Company: SOBR
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001477932-25-002746
Chunk: 847

Company: SOBR Safe, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 5
Chunk 847
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 through a eight-month financing arrangement on June 15, 2023 (see Note 8). The Company recorded $364,786 of insurance expense related to the prepaid annual general risk and directors & officers insurance premiums during the year ended December 31, 2023.

 F-13Table of Contents

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 a 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 $9,310 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. The Company entered into a lease agreement for copier equipment in June 2023, requiring monthly lease payments of $329 through May 2026.  Total operating lease expense was $198,361, which included $82,662 of variable lease expense during the year ended December 31, 2024. Operating lease obligations recorded on the audited consolidated balance sheet at December 31, 2024 are as follows: Operating lease liabilities, current portion $111,303 Operating lease liabilities – less current portion  91,993 Total Operating Lease Liabilities $203,296  Future lease payments included in the measurement of operating lease liabilities on the audited consolidated balance sheet at December 31, 2024 are as follows: 2025  125,644 2026  95,063 Total future minimum lease payments  220,707 Less imputed interest  (