Latch (LTCH) Q4 2022 earnings summary

Executive summary

• Completed restatement of prior financial statements and filed 2022 Annual Report and 2022 quarterly reports with the SEC.

• Working to become current with SEC filings and aiming for OTC Markets quotation.

• Investigation revealed errors in revenue recognition, expense recognition, and stock-based compensation in prior years.

Financial highlights

• 2022 software revenue: $13.0M; total revenue: $42.96M; net loss: $(162.3)M; Adjusted EBITDA: $(118.6)M.

• 2021 (restated) software revenue: $7.4M; total revenue: $27.6M; net loss: $(167.1)M; Adjusted EBITDA: $(103.9)M.

• 2020 (restated) software revenue: $3.4M; total revenue: $13.0M; net loss: $(67.4)M; Adjusted EBITDA: $(56.0)M.

• Restatement adjustments had a minor impact on net loss for 2021 and 2020.

Outlook and guidance

• Plans to file outstanding 2023 and 2024 SEC reports in Q1 2025.

• Focused on regaining compliance and achieving quotation on OTC Markets.