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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 24, 2022
MEDAVAIL HOLDINGS, INC.
(Exact name of registrant as specified in its charter)

Delaware000-5329890-0772394
(State or other jurisdiction of
incorporation)
(Commission File Number)
(I.R.S. Employer
Identification Number)
6665 Millcreek Dr. Unit 1,
Mississauga ON Canada
L5N 5M4
(Address of principal executive offices)
+1 (905) 812-0023
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, par value $0.001 per shareMDVLThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02 Results of Operations and Financial Condition.
On March 24th, 2022, MedAvail Holdings, Inc. ("MedAvail" or the "Company") issued a press release regarding its financial and operational results for the year and three months ended December 31st, 2021. The full text of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
This information is intended to be furnished under Items 2.02 and 9.01 of this Current Report on Form 8-K, including Exhibit 99.1, and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended (the "Securities Act"), except as shall be expressly set forth by specific reference in such a filing.

Item 7.01 Regulation FD Disclosure.
On March 24th, 2022, MedAvail hosted a conference call and webcast to discuss the Company's financial and operational results for the year and three months ended December 31st, 2021.
The presentation includes a discussion of Operating Results and Adjusted EBITDA, non-GAAP (generally accepted accounting principles) financial measures. The presentation also includes reconciliations of those measures to the most directly comparable financial measures calculated and presented in accordance with GAAP.
The information included in this Item 7.01 and in Exhibit 99.1 shall not be deemed "filed" for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that Section or incorporated by reference in any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. The Company undertakes no duty or obligation to update or revise information included in this Report or in the Exhibit 99.1.

Item 9.01 Financial Statement and Exhibits.
(d) Exhibits
Exhibit No.Description
99.1




SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 MEDAVAIL HOLDINGS, INC.
  
Date: March 24, 2022
By:/s/ Ramona Seabaugh
  
Ramona Seabaugh
Chief Financial Officer

Exhibit 99.1
image_0.jpg
MedAvail Reports Fourth Quarter and Full Year 2021 Financial Results
MISSISSAUGA, Ontario and PHOENIX, Ariz. – March 24, 2022 – MedAvail Holdings, Inc. (Nasdaq: MDVL) (“MedAvail”) a technology-enabled pharmacy company, today reported financial results for the three months and full year ended December 31, 2021.
“I am excited to have joined MedAvail at a pivotal time when I believe that there is a tremendous need and a rising demand in pharmacy services for our technology and pharmacy solutions. Since joining MedAvail, my confidence in our business has only strengthened further,” said Mark Doerr, Chief Executive Officer of MedAvail. “As we look ahead to 2022, I believe that we are strongly positioned with expansion in dispensing deployments and partnerships well underway and a clear roadmap seeking to deliver profitable and sustainable growth over the long-term.”
Fourth Quarter 2021 Financial and Operational Highlights
All comparisons, unless otherwise noted, are to the three months ended December 31, 2020.
Total revenue was $7.3 million
Total revenue by segment
Retail Pharmacy Services revenue increased 170% to $6.8 million
Pharmacy Technology revenue decreased 24% to $0.4 million
Net loss was $12.6 million compared to a net loss of $12.1 million
Adjusted EBITDA loss of $10.9 million compared to $8.9 million
Cash, and cash equivalents of $19.7 million as of December 31, 2021
Full Year 2021 Financial and Operational Highlights
All comparisons, unless otherwise noted, are to the twelve months ended December 31, 2020.
Total revenue was $22.1 million
Total revenue by segment
Retail Pharmacy Services revenue increased 161% to $20.2 million
Pharmacy Technology revenue decreased 69% to $1.9 million. Total revenue for the third quarter of 2020 included a non-recurring benefit of $4.7 million recognized in conjunction with a commercial agreement from 2018; excluding this benefit, Pharmacy Technology revenue increased 27%.
81 MedCenter total net cumulative deployments compared to 46 MedCenter total net cumulative deployments, representing 76% growth
68 MedCenter total net dispensing deployments compared to 38 total MedCenter net dispensing deployments, representing 79% growth
Net loss was $43.8 million compared to a net loss of $26.8 million
Adjusted EBITDA loss of $39.6 million compared to $23.8 million
Financial Outlook
MedAvail expects total revenue for the first quarter of 2022 to be in excess of $8.8 million, which represents more than double its total revenue in the same period in 2021. The company expects adjusted gross margin improvement in the first quarter of 2022 compared to the fourth quarter of 2021.



