Core Viewpoint - DOOR, formerly known as Latch, Inc., is making progress towards regaining its current SEC reporting status, with the filing of its Q2 2025 report and plans to file its Q3 2025 report in early 2026 [1][3]. Financial Performance - The company reported a total revenue of $19.1 million for Q2 2025, reflecting a 47% year-over-year increase from $12.9 million in Q2 2024 [5][7]. - Operating expenses decreased by 34% to $15.8 million in Q2 2025, down from $23.6 million in Q2 2024 [5][7]. - The net loss improved by 54%, amounting to $(7.8) million in Q2 2025 compared to $(16.9) million in Q2 2024 [5][7]. - Adjusted EBITDA for Q2 2025 was $(5.7) million, a 24% improvement from $(7.5) million in Q2 2024 [5][7]. Business Metrics - Software revenue for Q2 2025 was $5.2 million, a 4% increase from $5.0 million in Q2 2024 [6][7]. - For the first half of 2025, total revenue reached $34.8 million, a 39% increase from $25.0 million in the first half of 2024 [6][7]. - The company continues to focus on efficiency and disciplined execution to enhance its financial performance [5]. Company Overview - DOOR is positioned as a Building Intelligence company, integrating hardware, software, and automated services to improve building operations [8]. - The company is headquartered in St. Louis and serves various stakeholders in residential portfolios and purpose-built communities [8]. - The transition to the new brand is ongoing, with shares currently trading under the symbol "LTCH" [2][8].

Financial Performance - Software revenue for Q2 2025 was $5,244,000, a 4.4% increase from $5,022,000 in Q2 2024[145] - Total revenue for Q2 2025 reached $19,055,000, representing a 47.3% increase from $12,938,000 in Q2 2024[145] - Net loss for Q2 2025 improved to $(7,849,000), a 53.7% reduction from $(16,937,000) in Q2 2024[145] - Adjusted EBITDA for Q2 2025 was $(5,689,000), a 24.3% improvement from $(7,519,000) in Q2 2024[145] - Total revenue for the first half of 2025 was $34,829,000, a 39.5% increase from $24,973,000 in the same period of 2024[146] - Net loss for the first half of 2025 was $(19,099,000), a 37.5% improvement from $(30,574,000) in the first half of 2024[146] - Total revenue increased by $6.1 million (47.3%) for the three months ended June 30, 2025, compared to the same period in 2024, primarily driven by a $5.6 million increase in professional services revenue[173] - Net loss for the three months ended June 30, 2025, was $7.8 million, a 53.7% improvement from a net loss of $16.9 million in 2024[171] - Total revenue for the six months ended June 30, 2025, was $34.8 million, a 39.5% increase from $25.0 million in 2024[180] Professional Services - Professional services revenue is generated through project-based hardware installation, technology services, and property management services[155] - Professional services revenue for the three months ended June 30, 2025, was $7.9 million, a 238.4% increase from $2.3 million in 2024[171] - Professional services revenue for the six months ended June 30, 2025, increased by $9.8 million (208.7%) compared to the same period in 2024[182] Operating Expenses - Total operating expenses decreased by $7.9 million (33.5%) for the three months ended June 30, 2025, compared to the same period in 2024[171] - Research and development expenses increased by $1.5 million (51.5%) for the three months ended June 30, 2025, compared to the same period in 2024[175] - Sales and marketing expenses increased by $1.9 million (84.3%) for the three months ended June 30, 2025, compared to the same period in 2024[176] - General and administrative expenses decreased by $10.9 million (65.0%) for the three months ended June 30, 2025, compared to the same period in 2024[177] - Research and development expenses increased by $2.9 million for the six months ended June 30, 2025, primarily due to a $1.6 million increase in third-party expenses and a $1.0 million increase in compensation expenses[184] - Sales and marketing expenses rose by $3.0 million for the six months ended June 30, 2025, mainly driven by a $2.1 million increase in compensation expenses and a $0.5 million increase in digital marketing expenses[185] - General and administrative expenses decreased by $14.9 million for the six months ended June 30, 2025, due to reductions in legal fees, RSU expenses, and consulting fees[186] Cash Flow and Financing - As of June 30, 2025, the company's unrestricted cash and cash equivalents were approximately $50.4 million, with