UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM
(
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
November 15, 2022 (
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Item 2.05. Costs Associated with Exit or Disposal Activities.
This Current Report on Form 8-K/A amends and supplements the Current Report on Form 8-K filed on August 9, 2022 (the “Original Form 8-K”) by Shift Technologies, Inc. (the “Company”) announcing the closure of 7 inventory inspection, reconditioning, and storage facilities, or “hubs,” as part of a strategic review of the business. The hub closures resulted in an estimated workforce reduction of approximately 60%. This Current Report on Form 8-K/A amends and supplements the Original Form 8-K to disclose the estimates required by paragraphs (b), (c) and (d) of Item 2.05 of Form 8-K with respect to the hub closures and workforce reduction.
As disclosed in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, filed on November 9, 2022, the restructuring was substantially completed as of September 30, 2022. The Company recorded the following restructuring charges for the three and nine months ended September 30, 2022 (in thousands):
| Three and Nine Months Ended September 30, 2022 | |||
| Losses on sales of inventory associated with restructuring | $ | 8,545 | |
| Restructuring costs related to operating leases | 3,216 | ||
| Losses on sale or disposal of property and equipment | 2,367 | ||
| Losses on early decommissioning of capitalized internal-use software | 6,498 | ||
| Severance, retention, and CEO transition | 3,667 | ||
| Labor and other costs incurred to close hubs | 4,901 | ||
| Total | $ | 29,194 | |
Of the charges detailed in the table above, $0.9 million is expected to result in future cash expenditures as of the date of this filing.
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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.
| SHIFT TECHNOLOGIES, INC. | ||
| Dated: November 15, 2022 | /s/ Jeff Clementz | |
| Name: | Jeff Clementz | |
| Title: | Chief Executive Officer | |
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