Item 1.01. Entry into a Material Definitive Agreement.
In November 2023, Cutera, Inc. (the "Company") communicated its intention not to renew its existing manufacturing service agreement (the "Manufacturing Service Agreement") with Jabil Inc. ("Jabil"), a third-party manufacturing provider that manufactures excel V+ and AviClear devices for the Company. As a result of the termination, the Company estimated that it would have an obligation to purchase unshipped inventory from Jabil. The Company subsequently received claims from Jabil related to other amounts associated with the termination and entered into settlement discussions with Jabil.
On February 28, 2024, the Company and Jabil entered into a settlement agreement related to the non-renewal of the Manufacturing Service Agreement (the "Settlement Agreement"). The Settlement Agreement provides for a payment by the Company of $19.5 million, to be offset by $1.3 million in amounts owned by Jabil. The $19.5 million payment to Jabil relates to the Company's receipt of $13.5 million of inventory and $0.3 million of equipment and the payment of $5.7 million as compensation for expenses either previously incurred by Jabil or associated with the non-renewal of the Manufacturing Service Agreement.
The foregoing description of the Settlement Agreement is not complete and is qualified in its entirety by the Settlement Agreement, which will be filed as an exhibit to the Company's periodic report for the three months ended March 31, 2024.

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Cutera Inc. published this content on 05 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 March 2024 21:20:05 UTC.