NOTE 13—DEFINED CONTRIBUTION PLAN

The Company has a defined contribution plan (the “401(k) Plan”) covering substantially all of the Company’s employees. The Emmaus 401(k) Plan is a tax-qualified retirement saving plan, pursuant to which all employees are able to contribute the lesser of 90% of their eligible annual compensation (as defined) or the limit prescribed by the Internal Revenue Service (the “IRS”) to the 401(k) Plan on a before-tax basis. Since January 1, 2020, the Company matches 50% of employee contributions to the Company’s 401(k) Plan based on each participant’s contribution during the plan year, up to 4.0% of each participant’s annual compensation.

For the years ended December 31, 2020, the Company made matching contributions to the Company’s 401(k) Plans of $71,000.