an additional $31.8 million in net inventory[190][191] - Net cash used in operating activities decreased by $21.2 million for the six months ended June 30, 2025, compared to the same period in 2024[203] - Net cash provided by investing activities decreased by $58.8 million for the six months ended June 30, 2025, primarily due to the use of investment proceeds to fund operating losses[206] - Net cash used in financing activities decreased by $21.4 million for the six months ended June 30, 2025, reflecting a significant reduction in repayments compared to the previous year[207] - The company entered into a loan agreement for a principal amount of $6.0 million, with interest payable at a rate equal to the greater of the prime rate or 6.0%[198] - The company expects to use its current cash and cash equivalents to fund operational cash requirements for at least 12 months from the date of the report[196] Product and Service Expansion - The company is expanding its DOOR Platform to include broader smart home solutions, integrating devices such as sensors, thermostats, and lighting[139] - The company operates a nationwide network of technicians through HelloTech, providing on-demand technical services and home services[142]

Financial Performance - Total revenue for Q1 2025 was $15.8 million, representing a 31% year-over-year increase[5] - Software revenue reached $5.2 million, a 2% year-over-year increase[5] - Operating expenses decreased by $1.8 million, a 9% year-over-year improvement[5] - Net loss for Q1 2025 was $(11.3) million, an 18% year-over-year improvement[5] - Adjusted EBITDA for Q1 2025 was $(7.4) million, a 22% year-over-year decrease[5] Liquid Assets and Cash Flow - As of December 31, 2025, total liquid assets were approximately $34.7 million, a decrease of $40.7 million from December 31, 2024[7] - The decrease in liquid assets was partly due to $18.9 million in outflows related to legal fees and settlements[7] - The company anticipates that total cash outflows from operating and non-recurring activities will be significantly lower in 2026 compared to 2025[7] Strategic Focus and Risks - The company is focused on completing its SEC filings and advancing the DOOR platform to enhance long-term value for stakeholders[4] - The company continues to operate under the legal name Latch, Inc., with shares trading under the symbol "LTCH" until a corporate name update is made[15] - The Company emphasizes the importance of implementing its business plans to achieve revenue forecasts[27] - There are potential risks including unexpected delays and expenditures that could impact future performance[27] - The Company does not guarantee that it will meet its expectations as outlined in forward-looking statements[27]

Financial Performance - Software revenue for Q1 2025 was $5,159,000, a 2.4% increase from $5,037,000 in Q1 2024[149] - Total revenue for Q1 2025 reached $15,774,000, representing a 31.1% increase from $12,035,000 in Q1 2024[149] - Net loss for Q1 2025 was $11,250,000, a reduction of 17.5% compared to a net loss of $13,637,000 in Q1 2024[149] - Adjusted EBITDA for Q1 2025 was $(7,384,000), compared to $(6,077,000) in Q1 2024, reflecting a 21.5% increase in losses[149] - Total revenue for the three months ended March 31, 2025, increased by $3.7 million, or 31.1%, compared to the same period in 2024, driven primarily by a $4.2 million increase in professional services revenue[172] - The net loss for the three months ended March 31, 2025, was $11.3 million, a decrease of $2.4 million, or 17.5%, compared to the same period in 2024[172] Revenue Breakdown - Hardware revenue is generated from the sale of smart access and smart home devices, recognized upon transfer of control to customers[154] - Professional services revenue includes project-based hardware installation, technology services through HelloTech, and property management services[157] - Professional services revenue rose by 179.3% to $6.6 million for the three months ended March 31, 2025, largely due to the acquisition of HelloTech[173] Costs and Expenses - Total cost of revenue increased by $2.7 million, or 48.6%, for the three months ended March 31, 2025, primarily due to a $2.2 million rise in professional services costs[175] - Research and development expenses increased by $1.4 million, or 34.1%, for the three months ended March 31, 2025, mainly due to a rise in third-party expenses[176] - General and administrative expenses decreased by $3.9 million, or 33.1%, for