Item 2.05. Costs Associated with Exit or Disposal Activities.
On September 9, 2022, Palisade Bio, Inc. (the “Company”), in order to better
utilize the Company’s resources on the implementation of its refocused clinical
programs and corporate strategy, committed to a cost-reduction plan. This
cost-reduction plan included a reduction in force to better align the Company’s
resources on its clinical studies, including its lead asset, LB1148.
As a result of the reduction in force, the Company estimates that it will pay an
aggregate of $ $380,148 in cash pursuant to the Company’s normal payroll
practices, consisting of (i) $ $307,588 in severance payments and benefits
pursuant to employment agreements, (ii) $72,560 in severance payments and
benefits pursuant to the potential execution of severance and release
agreements. The Company anticipates that the reduction in force will result in
annual cost savings of approximately $773,000 after payment of the foregoing
severance benefits. The Company expects to substantially complete the payment of
the employee severance and benefits incurred by the end of the first quarter of
In additional to the reduction in force, the Company’s initiative also
identified certain other cost cutting opportunities that may result in
additional annual savings of up to $800,000 without impacting its clinical
Item 7.01 Regulation FD Disclosure.
On September 15, 2022, we announced the reduction in force and cost reduction
plan via a press release. A copy of the press release is attached to this report
as Exhibit 99.01.
The information contained in this Item 7.01 to this Current Report on Form 8-K
and the exhibit attached hereto pertaining to this item shall not be deemed to
be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), or otherwise subject to the liabilities of that
section, nor shall such information or such exhibits be deemed incorporated by
reference in any filing under the Securities Act of 1933, as amended, or the
Exchange Act, except as shall be expressly set forth by specific reference in
such a filing. The information set forth in the exhibits to this Form 8-K
relating to this item 7.01 shall not be deemed an admission as to the
materiality of any information in this report that is required to be disclosed
solely to satisfy the requirements of Regulation FD.
Item 9.01. Financial Statements and Exhibits.
Exhibit No. Description 99.01 Press Release dated September 15, 2022 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
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