SOBR Safe(US:SOBR)2025-08-07 20:31PART I – FINANCIAL INFORMATION ITEM 1 Condensed Consolidated Financial Statements This section presents SOBR Safe, Inc.'s unaudited condensed consolidated financial statements and accompanying notes Condensed Consolidated Balance Sheets Balance Sheet Metrics | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :------------------ | | Cash | $8,466,322 | $8,384,042 | | Total Assets | $10,856,720 | $11,171,203 | | Total Current Liabilities | $2,786,735 | $1,276,889 | | Total Stockholders' Equity | $8,039,102 | $9,802,321 | Condensed Consolidated Statements of Operations Three Months Ended June 30 | Metric | 2025 | 2024 | Change (%) | | :----- | :------------ | :------------ | :--------- | | Revenues | $104,228 | $54,191 | 92.3% | | Gross profit | $59,884 | $13,035 | 359.4% | | Net loss | $(1,995,485)$ | $(2,077,374)$ | 3.9% | | Basic and diluted loss per common share | $(1.32)$ | $(113.76)$ | 98.8% | Six Months Ended June 30 | Metric | 2025 | 2024 | Change (%) | | :----- | :------------ | :------------ | :--------- | | Revenues | $190,845 | $102,181 | 86.8% | | Gross profit | $110,848 | $36,244 | 205.9% | | Net loss | $(3,874,540)$ | $(4,583,295)$ | 15.5% | | Basic and diluted loss per common share | $(2.77)$ | $(333.84)$ | 99.2% | Condensed Consolidated Statements of Changes in Stockholders' Equity - Total Stockholders' Equity decreased from $9,802,321 at December 31, 2024, to $8,039,102 at June 30, 20251624 - 579,219 shares of common stock were issued upon exercise of warrants during the six months ended June 30, 202524101 - A True-up payment related to 2024 PIPE Warrants resulted in a $(1,640,000) reduction in stockholders' equity for the six months ended June 30, 202524 Condensed Consolidated Statements of Cash Flows Cash Flow Activities (Six Months Ended June 30) | Cash Flow Activity | 2025 | 2024 | | :----------------- | :------------ | :------------ | | Net cash used in operating activities | $(3,313,203)$ | $(3,049,161)$ | | Net cash provided by financing activities | $3,395,483 | $2,425,418 | | Net Change In Cash | $82,280 | $(623,743)$ | | Cash At The End Of The Period | $8,466,322 | $2,166,404 | Notes to the Unaudited Condensed Consolidated Financial Statements NOTE 1. ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES This note outlines SOBR Safe, Inc.'s business, significant accounting policies, and operational context - SOBR Safe, Inc. is a hardware and software company headquartered in Greenwood Village, Colorado, providing non-invasive alcohol monitoring and detection, biometric identity verification, and real-time cloud-based alerts through its SOBRsafe™ software and patent-pending products, SOBRcheck™ and SOBRsure™28 - Revenue is recognized when control of software products and/or services are transferred to the customer, following a five-step model for contract identification, performance obligation identification, transaction price determination, allocation, and recognition484950 - The Company's basic and diluted loss per share are the same for the periods presented because the effect of its dilutive securities (stock options, restricted stock units, warrants, and convertible instruments) is anti-dilutive64 - The Company faces concentration risks due to sales to a limited number of customers and reliance on a limited number of component and contract suppliers, which could lead to significant period-to-period revenue shifts or production delays676869 NOTE 2. GOING CONCERN Recurring losses and negative cash flows raise going concern doubts, but management believes current capital and strategic plans ensure adequate funding for the next twelve months - As of June 30, 2025, the Company has an accumulated deficit of approximately $102,250,000 and experienced negative cash flows from operating activities of approximately $3,310,000 during the six months ended June 30, 202575 - Management believes cash balances of approximately $8,470,000 and positive working capital of approximately $6,010,000 at June 30, 2025, combined with the release of its second-generation SOBRsure™ device and a comprehensive 2025 marketing plan, provide adequate capital for operating activities for the next twelve months76 NOTE 3. INVENTORY Inventory consists of component parts and finished goods, valued at the lower of cost or net realizable value using the FIFO method, with no obsolescence reserves recorded Inventory Composition | Category | June 30, 2025 | December 31, 2024 | | :-------------- | :------------ | :---------------- | | Component parts | $59,081 | $59,081 | | Finished goods | $130,682 | $165,794 | | Total Inventory | $189,763 | $224,875 | NOTE 4. PREPAID EXPENSES Prepaid expenses include insurance, deposits, and other items, with annual insurance premiums prepaid in July 2024 and recognized over the coverage period Prepaid Expenses Composition | Category | June 30, 2025 | December 31, 2024 | | :-------------- | :------------ | :---------------- | | Insurance | $1,664 | $165,041 | | Deposit | $40,736 | $15,736 | | Other | $50,010 | $11,860 | | Total Prepaid Expenses | $92,410 | $192,637 | - Insurance expense related to prepaid annual general risk and directors & officers insurance premiums was $167,371 for the six months ended June 30, 2025, compared to $199,600 for the same period in 202478 NOTE 5. LEASES The Company leases its corporate headquarters and office equipment under operating leases, with a lease amendment in April 2023 extending the office lease term and requiring ROU asset and lease liability recognition - Total operating lease expense was $100,531 for the six months ended June 30, 2025, compared to $97,755 for the same period in 202482 Operating Lease Liabilities (June 30, 2025) | Category | Amount | | :------------------------------ | :---------- | | Operating lease liabilities, current portion | $118,619 | | Operating lease liabilities, long-term | $30,883 | | Total operating lease liabilities | $149,502 | - The weighted average remaining lease term is 15 months, and the weighted average discount rate is 10%83 NOTE 6. INTANGIBLE ASSETS Intangible assets primarily consist of SOBRsafe™ Intellectual Technology, amortized over 10 years, with no impairment loss recognized Intangible Assets (SOBRsafe™ Intellectual