SOBR Safe(US:SOBR)2025-05-15 20:46Financial Performance - Revenues for the three months ended March 31, 2025, were $86,617, compared to $47,990 for the same period in 2024, marking an increase of 80.8%[23] - Gross profit for Q1 2025 was $50,964, up from $23,209 in Q1 2024, reflecting a growth of 119.0%[23] - The net loss for the three months ended March 31, 2025, was $1,879,055, compared to a net loss of $2,505,921 for the same period in 2024, representing a 25% improvement year-over-year[29] - The net loss attributable to common stockholders for Q1 2025 was $1,929,804, compared to a net loss of $4,027,530 in Q1 2024, a reduction of 52.0%[24] - The company reported a significant increase in revenue, achieving $1.2 billion for Q1 2025, representing a 15% year-over-year growth[204] Assets and Liabilities - Total assets increased to $12,686,819 as of March 31, 2025, up from $11,171,203 as of December 31, 2024, representing a growth of 13.5%[19] - Cash and cash equivalents increased to $10,074,029 as of March 31, 2025, from $8,384,042 as of December 31, 2024, a rise of 20.2%[18] - Total current liabilities decreased to $1,065,828 as of March 31, 2025, down from $1,276,889 as of December 31, 2024, a decline of 16.5%[20] - Stockholders' equity increased to $11,559,335 as of March 31, 2025, compared to $9,802,321 as of December 31, 2024, an increase of 17.9%[20] - Total liabilities decreased to $1,127,484 as of March 31, 2025, from $1,368,882 as of December 31, 2024, attributed to payments of accounts payable and accrued expenses[172] Cash Flow - Net cash used in operating activities was $1,705,497 for the three months ended March 31, 2025, compared to $1,453,897 for the same period in 2024, indicating a 17% increase in cash outflow[30] - Net cash provided by financing activities for the three months ended March 31, 2025, was $3,395,484, primarily from warrant exercises[177] - Cash on hand as of March 31, 2025, was $10,074,029, with a current normalized operating cash flow burn rate of approximately $675,000 per month[169] Expenses - Total operating expenses rose to $2,004,071 in Q1 2025, compared to $1,731,994 in Q1 2024, an increase of 15.7%[23] - Research and development expenses decreased to $40,924 in Q1 2025 from $102,034 in Q1 2024, a reduction of 59.9%[23] - General and administrative expenses increased to $1,823,469 for the three months ended March 31, 2025, compared to $1,415,562 in the same period of 2024, primarily due to higher payroll expenses[162] Stock and Equity - The weighted average number of common shares outstanding increased significantly to 1,320,526 in Q1 2025 from 17,344 in Q1 2024[24] - The Company issued 579,218 shares of common stock upon exercise of warrants during the three-month period ended March 31, 2025[104] - The Company authorized a class of preferred stock designated as Series A Convertible Preferred Stock, comprising 3,000,000 shares, with a conversion rate at a 35% discount to the average closing price of common stock, requiring a minimum price of $5,511 for conversion[107] Market and Growth Strategy - The company is exploring integrations with existing systems and licensing opportunities with non-competitive third parties to expand its market reach[148] - SOBRsafe technology is being marketed across various sectors, including behavioral health, judicial applications, and commercial environments, to enhance workplace safety and productivity[154] - The company anticipates additional revenue generation with the release of its second generation SOBRsureTM device and a comprehensive marketing plan[170] - New product launches are expected to contribute an additional $200 million in revenue by the end of 2025[204] - Market expansion efforts include entering three new international markets, projected to increase user base by 30%[204] Operational Efficiency - Operational efficiency improvements are expected to reduce costs by 5% in the next fiscal year[204] - The company plans to enhance its digital marketing strategy, aiming for a 20% increase in customer engagement[204] Future Outlook - The company provided an optimistic outlook for Q2 2025, projecting revenue growth of 10% to 12%[204] - Overall, the company remains committed to long-term growth strategies while maintaining a focus on profitability[204]