MedAvail Holdings Inc. filed SEC Form 8-K: Costs Associated with Exit or Disposal Activities
$MDVL
Retail-Drug Stores and Proprietary Stores
Consumer Staples
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 19, 2024
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Item 2.05 Cost Associated with Exit or Disposal Activities.
On January 19, 2024, the Board of Directors of MedAvail Holdings, Inc. (the “Company”) approved a reduction in force (the “Reduction”), in which approximately 40% of the Company’s current full-time employees were terminated, effective January 22, 2024. The Reduction was implemented to reduce operating expenses while the Company continues to pursue strategies to address its financial condition and liquidity requirements.
The Reduction is expected to result in annualized operating expense savings of approximately $1.7 million compared to the full year 2024. The Company expects to incur expenses of approximately $0.3 million during the first quarter of 2024 related to the Reduction. The first quarter expenses and annualized savings the Company expects in connection with the Reduction are estimates and subject to a number of assumptions, and actual results may differ materially.
This Item 2.05 contains forward-looking statements that are intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995, as amended. Forward looking statements are statements that are not historical facts. Words such as “expects,” “believes,” “will,” “may,” “anticipates,” “intends,” “plans,” “estimates,” “seek,” “predict,” “project,” “potential” or the negatives of these terms or variations of them or similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, statements regarding the anticipated benefits of the Reduction, the anticipated timing and details of the reduction in workforce and expected charges and costs associated with the reduction in workforce that we expect to incur. These statements are based on current expectations, estimates and projections about the Company’s business based, in part, on assumptions made by management, and are subject to a number of risks and uncertainties. Factors that could cause actual results to differ materially from current expectations include possible changes in the expected costs and charges associated with the Reduction, and risks associated with the Company’s ability to achieve the expected benefits of the Reduction and realignment of Company resources. Additionally, these forward-looking statements should be considered in conjunction with the cautionary statements and risk factors described in Company’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the Securities and Exchange Commission on April 14, 2023 and Company’s other reports filed from time to time with the Securities and Exchange Commission. We do not assume any obligation to update any forward-looking statement, except as required by law
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| MEDAVAIL HOLDINGS, INC. | ||||||||
Date: January 23, 2024 | By: | /s/ Ramona Seabaugh | ||||||
Ramona Seabaugh Chief Financial Officer | ||||||||