Effective October 6, 2021, Dynatronics Corporation provided notice of termination for its Master Service Agreement (“Agreement”) with Millstone Medical Outsourcing, LLC (“Millstone”) under which Millstone provided fulfillment and distribution services. The Company will exit Millstone’s facility by December 31, 2021, after which, the Agreement will be terminated. The Company agreed to pay Millstone the contractual monthly fees up through December, 2021. Management believes this action is consistent with the Company’s objective of improving gross margins and profitability following the completion of previously announced strategic actions to optimize the business by eliminating approximately 1,600 SKUs of low-margin, third-party distributed products.