SOBR Safe(US:SOBR)2024-05-15 18:49Financial Performance - Total revenues for Q1 2024 were $47,990, compared to $47,868 in Q1 2023, reflecting a slight increase of 0.25%[18] - Gross profit for Q1 2024 was $23,209, up from $17,804 in Q1 2023, representing a significant increase of 30.5%[18] - The net loss for Q1 2024 was $2,505,916, compared to a net loss of $2,601,687 in Q1 2023, indicating an improvement of about 3.7%[18] - Basic and diluted loss per common share for Q1 2024 was $0.21, compared to $0.15 in Q1 2023[18] - For the three months ended March 31, 2024, the net loss was $2,505,921 compared to a net loss of $2,601,692 for the same period in 2023, indicating a decrease in losses of approximately 3.7%[22] Operating Expenses - Total operating expenses decreased to $1,731,994 in Q1 2024 from $2,464,781 in Q1 2023, a reduction of approximately 29.8%[18] - Stock-based compensation expense for the three months ended March 31, 2024, was $214,398, a decrease of approximately 69% from $698,913 in the same period of 2023[22] - Research and development expenses decreased by 43.6% from $180,918 in Q1 2023 to $102,034 in Q1 2024, attributed to the completion of the SOBRcheckTM device development[145] Assets and Liabilities - Total current assets decreased to $1,858,082 as of March 31, 2024, from $3,371,470 as of December 31, 2023, a decline of approximately 44.8%[13] - Total liabilities increased to $3,576,499 as of March 31, 2024, from $4,164,502 as of December 31, 2023, reflecting a decrease of about 14.1%[14] - Cash reserves decreased to $1,336,250 as of March 31, 2024, down from $2,790,147 as of December 31, 2023, a decline of approximately 52.0%[13] - Total current liabilities increased by 121% from $1,552,842 as of December 31, 2023, to $3,399,765 as of March 31, 2024, primarily due to the classification of convertible debt[153] Equity and Capital - The total stockholders' equity (deficit) decreased to $938,936 as of March 31, 2024, from $1,982,537 as of December 31, 2023, a decline of approximately 52.7%[14] - Total stockholders' equity as of March 31, 2024, was $938,936, a decrease from $7,827,426 as of March 31, 2023, reflecting a significant decline of approximately 88%[20] - The total additional paid-in capital as of March 31, 2024, was $92,823,937, reflecting an increase from $88,071,861 as of March 31, 2023[20] Cash Flow - The company reported a net cash used in operating activities of $1,453,897 for the three months ended March 31, 2024, compared to $1,589,453 for the same period in 2023, showing a reduction of about 8.5%[22] - Cash at the end of the period was $1,336,250, down from $8,290,003 at the end of the same period in 2023, representing a decrease of approximately 83%[22] - The Company has approximately $1.3 million in cash balances and negative working capital of approximately $1.5 million as of March 31, 2024, which may not be sufficient for operating activities in the next twelve months[73] Debt and Financing - The Company entered into a 2023 Debt Offering, receiving $3 million and issuing convertible notes with a principal amount of $3,529,412, due March 10, 2025[90] - The Company converted $804,695 of convertible notes into 1,297,895 shares of common stock at $0.62 per share, recognizing a conversion expense of $585,875[95] - The Company has two convertible notes payable totaling $9,183 with a 12% interest rate, currently in default[96] - The Company has two non-convertible notes payable totaling $17,500 with interest rates ranging from 9% to 10%, also currently in default[97] Business Operations - The company integrated proprietary software with patented alcohol detection products, targeting markets primarily in North America[23] - Management believes the introduction of the SOBRsureTM product in Q3-2023 will positively impact revenue generation and cash flows from sales[72] - The SOBRsafe™ technology is being explored for integration with existing telematics systems and licensing by non-competitive third parties[134] - The company aims to collect user data through its device portfolio, potentially creating a monetizable asset for statistical analytics[135] Future Outlook - The company expects to continue generating significant losses for the foreseeable future, dependent on accessing additional capital[140] - Management expressed substantial doubt about the company's ability to continue as a going concern due to inadequate operating capital and recurring losses[151]