the three months ended March 31, 2025, due to reductions in various non-ordinary course expenses[178] Cash Flow and Liquidity - As of March 31, 2025, the company's unrestricted cash and cash equivalents were approximately $64.7 million[182] - The company had approximately $33.5 million in net inventory as of March 31, 2025[183] - Net cash used in operating activities for Q1 2025 was $(10,137) thousand, a decrease of $21.0 million compared to $(31,100) thousand in Q1 2024[197] - Net cash used in investing activities was $(935) thousand in Q1 2025, a significant decrease of $46.1 million from net cash provided of $45,162 thousand in Q1 2024[198] - Net cash used in financing activities was $(223) thousand in Q1 2025, with no financing activities reported in Q1 2024[199] - The company experienced a $20.6 million reduction in cash outflows related to litigation and restructuring activities in Q1 2025[197] - Management is focusing on cost discipline, inventory management, and liquidity preservation to reduce operating cash usage[197] - The company expects to use its current cash and cash equivalents and available-for-sale securities to fund operational cash requirements for at least 12 months from the date of the report[189] Legal and Regulatory Matters - The company is involved in ongoing litigation and legal disputes, with non-ordinary course legal fees impacting financial results[156] - There were no off-balance sheet arrangements as of March 31, 2025, that could materially affect the company's financial condition[201] - No material changes were reported in critical accounting estimates since the 2024 Annual Report[202] - The company did not incur any significant market risk disclosures as it qualifies as a smaller reporting company[204] Leadership Changes - The company has appointed new executive leadership, including David Lillis as CEO and Jeff Mayfield as CFO, effective February 6, 2025[147] Supply Chain and Cost Expectations - The company expects hardware costs to align with revenue, influenced by supply chain constraints and shipping cost volatility[161]

Accessibility StatementSkip Navigation 21% more press release views with Request a Demo Shareholders should contact the firm immediately as there may be limited time to enforce your rights. NEW YORK, Nov. 30, 2025 /PRNewswire/ -- Halper Sadeh LLC, an investor rights law firm, is investigating whether certain officers and directors of Latch, Inc. (OTCMKTS: LTCH) breached their fiduciary duties to shareholders. If you currently own Latch stock and are a long-term shareholder, you may be able to seek corpora ...

Financial Performance - Total revenue for 2024 increased by 26% year-over-year to $56.6 million, with software revenue reaching $20.3 million, a 14% increase[5] - Operating expenses were reduced by $38.2 million, representing a 31% year-over-year improvement, contributing to a 41% improvement in Adjusted EBITDA[4] - Net loss for 2024 improved by $49.9 million, or 46%, to $(57.6) million compared to the previous year[5] - Adjusted EBITDA for 2024 was $(40.7) million, a $27.7 million improvement or 41% year-over-year[5] - For the nine months ended September 30, 2025, preliminary revenues are estimated to have increased by at least 20% compared to the same period in 2024[6] Cash and Inventory - As of September 30, 2025, total preliminary cash and cash equivalents were approximately $44.1 million, a decrease of $31.3 million from December 31, 2024[7] - The company had approximately $29.2 million in net inventory as of September 30, 2025, after accounting for excess and obsolete inventory reserves of $11.6 million[7] Legal and Compliance - Legal fees and settlements related to ongoing stockholder litigation and SEC investigation contributed to cash outflows of approximately $15.6 million[8] - The company continues to work on becoming current with its SEC filing obligations, with the 2024 Reports marking a key milestone[2] Risks and Uncertainties - The Company emphasizes the importance of considering various risks and uncertainties that could impact revenue forecasts, including unexpected delays and expenditures[26] - Forward-looking statements are made with caution, and the Company does not guarantee that it will meet its expectations[26] - The Company will not update or revise forward-looking statements unless required by law, highlighting the inherent uncertainties in financial projections[26] - The Company advises readers to avoid placing undue reliance on