Company: SOBR
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001477932-25-008092
Chunk: 18

Company: SOBR Safe, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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 concern. Based on an evaluation of current operating cash usage, management identified several areas in which the Company is capable to reduce spend should it be needed. This includes reductions in operating headcount, discretionary sales & marketing spend, investor relations initiatives, and product/software research and development planning. Ongoing activities to identify and reduce monthly expenses by management will continue in perpetuity until such time financial liquidity and substantial cash flow from sales are realized.  Management believes that cash balances of approximately $4,712,000 and positive working capital of approximately $3,996,000 at September 30, 2025, do not provide adequate capital for operating activities for the next twelve months after the date these financial statements are issued. However, 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. In addition, the Company’s plans and ability to access capital sources and implement expense-reduction tactics to preserve working capital provide the opportunity for the Company to continue as a going concern as of September 30, 2025. These plans are contingent upon the actions to be performed by the Company, and these conditions have not been met on or before November 12, 2025. As such, substantial doubt about the entity’s ability to continue as a going concern has not been alleviated as of September 30, 2025.

NOTE 3. INVENTORY Inventory consists of the following:   September 30,  December 31,   2025  2024 Component parts $65,741  $80,164 Finished goods  76,489   144,711 Inventory $142,230  $224,875 

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NOTE 4. PREPAID EXPENSES Prepaid expenses consist of the following:   September 30,  December 31,   2025  2024 Insurance $256,645  $165,041 Deposit  15,736   15,736 Other  41,140   11,860 Prepaid expenses $313,521  $192,637  On July 1, 2025, the Company purchased annual general risk and director and officers’ insurance policies prepaying annual premiums of $341,306 through