\n14. COMMITMENTS AND CONTINGENCIES\n\nCommitments\n\nThe Company sponsors a 401(k) defined contribution plan covering all eligible U.S. employees. Contributions to the 401(k) plan are discretionary. The Company did not make any matching contributions to the 401(k) plan for the three months ended March 31, 2026 or 2025.\n\nDuring 2020 and 2021, the Company was awarded multiple grants totaling $4,910 from the Bill & Melinda Gates Foundation (“BMGF”) for the provision and equipping of sites with the Company’s portable MR brain imaging system to enable the performance of a multi-site study focused on optimizing diagnostic image quality. These grants were designed to provide data to validate the use of the Swoop® system in measuring the impact of maternal anemia, malnutrition, infection and birth related injury. All of these grants were designed to support the deployment of a total of 25 Swoop® system devices and other services to investigators, which commenced in the spring of 2021 and was completed by February 2024. In May 2023, the Company was awarded an additional $3,354 grant from the BMGF to continue to develop a scalable approach to measuring neurodevelopment via low-field MRI in neonates, infants, and young children in low-to-middle income countries through February 2026. In November 2025, the Company was awarded an additional $3,662 grant from the BMGF to support continued technical innovation using\n\n21\n\nHYPERFINE, INC. AND SUBSIDIARIES\n\nNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(all amounts are in thousands, except share and per share amounts)\n\n \n\nits AI-powered portable MRI platform, with a focus on neonatal brain imaging and objective assessment of neurodevelopment in resource-constrained settings, with funding extending to March 2028. The funds were accounted for as restricted cash with a corresponding credit to deferred grant funding. Any grant funds, plus any interest income, that have not been used for, or committed to, the project must be returned promptly to the BMGF upon expiration of or termination of the agreement. During the three months ended March 31, 2026, the Company completed and fulfilled grant deliverables and milestones amounting to $463 and did not receive cash grant funding. As of March 31, 2026, the Company recorded restricted cash of $500 with an offset to deferred grant funding in the Company's condensed consolidated balance sheet. As of March 31, 2026 and December 31, 2025, there were no grant fund amounts that were required to be returned under the terms of the project.\n\nPurchase Commitments\n\nThe Company’s purchase commitments and obligations include all open purchase orders and contractual obligations in the ordinary course of business, including commitments with contract manufacturers and suppliers, for which the Company has not received the goods or services. A majority of these purchase obligations are due within a year. Although open purchase orders are considered enforceable and legally binding, the terms generally allow the Company the option to cancel, reschedule, and adjust its requirements based on the Company’s business needs prior to the delivery of goods or performance of services.\n\nContingencies\n\nThe Company is, from time to time, a party to litigation that arises in the normal course of its business operations. The Company is not presently a party to any litigation for which it believes a loss is probable requiring an amount to be accrued or a possible loss contingency requiring disclosure.\n\nThe Company has indemnification obligations under some agreements that the Company enters into with other parties in the ordinary course of business, including business partners, investors, contractors, and the Company’s officers, directors and certain employees. The Company has agreed to indemnify and defend the indemnified party against claims and related losses suffered or incurred by the indemnified party from actual or threatened third-party claims because of the Company’s activities or non-compliance with certain representations and warranties made by the Company. It is not possible to determine the maximum potential loss under these indemnification provisions due to the Company’s limited history of prior indemnification claims and the unique facts and circumstances involved in any particular case. The Company has not recorded any liability under such indemnification provisions within its condensed consolidated balance sheets. The Company is not aware of any claims or other circumstances that would give rise to material payments from the Company under such indemnification provisions.\n\n15. REPORTABLE SEGMENTS AND GEOGRAPHIC INFORMATION\n\nThe Company operates in one business segment, which includes all activities related to production, supply, service and commercialization of the Swoop® system. The determination of a single business segment is consistent with the consolidated financial information regularly provided to the Company’s chief operating decision maker (“CODM”). The Company’s CODM is its Chief Executive Officer, who reviews consolidated net loss to measure segment profit or loss, allocate resources, and assess performance. Further, the CODM is regularly provided with and utilizes consolidated functional expenses, as presented in the accompanying consolidated statements of operations, and total assets at the consolidated level, as included in the consolidated balance sheets herein, to manage the Company’s operations.\n\nAll of the Company’s long-lived assets are located in the United States. Non-U.S. revenue is attributed to revenue from customers located in foreign countries. Other than revenue recognized in non-U.S. countries of $726 and $1,074 for the three months ended March 31, 2026 and 2025, respectively, all of the revenues during these periods were earned in the United States. Since the Company has a single reportable segment, all required financial segment information is provided in the consolidated financial statements.\n\n22\n\nHYPERFINE, INC. AND SUBSIDIARIES\n\nNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(all amounts are in thousands, except share and per share amounts)\n\n \n\n16. SUBSEQUENT EVENTS\n\nThe Company has evaluated subsequent events through the date the condensed consolidated financial statements were issued and has determined that there were no subsequent events required to be disclosed.\n\n23"}