On January 19, 2023, MedAvail Holdings, Inc. announced its plan to exit its pharmacy services business (the Pharmacy Services Business") to focus on the Company's pharmacy technology business (the Pharmacy Technology Business"). In connection with its exit from the Pharmacy Services Business, the company has hired a broker and is in active negotiations regarding the sale of the related pharmacy assets. The Company's business following the exit from the Pharmacy Services Business will consist solely of its Pharmacy Technology Business.

In connection with the restructuring, the Company is also evaluating multiple financing options, including with existing investors. On January 18, 2023, and in connection with the Company's exit from the Pharmacy Services Business to focus on the Pharmacy Technology Business, the company initiated a reduction in force, in which approximately 75% of the Company's full-time employees were immediately terminated, effective January 18, 2023, which is the date on which the Company notified such employees of their termination. The employees that were subject to the Reduction were employees of the Company's the Pharmacy Services Business.

The purpose of the Reduction is to preserve capital with the goal of maximizing the opportunity available to the Company to pursue its Pharmacy Technology Business. The actions that are being undertaken by the Company in connection with the Reduction are expected to result in annualized operating expense savings of $35 million to $37 million compared to the full year 2022. The Company may incur additional expenses not currently contemplated due to events associated with the Reduction.

The changes that the Company expects to incur in connection with the Reduction are estimates and subject to a number of assumptions, and actual results may differ materially.