MariaDB : Costs Associated with Exit/Disposal - Form 8-K

Item 2.05

Costs Associated with Exit or Disposal Activities

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On October 12, 2023, MariaDB plc (the "Company") began implementing its board-approved restructuring plan (the "Plan") to better align its workforce with the needs of its business and to reduce the Company's operating costs. The Plan includes a reduction of the Company's workforce by 84 people, or approximately 28%. The Company expects the Plan will result in (i) restructuring charges consisting of approximately $3.1 million in employee severance and notice period payments, benefits, and related costs and $0.1 million in non-cash stock-based compensation expense related to vesting of share-based awards, and (ii) cash expenditures of approximately $0.8 million to satisfy amounts owed due to earned vacation time.

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As part of the Plan, the Company will focus its attention on its core MariaDB Enterprise Server database product. Products not related to the core MariaDB Enterprise Server business, including SkySQL and Xpand, will no longer be sold and the Company has implemented a plan to help existing customers migrate off these products.

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The Company expects the majority of the restructuring charges and expenses related to the Plan to be incurred in the Company's first half of fiscal year 2024. In addition to the Plan, an estimated 13 employees are expected to be provided transition packages that will provide for continued services through various dates of the Company's fiscal year 2024.

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The above estimates of the cash expenditures and restructuring charges that the Company expects to incur in connection with the Plan, and the timing thereof, are subject to a number of assumptions and actual amounts may differ materially from estimates. For example, potential employee reductions are subject to legal requirements that vary by jurisdiction, which may extend the reduction process beyond that expected in certain cases. In addition, the Company may incur other cash expenditures or charges not currently contemplated due to unanticipated events that may occur, including in connection with the implementation of the Plan or otherwise.

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