Smart Rental Co. - A Quarterly Report 2025

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submittedpursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that theregistrant was required to submit such files).Yes☒No☐ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smallerreporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smallerreporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period forcomplying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐ TABLE OF CONTENTS PART I - Financial Information Item 1. Financial Statements (unaudited)Condensed Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024Condensed Consolidated Statements of Operations and Comprehensive Loss for the three monthsended March 31, 2025 and 2024Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders' Deficit for thethree months ended March 31, 2025 and 2024Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2025 and2024 Notes to the Condensed Consolidated Financial Statements (Unaudited)Item 2 - Management's Discussion and Analysis of Financial Condition and Results of OperationsItem 3 - Quantitative and Qualitative Disclosures About Market RiskItem 4 - Controls and Procedures PART II - Other Information Item 1 - Legal ProceedingsItem 1A - Risk FactorsItem 2 - Unregistered Sales of Equity Securities and Use of ProceedsItem 3 - Defaults Upon Senior SecuritiesItem 4 - Mine Safety DisclosuresItem 5 - Other InformationItem 6 - ExhibitsSignatures CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q (“Report”) contains forward-looking statements within the meaning of Section 27A of theSecurities Act of 1933, as amended (“Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended(“Exchange Act”) that express our opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding futureevents or future results and therefore are, or may be deemed to be, “forward-looking statements.” Words such as “believe,” “may,”“will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “plan,” “potentially,” “preliminary,” “likely,” “aim” •our future financial performance, including our expectations regarding revenue, cost of revenue, operating expenses,capital expenditures, cash flows, and ability to achieve profitability; •our future operational performance, including our expectations regarding our metrics, including, among others, AnnualRecurring Revenue, Average Revenue per Unit, Customer Churn, Property Net Revenue Retention, Customer Net •the impact of macroeconomic conditions and geopolitical events on our business; •our anticipated investments in sales and marketing and research and development; •our recent leadership changes; •our ability to maintain our brand; •our ability to satisfy certain New York Stock Exchange (“NYSE”) listing requirements •our ability to manage our supply chain; •the impact of international trade restrictions, such as tariffs and other controls on imports or exports of goods,technology, or data; •our ability to successfully defend litigation brought against us; •the sufficiency of our cash, cash equivalents and investments to meet our liquidity needs; •our expectations regarding our share repurchase program; •our ability to achieve or maintain profitability; •our ability to effectively manage our growth and future expenses; •our ability to attract new customers, sell into new and existing markets, upsell customers, and develop new products; •our investment strategy, business strategy and growth strategy, including the use of acquisitions to grow our business; •the impact of our acquisitions and our ability to successfully integrate acquired businesses; •the impact of seasonal factors on our business; •our ability to successfully expand in our existing markets and into new markets; •our ability to maintain the security and availability of our platform and products; •potential harm caused by significant disruptions of service, or the actual or perceived failure of our products to preventsecurity incidents; •our ability to prevent serious errors or defects across, and to otherwise maintain the interrupted operation of our network;•our ability to maintain, protect and enhance our intellectual property;•our expectations of the impact of, and our ability to comply with existing, modified or new laws and regulations applicableto our business; and •our ability to co