On October 5, 2022, CarLotz, Inc. entered into a Credit Balance Agreement with Ally Bank, a Utah chartered state bank, and Ally Financial Inc. with respect to the Inventory Financing and Security Agreement, dated March 10, 2021 by and among the Company and the Lender. The RBCA replaces the prior financial covenant under the Ally Facility that required 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 with a minimum requirement of $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. As of October 5, 2022, company had total outstanding debt of $4.7 million under the Ally Facility.