forward-looking statements due to potential variances from actual results[26] - The risks and uncertainties are detailed in the "Risk Factors" section of the 2024 Annual Report and other SEC filings[26] - The Company acknowledges that actual events and results may differ materially from those projected in forward-looking statements[26] - The Company does not assume any obligation to update forward-looking statements based on new information or future events[26] - The Company highlights that the list of factors affecting performance is not exhaustive, indicating a complex operating environment[26] - The Company is subject to various external factors that could influence its financial performance[26] - The Company encourages stakeholders to review its SEC filings for a comprehensive understanding of potential risks[26] Brand Transition - The transition to the new brand, DOOR, is well underway, focusing on innovation and operational excellence[4]

Core Insights - DOOR, formerly known as Latch, Inc., has filed its 2024 Annual Report and Quarterly Reports with the SEC, marking a significant step towards regaining current SEC reporting status [1][2][3] Financial Performance - In 2024, DOOR achieved a total revenue of $56.6 million, representing a 26% year-over-year increase, while software revenue reached $20.3 million, a 14% increase from the previous year [4][5] - The company reduced operating expenses by $38.2 million, a 31% improvement year-over-year, leading to a net loss of $(57.6) million, which is a 46% improvement compared to the previous year's loss [5][6] - Adjusted EBITDA for 2024 was $(40.7) million, reflecting a 41% year-over-year improvement [5][6] Preliminary 2025 Estimates - For the nine months ending September 30, 2025, DOOR estimates a preliminary revenue increase of at least 20% compared to the same period in 2024, indicating strong business model maturity and demand for its platform [3][6] - As of September 30, 2025, DOOR's preliminary cash and cash equivalents are estimated at approximately $44.1 million, with net inventory around $29.2 million [6][8] Liabilities and Cash Flow - DOOR has current and non-current liabilities, including a $6.0 million term loan maturing in 2029, but the total liabilities will be clarified once the company is current with its SEC filings [7][8] - Liquid Assets decreased by approximately $31.3 million from December 31, 2024, to September 30, 2025, primarily due to legal fees and restructuring costs [8][9] Business Strategy and Outlook - The company is focused on innovation, operational excellence, and sustainable growth as it transitions to the DOOR brand [3][13] - DOOR anticipates that total cash outflows from operating and non-recurring activities will be significantly lower in 2025 compared to 2024, despite ongoing elevated expenses related to litigation and SEC investigations [8][9]

Revenue Performance - Software revenue increased by 14.0% to $20,255,000 in 2024 from $17,775,000 in 2023[318] - Total revenue rose by 26.0% to $56,630,000 in 2024 compared to $44,961,000 in 2023[318] - Total revenue increased by $11.7 million to $56.63 million for the year ended December 31, 2024, a 26.0% increase compared to 2023[343] - Professional services revenue rose by $10.6 million, driven by $8.3 million from HelloTech and $2.4 million from DPM, both new revenue sources in 2024[343] - Hardware revenue decreased by $1.5 million to $18.29 million, a 7.4% decline, despite an increase in hardware shipments[343] Financial Performance - Net loss improved by 46.4%, decreasing to $(57,596,000) in 2024 from $(107,540,000) in 2023[318] - Adjusted EBITDA showed a significant improvement, narrowing to $(40,741,000) in 2024 from $(68,459,000) in 2023, a 40.5% reduction[318] - Net loss improved by $49.94 million to $57.60 million, a 46.4% reduction compared to the previous year[343] Cost Management - Total cost of revenue decreased by $1.0 million to $31.64 million, a 3.1% decline, primarily due to an $8.8 million reduction in hardware costs[344] - Research and development expenses decreased by $16.5 million to $17.32 million, a 48.7% reduction, mainly due to lower personnel-related expenses[345] - General and administrative expenses decreased by $21.7 million to $44.47 million, a 32.8% decline, largely due to reduced personnel-related and consulting expenses[347] Cash Flow and Liquidity - The Company had approximately $75.4 million in unrestricted cash and cash equivalents as of December 31, 2024[352] - The