Item 2.05 Costs Associated with Exit or Disposal Activities.

On August 18, 2022, Ontrak, Inc. (the "Company") approved a restructuring plan as part of management's cost saving measures in order to effectively align its resources, manage its operating costs and position it to optimize its business model and help align with its previously stated strategic initiatives.

Under the restructuring plan, the Company intends to reduce approximately 34% of positions and $7.7 million of annual compensation related costs, as well as approximately $3.0 million of annual third party costs. The Company estimates one-time costs of approximately $0.7 million of termination benefits to the impacted employees, including severance payments and benefits. The Company expects to complete the restructuring plan by the end of the third quarter of 2022 and expects to bring back capacity to scale appropriately as new or expanded customer relationships are onboarded from its pipeline.

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