What changed in this filing

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Item 1. Business

2024-03-05 compared with 2023-03-08 · 108 added, 96 removed, 149 unchanged (58% of the section changed)

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Our suite of products and services, which includes both smart building hardware and cloud-based software-as-a-service ("SaaS") solutions, provides seamless visibility and control over real estate assets.

Our platform lowers operating costs, increases revenues, mitigates operational friction and protects assets for owners and operators, while providing a differentiated, elevated living experience for residents.

Through a central connected device ("Hub Device"), we integrate our proprietary enterprise software with third-party smart devices and other technology interfaces.

Our platform can lower operating costs, increase revenues, mitigate operational friction and protect assets for owners and operators, while providing a differentiated, elevated living experience for residents.

Through a central connected device ("Hub Device"), we enable the integration of our platform with third-party smart devices and other technology interfaces.

We use an open-architecture, brand-agnostic approach that allows owners, operators, and residents to manage their smart home systems through a single connected interface.

Our solutions include smart apartments and homes, access control for buildings, common areas, and rental units, asset protection and monitoring, parking management, self-guided tours, and community and resident Wi-Fi.

Our solutions include smart apartments and homes, access control for buildings, common areas, and rental units, asset protection and monitoring, self-guided tours, parking management, and community and resident WiFi.

We also have a professional services team that provides customers with training, installation, and support services.

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Operating Efficiency.

We estimate that our customers can recognize cost savings on utilities through the utilization of our solutions, including our connected smart thermostats, smart lights, and leak sensors, as well as through more efficient management of vacant rental units.

We believe that our customers can recognize cost savings on utilities through the utilization of our solutions, including our connected smart thermostats, smart lights, and leak sensors, as well as through more efficient management of vacant rental units.

Incremental Revenue Generation.

We estimate that multifamily rental owners may be able to increase rental rates (depending on the rental market and solutions offered) due to the differentiated resident experience and strong demand for smart communities.

We believe that rental owners may be able to increase, or maintain higher, rental rates (depending on the rental market and solutions offered) due to the differentiated resident experience and strong

demand for smart communities.

Additionally, we believe our solutions can increase resident retention, accelerate leasing and re-leasing activities, and provide ancillary monetization opportunities.

Cost Reduction.

We estimate that owners and operators can decrease their leasing and re-leasing costs by streamlining the processes associated with touring, resident onboarding and offboarding, and customer servicing.

We believe that owners and operators can decrease their leasing and re-leasing costs by streamlining the processes associated with touring, resident onboarding and offboarding, and customer servicing.

For example, our self-guided-tour solution allows prospective residents to tour a property 24 hours a day, seven days a week, without assistance from property management staff.

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Asset Protection.

We estimate that customers utilizing our asset protection solutions, including our connected leak sensors and thermostats, may be able to realize a decrease of approximately 70% to 90% in water damage expenses and lower insurance costs.

We believe SmartRent is the category leader in the enterprise smart home solutions industry.

We believe that customers utilizing our asset protection solutions, including our connected leak sensors and thermostats, may be able to realize a decrease of approximately 70% to 90% in water damage expenses and lower insurance costs.

We believe SmartRent is a category leader in the enterprise smart home solutions industry.

We define Units Deployed as the aggregate number of Hub Devices that have been installed (including customer self-installations) as of a stated measurement date.

We define Committed Units as the aggregate number of Hub Device (i) units that are subject to binding orders from customers together with (ii) units that existing customers who are parties to a SmartRent master services agreement have informed us (on a non-binding basis) that they intend to order in the future for deployment within two years of the measurement date.

As of December 31, 2022, we had 547,196 Units Deployed, 851,815 Committed Units, and 501 customers, including many of the top multifamily residential owners in the United States (the "U.S.").

Our customers own or operate an aggregate of approximately 6.7 million units.

As of December 31, 2023, we had 719,691 Units Deployed and 593 customers, including many of the largest multifamily residential owners in the United States (the "U.S.").

