On July 15, 2024, Latch, Inc., Latch Systems, Inc., a wholly owned subsidiary of the Company (Latch Systems"), and HelloTech, Inc. (collectively with the Company and Latch Systems, the Borrowers") entered into an Amended and Restated Loan and Security Agreement (the New Loan Agreement") with Customers. Pursuant to the New Loan Agreement, Customers issued the Borrowers a term loan in the principal amount of $6.0 million (the New Loan"). The New Loan Agreement, which amended and restated the terms of the Prior Loan, did not result in the Borrowers receiving any additional loan proceeds.

Interest is payable on the New Loan at a rate equal to the greater of (a) the prime rate published in The Wall Street Journal or (b) 6.0%. The New Loan matures on July 15, 2029 (the Maturity Date"). The Borrowers are required to pay interest on the New Loan monthly until January 15, 2025.

Thereafter, the Borrowers are required to pay equal monthly installments of principal plus accrued interest until the Maturity Date. There is no penalty for prepayment of the New Loan. Pursuant to the New Loan Agreement, the Borrowers have granted Customers security interests in substantially all of the Borrowers' assets, other than intellectual property.

HelloTech is required to maintain an operating account with Customers with a sufficient balance to support monthly payments. Additionally, the Borrowers are collectively required to maintain a liquidity ratio of at least 4.00, tested monthly, which is calculated as the quotient of unrestricted cash and cash equivalents of the Company and its subsidiaries (subject to certain limitations with respect to cash of foreign subsidiaries), divided by all outstanding indebtedness owed to Customers.