LTCH — what changed in the latest 10-Q

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

• Additionally, we offer a comprehensive property management service in and around Boston, Massachusetts, which we have announced plans to exit as part of the Restructuring Plan (as defined below).

• The following developments occurred since March 31, 2026 through the date of filing this Form 10-Q. Each is described in further detail in the notes to our condensed consolidated financial statements included in Part I, Item 1. “Financial Statements,” and elsewhere in this Item 2.

• New Credit Facility and Repayment of Term Loan. On May 11, 2026, DOOR Systems, Inc. (“Legacy Latch” or “DOOR Systems,” as the context requires) entered into a revolving credit facility with Truist Bank providing for borrowings of up to $5.0 million, maturing in May 2028 and bearing interest at one-m…

• Settlement in Principle with the SEC Staff. We reached a settlement in principle with the Staff of the Securities and Exchange Commission (the “SEC”) to resolve the previously disclosed SEC Investigation. Under the terms of the settlement in principle, we would pay a civil monetary penalty of $1.0 m…

• Restructuring Plan. On August 3, 2026, our Board of Directors authorized a restructuring plan the (“Restructuring Plan”) involving a reduction in force and the discontinuation of DOOR Property Management, LLC (“DPM”), intended to align our cost structure with our current revenue outlook. See Note 22…

Text removed vs the prior filing · source: 10-Q · 2026-05-15

• Additionally, we offer a comprehensive property management service in and around Boston, Massachusetts.

• Operating expenses consist of research and development, sales and marketing, general and administrative and depreciation and amortization expenses. We have not granted any restricted stock units (“RSUs”) since the suspension of our registration statement on Form S-8 under the Securities Act (the “S-…

• Comparison of three months ended March 31, 2026 and March 31, 2025

• Revenue decreased by $0.1 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The decrease was primarily due to a $1.4 million reduction in professional services revenue related to (i) a $0.7 million decrease in HelloTech services, (ii) a $0.4 million…

• Cost of revenue decreased by $0.8 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The decrease was primarily due to a $0.7 million reduction in professional services cost related to a decline in installation projects.

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

• Notwithstanding that conclusion, based on review, analysis and inquiries conducted subsequent to June 30, 2026, management believes that the condensed consolidated financial statements and related financial information included in

• this Form 10-Q fairly present in all material respects the Company’s financial condition, results of operations and cash flows as of the dates presented, and for the periods ended on such dates, in conformity with GAAP.

Text removed vs the prior filing · source: 10-Q · 2026-05-15

• Notwithstanding that conclusion, based on review, analysis and inquiries conducted subsequent to March 31, 2026, management believes that the condensed consolidated financial statements and related financial information included in this Form 10-Q fairly present in all material respects the Company’s…

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

• Our restructuring activities, including our workforce reduction and exit from the property management business, may not achieve the anticipated benefits and could adversely affect our business.

• We have undertaken restructuring activities, including the Restructuring Plan, intended to reduce operating expenses and strengthen our financial position. These activities include a reduction in our workforce and our planned exit from the DPM property management business. We may not realize the ant…

• The settlement in principle with the SEC Staff remains subject to Commission approval, and there is no assurance it will be approved on the agreed terms or at all.

• We have reached a settlement in principle with the Staff of the SEC to resolve the previously disclosed SEC Investigation, pursuant to which we would pay a civil monetary penalty of $1.0 million in four quarterly installments. We have recorded a $1.0 million liability for this amount as of June 30, …

• Our Credit Facility requires us to maintain a minimum restricted cash balance, which reduces the cash available to fund our operations.

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

• On May 11, 2026, DOOR Systems entered into the Credit Facility with the Lender, providing for borrowing of up to $5.0 million. The Credit Facility matures in May 2028, and bears interest at a variable rate equal to one-month term Secured Overnight Financing Rate plus 1.75% per annum. The Credit Faci…

• The Credit Facility is governed by the Promissory Note and related loan documents. To secure the Credit Facility, the Company is required to maintain a minimum cash balance of $5.25 million in a restricted deposit account with the Lender. Borrowing under the Credit Facility is secured by certain cas…

• The Promissory Note contains customary covenants and events of default, including covenants relating to:

• ●maintenance of the lender’s security interest in collateral;

• ●compliance with applicable sanctions, anti-corruption and other laws;