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Latch, Inc. Progresses Towards SEC Compliance

Latch, Inc., soon to be known as DOOR, has made significant strides towards fulfilling its obligations with the U.S. Securities and Exchange Commission (SEC). Recently, the company announced the filing of its Annual Report on Form 10-K, covering the fiscal year ending December 31, 2023, along with multiple Quarterly Reports on Form 10-Q for earlier 2023 periods. This move represents a crucial milestone for Latch as it seeks to regain its footing, tackle ongoing challenges, and ultimately achieve quotation of its securities on the OTC Markets.

Recent Filings with the SEC

On March 26, 2025, Latch made headlines by submitting its 2023 Annual Report to the SEC. This filing came less than four months after the company completed a restatement process of its financials for the previous year, demonstrating its commitment and determination in meeting compliance requirements. Concurrently, the quarterly reports for the periods ended on March 31, June 30, and September 30, 2023, were also filed.

The company's leadership expressed optimism about this progress. David Lillis, who became the Chief Executive Officer in February 2025, acknowledged the considerable challenges ahead but stressed the incremental achievements made in revenue growth and cost management. He noted, "Our journey has not been easy, especially given the significant operational disruptions we've faced. However, we managed to increase total revenue year-over-year while reducing our operating expenses by 24%." This resilience is critical as Latch looks to restore investor confidence and market presence.

Financial Highlights for 2023

The financial results for 2023 provide a mixed yet promising outlook for the company. Key highlights included:

• - Software Revenue: Latch reported $17.8 million in software revenue, marking a 37% increase from the previous year.
• - Total Revenue: The overall revenue reached $45.0 million, reflecting a 5% year-over-year rise.
• - Operating Expenses: Latch managed to cut its operating expenses by an impressive $38.7 million, culminating in a 24% improvement.
• - Net Loss: While the company faced a net loss of $(107.5) million, this was significantly better than the $(162.3) million loss recorded in 2022, indicating a 34% improvement.

These financial metrics highlight Latch's ability to adapt and navigate through volatile market conditions. The leadership's strategic decisions, including a complete overhaul of the sales team, played a vital role in achieving these outcomes.

Cash Position Update

As of the end of December 2024, Latch's total cash and cash equivalents stood at approximately $75 million. However, the company experienced a decrease of around $104 million during the year, attributed to various non-ordinary expenditures, including legal fees and costs associated with the prior year's acquisition of Honest Day's Work, Inc. The cash flow analysis indicates that while challenges persist, Latch is focusing on improving its operational cash flow while managing ongoing litigations and SEC investigations.

Despite these challenges, Latch's management reassured stakeholders with their outlook for reduced cash outflows in 2025 versus 2024. The company is already planning to stabilize operations and boost financial performance over the next few years.

Looking to the Future

Moving ahead, Latch's leadership remains committed to achieving its goals while addressing the complexities that lie ahead. As Lillis stated, "With the restatement process behind us, our focus is now on becoming current with our SEC reporting obligations, maintaining operational excellence, and continuing to innovate to deliver beneficial solutions for our customers." The company is paving the way for a future where it can become a leader in enhancing spaces and living experiences.

As Latch progresses towards its objectives, stakeholders look forward to further updates, particularly as it navigates through the rigorous demands of SEC compliance and works to regain its competitive edge in the market.