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Latch Inc. (LTCH0.00%) has submitted its 10-Q filing for the quarterly period ended June 30, 2022.
The filing details an investigation into the company's key performance indicators and revenue recognition practices, leading to the restatement of financial statements for 2019, 2020, 2021, and the first quarter of 2022.
The investigation identified errors in revenue recognition for hardware and software sales, billing on software licenses, and recognition of various expenses.
As a result, Latch Inc. restated its financial statements to correct these errors and improve internal controls over financial reporting.
The company reported total revenue of $9.83 million for the quarter, a 45.7% increase from the same period in the previous year, driven by increases in software revenue and installation services.
Cost of revenue increased to $13.08 million, primarily due to higher costs associated with hardware and installation services.
Operating expenses rose to $47.26 million, reflecting higher research and development, sales and marketing, and general administrative expenses.
The company reported a net loss of $51.62 million for the quarter, compared to a net loss of $41.49 million in the same quarter of the previous year.
Latch Inc. acknowledged material weaknesses in its internal control over financial reporting and outlined steps taken to remediate these issues.
The filing also discusses the company's liquidity, indicating that it expects to meet its operational cash requirements for at least one year with its current cash and cash equivalents.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Latch Inc. quarterly 10-Q report dated December 19, 2024. To report an error, please email earnings@qz.com.