Conference Call
MedAvail will host a conference call at 1:30 p.m. PT / 4:30 p.m. ET on Thursday, March 24, 2022, to discuss its fourth quarter and full year 2021 financial results. A webcast of the conference call can be accessed at https://investors.medavail.com/. The webcast will be archived and available for replay for at least 90 days after the event.
Definition of Key Metrics
Dispensing Deployments
We define dispensing deployments as sites that are live, that is, have payer network acceptance, pharmacy board approvals and trained clinical staff or clinical account managers. Moreover, we work closely with the state boards of pharmacy and our clinic partners to reduce the time to progress from deployment to becoming dispensing deployments, which generally ranges from 4 to 12 weeks.
About MedAvail
MedAvail Holdings, Inc. (NASDAQ: MDVL) is a technology-enabled pharmacy organization, providing turnkey in-clinic pharmacy services through its proprietary robotic dispensing platform, the MedAvail MedCenter, and home delivery operations, to Medicare clinics. MedAvail helps patients to optimize drug adherence, resulting in better health outcomes. Learn more at www.medavail.com.
Non-GAAP Financial Measures
MedAvail refers to certain financial measures that are not recognized under U.S. generally accepted accounting principles ("GAAP") in this press release, including adjusted EBITDA. See the schedules to this press release for additional information and reconciliations of such non-GAAP financial measures.
Forward Looking Statements
Certain statements included in this press release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "would," "plan," "predict," "potential," "seem," "seek," "future," "outlook," "project," and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding MedAvail's business strategy and market opportunity; potential future revenue projections and expectations for growth and profitability; expansion plans; margin improvement; and customer partnerships. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of MedAvail's management and are not predictions of actual performance. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements, including but not limited to risks discussed under the heading "Risk Factors" in both MedAvail’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on March 31, 2021, and its Quarterly Report on Form 10-Q, filed with the SEC on November 9, 2021, and other filings MedAvail makes with the SEC in the future. Additional information is also set forth in MedAvail’s Annual Report on Form 10-K for the year ended December 31, 2021 to be filed with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. These forward-looking statements speak only as of the date hereof and MedAvail specifically disclaims any obligation to update these forward-looking statements.





Contacts:
Investor Relations
Caroline Paul
Gilmartin Group
ir@medavail.com
SOURCE MedAvail Holdings, Inc.



MEDAVAIL HOLDINGS, INC.
Consolidated Statements of Operations and Comprehensive Loss
(In thousands, except per-share amounts)
(Unaudited)

Three Months Ended December 31,Years Ended December 31,
2021
2020 (1)
2021
2020 (1)
Revenue:
Pharmacy and hardware revenue$6,954 $3,009 $21,119 $10,596 
Service revenue326 91 1,010 3,372 
Total revenue7,280 3,100 22,129 13,968 
Cost of products sold and services:
Pharmacy and hardware cost of products sold7,562 3,250 21,306 8,593 
Service costs80 96 506 212 
Total cost of products sold and services7,642 3,346 21,812 8,805 
Operating expense:
Pharmacy operations4,068 2,195 13,496 6,146 
General and administrative5,544 5,795 22,277 15,863 
Selling and marketing2,148 1,206 7,204 3,283 
Research and development 248 150 849 682 
Merger expenses— 2,084 — 4,691 
Total operating expense12,008 11,430 43,826 30,665 
Operating loss(12,370)(11,676)(43,509)(25,502)
Other income (loss), net— (118)206 (110)
Interest income28 79 43 
Interest expense(261)(330)(589)(1,241)
Loss before income taxes(12,626)(12,096)(43,813)(26,810)
Income tax expense— — (2)— 
Net loss$(12,626)$(12,096)$(43,815)$(26,810)
Other comprehensive income (loss):
Foreign currency translation adjustment$— $24 $— $22 
Total comprehensive loss$(12,626)$(12,072)$(43,815)$(26,788)
Net loss per share - basic and diluted$(0.38)$(0.71)$(1.34)$(4.69)
Weighted average shares outstanding - basic and diluted32,85217,00332,6565,722
(1) Certain activity was reclassified to be consistent with the current presentation, see comparative tables that follow.



