Company: SOBR
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001477932-25-002746
Chunk: 332

Company: SOBR Safe, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 332
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 well as the allocation of proceeds between the liability and equity components. In particular, the Company needs to assess the impact of the inducements on the effective interest rate and determine the appropriate accounting treatment for deemed dividends, which requires significant judgment and estimation.

This matter was considered critical due to the complexity involved in accounting for the inducements and deemed dividends, as well as the judgment required in applying the relevant accounting standards to these transactions. The determination of the appropriate accounting treatment, including the allocation of proceeds and the recognition of deemed dividends, requires careful evaluation of the terms of the convertible debt and the impact on the Company’s financial position. 

Addressing the matter involved performing procedures included, among others, evaluation of the Company’s accounting policies and methodologies for recognizing and measuring inducements and deemed dividends, and reviewing the assumptions and estimates used in determining the allocation of proceeds between debt and equity. We examined the underlying calculations, including the assessment of the impact on the effective interest rate and the appropriate recognition of deemed dividends. Additionally, we reviewed the disclosures in Note 9 to ensure they were in compliance with the applicable accounting standards and provided adequate transparency regarding the complexity of the transactions.

/s/ Haynie and Company

Salt Lake City, Utah

April 15, 2025

We have served as the Company’s auditor since 2023.

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SOBR SAFE, INC. CONSOLIDATED BALANCE SHEETS

  December 31,   December 31,    2024  2023        ASSETS             Current assets      Cash $8,384,042  $2,790,147 Accounts receivable, net  24,460   25,280 Inventory  224,875   342,782 Prepaid expenses  192,637   213,261 Other current assets  46,060   - Total current assets  8,872,074   3,371,470 Intellectual technology, net  2,087,965   2,473,429 Operating lease right-of-use assets, net  183,737   274,713 Other assets   27,427   27,427 Total Assets $11,171,203  $6,147,039          LIABILITIES & STOCKHOLDERS’ EQUITY                 Current liabilities        Accounts payable $422,557