Company: SOBR
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001477932-25-008092
Chunk: 19

Company: SOBR Safe, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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 an eight-month financing arrangement on the same date (see Note 9). The Company recorded $254,371 and $283,119 of insurance expense related to the prepaid annual general risk and directors & officers insurance premiums during the nine months ended September 30, 2025 and 2024. The Company recorded $85,347 and $83,519 of insurance expense related to the prepaid annual general risk and directors & officers insurance premiums during the three months ended September 30, 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 twelve-month period beginning July 1, 2022, with a monthly base rent of $9,744. 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 from July 1, 2023, through September 30, 2026. The amended lease provides for monthly base rent of $9,744 through September 2024, with fixed escalating monthly base rent for each year thereafter, 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 has 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. For the nine months ended September 30, 2025, total operating lease expense was $152,454, which included $58,936 of variable lease expense. For the three months ended September 30, 2025, total operating lease expense was $51,923 which included $20,750 of variable lease expense. For the nine months ended September 30, 2024, total operating lease expense was $147,878, of which $61,104 was attributable to variable lease expenses. For the three months ended September 30, 2024, total operating lease expense was $50,123, of which $21,198 was attributable to variable lease expenses. Operating lease obligations recorded on the condensed consolidated balance sheet