As of December 31, 2023, our customers own or operate an aggregate of approximately 7.0 million rental units.

This represents approximately 16% of the U.S.

market for institutionally owned multifamily rental units and single-family rental homes.

In addition to multifamily residential owners, our customers include some of the leading homebuilders, single-family rental homeowners, and iBuyers in the U.S.

In addition to multifamily residential owners, our customers include some of the largest homebuilders, single-family rental homeowners, and iBuyers in the U.S.

Our Industry, Competition and Market Opportunity

Increasing Demand for Smart Home Technology

Demand for Smart Home Technology

We believe that network effects are driving demand for smart home technology and increasing the penetration of smart home technology in both the multifamily residential and single-family rental home sectors.

Many residents now view smart home technology as a necessity, although relatively few communities currently offer it to residents.

Entrata, a developer of property management software, estimates that more than 75% of residents would pay more for an apartment equipped with smart home technology, and Schlage, a smart lock provider, estimates millennials would be willing to pay 20% more on average per month for rental units equipped with smart home technology.

We expect this dynamic will drive demand for smart home technology as additional owners and operators evolve to meet this growing demand for integrated smart home solutions.

Fragmented Technology Offerings

While demand for smart home technology has increased, the residential technology market remains fragmented, with offerings generally consisting of isolated point solutions and closed-architecture devices that do not integrate with one another.

The residential technology market remains fragmented, with offerings generally consisting of isolated point solutions and closed-architecture devices that do not integrate with one another.

To assemble a complete building solution, owners and operators often need to source smart home technology from multiple vendors and point solution providers and patch their products together to create a modern building experience.

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Given the emerging nature of smart home technology in residential real estate, the industry is highly fragmented and there are a number of companies developing solutions that may be similar to parts of our smart home operating system.

We believe our primary competitors are other software companies, which have historically provided singular, point solutions to new development properties and used third-party installation services, and hardware companies, many of which have closed architectures.

We believe our primary competitors are software companies, which have historically provided singular, point solutions to new development properties and used third-party installation services, and hardware companies, many of which have closed architectures.

We believe these companies fail to provide a comprehensive solution that meets the enterprise management and security requirements of owners, operators, and residents.

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Our Competitive Strengths

We believe we have developed the most scalable and operator-friendly smart home operating system in the industry based on our platform’s unique combination of attributes:

We have developed a scalable and operator-friendly smart home operating system that provides a comprehensive solution for the industry:

Integrated Solution.

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Hardware Agnostic.

O ur solutions are compatible with a wide variety of other smart devices including, among others, Google Home, Amazon Alexa, Google Assistant, Honeywell thermostats, and Yale smart locks.

Our solutions are compatible with a wide variety of other smart devices including, among others, Google Home, Amazon Alexa, Google Assistant, Honeywell thermostats, and Yale smart locks.

Open Architecture.

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Professional Services.

We provide in-house professional services with employees in our implementation, installation, support, and warehouse departments, which allows us to maintain consistent quality and service across markets.

While several of the top multifamily residential owners are current SmartRent customers, we believe that we have only begun to take advantage of the full market opportunity in residential and commercial real estate sectors and in domestic and international markets.

We provide in-house professional services with employees in our implementation, installation, and support departments which allows us to maintain consistent quality and service across markets.

While several of the largest multifamily residential owners are current SmartRent customers, we believe that we have only begun to take advantage of the full market opportunity in residential and commercial real estate sectors and in domestic and international markets.

For example, we have adapted our software and applications to target opportunities in other residential real estate sectors, including single-family rental homes, student housing, senior housing, and new construction homes.

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Furthermore, we believe there is an attractive opportunity to expand our smart home solutions into other markets globally.

We enter into binding, recurring revenue contracts with customers typically ranging from one month to ten years;

our average recurring revenue contract term is 2.6 years.

