SOBR Safe(SOBR) - 2024 Q4 - Annual Report

Financial Performance - The company reported a significant fluctuation in quarterly and annual operating results, which may not fully reflect the underlying performance of the business[22]. - The company has a limited operating history, and its quarterly and annual operating results may fluctuate significantly[22]. - The company may face challenges in meeting future capital needs, which could impact technology and product development efforts[22]. - The company may face increased costs or disruptions in the supply of raw materials, impacting financial performance[22]. Technology and Product Development - The company is focused on the development and commercialization of alcohol monitoring and detection devices, relying on its SOBRsafe™ technology[22]. - The company relies on third-party intellectual property licenses for its patent-pending technology, which may expose it to legal and financial risks[22]. Manufacturing and Supply Chain Risks - There is a dependency on third-party manufacturers for key components, which could lead to lost revenue if production is delayed[22]. - The company has limited experience in large-scale manufacturing, which may adversely affect growth[22]. - The company is dependent on third-party manufacturers for key components, and any disruptions could negatively impact revenue[22]. International Expansion Risks - The company faces risks associated with international expansion, including unexpected events and regulatory compliance[22]. - The company is subject to risks associated with international expansion, including compliance with regulations and potential cost increases[22]. Competition and Market Challenges - The company faces competition that could hinder its ability to operate profitably in the market[22]. Stock and Share Structure - A reverse stock split of 1-for-3 was effective on April 28, 2023, adjusting all common stock share amounts accordingly[27]. - The company maintains 100,000,000 authorized shares of common stock despite the reverse stock splits[28]. - The number of authorized shares of common stock remains at 100,000,000 despite the reverse stock splits[28].