MEDAVAIL HOLDINGS, INC.
Operating Expense Reclassifications
(In thousands)
(Unaudited)


Three Months Ended December 31, 2020
Current presentationAs previously reportedChange
Pharmacy operations$2,195 $2,033 $162 
General and administrative5,795 6,019 (224)
Selling and marketing1,206 1,147 59 
Research and development150 149 
$9,346 $9,348 $(2)


Year Ended December 31, 2020
Current presentationAs previously reportedChange
Pharmacy operations$6,146 $5,687 $459 
General and administrative15,863 16,562 (699)
Selling and marketing3,283 3,043 240 
$25,292 $25,292 $— 




MEDAVAIL HOLDINGS, INC.
Consolidated Condensed Balance Sheets
(In thousands, except share and per-share amounts)
(Unaudited)

December 31,
20212020
Assets
Current assets:
Cash and cash equivalents$19,689 $57,936 
Restricted cash400 60 
Accounts receivable, net 1,189 1,520 
Inventories3,916 2,817 
Prepaid expenses and other current assets2,191 1,534 
Total current assets27,385 63,867 
Property, plant and equipment, net5,692 3,795 
Right-of-use assets2,538 1,239 
Other assets228 203 
Intangible assets, net2,300 227 
Total assets$38,143 $69,331 
Liabilities and Shareholders’ Equity (Deficit)
Current liabilities:
Accounts payable and accrued liabilities$6,740 $4,512 
Short-term debt— 2,161 
Deferred revenue83 275 
Current portion of lease obligations682 665 
Total current liabilities7,505 7,613 
Long-term debt9,538 — 
Long-term portion of lease obligations2,027 651 
Total liabilities19,070 8,264 
Commitments and contingencies
Stockholders' equity (deficit):
Common shares ($0.001 par value, 100,000,000 shares authorized, 32,902,048 and 31,816,020 shares issued and outstanding at December 31, 2021 and 2020, respectively)33 32 
Warrants
1,373 2,614 
Additional paid-in-capital216,685 213,624 
Accumulated other comprehensive loss(6,928)(6,928)
Accumulated deficit(192,090)(148,275)
Total shareholders’ equity19,073 61,067 
Total liabilities and shareholders’ equity$38,143 $69,331 



MEDAVAIL HOLDINGS, INC.
Supplemental Financial Information - Segments
(In thousands)
(Unaudited)
Retail Pharmacy ServicesPharmacy TechnologyTotal
Three Months Ended December 31, 2021
Revenue:
Pharmacy and hardware revenue:
Retail pharmacy revenue$6,846 $— $6,846 
Hardware— — — 
Subscription— 108 108 
Total pharmacy and hardware revenue6,846 108 6,954 
Service revenue:
Software integration— — — 
Software— 134 134 
Maintenance and support— 47 47 
Installation— — — 
Professional services and other— 145 145 
Total service revenue— 326 326 
Total revenue6,846 434 7,280 
Cost of products sold and services (1)
6,901 741 7,642 
Gross profit$(55)$(307)$(362)
(1) The pharmacy technology segment includes a provision for inventory of $626 thousand.
Retail Pharmacy ServicesPharmacy TechnologyTotal
Three Months Ended December 31, 2020
Revenue:
Pharmacy and hardware revenue:
Retail pharmacy revenue$2,532 $— $2,532 
Hardware— 353 353 
Subscription— 124 124 
Total pharmacy and hardware revenue2,532 477 3,009 
Service revenue:
Software integration— — — 
Software— 20 20 
Maintenance and support— 19 19 
Installation— 27 27 
Professional services and other— 25 25 
Total service revenue— 91 91 
Total revenue2,532 568 3,100 
Cost of products sold and services (1)
2,685 661 3,346 
Gross profit$(153)$(93)$(246)
(1) The retail pharmacy services and pharmacy technology segments include provisions for inventory of $173 thousand and $179 thousand, respectively.