We enter into binding, recurring revenue contracts with customers ranging from one month to eight years;

the majority of our recurring revenue contracts range from one month to one year and our average recurring revenue contract term is 1.6 years.

In 2023, approximately 29% of our customers prepaid their software contracts.

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Our business and related operating results have been, and we believe that they will continue to be, impacted by seasonal factors throughout the year.

We typically experience greater demand for deployments in the Spring and Summer, and lower demand in late Fall and Winter.

We typically experience greater demand for deployments in the Spring and Summer and lower demand in late Fall and Winter primarily due to inclement weather conditions in the Fall and Winter months.

SmartRent Solutions and Products

A SmartRent connected community is a “curb to couch”

concept where an entire property utilizes a variety of proprietary and third-party smart devices and features that can be remotely managed to provide efficiency, automation, asset protection, and ancillary revenue opportunities.

A SmartRent connected community is a “curb to couch” concept where an entire property utilizes a variety of our solutions and products, along with third-party smart devices and features that can be remotely managed to provide efficiency, automation, asset protection, and ancillary revenue opportunities.

SmartRent Solutions

Our fully integrated, hardware-agnostic solutions include the following:

SmartRent Manager .

SmartRent Manager is a proprietary, web-based software that owners and operators use to administer and configure community settings related to SmartRent solutions.

Our fully integrated, hardware-agnostic offerings, organized as Smart Communities Solutions and Smart Operations Solutions , include the following:

Smart Communities Solutions.

Smart Communities Solutions is a collection of interconnected hardware and software designed to enhance the functionality and integration of community environments.

Through advanced technology, these solutions facilitate seamless connections among residents, site teams, and owners.

The hardware and software components work together to streamline community management, increase convenience for residents, and provide operational flexibility for site teams and owners.

This unified platform raises the standard of living and working by optimizing daily operations for greater efficiency and responsiveness to the diverse needs of all users.

Offerings organized under the Smart Communities Solutions umbrella include Smart Apartments, Access Control, Community WiFi, Self-Guided Tours, Parking Management and Package Management.

• Smart Apartment s.

Smart Apartments is a solution that connects all the smart devices in a community to a single dashboard.

It encompasses physical hardware components such as smart locks, thermostats, Hub Devices, and sensors, that enhance the convenience and efficiency of community living.

The platform utilizes a hardware-agnostic approach, allowing for seamless integration with leading third-party hardware providers such as Yale, Honeywell, Salto, and more.

Additionally, hardware solutions such as hubs and sensors are manufactured in-house under the Alloy SmartHome brand.

These devices are managed and controlled through two primary software platforms:

SmartRent Manager for owners, operators, and site teams, and the Resident App for residents.

o SmartRent Manager.

SmartRent Manager is a web-based software that owners and operators use to administer and configure community settings related to SmartRent solutions.

SmartRent Manager software integrates with many popular property management, customer relationship management, and other third-party software products, which enables owners and operators to manage all resident, prospect, access, and other actionable data from one platform.

When a resident moves out, the automated move-out feature immediately locks the apartment door, resets interior thermostats to the “Vacant Mode”

temperature, and revokes resident access to their unit, common areas, and the SmartRent app —

all with the click of a button.

Communities can create “Vacant Mode”

automations to increase efficiencies, such as work orders for unit turns and activating energy-saving mode.

When a resident moves out, the automated move-out feature immediately locks the apartment door, resets interior thermostats to the “Vacant Mode” temperature, and revokes resident access to their unit, common areas, Community WiFi, parking, and the SmartRent app — all with the click of a button.

Communities can create “Vacant Mode” automations to increase efficiencies, such as work orders for unit turns and activating energy-saving mode.

SmartRent Manager Mobile, a native mobile application, allows owners and operators to remotely manage work orders and control access, including resident move-ins and outs.

o Resident App.

Resident App is designed to put comfort, control, and convenience in residents’ hands by giving them the ability to control their smart devices via a mobile application.

