SOBRsafe Provides Corporate Update

Rhea-AI Summary

SOBRsafe (NASDAQ:SOBR), a leader in next-generation alcohol monitoring technology, provided a corporate update highlighting its 2024 achievements and 2025 initiatives. The company reported 35% year-over-year revenue growth to $212.7K for 2024, with a 20% decrease in operating expenses and 16% improvement in net loss.

Key developments include: expansion to 43 U.S. states and international markets including Canada, Australia, and New Zealand; securing orders for 350 SOBRsure bands for 2025 delivery; and completing third-party product validations. The company maintains a strong financial position with $8.4 million in cash and no long-term debt as of December 31, 2024.

Recent corporate actions include a 1-for-10 reverse stock split on April 2, 2025, reducing outstanding shares from 15.2M to 1.5M, and successful warrant exercises generating $5M in net proceeds across Q4 2024 and Q1 2025.

Positive

• 35% year-over-year revenue growth to $212.7K
• 20% reduction in operating expenses
• 16% improvement in net loss
• Strong cash position of $8.4M with no long-term debt
• Successful warrant exercises raising $5M in new capital
• Geographic expansion to 43 U.S. states and international markets
• Secured orders for 350 SOBRsure bands for 2025

Negative

• Low absolute revenue of $212.7K despite growth
• Implemented 1-for-10 reverse stock split, indicating previous share price weakness
• Continued net loss despite improvement

Insights

Financial Analyst

SOBRsafe's update presents a company making incremental progress while revealing the realities of early commercialization. The 35% year-over-year revenue growth sounds impressive until contextualized against the $212.7 thousand annual revenue base—an extremely modest figure for a publicly-traded company. While operational discipline is evident through the 20% reduction in expenses and 16% improvement in net loss, the company clearly remains unprofitable.

The financial position shows $8.4 million cash with no debt, bolstered by approximately $5 million from warrant exercises across two quarters. This provides adequate runway, though the burn rate isn't specified. The 1-for-10 reverse split implemented April 2nd is particularly telling—typically executed to maintain listing requirements when share prices fall below exchange minimums.

New orders for 350 monitoring bands represent tangible sales progress, but without pricing details, revenue impact remains unclear. The expansion into family law markets and international airports suggests sensible market diversification, though penetration metrics are absent.

Investors should view this update as confirmation of a very early-stage public company making directional improvements but still facing a lengthy path to meaningful scale. The third-party validations and enhanced marketing efforts may accelerate adoption, but the financial fundamentals indicate a company still proving its business model rather than scaling a proven one.

SOBRsafe is Positioned for a Strong 2025 as the Company Continues to Make Progress on Third Party Validation; Driving Sales Growth Through Enhanced Marketing Efforts; Ramping Personnel Support; and Remains Well Capitalized with No Debt

DENVER, CO / ACCESS Newswire / April 15, 2025 / SOBR Safe, Inc. (Nasdaq:SOBR) ("SOBRsafe" or the "Company"), the leader in next-generation alcohol monitoring and detection technology, is providing a corporate update on progress made throughout 2024 as well as upcoming strategic initiatives the Company is currently undertaking.

Marketing Updates: Building Brand Awareness and Driving Adoption

• Collaborated with LocalIQ, the marketing solution for the largest U.S. newspaper publisher and the largest local-to-national publishing and digital media organization in the U.S., to launch both business-to-consumer and business-to-business marketing initiatives to build brand recognition and support 2025 sales efforts in the fourth quarter of 2024.

• Generated significant brand awareness and stimulated market adoption through multi-channel national marketing campaigns.

• Broadened the global reach of SOBRsafe^TM users and subscribers across 43 U.S. states, Canada, Australia, and New Zealand.

• Initiated a robust marketing campaign in April to correspond with the National Council on Alcohol and Drug Dependence Alcohol Awareness Month.

• Showcased SOBRsafe's next-generation solutions at the 50^th Annual Psychotherapy Associates Winter Symposium and the 2025 Marketing Exchange.

• The Company is set to attend RISE25, the 16^th Annual West Coast Symposium on Addictive Disorders, Advocates for Recovery Colorado's Rally for Recovery, the National Behavior Association of Providers East Coast Symposium, and the 2025 Behavioral Health Tech Conference throughout 2025.

Sales Updates: Growth Through Enhanced Marketing and Leading Technology

• Secured several new SOBRsure orders resulting in 350 bands expected to be delivered in 2025.

• Bolstered go-to-market strategy with the appointment of Brady Reinig, the Company's new Vice President of Sales, in April 2025.

• Launched alcohol detection and testing program for airport personnel and pilots outside of the U.S., building upon the Company's growing global footprint.

• Expanded business-to-business sales in the first quarter of 2025 into the family law market to address the approximate 450,000 individuals undergoing domestic monitoring.

• Deployed SOBRsafe's patent-pending software technology stack with an improved mobile application with streamlined administration application and notification protocols, and introduce new user interface elements.

