13. BENEFIT CONTRIBUTION PLAN

The Company sponsors a 401(k) profit-sharing plan (“401(k) Plan”) that covers substantially all of its employees in the United States. The 401(k) Plan provides for a discretionary annual contribution, which is allocated in proportion to compensation. In addition, each participant may elect to contribute to the 401(k) Plan by way of a salary deduction.

A participant is always fully vested in their account, including the Company’s contribution. For the three months ended March 31, 2024 and 2023, the Company recorded a charge associated with its contribution of approximately $3,408 and $5,908, respectively. This charge has been included as a component of general and administrative expenses in the accompanying condensed consolidated statements of operations. The Company issues shares of its common stock to settle these obligations based on the fair market value of its common stock on the date the shares are issued. On January 22, 2024, the Company issued 3,497 shares valued at $4.22 per share in satisfaction of $14,768 of 401(k) contribution liabilities. On January 23, 2023, the Company issued 242 shares at $134.78 per share in satisfaction of $32,617 of 401(k) contribution liabilities.