Big Token Inc (fka BGTK)

[I ll be back]

Yes, if you were not part of Brite Pool, you're FIRED!

Item 2.05 Costs Associated with Exit or Disposal Activities

Between January 31, 2022 and February 3, 2022, BIGtoken, Inc. (the ?Company?), notified thirty-five (35) employees that they would be terminated on February 15, 2022, in connection with a reduction in force. As a result, the Company anticipates terminating twelve (12) employees in the United States and twenty-three (23) in its Mexico offices (the ?Terminations?). As a result of the Terminations, the Company will (i) reduce its workforce by approximately seventy percent 70% in total and (ii) reduce its annual payroll by $2.09 million or approximately fifty seven percent (57%). The Terminations, which will be effective February 15, 2022, were part of a broad set of cost-saving measures implemented by new management subsequent to the completion of its merger with BritePool, Inc. that closed on November 30, 2021. The Company estimates that the pre-tax costs for the Terminations will be in the range of $80,000 to $150,000, substantially all of which are related to employee severance (the ?Severances?), which the Company expects to record in the quarter ending March 31, 2022. The Company does not anticipate any future cash expenditures beyond the payment of the Severances.

My take on this is positive at the "moment" and depends on the business model going forward. Shareholders need more clarity to confirm revenues can grow with a restructuring.

It will also be interesting to see if the company still needs the capital that was discussed in the 4th Q.

Wouldn't downplay this move just "yet", don't underestimate SRAX.