Company incurred a net cash used in operating activities of $75.4 million in 2024, an increase of $9.8 million compared to $65.6 million in 2023[371] - Net cash provided by investing activities increased by $22.4 million in 2024, totaling $72.9 million, primarily due to a $106.9 million decrease in purchases of available-for-sale securities[372] - The Company is closely monitoring its cash flow forecast and may implement cost-saving measures to preserve liquidity[360] Debt and Financing - The company repaid $23.9 million in principal and accrued interest on promissory notes in April 2024[357] - The Company repaid $22.0 million in Promissory Notes during the year ended December 31, 2024, with no financing activities conducted in 2023[373] - The Company entered into a Loan Agreement with Customers Bank for a term loan of $6.0 million on July 15, 2024, with a maturity date of July 15, 2029[365] - The Borrowers are required to maintain a liquidity ratio of at least 4.00, tested monthly, under the Loan Agreement[367] Asset Valuation - As of December 31, 2024, the Company reported goodwill of $30.2 million and intangible assets of $2.6 million, compared to $25.3 million and $4.8 million, respectively, as of December 31, 2023[390] - The Company's business enterprise value (BEV) was determined to be $68.5 million as of December 31, 2024, with an equity fair value (Equity FV) of $135.7 million, exceeding the carrying value by $24.5 million, or 22.1%[394] - The Company conducted an annual impairment test of goodwill, determining that no impairment was necessary as of December 31, 2024, as the Equity FV exceeded the carrying value[396] - For the year ended December 31, 2023, the Company reported an Equity FV of $204.0 million, exceeding the carrying value of $169.1 million by $34.9 million, or 20.6%[397] Market Capitalization - The Company's market capitalization as of December 31, 2023, was $118.1 million, approximately 73% less than the Equity FV of $204.0 million, attributed to low trading volume and stock price volatility[398] - A sensitivity analysis indicated a fair value of $192.5 million as of December 31, 2023, exceeding the carrying value by $23.4 million, or 14%, confirming no goodwill impairment[399] Legal and Regulatory Matters - The Company is subject to various legal proceedings and claims, with accruals for contingencies based on an analysis of potential exposure and legal advice[401] Business Operations - The company operates in one segment, focusing on the multifamily rental market in the United States and Canada[316] - The company is expanding its DOOR Platform to include broader smart home solutions, integrating devices such as sensors and thermostats[312] - The HelloTech business provides a nationwide network of independent technicians for on-demand technical services, enhancing customer support[315] - Hardware revenue is generated primarily from the sale of smart access and smart home devices, with revenue recognized upon transfer of control to customers[324] - The company maintains a full valuation allowance on deferred tax assets, indicating uncertainty in utilizing these assets[339] Interest Income and Expense - Interest income decreased to $5,892,000 in 2024 from $8,099,000 in 2023, while interest expense also decreased to $(4,476,000) from $(5,790,000)[338]

Financial Performance - Software revenue for Q3 2024 was $5.077 million, an increase of 8.9% from $4.660 million in Q3 2023[264] - Total revenue for Q3 2024 reached $14.943 million, representing a 54.5% increase from $9.673 million in Q3 2023[264] - Net loss for Q3 2024 improved to $(17.056) million, a reduction of 37.5% compared to $(27.278) million in Q3 2023[264] - Adjusted EBITDA for Q3 2024 was $(12.409) million, a slight improvement of 7.7% from $(13.444) million in Q3 2023[264] - Total revenue for the nine months ended September 30, 2024, increased by $8.9 million (28.8%) to $39.9 million compared to $31.0 million in 2023, driven by a $5.8 million increase in professional services revenue, a $2.1 million increase in software revenue, and a $1.0 million increase in hardware revenue[299] - Net loss for the nine months ended September 30, 2024, was $47.6 million, a reduction of $43.4 million (47.7%) compared to a net loss of $91.1 million in 2023[299] - Basic and diluted net loss per common share improved to $0.30 for the nine months ended September 30, 2024, compared to $0.62 in 2023, reflecting a 51.6% improvement[299] Revenue Breakdown - Professional services revenue surged by 247.9% to $6.3 million, driven by $4.1 million from HelloTech and $0.8 million from DPM[290] - Hardware revenue rose by 12.3% to $3.6 million, while software revenue increased by 8.9% to $5.1 million[288] - Total revenue for the three months ended September 30, 2024, increased by $5.3 million to $14.9 million, a 54.5% increase compared to the same period in 2023[288] Expenses and Costs - Total cost of revenue increased by $5.3 million to $8.9 million, with professional services costs rising by $3.2 million and hardware costs by $2.1 million[291] - Research and development expenses decreased by 52.4% to $4.9 million, primarily due to a reduction in restructuring costs and personnel-related expenses[292] - General and administrative expenses decreased by $6.0 million to $12.8 million, mainly due to lower personnel-related expenses and professional fees[294] - Loss from operations improved by 39.2% to $17.4 million compared to the prior year[288] - Cost of revenue decreased by $2.0 million (8.7%) to $21.5 million for the nine months ended September 30, 2024, primarily due to a $6.4 million decrease in hardware costs, partially offset by a $4.4 million increase in professional services costs[300] - Research and development expenses decreased by $15.9 million (57.0%) to $12.0 million for the nine months ended September 30, 2024, mainly due to a $10.4 million decrease in personnel-related expenses[301] - Sales and marketing expenses decreased by $4.0 million (31.7%) to $8.7 million for the nine months ended September 30, 2024, primarily due to a $1.5 million decrease in personnel-related expenses and a $1.4 million decrease in restructuring costs[302] - General and administrative expenses decreased by $13.1 million (24.0%) to $41.4 million for the nine months ended September 30, 2024, primarily due to a $8.3 million decrease in professional fees[303] Cash Flow and Liquidity - As of September 30, 2024, the company's unrestricted cash and cash equivalents were approximately $91.2 million, an increase from $44.1 million as of September 30, 2023[307] - Net cash used in operating activities for the nine months ended September 30, 2024, decreased by $12.0 million to $(61,972) thousand compared to $(73,934) thousand in 2023[323] - Net cash provided by investing activities increased by $51.5 million to $71,874 thousand for the nine months ended September 30, 2024, driven by a $105.6 million decrease in purchases of available-for-sale securities[324] - Net cash used in financing activities for the nine months ended September 30, 2024, was $(22,000) thousand, primarily due to the repayment of Promissory Notes[325] - The Company maintained a liquidity ratio of at least 4.00, tested monthly, as required by the Loan Agreement[321] - As of September 30, 2024, the Company was in compliance with all covenants under the Loan Agreement[321] Corporate Actions - The company completed the merger with HelloTech, assuming approximately $6.9 million in outstanding borrowings as of July 1, 2024[258] - The new loan agreement with Customers Bank amounts to $6.0 million, maturing on July 15, 2029, with interest payable at a minimum of 6.0%[260] - The Company issued a warrant to Customers Bank to purchase 1,000,000 shares of common stock at an exercise price of $1.25 per share, expiring on July 15, 2030[322] - The company incurred $5.7 million in restructuring costs related to a reduction in force conducted in July 2023 to streamline operations[309] Accounting and Compliance - The company identified errors in revenue recognition practices, leading to a restatement of financial statements for the year ended December 31, 2022[255] - The company operates in one reporting segment, focusing on the multifamily rental market in the U.S. and Canada[253] - There were no off-balance sheet arrangements as of September 30, 2024, that could materially affect the Company's financial condition[326] - The Company experienced a $34.2 million decrease in net loss after adjusting for non-cash items for the nine months ended September 30, 2024[323] - A $30.0 million decrease in accrued expenses was noted, primarily due to a $19.3 million accrual of an investment security in 2023[323] - The Company did not conduct any financing activities during the nine months ended September 30, 2023[325]

