Latch Admits Audit Investigation

By Donald Maye, Published Aug 10, 2022, 09:44am EDT (Info+)

Latch has admitted an investigation has commenced into its financial reporting practices, forcing the company to delay reporting its quarterly results.

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This is a bearish sign for a company whose stock is down 90% in the last year and has conducted 2 layoffs in the last few months, cutting more than 50% of employees.

In this note, we examine the admission and the risks facing Latch.

Late ******* *** ************** ********

***** ***** *** *********** **** ******* ****** *** ******* opened.

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******** ****** ********* ******** *** ******* for ** ************* ** ****** ******* and ******* ***** ** ***** ******* negative **** ** ********** ** * company.

Financial ********* ** ********

** *** ******, ***** ******* ******** factors ** ********, ********* ****, ******* recognition, *** ******** ********:

*** ***** ********* ** *** *******’* Board ** ********* *** ********* ** investigation (*** “*************”) ** ******* ******* and ***** ****** ******* **** *******, but *** *** ** ******* **, certain ******* ** *** *******’* ******* and ********key *********** ********** and revenue *********** *********, including the accounting treatment, financial reporting and internal controls related thereto.

No ******** *** **********

***********, ***** **** ***** ** ** estimation ** **** **** **** ** resolved:

********* *** ********** ** *** *************,the ****** ** ***** ****** ** *********, the Company will make a determination regarding whether any revision, correction or restatement of its financial statements for any previous quarter or fiscal year will be made, as well as the timing of filing the Quarterly Report. [emphasis added]

Previous ******** ******

***** ***** **** *** ****** **** specific ****** *** ***** ************, ***** are ** ***** * **** ********* have ********** ** *** **** ****:

Legal *****

** *** ***** ********* ***** ******* issues **** ******* *********** *** ********* reporting, ** **** *** *************, ** could ****** *** ******* ** ******* legal *****, ******* **** *********** ******** to *** ******.

Practical ***** ** ***

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*** *** *** *********** **************** ******** ** *** ******** ********** *** *******, *** *** ***** removed ** ** ********* *******, *** *** * ****** ** layoffs.

*******, **** *************, ****** ** *** company's ********* *********** ******** ***** ******** pressure ** **** * *** ******* CEO ** **** ***** * ***** start.

Stock ***********

***** ** **** **** **% ***** going ****** **** ****, ******* ~$****.

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** **** ****** **** ********* ** new *********** ******* *********. ** **** have ******* **** ******** **** ***** employees *** *** *** *********. ****** who ***** ** ***** **** **** can ** ** *************** ** ******** donald@ipvm.com.

Comments (1)

************ *** ******** ******** ******* ** *****:

****** ******** *** ******* **** ** has ***** ******* **, **** ** submit * **** ** ****** ********** with ******* ** *** ****** ** the **** **-*. ** ****** ******** the *******’* ****, ** *** ***** the ******* ** ********* ** ** to *** ******** **** **** *** due **** ** *** **** **-* to ****** **********.

******* ********* **** ** ** ***** falls ***** $*, *******, ***** *** actually ******* ** *** **** **** to $*.**:

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*******, *** ***** ** ***** **** ~87% ** *** **** ****:

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