FTHM — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-08-13

• markets primarily include economic growth, interest rates, unemployment, consumer confidence, mortgage availability, and supply and demand.

• The Company's Chief Operating Decision Maker ("CODM") is its Interim Chief Executive Officer (CEO), who is responsible for evaluating the performance of the Company's operating segments and allocating resources. The Company identifies an operating segment as a component: (i) that engages in business…

• For the three months ended June 30, 2026, total litigation contingency expenses increased by approximately $0.02 million, or 100.0%, as compared with the three months ended June 30, 2025. The increase was primarily due to the recognition of litigation settlement expense associated with the prelimina…

• Comparison of the Six Months Ended June 30, 2026 and 2025 (dollar amounts in thousands)

• For the six months ended June 30, 2026, gross commission income decreased by approximately $16.5 million, or 8.1%, as compared with the six months ended June 30, 2025. This decrease was primarily attributable to a 13.7% decrease in transaction volume; we had 19,358 real estate transactions during th…

Text removed vs the prior filing · source: 10-Q · 2026-07-16

• The Company's Chief Operating Decision Maker ("CODM") is its Chief Executive Officer (CEO), who is responsible for evaluating the performance of the Company's operating segments and allocating resources. The Company identifies an

• operating segment as a component: (i) that engages in business activities from which it may earn revenues and incur expenses; (ii) that has available discrete financial information; and (iii) whose operating results are regularly reviewed by the CODM. The Company does not conduct business outside of…

• For the three months ended March 31, 2026, total litigation contingency expenses increased by approximately $2.0 thousand, or 50.0%, as compared with the three months ended March 31, 2025. The increase was due to higher legal settlement fees being incurred in the current year.

• To date, our principal sources of liquidity have been the net proceeds we received through public offerings and private sales of our common stock, the sale of one of our businesses, as well as proceeds from loans. As of March 31, 2026, our cash and cash equivalents (including restricted cash) totale…

• Company’s ability to continue as a going concern for a period of at least one year from the date of the issuance of these condensed consolidated financial statements.

Text added vs the prior filing · source: 10-Q · 2026-08-13

• Remediation of Previously Reported Material Weaknesses in Internal Control over Financial Reporting

• As previously disclosed in the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, management identified material weaknesses in internal control over financial reporting related to the Company's control environment, risk assessment, information and communication, and contro…

• During the quarter ended June 30, 2026, under the oversight of the Board of Directors, the Company completed its remediation efforts. The Company appointed new executive leadership, strengthened Board oversight of significant transactions, implemented formal policies and procedures governing the aut…

• Management evaluated the design and operating effectiveness of these controls and concluded that they have operated effectively for a sufficient period of time to provide reasonable assurance that material misstatements would be prevented or detected on a timely basis. Accordingly, management conclu…

• Under the supervision and with the participation of our management, including our Interim Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of any changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under th…

Text removed vs the prior filing · source: 10-Q · 2026-07-16

• Notwithstanding the conclusion by our Interim Chief Executive Officer and Chief Financial Officer that our disclosure controls and procedures were not effective as of March 31, 2026, and notwithstanding the material weaknesses in our internal control over financial reporting described below, managem…

• Material Weaknesses in Internal Control over Financial Reporting

• A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected in a timely basis.

• Our Interim Chief Executive Officer and our Chief Financial Officer concluded that we did not maintain an effective control environment based on the criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (…

• The Company also did not maintain effective controls to ensure that share-based compensation grants were appropriately authorized in accordance with the Company's governance policies, are accurately communicated to the accounting function, and are subject to a sufficiently precise management review …

Text added vs the prior filing · source: 10-Q · 2026-08-13

• My Home Group, which the Company acquired in November 2024, is a defendant in a lawsuit filed in January 2024 in the United States District Court for the District of Arizona. On February 5, 2026, the Court granted final approval of the settlement. The period to file any appeals expired on March 9, 2…

• Accordingly, the Company has recorded $0.5 million in other current liabilities in its consolidated balance sheet as of June 30, 2026.

• Fathom Realty, LLC was a defendant in a lawsuit filed in August 2024 in the United States District Court for the Southern District of Florida. The Court granted final approval of the settlement, resolving the matter. The total settlement amount was approximately $1.1 million. The Company made a sett…

Text removed vs the prior filing · source: 10-Q · 2026-07-16

• My Home Group, which the Company acquired in November 2024, is a defendant in an active lawsuit in the United States District Court for the District of Arizona, filed in January 2024. In September 2025, the plaintiff filed for preliminary approval of the settlement agreement. The Company estimates t…

• approximately $1.0 million. The Company has included $0.5 million in accrued and other current liabilities and $0.5 million in other long-term liabilities in its balance sheet as of March 31, 2026.

• Fathom Realty, LLC is a defendant in an active lawsuit filed in August 2024 in the United States District Court for the Southern District of Florida. In September 2025, the court granted preliminary approval of a settlement agreement. The Company estimates the total cost of the settlement to be appr…

Text added vs the prior filing · source: 10-Q · 2026-08-13

• The following risk factor supplements the risk factors previously disclosed in the Form 10-K and reflect material developments during the quarter ended June 30, 2026:

• We have experienced defaults under our convertible notes and our liquidity depends in part on continued financial support from BBBY.

• The Company’s failure to timely file its Form 10-Q for the fiscal quarter ended March 31, 2026 constituted an Event of Default under the 2024 Notes and a breach of the Securities Purchase Agreement. Although the Holders agreed to waive these defaults through October 1, 2026 pursuant to the Waiver en…