With just a tap, residents can lock and unlock their front door, adjust the thermostat to their liking, and automate daily tasks through Schedules and Automations.

Residents can also create service requests within the app, which automatically generates a work order, allowing maintenance to fix the issue quickly.

Residents can control who enters their home by creating and sharing access codes with visitors.

Powered by the Resident App, the best-in-class smart home experience streamlines daily interactions with staff and delivers the modern living experience residents expect.

• Access Control.

Access Control is a community-wide, cloud-based access control system that protects building entry, common areas, and amenity spaces for multifamily residential properties through the use of control panels, smart access locks, and intercoms.

Deeply integrated with major property management systems and SmartRent’s extensive product suite, Access Control automates labor-intensive manual processes to enhance operational efficiencies of common area access and community security.

Access Control is a community-wide, cloud-based access control system that protects building entry, common areas, and amenity spaces for multifamily residential properties using control panels, smart access locks, and intercoms.

Integrated with major property management systems and SmartRent’s extensive product suite, Access Control automates labor-intensive manual processes to enhance operational efficiencies of common area access and community security.

This solution allows residents to create temporary access codes for deliveries, services, or guest access while also offering remote access for residents and site teams at various entry points (e.g., amenity doors, gates, pools, and elevators) without the need for fobs or separate keys.

The system features monitoring systems for visitor logs and real-time door lock activity alerts.

The system features monitoring systems for visitor logs and real-time door lock activity alerts that can be managed remotely, providing flexibility and a safer community.

Access Control can be implemented in new construction or retrofitted in existing properties.

Asset Protection.

Asset Protection solutions help ensure the longevity of communities by reducing the risk of damage through high-precision leak sensors and smart thermostats.

Community Manager software and integrated flood, temperature, and humidity sensors can be configured to notify owners and operators at the first sign of an issue, automatically generate a work order into the property management system, and dispatch a technician to solve the issue, allowing management to act quickly and avoid damages and costly repairs.

Flood sensors can be placed under or near any appliance that may be susceptible to water damage, such as sump pumps, toilets, washing machines, dishwashers, water heaters, and sinks.

Asset Protection solutions provide owners and operators the ability to detect abnormal humidity levels and extreme temperature changes, which help protect floors from warping and prevent mold from forming.

• Community WiFi.

Community WiFi delivers secure, wireless, high-speed internet across an entire property.

A network of strategically placed access points ensures seamless coverage, reliable connectivity and a device-dedicated WiFi network to power Hubs and other in-home smart devices.

While Hubs have built-in cellular connectivity, in markets where cell coverage is not available or poor, communities can add Community WiFi to help maintain a consistent connection.

With a Community WiFi system, owners, operators, and residents will have access to a dedicated and secure network.

Residents can set up Community WiFi in seconds through their Resident App, without the need for a technician.

Upon move-out, access is automatically deactivated.

Community WiFi can be installed in any property type, including new construction or retrofitting existing structures, and perform site surveys to customize the equipment best suited to each property and provide full technical support 24 hours a day, 365 days a year.

• Self-Guided Tours.

Self-Guided Tours is a white-labeled, stand-alone solution that allows prospective renters and buyers to search available rental units, homes, or model inventory, and tour at a time most convenient for them without the need for site teams or management to be present.

Self-Guided Tours allows prospective renters and buyers to search available rental units, homes, or model inventory, and tour at a time most convenient for them without the need for site teams or management to be present.

With no app download required, prospects can search for their next home through a web-based platform, which is accessible through a web browser on a mobile device or computer.

Self-Guided Tours include various features to ensure each self-guided tour is safe, productive, and convenient, including ID Verification for each prospective renter/buyer and an Interactive Site Map to help prospects navigate to tourable homes.

The technology enables owners and operators to expand showing hours outside of traditional hours, permit showings promptly upon request through our “Tour Now”

functionality, and conduct multiple tours at the same time without hiring additional staff.

