v3.25.4
EQUITY
 9 Months Ended
Sep. 30, 2025
Equity [Abstract]  
EQUITY EQUITY
The Company’s second amended and restated certificate of incorporation designates and authorizes the Company to issue 1.1 billion shares, consisting of (i) 1.0 billion shares of common stock, par value $0.0001 per share, and (ii) 100.0 million shares of preferred stock, par value $0.0001 per share.
Common Stock Reserved for Future Issuance
The Company’s reserved shares for future issuance included the following:
September 30, 2025December 31, 2024
Stock options issued and outstanding22,104,71726,436,951
Restricted stock units issued and outstanding375,640375,640
Public warrants outstanding9,999,9679,999,967
Private placement warrants outstanding5,333,3345,333,334
Bank warrant1,000,0001,000,000
2021 Incentive Award Plan available shares38,443,37625,869,878
Total 77,257,03469,015,770
Public Warrants
As part of the closing of the 2021 Business Combination, 10.0 million public warrants sold during TSIA’s initial public offering converted into 10.0 million public warrants to purchase up to 10.0 million shares of common stock of the Company, which are exercisable at $11.50 per share. The Company accounts for warrants as required under ASC 815 and has concluded that equity classification would be met for the public warrants as the Company has a single class of equity, and thus all holders vote 100% on all matters submitted to the Company’s stockholders and receive the same form of consideration in the event of a change of control (thus qualifying for the exception to the net cash settlement model), and the other conditions of equity classification would be met.
Private Placement Warrants
As part of the closing of the 2021 Business Combination, Legacy Latch assumed the private placement warrants that were originally issued in connection with TSIA’s initial public offering (the “Private Placement Warrants”). In response to SEC guidance, the Company determined to classify the Private Placement Warrants as derivative liabilities measured at fair value, with changes in fair value each period reported in earnings.
Bank Warrant
On July 15, 2024, in a private placement concurrent with the Company’s entry into the Loan Agreement, the Company issued the Bank Warrant to Customers Bank to purchase 1,000,000 shares of the Company’s common stock. The Bank Warrant has an exercise price of $1.25 per share, is exercisable immediately and will expire on July 15, 2030. The Bank Warrant is classified as a liability under ASC 815 and is remeasured at fair value each reporting period, with changes recognized in other income (expense), net.