"SOBRsafe continues to gain momentum across diverse markets while forging impactful partnerships, reinforcing our industry leadership," said SOBRsafe Chairman and CEO David Gandini. "In 2024, we made tremendous strides in brand awareness and customer adoption through strategic marketing initiatives and a focused sales effort. Our partnerships and campaigns have generated remarkable engagement, demonstrating the power of our technology to create safer workplaces and communities. As we move further into 2025, we are building on this momentum - scaling our reach, entering new markets, further validating our technology, and delivering innovative solutions that redefine alcohol monitoring, detection and safety. We're excited for the future, and we are just getting started."

Operational Updates

• Completed two third-party product validation tests in the first quarter of 2025 and a 12-month third-party product sensor validation in December 2024.

• Fortified SOBRsafe corporate team with additional full-time employees to support growth in accounting, customer service, and marketing efforts.

• Supporting third-party Artificial Intelligence (AI) Blood Alcohol Concentration (BAC) equivalency testing with our SOBRsure^TM device in the second quarter of 2025.

Financial Updates

• Total revenue increased 35% year-over-year to $212.7 thousand for the year ended December 31, 2024.

• Operating expenses for the year ended December 31, 2024, decreased 20% year-over-year.

• Net loss improved 16% year-over-year for the year ended December 31, 2024.

• Maintained a robust financial position with total cash of $8.4 million and no long-term debt as of December 31, 2024.

• Exercised outstanding warrants during the quarter ended December 31, 2024, and the quarter ended March 31, 2025, resulting in approximately $1.7 million and $3.3 million in net proceeds, respectively.

• Completed a 1-for-10 reverse stock split of its common stock on April 2, 2025, reducing the total number of SOBRsafe's outstanding shares from approximately 15.2 million to 1.5 million.

"Our disciplined approach to operations and financial management has yielded tangible results, with year-over-year revenue growth, reduced operating expenses, and a healthy balance sheet," said SOBRsafe CFO Christopher Whitaker. "With a strengthened corporate team, a clear growth strategy, and fortified financial position, SOBRsafe continues to be poised to support future sales success. We remain steadfast in our commitment to innovation, efficiency, and delivering long-term value to our stakeholders."

About SOBRsafe™

Through next-generation alcohol detection technology, we enable trust and empower recovery ... with a human touch. SOBRsafe's advanced transdermal (touch-based) technology monitors, detects and reports in real-time the presence of alcohol as emitted through a user's skin - no breath, blood, or urine samples are required. With a powerful backend data platform, SOBRsafe provides passive, dignified screening and monitoring solutions for the behavioral health, family law and consumer markets, and for licensing and integration. To learn more, visit www.sobrsafe.com.

Safe Harbor Statement

Our prospects here at SOBRsafe are subject to uncertainties and risks. This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. The Company intends that such forward-looking statements be subject to the safe harbor provided by the foregoing Sections. These forward-looking statements are based largely on the expectations or forecasts of future events, can be affected by inaccurate assumptions, and are subject to various business risks and known and unknown uncertainties, a number of which are beyond the control of management. Therefore, actual results could differ materially from the forward-looking statements contained in this presentation. The Company cannot predict or determine after the fact what factors would cause actual results to differ materially from those indicated by the forward-looking statements or other statements. The reader should consider statements that include the words "may", "if", "will", "consider", "believes", "expects", "anticipates", "intends", "estimates", "plans", "projects", "should", or other expressions that are predictions of or indicate future events or trends, to be uncertain and forward-looking. We caution readers not to place undue reliance upon any such forward-looking statements. The Company does not undertake to publicly update or revise forward-looking statements, whether because of new information, future events or otherwise. Additional information respecting factors that could materially affect the Company and its operations are contained in the Company's filings with the SEC which can be found on the SEC's website at www.sec.gov.

Company Contact:

IR@sobrsafe.com

Investor Relations Contact:

Scott Liolios
Taylor Stadeli
Gateway Group
949-574-3860
SOBR@gateway-grp.com

SOURCE: SOBR Safe, Inc.

View the original press release on ACCESS Newswire

FAQ

What was SOBRsafe's (SOBR) revenue growth in 2024?

SOBRsafe reported a 35% year-over-year revenue increase to $212.7 thousand for the year ended December 31, 2024.

How much cash does SOBRsafe (SOBR) have as of December 31, 2024?

SOBRsafe maintained $8.4 million in total cash with no long-term debt as of December 31, 2024.

What was the impact of SOBRsafe's (SOBR) reverse stock split in April 2025?

The 1-for-10 reverse stock split on April 2, 2025 reduced SOBRsafe's outstanding shares from approximately 15.2 million to 1.5 million.

How many SOBRsure band orders has SOBRsafe (SOBR) secured for 2025?

SOBRsafe secured orders for 350 SOBRsure bands expected to be delivered in 2025.

How much did SOBRsafe (SOBR) raise through warrant exercises in Q4 2024 and Q1 2025?

SOBRsafe raised approximately $1.7 million in Q4 2024 and $3.3 million in Q1 2025 through warrant exercises, totaling $5 million.