Item 2.02 Results of Operations and Financial Condition.
On February 23, 2023, EQRx, Inc. (EQRx) issued a press release announcing its
financial results for the fourth quarter and year ended December 31, 2022. A
copy of the press release is attached hereto as Exhibit 99.1 and incorporated
herein by reference.
The information contained or incorporated in this Item 2.02, including
Exhibit 99.1 attached hereto, is being furnished and shall not be deemed "filed"
for purposes of Section 18 of the Securities Exchange Act of 1934, as amended
(the Exchange Act) or otherwise subject to the liabilities of that section, nor
shall it be deemed incorporated by reference in any filing under the Securities
Act of 1933, as amended, or the Exchange Act, except as expressly set forth by
specific reference in such a filing.
Item 2.05 Costs Associated with Exit or Disposal Activities.
On February 19, 2023, the board of directors of EQRx approved a restructuring
plan (the Plan) to further increase EQRx's operational efficiencies and
streamline expenses, including an 18% decrease in headcount by the end of the
first quarter of 2023 to approximately 300 employees, resulting from a reduction
in force as well as not filling positions following departures. These efforts
are expected to result in approximately $18.0 million in annualized cash
savings. One-time payments associated with the reduction in force are expected
to be approximately $4.0 million.
Each departing employee of EQRx has played an integral role in EQRx's commitment
to develop and expand access to innovative medicines for some of the most
prevalent disease areas, including cancer and immune-inflammatory conditions.
EQRx would like to sincerely thank its departing employees for their hard work
and dedication and wishes them well in their future endeavors.
As the Plan is implemented, EQRx's management will re-evaluate the estimated
costs set forth above and will finalize the estimated restructuring charge,
consistent with generally accepted accounting principles. The estimated costs
that EQRx expects to incur in connection with the Plan are subject to a number
of assumptions, and actual results may differ materially from these estimates.
EQRx may also incur additional costs not currently contemplated due to events
that may occur as a result of, or that are associated with, the Plan.
Forward-Looking Statements.
This Current Report on Form 8-K contains certain forward-looking statements
within the meaning of the federal securities laws. These forward-looking
statements may be identified by the use of words such as "believe," "project,"
"expect," "anticipate," "estimate," "intend," "design," "strategy," "future,"
"opportunity," "continue, "aim," "goal," "plan," "may," "look forward,"
"should," "will," "would," "will be," "will likely result," and similar
expressions. These forward-looking statements include, but are not limited to,
express or implied statements regarding expected savings and costs from the
reduction in headcount; among others. Forward-looking statements are
predictions, projections and other statements about future events that are based
on current expectations and assumptions and, as a result, are subject to risks
and uncertainties. Many factors could cause actual future events to differ
materially from the forward-looking statements in this press release, including
but not limited to the risk that the restructuring costs and charges may be
greater than anticipated or incurred in different periods than anticipated; the
risk that EQRx's restructuring efforts may adversely affect its internal
programs and its ability to recruit and retain skilled and motivated personnel,
and may be distracting to employees and management; the risk that EQRx's
restructuring efforts may negatively impact its business operations and
reputation with or ability to serve customers; and the risk that EQRx's
restructuring efforts may not generate their intended benefits to the extent or
as quickly as anticipated. The foregoing list of factors is not exhaustive. You
should carefully consider the foregoing factors and the other risks and
uncertainties described in the "Risk Factors" section in EQRx's most recent
Annual Report on Form 10-K as well as any other filings with the SEC. These
filings identify and address other important risks and uncertainties that could
cause actual events and results to differ materially from those contained in the
forward-looking statements. Forward-looking statements speak only as of the date
they are made. Readers are cautioned not to put undue reliance on
forward-looking statements, and EQRx assumes no obligation, and does not intend,
to update or revise these forward-looking statements, whether as a result of new
information, future events, or otherwise.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit
Number Description
99.1 Press Release dated February 23, 2023 (Furnished herewith)
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
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