SOBR Safe(US:SOBR)2024-11-14 01:00Financial Performance - Revenue for the three months ended September 30, 2024, was $46,129, compared to $36,274 for the same period in 2023, indicating a growth of approximately 27.5%[11] - Gross profit for the nine months ended September 30, 2024, was $66,381, up from $54,908 in the same period of 2023, reflecting an increase of about 20.9%[11] - The net loss for the three months ended September 30, 2024, was $1,841,210, compared to a net loss of $2,197,380 for the same period in 2023, showing an improvement of about 16.3%[11] - The net loss for the nine months ended September 30, 2024, was $6,424,505, compared to a net loss of $7,673,030 for the same period in 2023, representing a decrease of approximately 16.3%[16] - Revenues for the nine-month period ended September 30, 2024, increased by $26,567, or 22%, to $148,310 compared to $121,743 for the same period in 2023, driven by sales from the SOBRsureTM device and SaaS subscriptions[152] Expenses and Costs - Operating expenses for the three months ended September 30, 2024, totaled $1,878,005, down from $2,083,122 in the same period of 2023, a decrease of approximately 9.8%[11] - Research and development expenses for the three months ended September 30, 2024, were $194,466, compared to $214,374 for the same period in 2023, a decrease of approximately 9.3%[11] - General and administrative expenses increased to $1,499,296 for the three-month period ended September 30, 2024, from $1,358,749 in the prior year, primarily due to higher legal and marketing expenses[141] - Stock-based compensation expense decreased to $184,243 for the three months ended September 30, 2024, compared to $509,999 in the same period of 2023, due to previously issued awards becoming fully vested or forfeited[143] - Stock-based compensation expense decreased from $1,836,674 for the nine months ended September 30, 2023, to $584,551 for the same period in 2024, due to previously issued awards becoming fully vested or forfeited[155] Assets and Liabilities - As of September 30, 2024, total assets decreased to $3,349,452 from $6,147,039 as of December 31, 2023, representing a decline of approximately 45.5%[9] - Cash and cash equivalents decreased significantly to $304,537 as of September 30, 2024, from $2,790,147 as of December 31, 2023, a decline of approximately 89.0%[10] - Total current liabilities decreased to $1,194,337 as of September 30, 2024, from $1,522,842 as of December 31, 2023, a reduction of about 21.5%[10] - The accumulated deficit increased to $(96,057,720) as of September 30, 2024, from $(87,765,981) as of December 31, 2023, indicating a worsening of approximately 9.3%[10] - Total current assets decreased by $2,441,174 from $3,371,470 as of December 31, 2023, to $930,296 as of September 30, 2024, primarily due to cash usage to support negative cash flow from operations[165] Stock and Financing Activities - The company executed a 1-for-110 reverse stock split effective October 2, 2024, impacting all common stock share amounts and related prices[8] - The company raised gross proceeds of $8.2 million through a private placement on October 7, 2024, issuing 2,024,691 units at a purchase price of $4.05 per unit[136] - The company eliminated a March 2025 debt obligation by converting $3,556,233 of debt into 52,145 shares of common stock at $68.20 per share[133] - The exercise price for Common Stock Purchase Warrants was permanently reduced to $29.70 per share in June 2024, resulting in gross proceeds of $2,786,174[94] - The total principal balance of the Company's convertible and non-convertible notes payable as of September 30, 2024, is $26,683[80][81] Legal and Compliance Matters - The company is involved in various pending legal actions, but management believes these will not have a material adverse effect on its financial position or results of operations[181] - A lawsuit filed against the company for breach of contract amounts to $11,164, with a default judgment taken against it[179] - A settlement agreement was reached with a former employee regarding claims of breach of contract and unlawful termination, with expectations for dismissal by year-end[180] Market and Product Development - The company integrated proprietary software with patent-pending touch-based alcohol detection products, SOBRcheckTM and SOBRsureTM, focusing on non-invasive alcohol detection and biometric identity verification[18] - The company anticipates continued evolution of its products and software to meet diverse customer requirements across various markets[129] - The company executed customer agreements for the SOBRsure™ device, which began commercial production in Q3 2023[140] Cash Flow and Financial Health - The company reported a net cash used in operating activities of $4,911,028 for the nine months ended September 30, 2024, compared to $4,705,018 for the same period in 2023[17] - Cash on hand as of September 30, 2024, was $304,537, with a current normalized operating cash flow burn rate of approximately $550,000 per month[163] - The company has cash balances of approximately $300,000 and negative working capital of approximately $265,000, which do not provide adequate capital for operating activities for the next twelve months[59]