Latch shares got delisted from Nasdaq yesterday. The company now only trades over-the-counter.

Latch sells bluetooth door locks to building management and individual residences.

In 2021 $LTCH had a net loss of $166 million, mostly because it spent too much on Sales & Marketing and G&A.

In 2022 $LTCH had two restructuring events.

Losses continued to mount as the company delayed not only its Q2’22 filing but also its Q3’22 and full-year 2022 filings.

They also fired their CEO and CFO. Yikes.

In April, Paul Cerro @paulcerro outlined the value of $LTCH in both of the following scenarios:

Option 1: If the company shuts down and they sell everything down to the nuts and bolts for what they can reasonably get for it: $1.10 per share. Which is a 37% premium to where shares just closed today. For more details on how Paul got to this number, read his piece here:

Option 2: Strategic buyout. The value to another company that wants to expand into the smart home ecosystem, and instead of starting from scratch, they can just buy Latch to get a head start. Paul believes they would pay $1.49 per share for Latch. 86% more than where shares closed today.

After Latch was delisted yesterday, shares fell as much as -25% today before finishing the day up +14%. The market doesn't seem to know what to do with it.

One unknown is how bad their cash burn is. The estimates Paul did back in April don't take into account how quickly they are burning through the liquid assets they do have.

yay!

There's also the fact we haven’t seen a filing in almost a year and have zero clue on what’s actually under the hood.

Latch ran all the way up to $2.23 in anticipation that they would file necessary documents and be able to stay listed on the Nasdaq. They didn't, and so now we are plunged back into the waters of uncertainty.

Yay!