Company: SOBR
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001477932-25-005544
Chunk: 41

Company: SOBR Safe, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 41
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 As of June 30, 2025, the Company has an accumulated deficit of approximately $102,250,000. During the six months ended June 30, 2025, the Company experienced negative cash flows from operating activities of approximately $3,310,000. These principal conditions and events, when considered in the aggregate, could indicate it is probable that the Company will be unable to meet its obligations as they become due within one year after the date the financial statements are issued. However, the Company has identified factors that may mitigate the probable conditions that have raised substantial doubt about the entity’s ability to continue as a going concern. Management believes that cash balances of approximately $8,470,000 and positive working capital of approximately $6,010,000 at June 30, 2025, provide adequate capital for operating activities for the next twelve months after the date these financial statements are issued. Management believes the release of its second generation SOBRsureTM device in the fourth quarter of 2024 and a comprehensive 2025 marketing plan have positioned the Company to generate improvement in the generation of both revenue and positive cash flows from sales. These plans are contingent upon the actions to be performed by the Company, and these conditions have not been met on or before June 30, 2025. Management believes despite limited revenue generation and historical operating cash flows, adequate cash balances and working capital are sufficient to support ongoing operations for the next twelve months and the Company will continue as a going concern as of June 30, 2025.

NOTE 3. INVENTORY Inventory consists of the following:   June 30,  December 31,   2025  2024 Component parts $59,081  $59,081 Finished goods  130,682   165,794 Inventory $189,763  $224,875 

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NOTE 4. PREPAID EXPENSES Prepaid expenses consist of the following:   June 30,  December 31,   2025  2024 Insurance $1,664  $165,041 Deposit  40,736   15,736 Other  50,010   11,860 Prepaid expenses $92,410  $192,637  On July 1, 2024, the Company purchased annual general risk and director and officers’ insurance policies pre