Company: SOBR
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001477932-25-002746
Chunk: 618

Company: SOBR Safe, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 618
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 $39,824,000 that will be carried forward and can be used through the year 2028 and beyond to offset future taxable income. In the future, the cumulative net operating loss carry forward for income tax purposes may differ from the cumulative financial statement loss due to timing differences between financial and tax reporting. Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of approximately $39,824,000 for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carry forwards may be further limited to use in future years.

 F-24Table of Contents

As of December 31, 2024 and 2023, the deferred tax asset of approximately $12,004,000 and $9,714,000, respectively, created by the net operating losses has been offset by a 100% valuation allowance because the likelihood of realization of the tax benefit cannot be determined. The change in the valuation allowance in 2024 and 2023 was approximately $2,290,000 and $2,429,000, respectively. There is no current or deferred tax expense for the years ended December 31, 2024 and 2023. The Company has not filed its tax returns for the years 2012 through 2024; however, management believes there are no taxes due as of December 31, 2024 and 2023. The Company includes interest and penalties arising from the underpayment of income taxes in general and administrative expense in the consolidated statements of operations. The provision for Federal income tax consist of the following:   December 31, 2024  December 31, 2023 Income tax benefit attributable to:      Net loss  $(8,609,139) $(10,214,704 )Permanent differences   1,315,587   2,382,227 Valuation allowance   7,293,552   7,832,477 Net provision for income tax  $-  $-  The cumulative tax effect at the expected federal tax rate of 21% of significant items comprising our net deferred tax amount is as follows:   December 31, 2024  December 31, 2023 Deferred tax asset attributable to:      Net operating loss carry forward  $9,572,421  $7,723,005 Val