MEDAVAIL HOLDINGS, INC.
Supplemental Financial Information - Segments
(In thousands)
(Unaudited)
Retail Pharmacy ServicesPharmacy TechnologyTotal
Year Ended December 31, 2021
Revenue:
Pharmacy and hardware revenue:
Retail pharmacy revenue$20,203 $— $20,203 
Hardware— 470 470 
Subscription— 446 446 
Total pharmacy and hardware revenue20,203 916 21,119 
Service revenue:
Software integration— — — 
Software— 259 259 
Maintenance and support— 161 161 
Installation— 39 39 
Professional services and other— 551 551 
Total service revenue— 1,010 1,010 
Total revenue20,203 1,926 22,129 
Cost of products sold and services (1)
20,031 1,781 21,812 
Gross profit$172 $145 $317 
(1) The pharmacy technology segment includes a provision for inventory of $626 thousand.
Retail Pharmacy Services
Pharmacy Technology (1)
Total
Year Ended December 31, 2020
Revenue:
Pharmacy and hardware revenue:
Retail pharmacy revenue$7,728 $— $7,728 
Hardware— 2,401 2,401 
Subscription— 467 467 
Total pharmacy and hardware revenue7,728 2,868 10,596 
Service revenue:
Software integration— 3,168 3,168 
Software— 44 44 
Maintenance and support— 58 58 
Installation— 55 55 
Professional services and other— 47 47 
Total service revenue— 3,372 3,372 
Total revenue7,728 6,240 13,968 
Cost of products sold and services (2)
7,744 1,061 8,805 
Gross profit$(16)$5,179 $5,163 
(1) Includes $1.5 million of hardware sales and $3.2 million of software integration sales associated with a non-recurring commercial agreement.
(2) The retail pharmacy services and pharmacy technology segments include provisions for inventory of $250 thousand and $179 thousand, respectively.



Non-GAAP Financial Measures
To supplement our consolidated condensed financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: EBITDA, and adjusted EBITDA. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
We define Adjusted EBITDA for a particular period as net (loss) income before interest, taxes, depreciation and amortization, and as further adjusted for non-recurring revenue from a commercial agreement, inventory adjustment, merger-related expenses, and stock-based compensation expense.
We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our recurring core business operating results, like one-time transaction costs related to the reverse merger. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management's internal comparisons to our historical performance and liquidity as well as comparisons to our competitors' operating results. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business.
There are a number of limitations related to the use of non-GAAP financial measures. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures and evaluating these non-GAAP financial measures together with their relevant financial measures in accordance with GAAP.




MEDAVAIL HOLDINGS, INC.
Reconciliation of GAAP to Non-GAAP Measures
(In thousands)
(unaudited)

 Three Months Ended December 31,Years Ended December 31,
2021202020212020
Net loss$(12,626)$(12,096)$(43,815)$(26,810)
Adjustments to calculate EBITDA:
Interest income(5)(28)(79)(43)
Interest expense
261 330 589 1,241 
Income tax expense
— — — 
Depreciation and amortization (1)
569 298 1,827 1,089 
EBITDA(11,801)(11,496)(41,476)(24,523)
Adjustments as follows:
Inventory adjustmnet (2)
626 352 626 429 
Non-recurring commercial agreement (3)
— — — (4,729)
Merger expenses— 2,084 — 4,691 
Share-based compensation expense257 155 1,205 380 
Adjusted EBITDA$(10,918)$(8,905)$(39,645)$(23,752)
(1) Excludes $203 thousand and $750 thousand of operating lease amortization for the three months and year ended December 31, 2021, respectively.
(2) Includes inventory cost adjustments.
(3) The year ended December 31, 2020 includes $1.5 million of hardware sales and $3.2 million of software integration revenue associated with a non-recurring commercial agreement.