Item 8.01. Other Events.
On June 3, 2020, Funko, Inc. ("Funko," or the "Company"), announced that in
connection with its efforts to reduce costs and preserve liquidity in response
to the uncertainty of the COVID-19 pandemic, it expects to reduce its global
workforce by approximately 25%. The Company anticipates that a majority of the
workforce reduction will occur by the end of the second quarter of 2020 and the
remainder by the end of the third quarter of 2020.
Additionally, as a result of these actions, Funko expects to incur approximately
$1 million of charges related to certain termination benefits. The Company
intends to exclude the charges related to the workforce reduction from its
non-GAAP financial metrics, including Adjusted EBITDA, Adjusted Net Income
(Loss) and Adjusted Earnings (Loss) per Diluted Share.
Forward Looking Statements
This Current Report on Form 8-K contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. All statements
contained in this Current Report on Form 8-K that do not relate to matters of
historical fact should be considered forward-looking statements, including
statements regarding our planned workforce reduction and related costs and the
anticipated impact of COVID-19 on our business, financial results and financial
condition. These forward-looking statements are based on management's current
expectations. These statements are neither promises nor guarantees, but involve
known and unknown risks, uncertainties and other important factors that may
cause our actual results, performance or achievements to be materially different
from any future results, performance or achievements expressed or implied by the
forward-looking statements, including, but not limited to, the following: our
ability to execute our business strategy and implement our planned workforce
reduction; risks related to the impact of COVID-19 on our business, financial
results and financial condition; and our ability to attract and retain qualified
employees and maintain our corporate culture. These and other important factors
discussed under the caption "Risk Factors" in our quarterly report on Form 10-Q
for the quarter ended March 31, 2020 and our other filings with the Securities
and Exchange Commission could cause actual results to differ materially from
those indicated by the forward-looking statements made in this Current Report on
Form 8-K. Any such forward-looking statements represent management's estimates
as of the date of this Current Report on Form 8-K. While we may elect to update
such forward-looking statements at some point in the future, we disclaim any
obligation to do so, even if subsequent events cause our views to change. These
forward-looking statements should not be relied upon as representing our views
as of any date subsequent to the date of this Current Report on Form 8-K.
Funko, Inc. operates as a pop culture lifestyle brand. The Company is engaged in selling a range of licensed pop culture consumer products, featuring characters from a range of media and entertainment content, including movies, TV shows, video games, music and sports. Its products are principally figures, fashion accessories, apparel, plush products, accessories, homewares, and non-fungible tokens (NFTs). Its products combine its brands and designs and aesthetic sensibilities into properties it licenses from content providers. In addition to offering multiple properties and product categories, it creates and sells a variety of brands that have their own look and feel. The Company's brand portfolio includes Core Collectibles (which include Pop! Vinyl, as well as other branded lines such as Soda, Bitty Pop!, and Pop! Yourself), Loungefly (softlines including bags, wallets, backpacks and apparel) and Other (which includes brands, such as Digital Pop! and Mondo).
FUNKO, INC. 
