On November 10, 2022, CarLotz, Inc. announced the closure of three dealership stores, or hubs. The Company is closing these three hubs for retail sales on November 10, 2022 with all hub closing activities to be completed by December 2, 2022. The following hubs are being closed: Chesapeake, VA; Denver, CO; and Huntsville, AL.

The Company expects to incur 1) one-time severance costs of approximately $100,000, 2) one-time non-cash charges of $300,000 to $800,000 associated with the impairment of lease assets, and 3) one-time non-cash charges of $1.0 million to $1.3 million associated with the impairment of other fixed assets. The Company has not yet completed its analysis of additional charges associated with implementation of the workforce reduction and hub closures, and therefore is not able to make a good faith determination of an estimate of the amount, or range of amounts, of any additional charges, such as contract termination costs.