ACCRUED EXPENSES

12 Months Ended

Dec. 31, 2023

Accrued expenses consisted of the following:


	December 31, 2023		December 31, 2022

Accrued compensation	$	2,099	$	1,090

Accrued warranties	128		228
Accrued purchases	258		2,842
Accrued non-cancellable purchase commitments	588		5,303
Accrued litigation costs	26,819		6,846
Investment purchases payable	19,322		—
Accrued restructuring costs	1,301		226
Other accrued expenses	4,451		9,110
Total accrued expenses	$	54,966	$	25,645

For the year ended December 31, 2023, accrued litigation costs primarily include (i) $1.95 million related to settlement of the Brennan Action, (ii) $6.8 million related to the service provider demand, (iii) $1.95 million related to settlement of the

Schwartz Action and (iv) the Company’s $14.875 million share of the settlement in the Merger Lawsuits, each as defined and/or further described in Note 12. Commitments and Contingencies.

Prior to December 31, 2023, the Company (i) received $19.3 million of proceeds from the sale of a maturing available-for-sale security and (ii) reinvested the proceeds by purchasing an equal amount of new securities prior to such date. The Company uses trade-date accounting and, as such, the new securities position of $19.3 million is included in the balance of available-for-sale securities of $84.9 million on the Company’s Consolidated Balance Sheets as of December 31, 2023, and a liability of $19.3 million presented as investment purchases payable is included in accrued expenses on the Company’s Consolidated Balance Sheets as of December 31, 2023. The funds were deducted from the Company’s account in early January 2024. Accordingly, the sum of the Company’s cash and cash equivalents as of December 31, 2023 is $19.3 million higher than it would have been had the funds been deducted from the Company’s account prior to year end.

For the year ended December 31, 2022, (i) other accrued expenses includes $1.95 million related to settlement of the Brennan Action and (ii) accrued litigation costs include $6.8 million related to the service provider demand, each as defined and/or further described in Note 12. Commitments and Contingencies.

Latch, Inc. 10-K