Item 2.05 Costs Associated with Exit or Disposal Activities.
On January 11, 2023, Butterfly Network, Inc. (the "Company") announced that on
January 4, 2023, the Company's Board of Directors approved a plan designed to
further improve the Company's efficiency by reducing operating expenses and
extending liquidity. In addition to decreasing other operating expenses, the
plan includes a reduction in force representing approximately 25% of the
Company's workforce. The Company estimates that it will incur between
approximately $5 million to $6 million of cash charges related to employee
severance and benefits costs, substantially all of which the Company expects to
incur in the first and second quarters of 2023. The estimates of costs and
expenses that the Company expects to incur in connection with the workforce
reduction are subject to a number of assumptions and actual results may differ
materially. The Company may also incur additional costs not currently
contemplated due to events that may occur as a result of, or that are associated
with, the workforce reduction.
Safe Harbor Statement
Certain statements contained herein, regarding matters that are not historical
facts, may be forward-looking statements (as defined in the Private Securities
Litigation Reform Act of 1995). Such forward-looking statements include
statements regarding management's intentions, plans, beliefs, expectations or
forecasts for the future, including with respect to the organizational
restructuring. The reader is cautioned not to rely on these forward-looking
statements. These forward-looking statements are based on current expectations
of future events. If the underlying assumptions prove inaccurate or known or
unknown risks or uncertainties materialize, actual results could vary materially
from the expectations and projections of the Company. These risks and
uncertainties can be found in the Company's most recently filed Annual Report on
Form 10-K, as amended, for the fiscal year ended December 31, 2021, as
supplemented by any subsequently filed Quarterly Reports on Form 10-Q. Copies of
these filings are available online at www.sec.gov, www.butterflynetwork.com or
on request from the Company. Forward-looking statements included herein speak
only as of the date hereof and the Company undertakes no obligation to revise or
update such statements to reflect the occurrence of events or circumstances
after the date hereof.
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