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]

Financial Performance - Software revenue for Q1 2024 was $5,037,000, an increase of 26.8% from $3,973,000 in Q1 2023[232] - Total revenue for Q1 2024 reached $12,035,000, up 7.9% from $11,150,000 in Q1 2023[232] - The net loss for Q1 2024 was $13,637,000, a significant improvement of 58.6% compared to a net loss of $32,924,000 in Q1 2023[232] - Adjusted EBITDA for Q1 2024 was $(7,395,000), a 69.7% improvement from $(24,444,000) in Q1 2023[232] - Total revenue for Q1 2024 was $12,035 million, a 7.9% increase from $11,150 million in Q1 2023, driven by a $1,064 million increase in software revenue and a $523 million increase in professional services revenue[257][258] - Hardware revenue decreased by $702 million, or 13.1%, to $4,643 million in Q1 2024 compared to Q1 2023[257][258] - Total cost of revenue decreased by $8,060 million, or 59.1%, to $5,581 million in Q1 2024, primarily due to an $8,564 million decrease in hardware-related costs[257][261] - Operating expenses decreased by $10,191 million, or 33.3%, to $20,445 million in Q1 2024, with significant reductions in research and development, sales and marketing, and general and administrative expenses[257][262][263][264] Cash Flow and Financial Position - The company had approximately $147.3 million in unrestricted cash and cash equivalents as of March 31, 2024[268] - The company repaid $22.0 million in unsecured promissory notes related to the HDW Acquisition on April 26, 2024[272][276] - Future capital requirements will depend on business plans, revenue levels, and market acceptance of products[273] - The company expects to fund operational cash requirements for at least 12 months using current cash and available-for-sale securities[274] - Net cash used in operating activities increased by $5.4 million to $(31,100) thousand for the three months ended March 31, 2024, compared to $(25,731) thousand in 2023[277] - Net cash provided by investing activities increased by $12.6 million to $45,162 thousand for the three months ended March 31, 2024, compared to $32,597 thousand in 2023[278] - The increase in cash from investing activities was primarily due to a $7.5 million increase in proceeds from sales and maturities of available-for-sale and trading securities[278] Business Developments - The company launched its property management division, Door Property Management, LLC, following the acquisition of The Broadway Company's property management business[230] - The company is expanding its DOOR Platform to include broader smart home solutions, integrating devices such as sensors, thermostats, and lighting[225] - Professional services revenue is generated through project-based hardware installation and property management services[240] Accounting and Compliance - There were no off-balance sheet arrangements as of March 31, 2024, that would materially affect the company's financial condition[279] - No material changes were reported in critical accounting estimates since the 2023 Annual Report[280] - The company did not disclose any recent accounting pronouncements that would impact financial reporting[281] - As a smaller reporting company, the company is not required to provide detailed market risk disclosures[282] Interest Income - Interest income increased to $2,002 million in Q1 2024 from $1,506 million in Q1 2023, resulting in a net interest income of $446 million, up 65.8% year-over-year[253][257][266]

Core Viewpoint - Halper Sadeh LLC is investigating potential breaches of fiduciary duties by certain officers and directors of Enovix Corp, urging shareholders to contact the firm to discuss their rights and possible legal actions [1][2]. Group 1: Shareholder Rights and Legal Options - Shareholders who acquired Enovix stock on or before June 24, 2021, may seek corporate governance reforms, return of funds, court-approved financial incentives, or other benefits [2]. - The firm operates on a contingent fee basis, meaning shareholders would not incur out-of-pocket legal fees or expenses [2]. Group 2: Importance of Shareholder Participation - Shareholder involvement is crucial for improving company policies, practices, and oversight, which can lead to enhanced transparency, accountability, and ultimately, shareholder value [3]. Group 3: Firm's Background and Experience - Halper Sadeh LLC represents global investors affected by securities fraud and corporate misconduct, having successfully implemented corporate reforms and recovered millions for defrauded investors [4].

Core Viewpoint - Halper Sadeh LLC is investigating potential breaches of fiduciary duties by certain officers and directors of Latch, Inc. [1] Company Summary - Latch, Inc. is under scrutiny for possible misconduct by its leadership, which may affect shareholder interests [1] - Shareholders who acquired Latch stock on or before June 7, 2021, may have options for seeking corporate governance reforms and financial restitution [1]

Core Insights - Allegion US has launched the Schlage® L Series Motorized Latch Retraction mortise locks, enhancing security and accessibility while providing quiet operation for environments like healthcare and education [1][2]. Product Features - The L Series locks feature quiet control, utilizing an ultra-quiet stepper motor with 24V DC to deliver high torque at low speeds, available in six functions including keyed, non-keyed, and lever control options [3]. - The locks offer both request-to-exit (RX) and latchbolt (LX) monitoring, with a patent-pending feature that detects binding conditions and adjusts the motor accordingly [3]. Application Versatility - These locks can be retrofitted into existing L Series mortise pockets, allowing for hands-free operation in various settings such as accessible restrooms, clean rooms, and high-security data centers [4]. - The locks are suitable for K-12 schools, providing controlled access for visitor entrances, administration offices, and classroom doors, while maintaining the strength and reliability of Schlage's electrified mortise line [4].

