On September 28, 2022, CarLotz, Inc. received notice from the Lender pursuant to the Inventory Financing and Security Agreement, dated March 10, 2021 by and among the Company, Ally Bank, a Utah chartered state bank, and Ally Financial Inc., a Delaware corporation that, effective October 1, 2022, the maximum available credit line under the Ally Facility would be reduced from $40 million to $25 million. The Lender also provided notice that the current financial covenant under the Ally Facility that requires the Company to maintain at least 10% of the maximum available credit line in cash and cash equivalents and at least 10% of the maximum available credit line on deposit with Ally Bank would be revised to replace 10% of the maximum available credit line with $4 million, so long as the amount borrowed under the Ally Facility remains under $20 million, with such minimum amount to be increased to $5 million if the amount borrowed under the Ally Facility at any time exceeds $20 million. The Notice stated that a revised agreement with respect to the revisions discussed in this paragraph would be forthcoming from the Lender in the coming days for the Company to execute.

As of September 28, 2022, CarLotz, Inc. had total outstanding debt of $5.2 million under the Ally Facility.