Quarterly report pursuant to Section 13 or 15(d)

Employee Benefit Plan

v3.22.2.2
Employee Benefit Plan
9 Months Ended
Sep. 30, 2022
Employee Benefit Plan [Abstract]  
Employee Benefit Plan

11. Employee Benefit Plan

 

The Company has a 401(k) plan to provide defined contribution retirement benefits for all eligible employees. Participants may contribute a portion of their compensation to the 401(k) plan, subject to the limitations under the Internal Revenue Code. The Company’s contributions to the 401(k) plan are at the discretion of the Board of Directors. During the three months ended September 30, 2022 and 2021 the Company made contributions of $33,000 and $25,000, respectively, and $0.1 million and $80,000 for the nine months ended September 30, 2022 and 2021, respectively, to the 401(k) plan.

 

Effective October 2021, the Company established a savings fund for permanent employees of the Bangladesh subsidiary named Augmedix BD Limited Employees’ Gratuity Fund (“Gratuity Fund”), in accordance with local requirements. Employees will be entitled to cash benefit after completion of minimum five years of service with the Company. The payment amount will be calculated on the basic pay and is payable at the rate of one month’s basic pay for every completed year of service. The Company has accrued Gratuity Fund expenses totaling of $0.4 million as of December 31, 2021. During the three months and nine months ended September 30, 2022, the Company accrued $50,000 and $0.2 million respectively, which are included in accrued expenses and other current liabilities and other liabilities in the accompany consolidated balance sheet.