Ginkgo Bioworks Files Amendment on Exit Costs

TL;DR

Ginkgo Bioworks amended its filing on exit costs from May 9th. Details TBD.

AI Summary

Ginkgo Bioworks Holdings, Inc. filed an amendment (8-K/A) on May 9, 2024, to a previous report concerning costs associated with exit or disposal activities. The filing does not provide specific dollar amounts or details regarding the nature of these exit or disposal activities.

Why It Matters

This amendment clarifies or updates information regarding costs associated with the company's restructuring or divestitures, which could impact future financial performance.

Risk Assessment

Risk Level: medium — Amendments to SEC filings can indicate evolving business situations or a need for clarification, potentially signaling underlying issues.

Key Players & Entities

• Ginkgo Bioworks Holdings, Inc. (company) — Registrant
• May 9, 2024 (date) — Date of earliest event reported
• 001-40097 (other) — SEC File Number
• Delaware (location) — State of Incorporation

FAQ

Key Financial Figures

• $0.0001 — stered Class A common stock, par value $0.0001 per share DNA NYSE Warrants to purchas
• $11.50 — mon stock, each at an exercise price of $11.50 per share DNA.WS NYSE Indicate by che
• $12 million — 4 will result in cash costs of at least $12 million in severance and related separation cos

Filing Documents

• dna-20240509.htm (8-K/A) — 29KB
• 0001628280-24-029635.txt ( ) — 195KB
• dna-20240509.xsd (EX-101.SCH) — 2KB
• dna-20240509_def.xml (EX-101.DEF) — 16KB
• dna-20240509_lab.xml (EX-101.LAB) — 28KB
• dna-20240509_pre.xml (EX-101.PRE) — 16KB
• dna-20240509_htm.xml (XML) — 4KB

05. Costs Associated with Exit or Disposal Activities

Item 2.05. Costs Associated with Exit or Disposal Activities. As previously announced, on May 9, 2024, in connection with the Company's multi-year plan to reduce operational expenditures, management approved a plan for restructuring actions, including an expected reduction in labor expenses of at least 25% and a planned consolidation of certain of its facilities. On June 17, 2024, the Company, with approval of its Board of Directors, began implementing its restructuring plan with headcount reductions, which the Company expects to result in a total reduction of at least 35% of the workforce when all impacted employees have departed. The Company continues to expect the headcount reductions to be substantially completed in 2025, subject to local laws. The aggregate expected costs and overall timing for completion of the restructuring plan is not yet fully known; however, the Company expects the initial headcount reductions in June 2024 will result in cash costs of at least $12 million in severance and related separation costs. The Company will provide further details at its earnings call for the second quarter of 2024 and its Quarterly Report on Form 10-Q for the three months ending June 30, 2024, and by amendment to this Current Report on Form 8-K at such time as it is able to estimate the total costs the Company expects to incur.

Forward-Looking Statements

Forward-Looking Statements Item 2.05 of this Current Report on Form 8-K contains certain forward-looking statements within the meaning of the federal securities laws, including statements related to the Company's expected operating expense reductions, the expected timing and effect of such reduction, the charges and financial impact associated with such reductions, and the timing of headcount reductions. These forward-looking statements generally are identified by the words "believe," "can," "project," "potential," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions. 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 Current Report on Form 8-K, including but not limited to: (i) our ability to realize near-term and long-term cost savings associated with our site consolidation plans, including the ability to terminate leases or find sub-lease tenants for unused facilities, (ii) volatility in the price of the Company's securities due to a variety of factors, including changes in the competitive and highly regulated industries in which the Company operates and plans to operate, variations in performance across competitors, and changes in laws and regulations affecting the Company's business, (iii) the ability to implement business plans, forecasts, and other expectations, and to identify and realize additional business opportunities, (iv) the risk of downturns in demand for products using synthetic biology, (v) the uncertainty regarding the demand for passive monitoring programs and biosecurity services, (vi) changes to the biosecurity industry, including due

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. GINKGO BIOWORKS HOLDINGS, INC. Date: June 24, 2024 By: /s/ Mark Dmytruk Name: Mark Dmytruk Title: Chief Financial Officer

View Full Filing

View this 8-K/A filing on SEC EDGAR