CareCloud, Inc.

Item 3. Defaults Upon Senior Securities*

On December 11, 2023, the Board of Directors suspended the monthly cash dividends for Series A Preferred Stock and Series B Preferred Stock beginning with the payment scheduled for December 15, 2023 together with the remaining dividends that were declared. The suspension of these dividends deferred approximately $1.3 million in cash dividend payments each month. Effective in September 2024, due to a change in the dividend rate on the Series A Preferred Stock, the monthly cash dividends due were reduced to approximately $1.1 million per month. Due to the conversion of the majority of the Series A Preferred Stock in March 2025, the monthly cash dividend was further reduced to approximately $455,000 per month. During February 2025, the Company resumed payment of the dividends, paying one month of dividends in arrears each in February, March and April based on the oldest dividend amount outstanding. As a result of such suspension, as of the filing date of this Quarterly Report, the Company has approximately $7.3 million of dividends in arrears. During this suspension, dividends continued to accumulate in arrears on the remaining Series A and Series B Preferred Stock. See discussion of preferred stock dividend suspension in “Note 11, Shareholders’ Equity” of the Notes to Condensed Consolidated Financial Statements in this Quarterly Report.