The technology enables owners and operators to expand showing hours outside of traditional hours, permit showings promptly upon request through our “Tour Now” functionality, and conduct multiple tours at the same time without hiring additional staff.

Self-Guided Tours integrates with many popular property management and customer relationship management systems, and other third-party software products, which enables owners and operators to manage all prospect and other actionable data from one platform.

Community WiFi.

Community WiFi provides communities with a private, device-dedicated WiFi network to power Hub Devices and other in-home smart devices.

While Hub Devices have built-in cellular connectivity, in markets where cell coverage is not available or poor, communities can add Community WiFi to help maintain a consistent connection.

With a Community WiFi system, owners, operators, and residents will have access to a dedicated and secure network, as well as a private connection that provides a stronger and more reliable signal for Hub Devices and other devices.

We are able to install our Community WiFi system in any property type, including new construction or retrofitting existing structures, and perform site surveys to customize the equipment best suited to each property.

Resident App.

Resident App is designed to put comfort, control, and convenience in residents’

hands by giving them the ability to control their smart devices via a mobile application.

With just a tap, residents can lock and unlock their front door, adjust the thermostat to their liking, and automate daily tasks through Schedules and Automations.

Residents can also create service requests within the app, which automatically generates a work order within the client’s integrated property management system, allowing maintenance to fix the issue quickly.

Residents can control who enters their home by creating and sharing access codes with visitors.

Powered by the Resident App, the best-in-class smart home experience streamlines daily interactions with staff and delivers the modern living experience residents expect.

• Parking Management.

Parking Management is a smart parking system designed to alleviate the resident and guest parking issues faced by multifamily residential properties.

Parking Management alleviates resident and guest parking issues faced by multifamily residential properties.

This solution provides an integrated software system and single-source database that allows owners and operators to assign and re-assign parking spaces, review interactive maps for live parking space availability (based on parking sensors for real-time occupancy), implement a proactive enforcement process, monitor parking management with resident parking decals, and install custom parking signs to monetize guest parking.

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Parking Management is available to communities as a stand-alone product or as part of our fully integrated smart home operating system.

• Package Management.

We've entered into a preferred reseller partnership with Position Imaging to offer Smart Package Room Ò which transforms package visibility, reduces labor demands, optimizes storage space and enhances resident satisfaction.

Using advanced package tracking technologies, the comprehensive Smart Package Room solution guides couriers through the package log-in process and automatically directs residents to their packages, relieving the package burden from on-site associates.

It identifies, tracks and manages every package delivered to a property and helps residents easily retrieve their packages with laser and audio prompts.

Smart Package Room offers 2 to 3 times the capacity of lockers all while providing an agnostic solution that can accept any type of package and allows couriers and residents to always access the package room.

Smart Package Room complements SmartRent’s smart home line, expands the Company’s product offerings and solves a long-standing pain point for rental housing operators.

Smart Operations Solutions .

Smart Operations Solutions encompasses integrated software solutions focused on centralizing community operations to improve efficiency and collaboration.

This software suite is tailored to streamline management processes by consolidating various operational tasks onto a single platform.

It aims to enhance productivity among site teams by providing tools that facilitate better communication, coordination, and management of community tasks.

Smart Operations Solutions is designed to modernize and simplify the operational aspects of community management, making it easier for teams to deliver high-quality service and support to residents.

Offerings organized under the Smart Operations Solutions umbrella include Work Management, Answer Automation, Audit Management and Inspection Management.

• Work Management.

Work Management is a solution that enables on-site teams to manage tasks, respond quickly to inquiries, and engage in preventative maintenance all from a mobile device.

Work Management enables on-site teams to manage tasks, respond quickly to inquiries, and engage in preventative maintenance all from a mobile device.

Through work order and service request automations, the platform provides a simplified overview of on-site tasks and allows for easy scheduling of team members.

