APGT Appgate Inc (PK)

In order to align its strategy with market conditions to support its long-term success, Appgate, Inc., a Delaware corporation (the “Company,” “we,” “us” or “our”), committed to a reduction in force (the “Reduction”), comprising approximately an aggregate of 130 employees and contractors (approximately 22% of our workforce). We commenced the Reduction on July 21, 2022 upon notification to certain affected employees and contractors, and we completed notification of all affected employees and contractors on July 25, 2022. The Reduction has now been substantially completed. In connection with the Reduction, we estimate that we will incur approximately $1.7 million of costs and expenses, primarily comprising severance and termination-related costs, which we expect to recognize in the third quarter of 2022.

Forward-Looking Statements

This Item 2.05 contains forward-looking statements that are intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995, as amended. Forward looking statements are statements that are not historical facts. Words such as “expects,” “believes,” “will,” “may,” “anticipates,” “intends,” “plans,” “estimates,” “seek,” “predict,” “project,” “potential” or the negatives of these terms or variations of them or similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, statements regarding the anticipated benefits of the Reduction, the anticipated timing and details of the reduction in workforce and expected charges and costs associated with the reduction in workforce that we expect to incur. These statements are based on current expectations, estimates and projections about our business based, in part, on assumptions made by management, and are subject to a number of risks and uncertainties. Factors that could cause actual results to differ materially from current expectations include possible changes in the expected costs and charges associated with the Reduction, and risks associated with our ability to achieve the expected benefits of the Reduction and realignment of our resources. Additionally, these forward-looking statements should be considered in conjunction with the cautionary statements and risk factors described in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 31, 2022, as updated by any subsequent filings which we make with the SEC.