Progressive Care Inc. received notice that one of its third-party payors had declined to renew its agreement with one of the Company's pharmacy locations (the “Contract”). The Contract had previously been set to renew as of February 24, 2023. On January 19, 2023, the Company reached an agreement with the third-party payor to extend the Contract term until April 24, 2023 to facilitate continued negotiations with respect to extending the term of the Contract.

The Company is currently assessing the materiality of the Contract and the impact of the potential nonrenewal of the Contract. The parties will continue to perform under the Contract until the date of its termination or expiration.