In addition, the application offers a mobile interface, allowing owners and operators to accomplish more on the go with access to the application available both online and offline.

Walk & Talk is an AI voice assistant for the mobile Work Management app and when creating a task, users will be able to dictate a description of the problem, and AI will use cues in the description to prefill the task category, subcategory, and place.

Work Management provides real-time tracking of assets, enabling owners to effectively manage the state of their assets and make informed decisions by giving on-site teams an easy way to scan assets and make updates from anywhere in the community.

Advanced reporting capabilities allow for filtering and easy exporting of data into third-party tools for deeper analysis.

The application integrates seamlessly with major property management systems to provide an up-to-date and personalized experience.

Advanced reporting capabilities allow for filtering and exporting of data into third-party tools for deeper analysis.

The application integrates with major property management systems to provide an up-to-date and personalized experience.

• Answer Automation.

Answer Automation is a personalized call automation platform that reduces costs and improves on-site team efficiency through the automation of leasing and resident call handling.

Answer Automation reduces costs and improves on-site team efficiency through the automation of leasing and resident call handling.

The platform automatically routes calls to the right team members with up to ten levels of escalation based on a predetermined set of business rules.

Answer Automation’s integrations with major property management systems enable our platform to immediately recognize resident calls via Caller ID so site teams can deliver a personalized experience.

In addition, Call Masking, which masks the team member’s phone number so that it appears to the call recipient as the community’s phone number, allows team members to easily communicate with residents and prospective residents without exposing their personal information.

It uses natural language processing ("NLP") to understand and answer customer queries and can escalate calls to appropriate team members as needed.

Answer Automation also allows residents to easily create work orders that are automatically assigned, improving response times and increasing satisfaction.

Advanced reporting capabilities help site teams make informed decisions and bring attention to the most frequent call areas.

• Audit Management.

Audit Management allows for the quick and reliable determination of a community’s financial accuracy through a consolidated review of the rent roll, deposits, resident lease files, and more.

The platform captures community demographics to minimize risks and evaluate whether residents can meet pro forma rents and satisfy lender requirements by comparing the current rent roll to resident lease files.

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• Smart Locks and Lock Boxes.

Our selection of Z-Wave or Bluetooth-enabled smart locks and lock boxes offer customers options for keyless entry and simplified guest access.

With various keyless entry options, including deadbolts, interconnected locks, lever locks, and patio locks, these products can be customized to meet each property’s needs.

We partner with third-parties to offer a selection of Z-Wave or Bluetooth-enabled smart locks and lock boxes offer customers options for keyless entry and simplified guest access.

With various keyless entry options, including deadbolts, interconnected locks, lever locks, and patio locks, these products can be customized to meet each property’s needs.

• Smart Thermostats, Sensors, Plugs, Switches, Dimmers, and Readers.

We offer (i) thermostats for all types of HVAC systems with programmable options, including forced air, radiant and heat pump, (ii) leak, parking, contact and motion sensors used to proactively monitor and protect properties, (iii) smart plugs to add automation to lights, fans, or other small appliances, (iv) smart switches and dimmers to upgrade lighting in apartments and homes, and (v) a selection of readers, panels, and boards, including as part of our Alloy Access solution.

We partner with third-parties to offer (i) thermostats for all types of HVAC systems with programmable options, including forced air, radiant and heat pump, (ii) leak, parking, contact and motion sensors used to proactively monitor and protect properties, (iii) smart plugs to add automation to lights, fans, or other small appliances, (iv) smart switches and dimmers to upgrade lighting in apartments and homes, and (v) a selection of readers, panels, and boards, including as part of our Access Control solution.

Environmental and Sustainability Benefits

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Our solutions are designed to reduce overall energy consumption by setting limitations on vacant units, controlling ventilation, and providing automated work orders based on temperature and humidity thresholds.

