Item 2.05 Costs Associated with Exit or Disposal Activities.
On February 1, 2023, Cyren Ltd. (the "Company") approved a plan to reduce the
workforce of the Company and its subsidiaries by approximately 121 employees in
the aggregate, representing substantisally all of the Company's and its
subsidiaries' total global workforce. This decision was based on cost-reduction
initiatives intended to reduce operating expenses.
The Company currently estimates that it will incur one-time cash charges of a
maximum of up to approximately $3,600,000.00 in connection with the reduction in
force, primarily consisting of accrued paid time off, notice period payments,
employee benefits and related costs. The Company expects the majority of charges
will be incurred in the first quarter of 2023, subject to local law
requirements, which may extend the process beyond the first quarter 2023 in
certain countries. The charges the Company expects to incur are subject to
assumptions, including local law requirements and availability of funds to
satisfy payment obligations, and actual charges may differ from the estimate
disclosed above.
A copy of the press release issued by the Company on February 1, 2023 announcing
the reduction in force is attached hereto as Exhibit 99.1 and incorporated
herein by reperence.
Cautionary Statements Regarding Forward-Looking Information
Certain statements in this Current Report on Form 8-K constitute
"forward-looking statements" within the meaning of the federal securities laws.
These statements are based on management's current opinions, expectations,
beliefs, plans, objectives, assumptions or projections regarding future events
or future results. These forward-looking statements are only predictions, not
historical fact, and involve certain risks and uncertainties, as well as
assumptions. Actual results, levels of activity, performance, achievements and
events could differ materially from those stated, anticipated or implied by such
forward-looking statements. While the Company believes that its assumptions are
reasonable, it is very difficult to predict the impact of known factors, and, of
course, it is impossible to anticipate all factors that could affect actual
results. There are many risks and uncertainties that could cause actual results
to differ materially from forward-looking statements made herein including the
risks discussed under the heading "Risk Factors" in the Company's Annual Report
on Form 10-K for the year ended December 31, 2021 and the Company's Quarterly
Report on Form 10-Q for the fiscal quarter ended September 30, 2022 filed with
the SEC, as well as other factors described from time to time in the Company's
filings with the SEC. Such forward-looking statements are made only as of the
date of this Current Report on Form 8-K. The Company undertakes no obligation to
publicly update or revise any forward-looking statement because of new
information, future events or otherwise, except as otherwise required by law. If
it does update one or more forward-looking statements, no inference should be
made that the Company will make additional updates with respect to those or
other forward-looking statements.
Item 2.05 Costs Associated with Exit or Disposal Activities.
(d) Exhibits.
99.1 Press Release issued by Cyren Ltd. on February 1, 2023.
104 Cover Page Interactive Data File (embedded within the Inline XBRL
document).
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