OneSpan Inc. Amends Exit/Disposal Cost Filing

TL;DR

OneSpan filed an amendment on exit/disposal costs, originally from Aug 2023. Details are light.

AI Summary

OneSpan Inc. filed an amendment (8-K/A) on March 4, 2024, to its report originally filed on August 3, 2023. This amendment pertains to cost associated with exit or disposal activities. The filing does not disclose specific dollar amounts or detailed reasons for these costs.

Why It Matters

This amendment clarifies costs related to business restructuring or asset disposals, which can impact the company's financial performance and future operational strategy.

Risk Assessment

Risk Level: medium — Amendments to financial filings can indicate previously undisclosed or changing financial circumstances, requiring closer investor scrutiny.

Key Players & Entities

• OneSpan Inc. (company) — Registrant
• 0001628280-24-008570 (filing_id) — Accession Number
• March 4, 2024 (date) — Filing Date
• August 3, 2023 (date) — Earliest Event Reported Date

FAQ

Key Financial Figures

• $13 million — y now estimates that it will incur from $13 million to $15 million in total restructuring c
• $15 million — that it will incur from $13 million to $15 million in total restructuring charges associat
• $20 million — preliminary estimate of $15 million to $20 million set forth in the Original 8-K. Of the T
• $11 — nal 8-K. Of the Total Expected Charges, $11 to $12 million and $2 to $3 million, re
• $12 million — . Of the Total Expected Charges, $11 to $12 million and $2 to $3 million, respectively, are
• $2 — xpected Charges, $11 to $12 million and $2 to $3 million, respectively, are expect
• $3 m — d Charges, $11 to $12 million and $2 to $3 million, respectively, are expected to be
• $9 million — ges. The Company incurred approximately $9 million of the Total Expected Charges in 2023.
• $0.7 million — 23. With the exception of approximately $0.7 million of the Vendor-Related Charges, all of t

Filing Documents

• ospn-20230803.htm (8-K/A) — 28KB
• 0001628280-24-008570.txt ( ) — 155KB
• ospn-20230803.xsd (EX-101.SCH) — 2KB
• ospn-20230803_lab.xml (EX-101.LAB) — 24KB
• ospn-20230803_pre.xml (EX-101.PRE) — 13KB
• ospn-20230803_htm.xml (XML) — 3KB

05 Costs Associated with Exit or Disposal Activities

ITEM 2.05 Costs Associated with Exit or Disposal Activities As reported in the Original Form 8-K, on August 3, 2023, the Board of Directors of the Company approved cost reduction actions (the "Actions") intended to achieve greater operational efficiency, drive higher levels of Adjusted EBITDA, and strengthen the Company's ability to create value for its shareholders over the long term. The Company has incurred and expects to continue to incur restructuring charges in connection with the Actions. These restructuring charges consist primarily of charges related to employee transition and severance payments and employee benefits (together, the "Workforce-Related Charges"), with a significantly smaller amount of charges relating to vendor contract termination and rationalization actions (the "Vendor-Related Charges"). The Company now estimates that it will incur from $13 million to $15 million in total restructuring charges associated with the Actions (the "Total Expected Charges"), as compared to its preliminary estimate of $15 million to $20 million set forth in the Original 8-K. Of the Total Expected Charges, $11 to $12 million and $2 to $3 million, respectively, are expected to be Workforce-Related Charges and Vendor-Related Charges. The Company incurred approximately $9 million of the Total Expected Charges in 2023. With the exception of approximately $0.7 million of the Vendor-Related Charges, all of the Total Expected Charges have resulted or are expected to result in future cash expenditures. The workforce related component of the Actions is expected to be substantially complete by mid-2024, subject to local law and consultation requirements. The vendor contract component of the Actions is planned for completion by the end of 2025. The Company has, and plans to continue to, exclude the charges associated with the Actions from its Adjusted EBITDA non-GAAP financial measure. The Company defines Adjusted EBITDA as net income (loss) before interest, taxes, d

Forward Looking Statements

Forward Looking Statements This Form 8-K contains forward-looking statements within the meaning of applicable U.S. securities laws, including statements regarding the outcomes the Company expects from the Actions, including the ability of the Actions to achieve greater operational efficiency, drive higher levels of Adjusted EBITDA, and strengthen the Company's ability to create value for its shareholders over the long term, and statements regarding the types, amounts and completion timing of the restructuring charges the Company anticipates from the Actions. Forward-looking statements may be identified by words such as "seek", "believe", "plan", "estimate", "anticipate", "expect", "intend", "continue", "outlook", "may", "will", "should", "could", "confident", or "might", and other similar expressions. These forward-looking statements involve risks and uncertainties, as well as assumptions that, if they do not fully materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. Important factors that could materially affect our business and financial results include, but are not limited to factors described in the "Risk Factors" section of the Company's most recent Annual Report on Form 10-K, as updated by the "Risk Factors" section of the Company's Quarterly Report on Form 10-Q for the quarters ended June 30, 2023 and September 30, 2023. The Company does not have any intent, and disclaims any obligation, to update the forward-looking information to reflect events that occur, circumstances that exist or changes in its expectations after the date of this Form 8-K, except as required by law. SIGNATURE 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. Date: March 4, 2024 OneSpan Inc. /s/ Jorge Martell Jorge Martell Chief Financial Officer (Princip

View Full Filing

View this 8-K/A filing on SEC EDGAR