We estimate that our solutions could reduce total U.S.

energy consumption by up to 4%, if all rental units in the U.S.

were fully equipped with our solutions.

Our platform drives these benefits through a variety of connected devices, including smart thermostats, leak sensors, smart appliances and smart lighting.

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Our employees are critical to our success.

As of December 31, 2022, we had approximately 701 total employees worldwide, all of which are full-time employees.

As of December 31, 2023, we had 526 total employees worldwide, all of which are full-time employees.

We also engage consultants and contractors to supplement our permanent workforce.

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Our culture is supportive, engaging, and fast paced and facilitates partnerships among coworkers with diverse backgrounds and experiences.

Our employees have opportunities to get involved in resource groups (e.g., Women’s Empowerment and PRISM) and give back to the community.

Our employees have opportunities to get involved in resource groups (e.g., Women’s Empowerment, People of Color, and PRISM) and give back to the community.

We engage with our employees to gather insight, feedback, and data about their workplace experiences, and manager effectiveness.

This data informs and supports our action plans, with the goal of enhancing workplace satisfaction and overall employee well-being and effectiveness.

We attract and retain talent through our employer brand initiatives, employee referral programs, and partnerships with outside agencies that focus on presenting diverse candidates and through internal career growth.

We attract and retain talent through our employer brand initiatives, employee referral programs, and through internal career growth.

Employee growth and development comes from receiving real-time, informal feedback, a formal performance review, career path transparency, and ongoing role-specific training.

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Both the bonus and variable compensation plans are tied directly to individual and company performance.

We also provide 100% employer paid medical, dental, and vision for employees and their dependents, life insurance, flexible time off, paid parental leave, and a 401(k) plan with a company match.

Our competitive benefits program includes a 100% employer paid medical option for employees and dependents.

Additionally, we provide dental, and vision for employees and their dependents, life insurance, flexible time off, paid parental leave, employee stock purchase plan and a 401(k) plan with a company match.

Research and Development

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Where possible we utilize multiple sourcing methods to mitigate the risk of disruption from a single supplier.

However, we also rely on a number of single source and limited source suppliers for components of our solution.

However, we also rely on a number of single source and limited source suppliers for components of our solutions.

Replacing any single source or limited source suppliers could require the expenditure of significant resources and time to source these products.

In order to mitigate the potential impact of supply chain disruptions, we have engaged in carrying increased quantities of inventory in our warehouse and invested in building a more robust team of supply chain personnel to manage the procurement, warehousing and distribution of inventory.

In August 2023 the Company entered into a Product Sales Agreement (the "Agreement") with ADI Global Distribution ("ADI"), pursuant to which, ADI will serve as our non-exclusive hardware fulfillment partner.

In connection with the Agreement, the Company has agreed to transfer certain of its inventory to ADI, to fulfill our sales in exchange for cash.

The company will continue to utilize ADI as a strategic partner to procure inventory and meet the fulfillment needs of our customers.

Intellectual Property

We regard our intellectual property rights as critical to our success generally, with our trademarks, service marks, and domain names being especially critical to the continued development and awareness of our brands and marketing efforts.

We protect our intellectual property rights through a combination of trademarks, trade dress, domain name registrations, and trade secrets, as well as through contractual restrictions and reliance on federal, state, and common law.

We protect our intellectual property rights through a combination of trademarks, trade dress, domain name registrations, trade secrets, and a patent, as well as through contractual restrictions and reliance on federal, state, and common law.

We enter into confidentiality and proprietary rights agreements with employees, consultants, contractors, and business partners, which include invention assignment provisions for our employees and contractors.

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The CCPA also creates a private right of action with statutory damages for certain data breaches, thereby potentially increasing risks associated with a data breach.

Further, the California Privacy Rights Act (the "CPRA"), which was recently voted into law by California residents, imposes additional data protection obligations on covered companies doing business in California, including additional consumer rights processes and opt outs for certain uses of sensitive data.

