ACCRUED EXPENSES

6 Months Ended

Jun. 30, 2024

Accrued expenses consisted of the following:


	June 30, 2024		December 31, 2023
Accrued compensation	$	275	$	2,099
Accrued warranties	164		128
Accrued purchases	3,526		258
Accrued non-cancellable purchase commitments	—		588
Accrued audit fees	2,888		419
Accrued litigation costs	31,361		26,819
Investment purchases payable	—		19,322
Accrued restructuring costs	103		1,301
Other accrued expenses	5,671		4,032
Total accrued expenses	$	43,988	$	54,966

As of June 30, 2024 and December 31, 2023, accrued litigation costs primarily included (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 on the accompanying Condensed Consolidated Balance Sheet as of December 31, 2023, and a liability of $19.3 million presented as investment purchases payable is included in accrued expenses on the accompanying Condensed Consolidated Balance Sheet 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.

Latch, Inc. 10-Q