Company: SOBR
Filing Date: 2025-05-16
Form Type: 10-Q/A
Source: 0001477932-25-003898
Chunk: 16

Company: SOBR Safe, Inc.
Filing Date: 2025-05-16
Form: 10-Q/A
Chunk 16
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 $ and $ of insurance expense related to the prepaid annual general risk and directors & officers insurance premiums during the three-month periods ended March 31, 2025 and 2024.

NOTE 5. LEASES

The Company leases its corporate headquarters office space and certain office equipment under arrangements classified as operating leases.

The Company entered into its lease agreement to rent office space for a , with a monthly base rent of $. The lease did not contain renewal options and was considered a short-term lease at inception. In April 2023, the Company executed an amendment to extend the term of the lease , and no rent due for the months of July through September 2023.

The Company determined that the amendment results in a lease modification that is not accounted for as a separate contract. Further, due to the extension of the lease term beyond the initial twelve months, the office lease can no longer be considered a short-term lease. The Company recorded a right-of-use asset and lease liability as of April 17, 2023 (the effective date of the amendment) based on the modified terms and conditions of the amended lease.

Total operating lease expense for the three-month period ended March 31, 2025, total operating lease expense was $ which included $ of variable lease expense. Total operating lease expense for the three-month period ended March 31, 2024, total operating lease expense was $, of which $ was attributable to variable lease expense.

Operating lease obligations recorded on the unaudited condensed consolidated balance sheet at March 31, 2025 are as follows:

| Operating lease liabilities – current portion      |     | $ | 115,078 |
| Operating lease liabilities – less current portion |     |   |  61,656 |
| Total operating lease liabilities                  |     | $ | 176,734 |

Future lease payments included in the measurement of operating lease liabilities on the unaudited condensed consolidated balance sheet at March 31, 2025 are as follows:

| 2025                                             |     | $ |  94,471 |   |
| 2026                                             |     |   |  95,063 |   |
| Total undiscounted future minimum lease payments |     |   | 189,534 |   |
| Less imputed interest                            |     |   | (12,800 | ) |
| Total operating lease liabilities                |     | $ | 176,734 |   |

The weighted average remaining lease term is months, and the weighted average discount rate is