Financial Performance - Software revenue increased to $17.8 million, a 37% year-over-year increase[4] - Total revenue reached $45.0 million, reflecting a 5% year-over-year increase, while operating expenses were reduced by $38.7 million, a 24% improvement[4] - Net loss improved to $(107.5) million, a 34% year-over-year improvement[4] - Adjusted EBITDA (non-GAAP) was $(68.5) million, a 42% year-over-year improvement[4] Cash Position and Expectations - The company had approximately $75 million in cash and cash equivalents as of December 31, 2024, with a decrease of approximately $104 million during the year[6] - The company expects cash outflows related to operating activities to be significantly lower in 2025 compared to 2024[7] - The company aims to generate positive cash flow through operations by 2026, excluding non-ordinary activities[7] SEC Filings and Compliance - The company is focused on becoming current with its SEC filing obligations and maintaining operational excellence[3] - The company completed its 2023 SEC filings less than four months after the restatement of its 2022 financials[2] - The company is working on completing its outstanding SEC filings for the year ended December 31, 2024[2]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to Commission File Number 001-39688 Latch, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to Commission File Number 001-39688 Latch, Inc. (Exact name of registrant as specified in its charter) Large accelerated filer ☐ Accelerated filer ☐ Non-accel ...

Financial Performance - Software revenue for Q2 2023 was $4,413,000, a 36.2% increase from $3,239,000 in Q2 2022[223] - Total revenue for Q2 2023 was $10,178,000, up 3.5% from $9,830,000 in Q2 2022[223] - Net loss for Q2 2023 decreased to $30,876,000 from $51,616,000 in Q2 2022, representing a 40.2% improvement[223] - Adjusted EBITDA for Q2 2023 was $(20,112,000), a 43.5% improvement from $(35,584,000) in Q2 2022[223] - Software revenue for the first half of 2023 was $8,386,000, a 41.0% increase from $5,946,000 in the same period of 2022[223] - Total revenue for the first half of 2023 was $21,328,000, down 8.8% from $23,386,000 in the first half of 2022[223] - Net loss for the first half of 2023 was $63,800,000, a 35.2% improvement from $98,448,000 in the first half of 2022[223] Revenue Breakdown - Total revenue for the three months ended June 30, 2023, was $10.178 million, a 3.5% increase from $9.830 million in the same period of 2022[244] - Software revenue increased by $1.174 million (36.2%) to $4.413 million, driven by growth in subscriptions[244][246] - Hardware revenue decreased by $0.447 million (9.5%) to $4.263 million, primarily due to lower units delivered[244][246] Cost and Expense Management - Total cost of revenue decreased by $6.802 million (52.0%) to $6.278 million, mainly due to a $6.622 million decrease in hardware sales related costs[244][247] - Research and development expenses decreased by $8.050 million (48.2%) to $8.660 million, attributed to reduced personnel-related expenses[244][248] - Sales and marketing expenses decreased by $12.446 million (74.0%) to $4.378 million, primarily due to lower personnel-related and marketing expenses[244][249] - General and administrative expenses increased by $8.176 million (66.3%) to $20.517 million, driven by higher professional fees and litigation expenses[244][250] Other Income and Cash Flow - Total other income increased by $1.568 million (143.5%) to $475 thousand, primarily due to a smaller decrease in the price of common stock[244][252] - Total other income decreased by $4.6 million for the six months ended June 30, 2023, compared to the same period in 2022, largely due to a $9.3 million unfavorable change in the fair value of the Private Placement Warrants liability[263] - Net cash used in operating activities decreased by $38.2 million for the six months ended June 30, 2023, compared to the same period in 2022, primarily due to a decrease in net loss of $34.6 million[282] - Net cash provided by investing activities increased by $10.4 million to $55.3 million for the six months ended June 30, 2023, compared to $44.9 million for the same period in 2022[283] Strategic Initiatives - The company completed a merger with HDW on July 3, 2023, which is expected to enhance market presence[217] - The company is focusing on evolving its go-to-market strategy to achieve higher sales volumes at lower incremental costs[218] - Research and development expenses are expected to decrease for the remainder of 2023 due to restructuring initiatives[237] - The company incurred $8.6 million in restructuring costs during the year ended December 31, 2022, resulting from the 2022 RIFs[267] - The company issued $22.0 million in unsecured promissory notes as merger consideration in connection with the HDW Acquisition in July 2023[269] - 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[272] Cash Position - As of June 30, 2023, the company's unrestricted cash and cash equivalents were approximately $190.2 million, with available-for-sale securities totaling $75.5 million[265]