Financial Performance - Software revenue for Q2 2024 was $5,022,000, an increase of 13.8% from $4,413,000 in Q2 2023[239] - Total revenue for Q2 2024 reached $12,938,000, reflecting a 27.1% increase from $10,178,000 in Q2 2023[239] - The net loss for Q2 2024 was $16,937,000, a significant improvement of 45.1% compared to a net loss of $30,876,000 in Q2 2023[239] - Adjusted EBITDA for Q2 2024 was $(9,908,000), showing a 50.7% improvement from $(20,112,000) in Q2 2023[239] - For the first half of 2024, software revenue totaled $10,059,000, up 19.9% from $8,386,000 in the first half of 2023[239] - Total revenue for the first half of 2024 was $24,973,000, an increase of 17.1% from $21,328,000 in the first half of 2023[239] - The net loss for the first half of 2024 was $30,574,000, a 52.1% improvement from $63,800,000 in the first half of 2023[239] - Total revenue for the three months ended June 30, 2024, increased by $2.8 million (27.1%) to $12.9 million compared to the same period in 2023, driven by increases in hardware, software, and professional services revenue[265] - For the six months ended June 30, 2024, total revenue increased by $3.6 million (17.1%) to $25.0 million, with software revenue increasing by $1.7 million (19.9%) and professional services revenue increasing by $1.4 million (40.6%) compared to the same period in 2023[275] Expenses and Cost Management - Total operating expenses decreased by $11.5 million (32.7%) to $23.7 million for the three months ended June 30, 2024, primarily due to reductions in research and development, sales and marketing, and general and administrative expenses[265] - Research and development expenses decreased by $5.7 million (66.1%) to $2.9 million, attributed to a $4.8 million decrease in personnel-related expenses[270] - Sales and marketing expenses decreased by $2.1 million (48.6%) to $2.3 million, mainly due to a reduction in personnel-related expenses and professional fees[271] - General and administrative expenses decreased by $3.8 million (18.5%) to $16.7 million, primarily due to a decrease related to the Investigation and Restatement[272] - Research and development expenses decreased by $10.6 million for the six months ended June 30, 2024, mainly from an $8.6 million reduction in personnel-related expenses[279] - Sales and marketing expenses decreased by $4.2 million for the six months ended June 30, 2024, driven by a $2.4 million decrease in personnel-related expenses[280] - General and administrative expenses decreased by $7.1 million for the six months ended June 30, 2024, largely due to a $6.3 million decrease in investigation and restatement costs[281] - Cost of revenue decreased by $7.3 million for the six months ended June 30, 2024, primarily due to an $8.6 million decrease in hardware costs[278] Cash Flow and Financial Position - As of June 30, 2024, the company's unrestricted cash and cash equivalents were approximately $110.0 million[286] - Net cash used in operating activities for the six months ended June 30, 2024 was $44.5 million, a decrease of $0.8 million compared to the same period in 2023[296] - Net cash provided by investing activities increased by $3.9 million for the six months ended June 30, 2024, primarily due to a decrease in purchases of available-for-sale securities[297] - The company repaid $22.0 million in promissory notes in April 2024, which were issued in connection with the HDW Acquisition[290] - The company expects to use its current cash and cash equivalents and available-for-sale securities to fund operational cash requirements for at least 12 months from the date of the report[292] Strategic Initiatives - The company completed the merger with HelloTech on July 1, 2024, enhancing its service offerings in the multifamily building sector[236] - The ongoing expansion of the DOOR Platform aims to integrate broader smart home solutions, including sensors and thermostats, to create more connected buildings[231] - The company is focused on improving its financial reporting and internal controls following an investigation into its key performance indicators and revenue recognition practices[235] Shareholder Information - The weighted average shares outstanding for basic and diluted calculations increased to 156,386,470 from 144,609,513 year-over-year[265] - Total other income, net increased by $0.4 million (81.7%) to $0.9 million, driven by a favorable change in the fair value of warrant liability[274] - Total other income, net increased by $0.5 million for the six months ended June 30, 2024, primarily from a $0.3 million favorable change in the fair value of private placement warrants[283]