Further, the California Privacy Rights Act (the "CPRA") imposes additional data protection obligations on covered companies doing business in California, including additional consumer rights processes and opt outs for certain uses of sensitive data.

The CPRA also creates a new California data protection agency specifically tasked to enforce the law, which would likely result in increased regulatory scrutiny of California businesses in the areas of data protection and security.

The substantive requirements for businesses subject to the CPRA went into effect on January 1, 2023 and become enforceable on July 1, 2023.

Further, according to the Federal Trade Commission (the "FTC"), violating consumers’

privacy rights or failing to take appropriate steps to keep consumers’

personal information secure may constitute unfair acts or practices in or affecting commerce in violation of Section 5 of the FTC Act.

The FTC expects a company’s data security measures to be reasonable and appropriate in light of the sensitivity and volume of consumer information it holds, the size and complexity of its business, and the cost of available tools to improve security and reduce vulnerabilities.

Other regulations that may apply to us, for example, depending upon the circumstances, include the General Data Protection Regulation (GDPR) in the European Union, Canada’s Personal Information Protection and Electronic Documents Act (PIPEDA), and the Tenant Data Privacy Act (TPDA) in New York.

Further, according to the Federal Trade Commission (the "FTC"), violating consumers’ privacy rights or failing to take appropriate steps to keep consumers’ personal information secure may constitute unfair acts or practices in or affecting commerce in violation of Section 5 of the FTC Act.

Corporate History

We were originally incorporated in Delaware on November 23, 2020 as Fifth Wall Acquisition Corp.

I (“FWAA”), a special purpose acquisition company, formed to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or other similar business combination with one or more target businesses.

On February 9, 2021, FWAA consummated its initial public offering (the “IPO”), following which its shares began trading on the Nasdaq Capital Market (“Nasdaq”).

On August 24, 2021, we consummated the Business Combination (as defined below) contemplated by the Merger Agreement dated April 21, 2021 (as amended, the “Merger Agreement”), among FWAA, Einstein Merger Corp.

I, a wholly owned subsidiary of FWAA (“Merger Sub”), and SmartRent.com, Inc.

(“Legacy SmartRent”).

On February 9, 2021, FWAA consummated its initial public offering (the “IPO”), following which its shares began trading on the Nasdaq Capital Market (“Nasdaq”).

I, a wholly owned subsidiary of FWAA (“Merger Sub”), and SmartRent.com, Inc.

(“Legacy SmartRent”).

Upon the closing of the Business Combination, Merger Sub merged with and into Legacy SmartRent, with Legacy SmartRent continuing as the surviving company.

“Business Combination”

refers to these mergers, together with the other related transactions.

At the closing of the Business Combination, Legacy SmartRent changed its name to “SmartRent Technologies, Inc.”

and FWAA changed its name to “SmartRent, Inc.”

Additionally, we changed our trading symbol and listing on a securities exchange from “FWAA”

on Nasdaq to “SMRT”

on the New York Stock Exchange (“NYSE”).

“Business Combination” refers to these mergers, together with the other related transactions.

At the closing of the Business Combination, Legacy SmartRent changed its name to “SmartRent Technologies, Inc.” and FWAA changed its name to “SmartRent, Inc.” Additionally, we changed our trading symbol and listing on a securities exchange from “FWAA” on Nasdaq to “SMRT” on the New York Stock Exchange (“NYSE”).

SmartRent, the SmartRent logo and other trade names, trademarks or service marks of SmartRent appearing in this Report are the property of SmartRent.

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Our website address is www.smartrent.com.

We make available, free of charge through our website, our annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, and amendments to those reports, filed or furnished pursuant to Sections 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended, as soon as reasonably practicable after they have been electronically filed with, or furnished to, the Securities Exchange Commission (“SEC”).

We may announce material business and financial information using our investor relations website (investors.smartrent.com), SEC filings, webcasts, press releases, and conference calls.

4 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business