Ex-SPAC Latch Wraps Up Probe of Revenue Accounting Errors

Smart lock startup Latch Inc. disclosed new details Monday about errors in how it calculated the top line of its income statement and how the revenue accounting problems bled through three years worth of financial statements.

A special internal investigation is now substantially complete, the company said in a filing with the US Securities and Exchange Commission. The revenue accounting problems include some sales personnel failing to disclose terms they had negotiated with customers and the company failing to identify, consider, and properly account for such terms, Latch said.

The company also did not consider the impact of customer ...